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    <VOL>89</VOL>
    <NO>125</NO>
    <DATE>Friday, June 28, 2024</DATE>
    <UNITNAME>Contents</UNITNAME>
    <CNTNTS>
        <AGCY>
            <EAR>
                Agricultural Marketing
                <PRTPAGE P="iii"/>
            </EAR>
            <HD>Agricultural Marketing Service</HD>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <DOCENT>
                    <DOC>Fair and Competitive Livestock and Poultry Markets, </DOC>
                    <PGS>53886-53911</PGS>
                    <FRDOCBP>2024-14042</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Agriculture</EAR>
            <HD>Agriculture Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Agricultural Marketing Service</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Forest Service</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Rural Utilities Service</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Antitrust Division</EAR>
            <HD>Antitrust Division</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Changes under the National Cooperative Research and Production Act:</SJ>
                <SJDENT>
                    <SJDOC>Clean Highly Efficient Decarbonized Engines, </SJDOC>
                    <PGS>54041-54042</PGS>
                    <FRDOCBP>2024-14308</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Consortium for Battery Innovation, </SJDOC>
                    <PGS>54043</PGS>
                    <FRDOCBP>2024-14266</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Consortium for Rare Earth Technologies, </SJDOC>
                    <PGS>54042</PGS>
                    <FRDOCBP>2024-14306</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cooperative Research Group H2ICE Demonstration Vehicle, </SJDOC>
                    <PGS>54042</PGS>
                    <FRDOCBP>2024-14303</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Countering Weapons of Mass Destruction, </SJDOC>
                    <PGS>54043</PGS>
                    <FRDOCBP>2024-14261</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Defense Electronics Consortium, </SJDOC>
                    <PGS>54044-54045</PGS>
                    <FRDOCBP>2024-14283</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Integrated Photonics Institute for Manufacturing Innovation Operating under the Name of the American Institute for Manufacturing Integrated Photonics, </SJDOC>
                    <PGS>54044</PGS>
                    <FRDOCBP>2024-14258</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Maritime Sustainment and Technology Innovation Consortium, </SJDOC>
                    <PGS>54041</PGS>
                    <FRDOCBP>2024-14310</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>National Spectrum Consortium, </SJDOC>
                    <PGS>54046</PGS>
                    <FRDOCBP>2024-14257</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Naval Surface Technology and Innovation Consortium, </SJDOC>
                    <PGS>54045</PGS>
                    <FRDOCBP>2024-14311</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Pistoia Alliance, Inc., </SJDOC>
                    <PGS>54046</PGS>
                    <FRDOCBP>2024-14255</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Resilient Infrastructure and Secure Energy Consortium, </SJDOC>
                    <PGS>54042-54043</PGS>
                    <FRDOCBP>2024-14269</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Southwest Research Institute: Cooperative Research Group on Consortium for NASGRO Development and Support, </SJDOC>
                    <PGS>54043</PGS>
                    <FRDOCBP>2024-14256</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Training and Readiness Accelerator II, </SJDOC>
                    <PGS>54045-54046</PGS>
                    <FRDOCBP>2024-14304</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Undersea Technology Innovation Consortium, </SJDOC>
                    <PGS>54044</PGS>
                    <FRDOCBP>2024-14285</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Utility Broadband Alliance, Inc., </SJDOC>
                    <PGS>54041</PGS>
                    <FRDOCBP>2024-14316</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Centers Disease</EAR>
            <HD>Centers for Disease Control and Prevention</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>54000-54002</PGS>
                    <FRDOCBP>2024-14309</FRDOCBP>
                </DOCENT>
                <SJ>Charter Amendments, Establishments, Renewals and Terminations:</SJ>
                <SJDENT>
                    <SJDOC>Advisory Committee on Breast Cancer in Young Women, </SJDOC>
                    <PGS>54002</PGS>
                    <FRDOCBP>2024-14289</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Centers Medicare</EAR>
            <HD>Centers for Medicare &amp; Medicaid Services</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>54002-54004</PGS>
                    <FRDOCBP>2024-14338</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Children</EAR>
            <HD>Children and Families Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>Temporary Assistance for Needy Families Work Outcomes Measures, </DOC>
                    <PGS>53870-53877</PGS>
                    <FRDOCBP>2024-13865</FRDOCBP>
                </DOCENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Community Services Block Grant Annual Progress Report, </SJDOC>
                    <PGS>54004-54006</PGS>
                    <FRDOCBP>2024-14172</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Refugee Support Services and RSS Set Aside Sub-Agency List, </SJDOC>
                    <PGS>54004</PGS>
                    <FRDOCBP>2024-14165</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Coast Guard</EAR>
            <HD>Coast Guard</HD>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>Civil Monetary Penalty Inflation Adjustment, </DOC>
                    <PGS>53849-53863</PGS>
                    <FRDOCBP>2024-14121</FRDOCBP>
                </DOCENT>
                <SJ>Safety Zone:</SJ>
                <SJDENT>
                    <SJDOC>Laguna Madre, South Padre Island, TX, </SJDOC>
                    <PGS>53868-53869</PGS>
                    <FRDOCBP>2024-14319</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Ohio River, Point Pleasant, WV, </SJDOC>
                    <PGS>53864-53866</PGS>
                    <FRDOCBP>2024-14193</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Port of Los Angeles, Main Channel, </SJDOC>
                    <PGS>53866-53868</PGS>
                    <FRDOCBP>2024-14234</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>San Francisco Giants Fireworks, San Francisco Bay, San Francisco, CA, </SJDOC>
                    <PGS>53863-53864</PGS>
                    <FRDOCBP>2024-14356</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Commerce</EAR>
            <HD>Commerce Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Economic Analysis Bureau</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>International Trade Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Oceanic and Atmospheric Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Patent and Trademark Office</P>
            </SEE>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Research Performance Progress Report, </SJDOC>
                    <PGS>53947-53948</PGS>
                    <FRDOCBP>2024-14166</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Committee for Purchase</EAR>
            <HD>Committee for Purchase From People Who Are Blind or Severely Disabled</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Quarterly Public, </SJDOC>
                    <PGS>53966</PGS>
                    <FRDOCBP>2024-14229</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Procurement List; Additions and Deletions, </DOC>
                    <PGS>53965-53967</PGS>
                    <FRDOCBP>2024-14228</FRDOCBP>
                      
                    <FRDOCBP>2024-14231</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Commodity Futures</EAR>
            <HD>Commodity Futures Trading Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>53967-53969</PGS>
                    <FRDOCBP>2024-14250</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Community Living Administration</EAR>
            <HD>Community Living Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>State Plan for Assistive Technology, </SJDOC>
                    <PGS>54006-54008</PGS>
                    <FRDOCBP>2024-14226</FRDOCBP>
                </SJDENT>
                <SJ>Single-Source Supplement:</SJ>
                <SJDENT>
                    <SJDOC>Expanding Innovation Lab, </SJDOC>
                    <PGS>54006</PGS>
                    <FRDOCBP>2024-14227</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Copyright Royalty Board</EAR>
            <HD>Copyright Royalty Board</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Distribution of Cable Royalty Funds, </DOC>
                    <PGS>54166-54282</PGS>
                    <FRDOCBP>2024-13597</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Defense Department</EAR>
            <HD>Defense Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Engineers Corps</P>
            </SEE>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>53979-53980, 53982-53983</PGS>
                    <FRDOCBP>2024-14322</FRDOCBP>
                      
                    <FRDOCBP>2024-14331</FRDOCBP>
                </DOCENT>
                <DOCENT>
                    <DOC>Arms Sales, </DOC>
                    <PGS>53969-53971, 53974-53985</PGS>
                    <FRDOCBP>2024-14181</FRDOCBP>
                      
                    <FRDOCBP>2024-14184</FRDOCBP>
                      
                    <FRDOCBP>2024-14186</FRDOCBP>
                      
                    <FRDOCBP>2024-14187</FRDOCBP>
                      
                    <FRDOCBP>2024-14188</FRDOCBP>
                </DOCENT>
                <SJ>Licenses; Exemptions, Applications, Amendments, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Kapalya, Inc., </SJDOC>
                    <PGS>53971</PGS>
                    <FRDOCBP>2024-14333</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Privacy Act; Systems of Records, </DOC>
                    <PGS>53971-53973</PGS>
                    <FRDOCBP>2024-14203</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>
                Drug
                <PRTPAGE P="iv"/>
            </EAR>
            <HD>Drug Enforcement Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Decision and Order:</SJ>
                <SJDENT>
                    <SJDOC>Abdul Naushad, MD, </SJDOC>
                    <PGS>54059-54061</PGS>
                    <FRDOCBP>2024-14207</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Arash M. Padidar, MD, </SJDOC>
                    <PGS>54061-54065</PGS>
                    <FRDOCBP>2024-14201</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Jeffrey Pollock, PA, </SJDOC>
                    <PGS>54052-54059</PGS>
                    <FRDOCBP>2024-14199</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Lisa Jones, NP, </SJDOC>
                    <PGS>54051-54052</PGS>
                    <FRDOCBP>2024-14200</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Michael Gore, PA, </SJDOC>
                    <PGS>54047-54051</PGS>
                    <FRDOCBP>2024-14195</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Economic Analysis Bureau</EAR>
            <HD>Economic Analysis Bureau</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Services Surveys: Quarterly Survey of Ocean Freight Revenues and Foreign Expenses of U.S. Carriers, etc., </SJDOC>
                    <PGS>53948-53949</PGS>
                    <FRDOCBP>2024-14273</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Education Department</EAR>
            <HD>Education Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Financial Value Transparency and Gainful Employment:</SJ>
                <SJDENT>
                    <SJDOC>List of Approved Classification of Instructional Program Codes for Qualifying Graduate Programs, </SJDOC>
                    <PGS>53986-53988</PGS>
                    <FRDOCBP>2024-14217</FRDOCBP>
                </SJDENT>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Presidential Advisory Commission on Advancing Educational Equity, Excellence, and Economic Opportunity for Black Americans, </SJDOC>
                    <PGS>53988-53989</PGS>
                    <FRDOCBP>2024-14340</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Energy Department</EAR>
            <HD>Energy Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Energy Information Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Western Area Power Administration</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Energy Information</EAR>
            <HD>Energy Information Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>53989</PGS>
                    <FRDOCBP>2024-14248</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Engineers</EAR>
            <HD>Engineers Corps</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Final Federal Agency Action:</SJ>
                <SJDENT>
                    <SJDOC>Authorization for the Sunrise Wind Energy Project Offshore New York, </SJDOC>
                    <PGS>53985</PGS>
                    <FRDOCBP>2024-14236</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Environmental Protection</EAR>
            <HD>Environmental Protection Agency</HD>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <SJ>Air Quality State Implementation Plans; Approvals and Promulgations:</SJ>
                <SJDENT>
                    <SJDOC>Pennsylvania; Oil and Natural Gas Control Measures for 2008 and 2015 Ozone National Ambient Air Quality Standards, </SJDOC>
                    <PGS>53932-53936</PGS>
                    <FRDOCBP>2024-13972</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>2024 Clean Water Act Guidelines, </DOC>
                    <PGS>53995</PGS>
                    <FRDOCBP>2024-14277</FRDOCBP>
                </DOCENT>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>National Emission Standards for Hazardous Air Pollutants for Cellulose Products Manufacturing, </SJDOC>
                    <PGS>53996</PGS>
                    <FRDOCBP>2024-14293</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Environmental Impact Statements; Availability, etc., </DOC>
                    <PGS>53995-53996</PGS>
                    <FRDOCBP>2024-14260</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Export Import</EAR>
            <HD>Export-Import Bank</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Application for Short-Term Letter of Credit Export Credit Insurance Policy, </SJDOC>
                    <PGS>53997</PGS>
                    <FRDOCBP>2024-14295</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Aviation</EAR>
            <HD>Federal Aviation Administration</HD>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <SJ>Airworthiness Directives:</SJ>
                <SJDENT>
                    <SJDOC>Lycoming Engines, </SJDOC>
                    <PGS>53911-53913</PGS>
                    <FRDOCBP>2024-14100</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Pilot Records Improvement Act/Pilot Record Database, </SJDOC>
                    <PGS>54122-54123</PGS>
                    <FRDOCBP>2024-14305</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Release of Airport Development Aid Program Property, </DOC>
                    <PGS>54122</PGS>
                    <FRDOCBP>2024-14007</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Emergency</EAR>
            <HD>Federal Emergency Management Agency</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Flood Hazard Determinations, </DOC>
                    <PGS>54017-54026</PGS>
                    <FRDOCBP>2024-14173</FRDOCBP>
                      
                    <FRDOCBP>2024-14174</FRDOCBP>
                      
                    <FRDOCBP>2024-14177</FRDOCBP>
                      
                    <FRDOCBP>2024-14178</FRDOCBP>
                      
                    <FRDOCBP>2024-14179</FRDOCBP>
                      
                    <FRDOCBP>2024-14180</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Mediation</EAR>
            <HD>Federal Mediation and Conciliation Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Privacy Act; Systems of Records, </DOC>
                    <PGS>53997-53999</PGS>
                    <FRDOCBP>2024-14239</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Motor</EAR>
            <HD>Federal Motor Carrier Safety Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Exemption Application:</SJ>
                <SJDENT>
                    <SJDOC>Parts and Accessories Necessary for Safe Operation; Brent Higgins Trucking, Inc., </SJDOC>
                    <PGS>54125-54130</PGS>
                    <FRDOCBP>2024-14264</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Parts and Accessories Necessary for Safe Operation; DJS Fundraising, Inc., </SJDOC>
                    <PGS>54131-54136</PGS>
                    <FRDOCBP>2024-14263</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Parts and Accessories Necessary for Safe Operation; Groendyke Transport, Inc., </SJDOC>
                    <PGS>54147-54150</PGS>
                    <FRDOCBP>2024-14335</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Parts and Accessories Necessary for Safe Operation; JM Bozeman Enterprises, Inc., </SJDOC>
                    <PGS>54136-54142</PGS>
                    <FRDOCBP>2024-14265</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Parts and Accessories Necessary for Safe Operation; Meiborg Brothers, Inc., </SJDOC>
                    <PGS>54151-54156</PGS>
                    <FRDOCBP>2024-14262</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Qualification of Drivers; Epilepsy and Seizure Disorders, </SJDOC>
                    <PGS>54123-54125, 54130-54131, 54143-54147</PGS>
                    <FRDOCBP>2024-14323</FRDOCBP>
                      
                    <FRDOCBP>2024-14324</FRDOCBP>
                      
                    <FRDOCBP>2024-14325</FRDOCBP>
                      
                    <FRDOCBP>2024-14328</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Qualification of Drivers; Hearing, </SJDOC>
                    <PGS>54142-54143, 54156-54157</PGS>
                    <FRDOCBP>2024-14326</FRDOCBP>
                      
                    <FRDOCBP>2024-14327</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Railroad</EAR>
            <HD>Federal Railroad Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Request for Amendment:</SJ>
                <SJDENT>
                    <SJDOC>Peninsula Corridor Joint Powers Board; Positive Train Control Safety Plan and Positive Train Control System, </SJDOC>
                    <PGS>54157</PGS>
                    <FRDOCBP>2024-14298</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Reserve</EAR>
            <HD>Federal Reserve System</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>53999-54000</PGS>
                    <FRDOCBP>2024-14341</FRDOCBP>
                </DOCENT>
                <DOCENT>
                    <DOC>Formations of, Acquisitions by, and Mergers of Bank Holding Companies, </DOC>
                    <PGS>53999</PGS>
                    <FRDOCBP>2024-14321</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Fish</EAR>
            <HD>Fish and Wildlife Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Permits; Applications, Issuances, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Emergency Exemption to Import Endangered Species, </SJDOC>
                    <PGS>54031</PGS>
                    <FRDOCBP>2024-14206</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Food and Drug</EAR>
            <HD>Food and Drug Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Produce Regulatory Program Standards, </SJDOC>
                    <PGS>54009-54010</PGS>
                    <FRDOCBP>2024-14329</FRDOCBP>
                </SJDENT>
                <SJ>Guidance:</SJ>
                <SJDENT>
                    <SJDOC>Diversity Action Plans to Improve Enrollment of Participants from Underrepresented Populations in Clinical Studies, </SJDOC>
                    <PGS>54010-54012</PGS>
                    <FRDOCBP>2024-14284</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>
                Foreign Assets
                <PRTPAGE P="v"/>
            </EAR>
            <HD>Foreign Assets Control Office</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Sanctions Action, </DOC>
                    <PGS>54160-54162</PGS>
                    <FRDOCBP>2024-14292</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Forest</EAR>
            <HD>Forest Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Transfer of Administrative Jurisdiction to Land:</SJ>
                <SJDENT>
                    <SJDOC>Leech Lake Band of the Minnesota Chippewa Tribe, Chippewa National Forest, MN, </SJDOC>
                    <PGS>53938-53946</PGS>
                    <FRDOCBP>2024-14086</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>General Services</EAR>
            <HD>General Services Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Charter Amendments, Establishments, Renewals and Terminations, </DOC>
                    <PGS>54000</PGS>
                    <FRDOCBP>2024-14259</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Health and Human</EAR>
            <HD>Health and Human Services Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Centers for Disease Control and Prevention</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Centers for Medicare &amp; Medicaid Services</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Children and Families Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Community Living Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Food and Drug Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Institutes of Health</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Substance Abuse and Mental Health Services Administration</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Homeland</EAR>
            <HD>Homeland Security Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Coast Guard</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Emergency Management Agency</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Transportation Security Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>U.S. Citizenship and Immigration Services</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>U.S. Customs and Border Protection</P>
            </SEE>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>Civil Monetary Penalty Inflation Adjustment, </DOC>
                    <PGS>53849-53863</PGS>
                    <FRDOCBP>2024-14121</FRDOCBP>
                </DOCENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Gateway User Registration, </SJDOC>
                    <PGS>54026-54027</PGS>
                    <FRDOCBP>2024-14286</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Housing</EAR>
            <HD>Housing and Urban Development Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Evaluation of the Department of Housing and Urban Development-Department of Justice Pay for Success Permanent Supportive Housing Demonstration, </SJDOC>
                    <PGS>54029-54030</PGS>
                    <FRDOCBP>2024-14238</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Personal Financial and Credit Statement, </SJDOC>
                    <PGS>54028-54029</PGS>
                    <FRDOCBP>2024-14163</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Institute of Museum and Library Services</EAR>
            <HD>Institute of Museum and Library Services</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>President's Committee on the Arts and the Humanities, </SJDOC>
                    <PGS>54073-54074</PGS>
                    <FRDOCBP>2024-14278</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Interior</EAR>
            <HD>Interior Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Fish and Wildlife Service</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Land Management Bureau</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Park Service</P>
            </SEE>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Performance Progress Report, </SJDOC>
                    <PGS>54031-54032</PGS>
                    <FRDOCBP>2024-14294</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Internal Revenue</EAR>
            <HD>Internal Revenue Service</HD>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>Statutory Disallowance of Deductions for Certain Qualified Conservation Contributions Made by Partnerships and S Corporations, </DOC>
                    <PGS>54284-54327</PGS>
                    <FRDOCBP>2024-13844</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>International Trade Adm</EAR>
            <HD>International Trade Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Annual Report from Foreign-Trade Zones, </SJDOC>
                    <PGS>53958-53959</PGS>
                    <FRDOCBP>2024-14242</FRDOCBP>
                </SJDENT>
                <SJ>Antidumping or Countervailing Duty Investigations, Orders, or Reviews:</SJ>
                <SJDENT>
                    <SJDOC>Ceramic Tile from India, </SJDOC>
                    <PGS>53958</PGS>
                    <FRDOCBP>2024-14313</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Certain Carbon and Alloy Steel Cut-to-Length Plate from Italy, </SJDOC>
                    <PGS>53951-53952</PGS>
                    <FRDOCBP>2024-14314</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Certain Softwood Lumber from Canada, </SJDOC>
                    <PGS>53955-53957</PGS>
                    <FRDOCBP>2024-14312</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Ferrosilicon from the Russian Federation, </SJDOC>
                    <PGS>53949-53951</PGS>
                    <FRDOCBP>2024-14197</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Sugar from Mexico, </SJDOC>
                    <PGS>53957-53958</PGS>
                    <FRDOCBP>2024-14237</FRDOCBP>
                </SJDENT>
                <SJ>Sales at Less Than Fair Value; Determinations, Investigations, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Ferrosilicon from the Russian Federation, </SJDOC>
                    <PGS>53953-53955</PGS>
                    <FRDOCBP>2024-14198</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>International Trade Com</EAR>
            <HD>International Trade Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Investigations; Determinations, Modifications, and Rulings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Certain Movable Barrier Operator Systems and Components Thereof, </SJDOC>
                    <PGS>54038-54040</PGS>
                    <FRDOCBP>2024-14291</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Large Top Mount Combination Refrigerator-Freezers from Thailand, </SJDOC>
                    <PGS>54040-54041</PGS>
                    <FRDOCBP>2024-14222</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Justice Department</EAR>
            <HD>Justice Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Antitrust Division</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Drug Enforcement Administration</P>
            </SEE>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Friction Ridge Cards: Arrest and Institution, Identity History Summary Request, etc., </SJDOC>
                    <PGS>54067-54068</PGS>
                    <FRDOCBP>2024-14270</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Hazardous Devices School Application, </SJDOC>
                    <PGS>54066</PGS>
                    <FRDOCBP>2024-14191</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Semi-Annual Progress Report for Grantees of the Transitional Housing Assistance Grant Program, </SJDOC>
                    <PGS>54068-54069</PGS>
                    <FRDOCBP>2024-14189</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Semi-Annual Progress Report for the Legal Assistance for Victims Program, </SJDOC>
                    <PGS>54065-54066</PGS>
                    <FRDOCBP>2024-14192</FRDOCBP>
                </SJDENT>
                <SJ>Proposed Consent Decree:</SJ>
                <SJDENT>
                    <SJDOC>Safe Drinking Water Act, </SJDOC>
                    <PGS>54066-54067</PGS>
                    <FRDOCBP>2024-14287</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Labor Department</EAR>
            <HD>Labor Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Employee Retirement Income Security Act Regulation, </SJDOC>
                    <PGS>54069-54070</PGS>
                    <FRDOCBP>2024-14249</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Land</EAR>
            <HD>Land Management Bureau</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Rights-of-Way, Leasing, and Operations for Renewable Energy:</SJ>
                <SJDENT>
                    <SJDOC>Correction, </SJDOC>
                    <PGS>53869-53870</PGS>
                    <FRDOCBP>2024-14299</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Alaska Native Claims Selection, </DOC>
                    <PGS>54032-54033</PGS>
                    <FRDOCBP>2024-14219</FRDOCBP>
                      
                    <FRDOCBP>2024-14230</FRDOCBP>
                </DOCENT>
                <SJ>Environmental Assessments; Availability, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Proposed Sale of Public Land in Nye County, NV; Realty Action, Intent to Amend a Resource Management Plan, </SJDOC>
                    <PGS>54033-54036</PGS>
                    <FRDOCBP>2024-14176</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Library</EAR>
            <HD>Library of Congress</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Copyright Royalty Board</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>
                NASA
                <PRTPAGE P="vi"/>
            </EAR>
            <HD>National Aeronautics and Space Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Survey of the Use of NASA Earth Observation Data by States, Tribes, and Territories, </SJDOC>
                    <PGS>54070</PGS>
                    <FRDOCBP>2024-14240</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Biosketch and Current and Pending Support Disclosure Policy, </DOC>
                    <PGS>54070-54073</PGS>
                    <FRDOCBP>2024-14170</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Foundation</EAR>
            <HD>National Foundation on the Arts and the Humanities</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Institute of Museum and Library Services</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>National Institute</EAR>
            <HD>National Institutes of Health</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Final Draft National Institute of Environmental Health Sciences Fiscal Year 2025—Fiscal Year 2029 Strategic Plan, </DOC>
                    <PGS>54013-54014</PGS>
                    <FRDOCBP>2024-14241</FRDOCBP>
                </DOCENT>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Center for Scientific Review, </SJDOC>
                    <PGS>54014-54015</PGS>
                    <FRDOCBP>2024-14204</FRDOCBP>
                      
                    <FRDOCBP>2024-14252</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>National Institute of Allergy and Infectious Diseases, </SJDOC>
                    <PGS>54015</PGS>
                    <FRDOCBP>2024-14202</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>National Institute of General Medical Sciences, </SJDOC>
                    <PGS>54013</PGS>
                    <FRDOCBP>2024-14205</FRDOCBP>
                </SJDENT>
                <SJ>Request for Information:</SJ>
                <SJDENT>
                    <SJDOC>National Institute for Mental Health Strategic Plan Evaluation, </SJDOC>
                    <PGS>54012-54013</PGS>
                    <FRDOCBP>2024-14251</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Oceanic</EAR>
            <HD>National Oceanic and Atmospheric Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic:</SJ>
                <SJDENT>
                    <SJDOC>2024 Commercial Closure for Gag in the South Atlantic, </SJDOC>
                    <PGS>53882-53883</PGS>
                    <FRDOCBP>2024-14332</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Reef Fish Resources of the Gulf of Mexico; 2024 Recreational Harvest Closure for Gag, </SJDOC>
                    <PGS>53883-53884</PGS>
                    <FRDOCBP>2024-14225</FRDOCBP>
                </SJDENT>
                <SJ>Fisheries of the Northeastern United States:</SJ>
                <SJDENT>
                    <SJDOC>Summer Flounder Fishery; Quota Transfer from Virginia to Massachusetts, </SJDOC>
                    <PGS>53884-53885</PGS>
                    <FRDOCBP>2024-14218</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <SJ>Endangered and Threatened Species:</SJ>
                <SJDENT>
                    <SJDOC>90-Day Finding on a Petition to List Gulf of Alaska Chinook Salmon, </SJDOC>
                    <PGS>53936-53937</PGS>
                    <FRDOCBP>2024-14169</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Determination of Overfishing or an Overfished Condition, </DOC>
                    <PGS>53961</PGS>
                    <FRDOCBP>2024-14307</FRDOCBP>
                </DOCENT>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Fisheries of the South Atlantic; Southeast Data, Assessment, and Review, </SJDOC>
                    <PGS>53959-53960</PGS>
                    <FRDOCBP>2024-14339</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>New England Fishery Management Council, </SJDOC>
                    <PGS>53959</PGS>
                    <FRDOCBP>2024-14343</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Taking or Importing of Marine Mammals, </DOC>
                    <PGS>53960-53963</PGS>
                    <FRDOCBP>2024-14330</FRDOCBP>
                      
                    <FRDOCBP>2024-14337</FRDOCBP>
                </DOCENT>
                <SJ>Taking or Importing of Marine Mammals:</SJ>
                <SJDENT>
                    <SJDOC>Furie Operating Alaska, LLC Oil and Gas Activities in Cook Inlet, AK; Correction, </SJDOC>
                    <PGS>53961-53962</PGS>
                    <FRDOCBP>2024-14302</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Park</EAR>
            <HD>National Park Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Big Thicket National Preserve Hunting and Trapping Harvest Cards, </SJDOC>
                    <PGS>54037-54038</PGS>
                    <FRDOCBP>2024-14161</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>National Park Service Application for the Lower Mississippi Delta Initiative, </SJDOC>
                    <PGS>54036-54037</PGS>
                    <FRDOCBP>2024-14160</FRDOCBP>
                </SJDENT>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Preservation Technology and Training Board, </SJDOC>
                    <PGS>54036</PGS>
                    <FRDOCBP>2024-14221</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Nuclear Regulatory</EAR>
            <HD>Nuclear Regulatory Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Licenses; Exemptions, Applications, Amendments, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Braidwood Station, Units 1 and 2, Constellation Energy Generation, LLC, </SJDOC>
                    <PGS>54082-54085</PGS>
                    <FRDOCBP>2024-14344</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Intelligence</EAR>
            <HD>Office of the Director of National Intelligence</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Privacy Act; Systems of Records, </DOC>
                    <PGS>54074-54082</PGS>
                    <FRDOCBP>2024-14290</FRDOCBP>
                      
                    <FRDOCBP>2024-14297</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Patent</EAR>
            <HD>Patent and Trademark Office</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Experimental Use Exception, </DOC>
                    <PGS>53963-53965</PGS>
                    <FRDOCBP>2024-14164</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Personnel</EAR>
            <HD>Personnel Management Office</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Marital Status Certification, </SJDOC>
                    <PGS>54085-54086</PGS>
                    <FRDOCBP>2024-14185</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Survivor Annuity Election for a Spouse, Cover Letter Giving Information about the Cost to Elect Less Than the Maximum Survivor Annuity, etc., </SJDOC>
                    <PGS>54085</PGS>
                    <FRDOCBP>2024-14183</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Pipeline</EAR>
            <HD>Pipeline and Hazardous Materials Safety Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Pipeline Safety:</SJ>
                <SJDENT>
                    <SJDOC>Periodic Updates of Regulatory References to Technical Standards and Miscellaneous Amendments; Technical Correction, </SJDOC>
                    <PGS>53880-53882</PGS>
                    <FRDOCBP>2024-14115</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Requirement of Valve Installation and Minimum Rupture Detection Standards: Response to Petition for Reconsideration; Technical Corrections, </SJDOC>
                    <PGS>53877-53880</PGS>
                    <FRDOCBP>2024-14116</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hazardous Materials:</SJ>
                <SJDENT>
                    <SJDOC>De Minimis Quantities of Explosives, </SJDOC>
                    <PGS>54157-54160</PGS>
                    <FRDOCBP>2024-14175</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Postal Service</EAR>
            <HD>Postal Service</HD>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <DOCENT>
                    <DOC>Optional Endorsement Lines and Carrier Route Information Lines, </DOC>
                    <PGS>53913-53914</PGS>
                    <FRDOCBP>2024-13942</FRDOCBP>
                </DOCENT>
                <DOCENT>
                    <DOC>Parcel Processing Categories Simplification, </DOC>
                    <PGS>53914-53932</PGS>
                    <FRDOCBP>2024-13924</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Rural Utilities</EAR>
            <HD>Rural Utilities Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>53946-53947</PGS>
                    <FRDOCBP>2024-14267</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Securities</EAR>
            <HD>Securities and Exchange Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>54099-54101, 54104, 54108</PGS>
                    <FRDOCBP>2024-14220</FRDOCBP>
                      
                    <FRDOCBP>2024-14223</FRDOCBP>
                      
                    <FRDOCBP>2024-14224</FRDOCBP>
                </DOCENT>
                <SJ>Self-Regulatory Organizations; Proposed Rule Changes:</SJ>
                <SJDENT>
                    <SJDOC>Cboe BYX Exchange, Inc., </SJDOC>
                    <PGS>54093-54096</PGS>
                    <FRDOCBP>2024-14213</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe BZX Exchange, Inc., </SJDOC>
                    <PGS>54117-54120</PGS>
                    <FRDOCBP>2024-14214</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe EDGA Exchange, Inc., </SJDOC>
                    <PGS>54086-54089</PGS>
                    <FRDOCBP>2024-14215</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe EDGX Exchange, Inc., </SJDOC>
                    <PGS>54096-54099</PGS>
                    <FRDOCBP>2024-14216</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe Exchange, Inc., </SJDOC>
                    <PGS>54101-54104</PGS>
                    <FRDOCBP>2024-14212</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq GEMX, LLC, </SJDOC>
                    <PGS>54108-54113</PGS>
                    <FRDOCBP>2024-14209</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq MRX, LLC, </SJDOC>
                    <PGS>54113-54117</PGS>
                    <FRDOCBP>2024-14210</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq PHLX LLC, </SJDOC>
                    <PGS>54089-54093</PGS>
                    <FRDOCBP>2024-14208</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>The Nasdaq Stock Market LLC, </SJDOC>
                    <PGS>54104-54108</PGS>
                    <FRDOCBP>2024-14211</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Small Business</EAR>
            <HD>Small Business Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>54121-54122</PGS>
                    <FRDOCBP>2024-14194</FRDOCBP>
                </DOCENT>
                <SJ>Disaster Declaration:</SJ>
                <SJDENT>
                    <SJDOC>Iowa, </SJDOC>
                    <PGS>54121</PGS>
                    <FRDOCBP>2024-14235</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>South Carolina, </SJDOC>
                    <PGS>54120-54121</PGS>
                    <FRDOCBP>2024-14190</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Texas; Public Assistance Only, </SJDOC>
                    <PGS>54120</PGS>
                    <FRDOCBP>2024-14246</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Interest Rates, </DOC>
                    <PGS>54121</PGS>
                    <FRDOCBP>2024-14233</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>
                Substance
                <PRTPAGE P="vii"/>
            </EAR>
            <HD>Substance Abuse and Mental Health Services Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Supplemental Funding Opportunity:</SJ>
                <SJDENT>
                    <SJDOC>Fiscal Year 2024, </SJDOC>
                    <PGS>54015</PGS>
                    <FRDOCBP>2024-14055</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Transportation Department</EAR>
            <HD>Transportation Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Aviation Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Motor Carrier Safety Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Railroad Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Pipeline and Hazardous Materials Safety Administration</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Security</EAR>
            <HD>Transportation Security Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>Civil Monetary Penalty Inflation Adjustment, </DOC>
                    <PGS>53849-53863</PGS>
                    <FRDOCBP>2024-14121</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Treasury</EAR>
            <HD>Treasury Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Foreign Assets Control Office</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Internal Revenue Service</P>
            </SEE>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>54162-54163</PGS>
                    <FRDOCBP>2024-14296</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>U.S. Citizenship</EAR>
            <HD>U.S. Citizenship and Immigration Services</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Freedom of Information/Privacy Act Request, </SJDOC>
                    <PGS>54027-54028</PGS>
                    <FRDOCBP>2024-14282</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Customs</EAR>
            <HD>U.S. Customs and Border Protection</HD>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>Civil Monetary Penalty Inflation Adjustment, </DOC>
                    <PGS>53849-53863</PGS>
                    <FRDOCBP>2024-14121</FRDOCBP>
                </DOCENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Quarterly Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds of Customs Duties, </DOC>
                    <PGS>54016-54017</PGS>
                    <FRDOCBP>2024-14171</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Veteran Affairs</EAR>
            <HD>Veterans Affairs Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Application for Change of Permanent Plan—Medical, </SJDOC>
                    <PGS>54163</PGS>
                    <FRDOCBP>2024-14346</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Western</EAR>
            <HD>Western Area Power Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Rate Order:</SJ>
                <SJDENT>
                    <SJDOC>No. WAPA-212; Loveland Area Projects, </SJDOC>
                    <PGS>53992-53995</PGS>
                    <FRDOCBP>2024-14274</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>No. WAPA-213; Pick-Sloan Missouri Basin Program-Eastern Division, </SJDOC>
                    <PGS>53989-53992</PGS>
                    <FRDOCBP>2024-14275</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <PTS>
            <HD SOURCE="HED">Separate Parts In This Issue</HD>
            <HD>Part II</HD>
            <DOCENT>
                <DOC>Library of Congress, Copyright Royalty Board, </DOC>
                <PGS>54166-54282</PGS>
                <FRDOCBP>2024-13597</FRDOCBP>
            </DOCENT>
            <HD>Part III</HD>
            <DOCENT>
                <DOC>Treasury Department, Internal Revenue Service, </DOC>
                <PGS>54284-54327</PGS>
                <FRDOCBP>2024-13844</FRDOCBP>
            </DOCENT>
        </PTS>
        <AIDS>
            <HD SOURCE="HED">Reader Aids</HD>
            <P>Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.</P>
            <P>To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription.</P>
        </AIDS>
    </CNTNTS>
    <VOL>89</VOL>
    <NO>125</NO>
    <DATE>Friday, June 28, 2024</DATE>
    <UNITNAME>Rules and Regulations</UNITNAME>
    <RULES>
        <RULE>
            <PREAMB>
                <PRTPAGE P="53849"/>
                <AGENCY TYPE="F">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <CFR>8 CFR Parts 270, 274a, and 280</CFR>
                <SUBAGY>U.S. Customs and Border Protection</SUBAGY>
                <CFR>19 CFR Part 4</CFR>
                <SUBAGY>Coast Guard</SUBAGY>
                <CFR>33 CFR Part 27</CFR>
                <SUBAGY>Transportation Security Administration</SUBAGY>
                <CFR>49 CFR Part 1503</CFR>
                <RIN>RIN 1601-AB11</RIN>
                <SUBJECT>Civil Monetary Penalty Adjustments for Inflation</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of Homeland Security (DHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In this final rule, DHS adjusts for inflation its civil monetary penalties for 2024, in accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Executive Office of the President (EOP) Office of Management and Budget (OMB) guidance. DHS is also accounting for additional civil monetary penalties that the U.S. Coast Guard is statutorily authorized to collect. The new penalty amounts will be effective for penalties assessed after June 28, 2024 whose associated violations occurred after November 2, 2015.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective on June 28, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Hillary Hunnings, Attorney-Advisor, 202-282-9043, 
                        <E T="03">hillary.hunnings@hq.dhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Table of Contents</HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">I. Statutory and Regulatory Background</FP>
                    <FP SOURCE="FP-2">II. Overview of Final Rule</FP>
                    <FP SOURCE="FP-2">III. Adjustments by Component</FP>
                    <FP SOURCE="FP1-2">A. Cybersecurity and Infrastructure Security Agency</FP>
                    <FP SOURCE="FP1-2">B. U.S. Customs and Border Protection</FP>
                    <FP SOURCE="FP1-2">C. U.S. Immigration and Customs Enforcement</FP>
                    <FP SOURCE="FP1-2">D. U.S. Coast Guard</FP>
                    <FP SOURCE="FP1-2">E. Transportation Security Administration</FP>
                    <FP SOURCE="FP-2">IV. Administrative Procedure Act</FP>
                    <FP SOURCE="FP-2">V. Regulatory Analyses</FP>
                    <FP SOURCE="FP1-2">A. Executive Orders 12866 and 13563</FP>
                    <FP SOURCE="FP1-2">B. Regulatory Flexibility Act</FP>
                    <FP SOURCE="FP1-2">C. Unfunded Mandates Reform Act</FP>
                    <FP SOURCE="FP1-2">D. Paperwork Reduction Act</FP>
                    <FP SOURCE="FP-2">VI. Signing Authority</FP>
                </EXTRACT>
                <HD SOURCE="HD1">I. Statutory and Regulatory Background</HD>
                <P>
                    On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114-74 section 701 (Nov. 2, 2015)) (2015 Act).
                    <SU>1</SU>
                    <FTREF/>
                     The 2015 Act amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) to further improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The 2015 Act required agencies to: (1) adjust the level of civil monetary penalties with an initial “catch-up” adjustment through issuance of an interim final rule (IFR) and (2) make subsequent annual adjustments for inflation.
                    <SU>2</SU>
                    <FTREF/>
                     Through the “catch-up” adjustment, agencies were required to adjust the amounts of civil monetary penalties to more accurately reflect inflation rates.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         The 2015 Act was part of the Bipartisan Budget Act of 2015, Public Law 114-74 (Nov. 2, 2015) (codified as amended at 28 U.S.C. 2461 note).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         Public Law 114-74 section 701(b)(1)(D)(b)(1)-(2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Public Law 114-74 section 701(b)(1)(D)(b)(1)(A)-(B).
                    </P>
                </FTNT>
                <P>
                    For the subsequent annual adjustments, the 2015 Act requires agencies to increase the penalty amounts by a cost-of-living adjustment.
                    <SU>4</SU>
                    <FTREF/>
                     The 2015 Act directs OMB to provide guidance to agencies each year to assist agencies in making the annual adjustments.
                    <SU>5</SU>
                    <FTREF/>
                     The 2015 Act requires agencies to make the annual adjustments no later than January 15 of each year and to publish the adjustments in the 
                    <E T="04">Federal Register</E>
                    .
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         Public Law 114-74 section 701(b)(1)(D)(b)(2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Public Law 114-74 section 701(b)(2)(4)(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Public Law 114-74 section 701(b)(1)(A)(a).
                    </P>
                </FTNT>
                <P>
                    Pursuant to the 2015 Act, DHS undertook a review of the civil penalties that DHS and its components administer.
                    <SU>7</SU>
                    <FTREF/>
                     On July 1, 2016, DHS published an IFR adjusting the maximum civil monetary penalties with an initial “catch-up” adjustment, as required by the 2015 Act.
                    <SU>8</SU>
                    <FTREF/>
                     DHS calculated the adjusted penalties based upon nondiscretionary provisions in the 2015 Act and upon guidance that OMB issued to agencies on February 24, 2016.
                    <SU>9</SU>
                    <FTREF/>
                     The adjusted penalties were effective for civil penalties assessed after August 1, 2016 (the effective date of the IFR), whose associated violations occurred after November 2, 2015 (the date of enactment of the 2015 Act).
                    <SU>10</SU>
                    <FTREF/>
                     On January 27, 2017, DHS published a final rule making the annual adjustment for 2017.
                    <SU>11</SU>
                    <FTREF/>
                     On April 2, 2018, DHS made the 2018 annual inflation adjustment.
                    <SU>12</SU>
                    <FTREF/>
                     On April 5, 2019, DHS made the 2019 annual inflation adjustment.
                    <SU>13</SU>
                    <FTREF/>
                     On June 17, 2020, DHS made the 2020 annual inflation adjustment.
                    <SU>14</SU>
                    <FTREF/>
                     On October 18, 2021, DHS made the 2021 annual inflation adjustment.
                    <SU>15</SU>
                    <FTREF/>
                     On January 11, 2022, DHS made the 2022 annual inflation adjustment.
                    <SU>16</SU>
                    <FTREF/>
                     On January 13, 2023, DHS made the 2023 annual inflation adjustment.
                    <SU>17</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         The 2015 Act applies to all agency civil penalties except for any penalty (including any addition to tax and additional amount) under the Internal Revenue Code of 1986 (26 U.S.C. 1 
                        <E T="03">et seq.</E>
                        ) and the Tariff Act of 1930 (19 U.S.C. 1202 
                        <E T="03">et seq.</E>
                        ). 
                        <E T="03">See</E>
                         sec. 4(a)(1) of the 2015 Act. In the case of DHS, several civil penalties that are assessed by U.S. Customs and Border Protection (CBP) and the U.S. Coast Guard (USCG) fall under the Tariff Act of 1930, and therefore DHS did not adjust those civil penalties in this rulemaking.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         81 FR 42987 (July 1, 2016).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">Id.;</E>
                         Office of Mgmt. &amp; Budget, Exec. Office of The President, M-16-06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year, (Feb. 24, 2016) (
                        <E T="03">https://www.whitehouse.gov/omb/information-for-agencies/memoranda/#memoranda-2016</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         81 FR at 42987 (July 1, 2016).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         82 FR 8571 (Jan. 27, 2017).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         83 FR 13826 (Apr. 2, 2018).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         84 FR 13499 (Apr. 5, 2019).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         85 FR 36469 (June 17, 2020).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         86 FR 57532 (Oct. 18, 2021).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         87 FR 1317 (Jan. 11, 2022).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         88 FR 2175 (Jan. 13, 2023).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Overview of the Final Rule</HD>
                <P>
                    This final rule makes the 2024 annual inflation adjustments to civil monetary penalties pursuant to the 2015 Act and pursuant to guidance OMB issued to agencies on December 19, 2023.
                    <SU>18</SU>
                    <FTREF/>
                     The 
                    <PRTPAGE P="53850"/>
                    penalty amounts in this final rule will be effective for penalties assessed after June 28, 2024 where the associated violation occurred after November 2, 2015. Consistent with OMB guidance, the 2015 Act does not retrospectively change previously assessed penalties that the agency is actively collecting or has collected.
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         Office of Mgmt. and Budget, Exec. Office of the President, M-24-07, Implementation of Penalty 
                        <PRTPAGE/>
                        Inflation Adjustments for 2024, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 19, 2023) (
                        <E T="03">https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf</E>
                        ).
                    </P>
                </FTNT>
                <P>
                    We discuss civil penalties by DHS component in Section III below. For each component identified in Section III, below, we briefly describe the relevant civil penalty (or penalties), and we provide a table showing the increase in the penalties for 2024. In the table for each component, we show (1) the penalty name, (2) the penalty statutory and or regulatory citation, (3) the penalty amount as adjusted in the 2023 final rule, (4) the cost-of-living adjustment multiplier for 2024 that OMB provided in its December 19, 2023, guidance, and (5) the new 2024 adjusted penalty. The 2015 Act instructs agencies to round penalties to the nearest multiple of $1.
                    <SU>19</SU>
                    <FTREF/>
                     For a more complete discussion of the method used for calculating the initial “catch-up” inflation adjustments and a component-by-component breakdown to the nature of the civil penalties and relevant legal authorities, please see the IFR preamble at 81 FR 42987-43000.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         Public Law 114-74 section 701(b)(2)(A).
                    </P>
                </FTNT>
                <P>Additionally, in Section III(D) discussing the civil penalties of the U.S. Coast Guard, DHS is accounting for additional civil monetary penalties that the U.S. Coast Guard is statutorily authorized to collect.</P>
                <P>Finally, in issuing this final rule, it is DHS's intention that the rule's penalty provisions be considered severable from one another to the greatest extent possible. For example, if a court of competent jurisdiction were to hold that a particular penalty amount could not be applied as adjusted for inflation to particular persons or in particular circumstances, DHS would intend for the court to leave the remainder of the rule in place with respect to all other penalties as adjusted for inflation and covered persons and circumstances.</P>
                <HD SOURCE="HD1">III. Adjustments by Component</HD>
                <P>In the following sections, we briefly describe the civil penalties that DHS and its components, the Cybersecurity and Infrastructure Security Agency (CISA), the U.S. Customs and Border Protection (CBP), the U.S. Immigration and Customs Enforcement (ICE), the U.S. Coast Guard (USCG), and the Transportation Security Administration (TSA), assess. Other components not mentioned do not impose any civil monetary penalties for 2024. At the end of each section we include tables that list the individual adjustments for each penalty.</P>
                <HD SOURCE="HD2">A. Cybersecurity and Infrastructure Security Agency</HD>
                <P>
                    The Cybersecurity and Infrastructure Security Agency (CISA) administers the Chemical Facility Anti-Terrorism Standards (CFATS). CFATS is a program that regulates the security of chemical facilities that, in the discretion of the Secretary, present high levels of security risk. DHS established the CFATS program in 2007 pursuant to section 550 of the Department of Homeland Security Appropriations Act of 2007 (Pub. L. 109-295).
                    <SU>20</SU>
                    <FTREF/>
                     Pursuant to section 5 of the Protecting and Securing Chemical Facilities from Terrorist Attacks Act of 2014 (Pub. L. 113-254, as amended by Pub. L. 116-150; 6 U.S.C. 621 note), authorization had been granted for CFATS until July 27, 2023. Congress did not act to reauthorize the program in time and, as such, the authorization expired on July 28, 2023. Therefore, regulations written pursuant to CFATS authority are not currently active. While regulatory text for the CFATS regulation, including a civil penalty, is located in part 27 of title 6 of the Code of Federal Regulations (CFR), the text is inactive due to the lapse in authority. For that reason, we are not proposing any changes relating to adjustments to the maximum civil penalty amount that may be assessed pursuant to CFATS at this time.
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         Section 550 has since been superseded by the Protecting and Securing Chemical Facilities from Terrorist Attacks Act of 2014 (Public Law 113-254). The new legislation codified the statutory authority for the CFATS program within Title XXI of the Homeland Security Act of 2002, as amended. 
                        <E T="03">See</E>
                         6 U.S.C. 621 
                        <E T="03">et seq.</E>
                         Public Law 113-254 authorized the CFATS program from January 18, 2015, to January 17, 2019. Public Law 116-150 extends the CFATS program authorization to July 27, 2023.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. U.S. Customs and Border Protection</HD>
                <P>The U.S. Customs and Border Protection (CBP) assesses civil monetary penalties under various titles of the United States Code (U.S.C.) and the CFR. These include penalties for certain violations of title 8 of the CFR regarding the Immigration and Nationality Act of 1952 (Pub. L. 82-414, as amended) (INA). The INA contains provisions that impose penalties on persons, including carriers and aliens, who violate specified provisions of the INA. The relevant penalty provisions appear in numerous sections of the INA; however, CBP has enumerated these penalties in regulation in one location—8 CFR 280.53. For a complete list of the INA sections for which penalties are assessed, in addition to a brief description of each violation, see the 2016 IFR preamble at 81 FR 42989-42990. For a complete list and brief description of the non-INA civil monetary penalties assessed by CBP subject to adjustment and a discussion of the history of the DHS and CBP adjustments to the non-INA penalties, see the 2019 annual inflation adjustment final rule preamble at 84 FR 13499, 13500 (April 5, 2019).</P>
                <P>Below is a table showing the 2024 adjustment for the penalties that CBP administers.</P>
                <GPOTABLE COLS="5" OPTS="L2,nj,p7,7/8,i1" CDEF="s75,r50,r50,12,r50">
                    <TTITLE>Table 1—U.S. Customs and Border Protection Civil Penalties Adjustments</TTITLE>
                    <BOXHD>
                        <CHED H="1">Penalty name</CHED>
                        <CHED H="1">Citation</CHED>
                        <CHED H="1">
                            Penalty amount
                            <LI>as adjusted</LI>
                            <LI>in the 2023 FR</LI>
                        </CHED>
                        <CHED H="1">Multiplier *</CHED>
                        <CHED H="1">
                            New penalty as adjusted
                            <LI>by this final rule</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Penalties for non-compliance with arrival and departure manifest requirements for passengers, crewmembers, or occupants transported on commercial vessels or aircraft arriving to or departing from the United States</ENT>
                        <ENT>8 U.S.C. 1221(g); 8 CFR 280.53(b)(1) (INA section 231(g))</ENT>
                        <ENT>$1,643</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$1,696.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for non-compliance with landing requirements at designated ports of entry for aircraft transporting aliens</ENT>
                        <ENT>8 U.S.C. 1224; 8 CFR 280.53(b)(2) (INA section 234)</ENT>
                        <ENT>$4,465</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$4,610.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for failure to depart voluntarily</ENT>
                        <ENT>8 U.S.C. 1229c(d); 8 CFR 280.53(b)(3) (INA section 240B(d))</ENT>
                        <ENT>$1,881-$9,413</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$1,942-$9,718.</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="53851"/>
                        <ENT I="01">Penalties for violations of removal orders relating to aliens transported on vessels or aircraft under section 241(d) of the INA, or for costs associated with removal under section 241(e) of the INA</ENT>
                        <ENT>8 U.S.C. 1253(c)(1)(A); 8 CFR 280.53(b)(4) (INA section 243(c)(1)(A))</ENT>
                        <ENT>$3,765</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$3,887.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for failure to remove alien stowaways under section 241(d)(2) of the INA</ENT>
                        <ENT>8 U.S.C. 1253(c)(1)(B); 8 CFR 280.53(b)(5) (INA section 243(c)(1)(B))</ENT>
                        <ENT>$9,413</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$9,718.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for failure to report an illegal landing or desertion of alien crewmen, and for each alien not reported on arrival or departure manifest or lists required in accordance with section 251 of the INA</ENT>
                        <ENT>8 U.S.C. 1281(d); 8 CFR 280.53(b)(6) (INA section 251(d))</ENT>
                        <ENT>$446 for each alien</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$460 for each alien.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for use of alien crewmen for longshore work in violation of section 251(d) of the INA</ENT>
                        <ENT>8 U.S.C. 1281(d); 8 CFR 280.53(b)(6) (INA section 251(d))</ENT>
                        <ENT>$11,162</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$11,524.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for failure to control, detain, or remove alien crewmen</ENT>
                        <ENT>8 U.S.C. 1284(a); 8 CFR 280.53(b)(7) (INA section 254(a))</ENT>
                        <ENT>$1,116-$6,696</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$1,152-$6,913.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for employment on passenger vessels of aliens afflicted with certain disabilities</ENT>
                        <ENT>8 U.S.C. 1285; 8 CFR 280.53(b)(8) (INA section 255)</ENT>
                        <ENT>$2,232</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$2,304.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for discharge of alien crewmen</ENT>
                        <ENT>8 U.S.C. 1286; 8 CFR 280.53(b)(9) (INA section 256)</ENT>
                        <ENT>$3,348-$6,696</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$3,457-$6,913.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for bringing into the United States alien crewmen with intent to evade immigration laws</ENT>
                        <ENT>8 U.S.C. 1287; 8 CFR 280.53(b)(10) (INA section 257)</ENT>
                        <ENT>$22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for failure to prevent the unauthorized landing of aliens</ENT>
                        <ENT>8 U.S.C. 1321(a); 8 CFR 280.53(b)(11) (INA section 271(a))</ENT>
                        <ENT>$6,696</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$6,913.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for bringing to the United States aliens subject to denial of admission on a health-related ground</ENT>
                        <ENT>8 U.S.C. 1322(a); 8 CFR 280.53(b)(12) (INA section 272(a))</ENT>
                        <ENT>$6,696</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$6,913.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for bringing to the United States aliens without required documentation</ENT>
                        <ENT>8 U.S.C. 1323(b); 8 CFR 280.53(b)(13) (INA section 273(b))</ENT>
                        <ENT>$6,696</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$6,913.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for failure to depart</ENT>
                        <ENT>8 U.S.C. 1324d; 8 CFR 280.53(b)(14) (INA section 274D)</ENT>
                        <ENT>$942</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$973.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalties for improper entry</ENT>
                        <ENT>8 U.S.C. 1325(b); 8 CFR 280.53(b)(15) (INA section 275(b))</ENT>
                        <ENT>$94-$472</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$97-487.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalty for dealing in or using empty stamped imported liquor containers</ENT>
                        <ENT>19 U.S.C. 469</ENT>
                        <ENT>$625</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$645.**</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalty for employing a vessel in a trade without a required Certificate of Documentation</ENT>
                        <ENT>19 U.S.C. 1706a 19 CFR 4.80(i)</ENT>
                        <ENT>$1,566</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$1,617.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalty for transporting passengers coastwise for hire by certain vessels (known as Bowaters vessels) that do not meet specified conditions</ENT>
                        <ENT>46 U.S.C. 12118(f)(3)</ENT>
                        <ENT>$625</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$645.**</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalty for transporting passengers between coastwise points in the United States by a non-coastwise qualified vessel</ENT>
                        <ENT>46 U.S.C. 55103(b); 19 CFR 4.80(b)(2)</ENT>
                        <ENT>$941</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$971.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalty for towing a vessel between coastwise points in the United States by a non-coastwise qualified vessel</ENT>
                        <ENT>46 U.S.C. 55111(c); 19 CFR 4.92</ENT>
                        <ENT>$1,096-$3,446 plus $187 per ton</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$1,132-$3,558 plus $193 per ton.</ENT>
                    </ROW>
                    <TNOTE>
                        * Office of Mgmt. and Budget, Exec. Office of the President, M-24-07, Implementation of Penalty Inflation Adjustments for 2024, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 19, 2023) (
                        <E T="03">https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf</E>
                        ).
                    </TNOTE>
                    <TNOTE>** No applicable conforming edit to regulatory text.</TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD2">C. U.S. Immigration and Customs Enforcement</HD>
                <P>U.S. Immigration and Customs Enforcement (ICE) assesses civil monetary penalties for certain employment-related violations arising from the INA. ICE's civil penalties are located in title 8 of the CFR.</P>
                <P>There are three different sections in the INA that impose civil monetary penalties for violations of the laws that relate to employment actions: sections 274A, 274B, and 274C. ICE has primary enforcement responsibilities for two of these civil penalty provisions (sections 274A and 274C), and the Department of Justice (DOJ) has enforcement responsibilities for one of these civil penalty provisions (section 274B). The INA, in sections 274A and 274C, provides for imposition of civil penalties for various specified unlawful acts pertaining to the employment eligibility verification process (Form I-9, Employment Eligibility Verification), the employment of unauthorized aliens, and document fraud.</P>
                <P>
                    Because both DHS and DOJ implement the three employment-related penalty sections in the INA, both Departments' implementing regulations reflect the civil penalty amounts. For a complete description of the civil money penalties assessed and a discussion of DHS's and DOJ's efforts to update the penalties in years past, see the IFR 
                    <PRTPAGE P="53852"/>
                    preamble at 81 FR 42991. Below is a table showing the 2024 adjustment for the penalties that ICE administers.
                    <SU>21</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         Table 3 also includes two civil penalties that are also listed as penalties administered by CBP. These are penalties for failure to depart voluntarily, INA section 240B(d), and failure to depart after a final order of removal, INA section 274D. Both CBP and ICE may administer these penalties, but as ICE is the DHS component primarily responsible for assessing and collecting them, they are also listed among the penalties ICE administers.
                    </P>
                </FTNT>
                <GPOTABLE COLS="5" OPTS="L2,nj,p7,7/8,i1" CDEF="s75,r60,r50,12,r50">
                    <TTITLE>Table 2—U.S. Immigration and Customs Enforcement Civil Penalties Adjustments</TTITLE>
                    <BOXHD>
                        <CHED H="1">Penalty name</CHED>
                        <CHED H="1">Citation</CHED>
                        <CHED H="1">
                            Penalty amount as adjusted
                            <LI>in the 2023 FR</LI>
                        </CHED>
                        <CHED H="1">Multiplier *</CHED>
                        <CHED H="1">
                            New penalty as adjusted
                            <LI>by this final rule</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Civil penalties for failure to depart voluntarily, INA section 240B(d)</ENT>
                        <ENT>8 U.S.C. 1229c(d); 8 CFR 280.53(b)(3)</ENT>
                        <ENT>$1,881-$9,413</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$1,942-$9,718.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Civil penalties for violation of INA sections 274C(a)(1)-(a)(4), penalty for first offense</ENT>
                        <ENT>8 CFR 270.3(b)(1)(ii)(A)</ENT>
                        <ENT>$557-$4,465</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$575-$4,610.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Civil penalties for violation of INA sections 274C(a)(5)-(a)(6), penalty for first offense</ENT>
                        <ENT>8 CFR 270.3(b)(1)(ii)(B)</ENT>
                        <ENT>$472-$3,765</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$487-$3,887.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Civil penalties for violation of INA sections 274C(a)(1)-(a)(4), penalty for subsequent offenses</ENT>
                        <ENT>8 CFR 270.3(b)(1)(ii)(C)</ENT>
                        <ENT>$4,465-$11,162</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$4,610-$11,524.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Civil penalties for violation of INA sections 274C(a)(5)-(a)(6), penalty for subsequent offenses</ENT>
                        <ENT>8 CFR 270.3(b)(1)(ii)(D)</ENT>
                        <ENT>$3,765-$9,413</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$3,887-$9,718.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Violation/prohibition of indemnity bonds</ENT>
                        <ENT>8 CFR 274a.8(b)</ENT>
                        <ENT>$2,701</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$2,789.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Civil penalties for knowingly hiring, recruiting, referral, or retention of unauthorized aliens—Penalty for first offense (per unauthorized alien)</ENT>
                        <ENT>8 CFR 274a.10(b)(1)(ii)(A)</ENT>
                        <ENT>$676-$5,404</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$698-$5,579.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalty for second offense (per unauthorized alien)</ENT>
                        <ENT>8 CFR 274a.10(b)(1)(ii)(B)</ENT>
                        <ENT>$5,404-$13,508</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$5,579-$13,946.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Penalty for third or subsequent offense (per unauthorized alien)</ENT>
                        <ENT>8 CFR 274a.10(b)(1)(ii)(C)</ENT>
                        <ENT>$8,106-$27,018</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$8,369-$27,894.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Civil penalties for I-9 paperwork violations</ENT>
                        <ENT>8 CFR 274a.10(b)(2)</ENT>
                        <ENT>$272-$2,701</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$281-$2,789.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Civil penalties for failure to depart, INA section 274D</ENT>
                        <ENT>8 U.S.C. 1324d; 8 CFR 280.53(b)(14)</ENT>
                        <ENT>$942</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$973.</ENT>
                    </ROW>
                    <TNOTE>
                        * Office of Mgmt. and Budget, Exec. Office of the President, M-24-07, Implementation of Penalty Inflation Adjustments for 2024, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 19, 2023) (
                        <E T="03">https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf</E>
                        ).
                    </TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD2">D. U.S. Coast Guard</HD>
                <P>The Coast Guard is authorized to assess nearly 150 penalties involving maritime safety and security and environmental stewardship that are critical to the continued success of Coast Guard missions. Various statutes in titles 14, 16, 19, 33, 42, 46, and 49 of the U.S.C. authorize these penalties. Titles 33 and 46 authorize the vast majority of these penalties as these statutes deal with navigation, navigable waters, and shipping. For a more detailed discussion of the civil monetary penalties assessed by the Coast Guard, see the 2016 IFR preamble at 81 FR 42992.</P>
                <P>The Coast Guard has identified the penalties it administers, adjusted those penalties for inflation, and is listing those new penalties in a table located in the CFR—specifically, Table 1 in 33 CFR 27.3. Table 1 in 33 CFR 27.3 identifies the statutes that provide the Coast Guard with civil monetary penalty authority and sets out the inflation-adjusted maximum penalty that the Coast Guard may impose pursuant to each statutory provision. Table 1 in 33 CFR 27.3 provides the current maximum penalty for violations that occurred after November 2, 2015. The applicable civil monetary penalty amounts for violations occurring on or before November 2, 2015, are set forth in previously published regulations amending 33 CFR part 27. To find the applicable penalty amount for a violation that occurred on or before November 2, 2015, look to the prior versions of the CFR that pertain to the date on which the violation occurred.</P>
                <P>
                    The Coast Guard has also identified updates to Table 1 in 33 CFR 27.3 to ensure it accurately reflects all civil monetary penalties that the Coast Guard is statutorily authorized to impose by statute. Table 3, below, lists the penalties that this rule adds or revises in Table 1 in 33 CFR 27.3 followed by a description of each. The added penalties are those that were either recently enacted or inadvertently excluded from Table 1 in 33 CFR 27.3 and from prior civil monetary penalty adjustment rulemakings but that are set and authorized for Coast Guard's assessment by statute. They are now added to Table 1 in 33 CFR 27.3 to create a more complete list of Coast Guard civil monetary penalties and to align with the requirements of the 2015 Act. This rule also removes one penalty, specifically 46 U.S.C. 10104(b), from the existing Table 1 in 33 CFR 27.3 because Congress revised and replaced the penalties in 46 U.S.C. 10104 with those that now appear at 46 U.S.C. 10104(a)(2) and 46 U.S.C. 10104(d)(2).
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         Public Law 117-263 section 11609 (Dec. 23, 2022) (codified as amended at 46 U.S.C. 10104).
                    </P>
                </FTNT>
                <GPOTABLE COLS="5" OPTS="L2,nj,p7,7/8,i1" CDEF="s75,r50,r50,12,r50">
                    <TTITLE>Table 3—U.S. Coast Guard Civil Penalty Additions</TTITLE>
                    <BOXHD>
                        <CHED H="1">Penalty name</CHED>
                        <CHED H="1">Citation</CHED>
                        <CHED H="1">
                            Penalty amount as adjusted
                            <LI>in the 2023 FR</LI>
                        </CHED>
                        <CHED H="1">Multiplier *</CHED>
                        <CHED H="1">
                            New penalty as adjusted
                            <LI>by this final rule</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Master Key Control System</ENT>
                        <ENT>46 U.S.C. 3106(d)</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$1,032.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Passenger Vessel Security and Safety; Daily Penalty &amp; Maximum Penalty</ENT>
                        <ENT>46 U.S.C. 3507(h)(1)(A)</ENT>
                        <ENT>Daily $25,000/Maximum $50,000</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>Daily $25,810/Maximum $51,621.</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="53853"/>
                        <ENT I="01">Passenger Vessel Security and Safety; Crewmembers Crime Scene Preservation Training; Maximum Penalty</ENT>
                        <ENT>46 U.S.C. 3508(d)</ENT>
                        <ENT>$50,000</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$51,621.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Engine Cut-Off Switches; Violation of 4312(b), First Offense</ENT>
                        <ENT>46 U.S.C. 4311(c)</ENT>
                        <ENT>$100</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$103.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Engine Cut-Off Switches; Violation of 4312(b), Second Offense</ENT>
                        <ENT>46 U.S.C. 4311(c)</ENT>
                        <ENT>$250</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$258.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Engine Cut-Off Switches; Violation of 4312(b), Subsequent to Second Offense</ENT>
                        <ENT>46 U.S.C. 4311(c)</ENT>
                        <ENT>$500</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$516.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Employing Qualified Available U.S. Citizens or Residents</ENT>
                        <ENT>46 U.S.C. 8106(f)(2)-(3)</ENT>
                        <ENT>Daily $10,000/Maximum $100,000</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>Daily $10,324/Maximum $103,241.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Requirement to Report Sexual Assault and Harassment; Mandatory Reporting by Responsible Entity of a Vessel</ENT>
                        <ENT>46 U.S.C. 10104(a)(2)</ENT>
                        <ENT>$50,000</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$51,621.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Requirement to Report Sexual Assault and Harassment; Company After Action Summary, violation of 10104(d)(1)</ENT>
                        <ENT>46 U.S.C. 10104(d)(2)</ENT>
                        <ENT>$25,000</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$25,810.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Requirement to Report Sexual Assault and Harassment; Company After Action Summary, daily noncompliance penalty</ENT>
                        <ENT>46 U.S.C. 10104(d)(2)</ENT>
                        <ENT>$500</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$516.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Requirement to Report Sexual Assault and Harassment; Company After Action Summary, Civil Penalty Maximum</ENT>
                        <ENT>46 U.S.C. 10104(d)(2)</ENT>
                        <ENT>$50,000</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$51,621.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel escort operations and towing assistance</ENT>
                        <ENT>46 U.S.C. 55112(d)</ENT>
                        <ENT>$10,000</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$10,324.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Regulation of Vessels in Territorial Waters of the United States</ENT>
                        <ENT>46 U.S.C. 70052(c)</ENT>
                        <ENT>$25,000</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$25,810.</ENT>
                    </ROW>
                    <TNOTE>
                        * Office of Mgmt. and Budget, Exec. Office of the President, M-24-07, Implementation of Penalty Inflation Adjustments for 2024, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 19, 2023) (
                        <E T="03">https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf</E>
                        ).
                    </TNOTE>
                </GPOTABLE>
                <P>
                    The James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (2023 NDAA) authorized a civil penalty of $1,000 under 46 U.S.C. 3106(d) for violations of the required Master Key Control System.
                    <SU>23</SU>
                    <FTREF/>
                     That penalty became effective on December 23, 2022 
                    <SU>24</SU>
                    <FTREF/>
                     and is included in the updates to Table 1 in 33 CFR 27.3. The civil monetary penalties for violations of passenger vessel security and safety requirements, authorized by 46 U.S.C. 3507(h)(1)(A), and violations of crewmembers' crime scene preservation training requirements, authorized by 46 U.S.C. 3508(d), are also included. The penalty in section 3508(d) was previously authorized in 46 U.S.C. 3508(e) and was redesignated to paragraph 3508(d) by the John S. McCain National Defense Authorization Act for Fiscal Year 2018.
                    <SU>25</SU>
                    <FTREF/>
                     These civil monetary penalties involving cruise vessel security and safety are in effect per statute and Coast Guard policy letters.
                    <SU>26</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Public Law 117-263 section 3106 (Dec. 23, 2022).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Public Law 115-232 section 3543 (Aug.13, 2018).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         CG-543 Policy Letter 11-09 (June 28, 2011) &amp; CG-543 Policy Letter 11-10 (July 27, 2011).
                    </P>
                </FTNT>
                <P>USCG also adds penalties for violating requirements for engine cutoff switches for first offense, second offense, and subsequent-to-second offense. These three penalties in 46 U.S.C. 4311(c) were codified by Section 8316 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, (Pub. L. 116-283, January 1, 2021). In addition, the Coast Guard adds the existing civil penalty for Employing Qualified Available U.S. Citizens or Residents in 46 U.S.C. 8106(f). This penalty was originally authorized by Congress through Section 312 of the Coast Guard and Maritime Transportation Act of 2006 (Pub. L. 109-241, July 11, 2006).</P>
                <P>
                    Penalties for violations of a requirement of mandatory reporting of sexual assault and sexual harassment and violations for non-compliance with requirements to submit a company after-action summary, as codified at 46 U.S.C. 10104(a)(2) and 10104(d)(2), are also added to Table 1 in 33 CFR 27.3. An after-action summary summarizes the actions taken after an incident of sexual assault or sexual harassment. These penalties were added by the 2023 NDAA and became effective on December 23, 2022.
                    <SU>27</SU>
                    <FTREF/>
                     The Coast Guard also adds a civil penalty for violating vessel escort operations and towing requirements, authorized at 46 U.S.C. 55112(d) as well as a civil penalty for violations of anchorage and vessel movement during a national emergency authorized by 46 U.S.C. 70052(c) under subchapter VI Regulation of Vessels in the Territorial Waters of the United States, an important national security enforcement authority of the Coast Guard.
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Public Law 117-263 section 11609 (Dec. 23, 2022).
                    </P>
                </FTNT>
                <P>Table 4 below shows the 2024 adjustment for the remaining penalties that the Coast Guard administers that have previously already been included in Table 1 of 33 CFR 27.3.</P>
                <PRTPAGE P="53854"/>
                <GPOTABLE COLS="5" OPTS="L2,nj,p7,7/8,i1" CDEF="s75,r50,r50,12,r50">
                    <TTITLE>Table 4—U.S. Coast Guard Civil Penalties Adjustments</TTITLE>
                    <BOXHD>
                        <CHED H="1">Penalty name</CHED>
                        <CHED H="1">Citation</CHED>
                        <CHED H="1">
                            Penalty amount
                            <LI>as adjusted</LI>
                            <LI>in the 2023 FR</LI>
                        </CHED>
                        <CHED H="1">Multiplier *</CHED>
                        <CHED H="1">
                            New penalty as adjusted
                            <LI>by this final rule</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Saving Life and Property</ENT>
                        <ENT>14 U.S.C. 521(c)</ENT>
                        <ENT>$12,551</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$12,958.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Saving Life and Property; Intentional Interference with Broadcast</ENT>
                        <ENT>14 U.S.C. 521(e)</ENT>
                        <ENT>1,288</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>1,330.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Confidentiality of Medical Quality Assurance Records (first offense)</ENT>
                        <ENT>14 U.S.C. 936(i); 33 CFR 27.3</ENT>
                        <ENT>6,304</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>6,508.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Confidentiality of Medical Quality Assurance Records (subsequent offenses)</ENT>
                        <ENT>14 U.S.C. 936(i); 33 CFR 27.3</ENT>
                        <ENT>42,032</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>43,394.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Obstruction of Revenue Officers by Masters of Vessels</ENT>
                        <ENT>19 U.S.C. 70; 33 CFR 27.3</ENT>
                        <ENT>9,399</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>9,704.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Obstruction of Revenue Officers by Masters of Vessels-Minimum Penalty</ENT>
                        <ENT>19 U.S.C. 70; 33 CFR 27.3</ENT>
                        <ENT>2,193</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>2,264.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Failure to Stop Vessel When Directed; Master, Owner, Operator or Person in Charge</ENT>
                        <ENT>19 U.S.C. 1581(d)</ENT>
                        <ENT>** 5,000</ENT>
                        <ENT>N/A</ENT>
                        <ENT>** 5,000.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Failure to Stop Vessel When Directed; Master, Owner, Operator or Person in Charge-Minimum Penalty</ENT>
                        <ENT>19 U.S.C. 1581(d)</ENT>
                        <ENT>** 1,000</ENT>
                        <ENT>N/A</ENT>
                        <ENT>** 1,000.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Anchorage Ground/Harbor Regulations General</ENT>
                        <ENT>33 U.S.C. 471; 33 CFR 27.3</ENT>
                        <ENT>13,627</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>14,069.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Anchorage Ground/Harbor Regulations St. Mary's river</ENT>
                        <ENT>33 U.S.C. 474; 33 CFR 27.3</ENT>
                        <ENT>941</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>971.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bridges/Failure to Comply with Regulations</ENT>
                        <ENT>33 U.S.C. 495(b); 33 CFR 27.3</ENT>
                        <ENT>34,401</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>35,516.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bridges/Drawbridges</ENT>
                        <ENT>33 U.S.C. 499(c); 33 CFR 27.3</ENT>
                        <ENT>34,401</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>35,516.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bridges/Failure to Alter Bridge Obstructing Navigation</ENT>
                        <ENT>33 U.S.C. 502(c); 33 CFR 27.3</ENT>
                        <ENT>34,401</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>35,516.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bridges/Maintenance and Operation</ENT>
                        <ENT>33 U.S.C. 533(b); 33 CFR 27.3</ENT>
                        <ENT>34,401</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>35,516.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bridge to Bridge Communication; Master, Person in Charge or Pilot</ENT>
                        <ENT>33 U.S.C. 1208(a); 33 CFR 27.3</ENT>
                        <ENT>2,506</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>2,587.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bridge to Bridge Communication; Vessel</ENT>
                        <ENT>33 U.S.C. 1208(b); 33 CFR 27.3</ENT>
                        <ENT>2,506</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>2,587.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oil/Hazardous Substances: Discharges (Class I per violation)</ENT>
                        <ENT>33 U.S.C. 1321(b)(6)(B)(i); 33 CFR 27.3</ENT>
                        <ENT>22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oil/Hazardous Substances: Discharges (Class I total under paragraph)</ENT>
                        <ENT>33 U.S.C. 1321(b)(6)(B)(i); 33 CFR 27.3</ENT>
                        <ENT>55,808</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>57,617.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oil/Hazardous Substances: Discharges (Class II per day of violation)</ENT>
                        <ENT>33 U.S.C. 1321(b)(6)(B)(ii); 33 CFR 27.3</ENT>
                        <ENT>22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oil/Hazardous Substances: Discharges (Class II total under paragraph)</ENT>
                        <ENT>33 U.S.C. 1321(b)(6)(B)(ii); 33 CFR 27.3</ENT>
                        <ENT>279,036</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>288,080.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oil/Hazardous Substances: Discharges (per day of violation) Judicial Assessment</ENT>
                        <ENT>33 U.S.C. 1321(b)(7)(A); 33 CFR 27.3</ENT>
                        <ENT>55,808</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>57,617.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oil/Hazardous Substances: Discharges (per barrel of oil or unit discharged) Judicial Assessment</ENT>
                        <ENT>33 U.S.C. 1321(b)(7)(A); 33 CFR 27.3</ENT>
                        <ENT>2,233</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>2,305.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oil/Hazardous Substances: Failure to Carry Out Removal/Comply With Order (Judicial Assessment)</ENT>
                        <ENT>33 U.S.C. 1321(b)(7)(B); 33 CFR 27.3</ENT>
                        <ENT>55,808</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>57,617.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oil/Hazardous Substances: Failure to Comply with Regulation Issued Under 1321(j) (Judicial Assessment)</ENT>
                        <ENT>33 U.S.C. 1321(b)(7)(C); 33 CFR 27.3</ENT>
                        <ENT>55,808</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>57,617.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oil/Hazardous Substances: Discharges, Gross Negligence (per barrel of oil or unit discharged) Judicial Assessment</ENT>
                        <ENT>33 U.S.C. 1321(b)(7)(D); 33 CFR 27.3</ENT>
                        <ENT>6,696</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>6,913.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oil/Hazardous Substances: Discharges, Gross Negligence-Minimum Penalty (Judicial Assessment)</ENT>
                        <ENT>33 U.S.C. 1321(b)(7)(D); 33 CFR 27.3</ENT>
                        <ENT>223,229</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>230,464.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Marine Sanitation Devices; Operating</ENT>
                        <ENT>33 U.S.C. 1322(j); 33 CFR 27.3</ENT>
                        <ENT>9,399</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>9,704.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Marine Sanitation Devices; Sale or Manufacture</ENT>
                        <ENT>33 U.S.C. 1322(j); 33 CFR 27.3</ENT>
                        <ENT>25,059</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>25,871.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">International Navigation Rules; Operator</ENT>
                        <ENT>33 U.S.C. 1608(a); 33 CFR 27.3</ENT>
                        <ENT>17,570</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>18,139.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">International Navigation Rules; Vessel</ENT>
                        <ENT>33 U.S.C. 1608(b); 33 CFR 27.3</ENT>
                        <ENT>17,570</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>18,139.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Pollution from Ships; General</ENT>
                        <ENT>33 U.S.C. 1908(b)(1); 33 CFR 27.3</ENT>
                        <ENT>87,855</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>90,702.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Pollution from Ships; False Statement</ENT>
                        <ENT>33 U.S.C. 1908(b)(2); 33 CFR 27.3</ENT>
                        <ENT>17,570</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>18,139.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Inland Navigation Rules; Operator</ENT>
                        <ENT>33 U.S.C. 2072(a); 33 CFR 27.3</ENT>
                        <ENT>17,570</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>18,139.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Inland Navigation Rules; Vessel</ENT>
                        <ENT>33 U.S.C. 2072(b); 33 CFR 27.3</ENT>
                        <ENT>17,570</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>18,139.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Shore Protection; General</ENT>
                        <ENT>33 U.S.C. 2609(a); 33 CFR 27.3</ENT>
                        <ENT>61,982</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>63,991.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Shore Protection; Operating Without Permit</ENT>
                        <ENT>33 U.S.C. 2609(b); 33 CFR 27.3</ENT>
                        <ENT>24,793</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>25,597.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oil Pollution Liability and Compensation</ENT>
                        <ENT>33 U.S.C. 2716a(a); 33 CFR 27.3</ENT>
                        <ENT>55,808</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>57,617.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Clean Hulls</ENT>
                        <ENT>33 U.S.C. 3852(a)(1)(A); 33 CFR 27.3</ENT>
                        <ENT>51,097</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>52,753.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Clean Hulls-related to false statements</ENT>
                        <ENT>33 U.S.C. 3852(a)(1)(A); 33 CFR 27.3</ENT>
                        <ENT>68,129</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>70,337.</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="53855"/>
                        <ENT I="01">Clean Hulls-Recreational Vessel</ENT>
                        <ENT>33 U.S.C. 3852(c); 33 CFR 27.3</ENT>
                        <ENT>6,813</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>7,034.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hazardous Substances, Releases, Liability, Compensation (Class I)</ENT>
                        <ENT>42 U.S.C. 9609(a); 33 CFR 27.3</ENT>
                        <ENT>67,544</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>69,733.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hazardous Substances, Releases, Liability, Compensation (Class II)</ENT>
                        <ENT>42 U.S.C. 9609(b); 33 CFR 27.3</ENT>
                        <ENT>67,544</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>69,733.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hazardous Substances, Releases, Liability, Compensation (Class II subsequent offense)</ENT>
                        <ENT>42 U.S.C. 9609(b); 33 CFR 27.3</ENT>
                        <ENT>202,635</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>209,202.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hazardous Substances, Releases, Liability, Compensation (Judicial Assessment)</ENT>
                        <ENT>42 U.S.C. 9609(c); 33 CFR 27.3</ENT>
                        <ENT>67,544</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>69,733.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hazardous Substances, Releases, Liability, Compensation (Judicial Assessment subsequent offense)</ENT>
                        <ENT>42 U.S.C. 9609(c); 33 CFR 27.3</ENT>
                        <ENT>202,635</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>209,202.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Safe Containers for International Cargo</ENT>
                        <ENT>46 U.S.C. 80509; 33 CFR 27.3</ENT>
                        <ENT>7,383</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>7,622.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Suspension of Passenger Service</ENT>
                        <ENT>46 U.S.C. 70305; 33 CFR 27.3</ENT>
                        <ENT>73,837</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>76,230.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Inspection or Examination Fees</ENT>
                        <ENT>46 U.S.C. 2110(e); 33 CFR 27.3</ENT>
                        <ENT>11,162</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>11,524.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Alcohol and Dangerous Drug Testing</ENT>
                        <ENT>46 U.S.C. 2115; 33 CFR 27.3</ENT>
                        <ENT>9,086</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>9,380.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Negligent Operations: Recreational Vessels</ENT>
                        <ENT>46 U.S.C. 2302(a); 33 CFR 27.3</ENT>
                        <ENT>8,219</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>8,485.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Negligent Operations: Other Vessels</ENT>
                        <ENT>46 U.S.C. 2302(a); 33 CFR 27.3</ENT>
                        <ENT>41,093</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>42,425.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Operating a Vessel While Under the Influence of Alcohol or a Dangerous Drug</ENT>
                        <ENT>46 U.S.C. 2302(c)(1); 33 CFR 27.3</ENT>
                        <ENT>9,086</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>9,380.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Reporting Requirements: Owner, Charterer, Managing Operator, or Agent</ENT>
                        <ENT>46 U.S.C. 2306(a)(4); 33 CFR 27.3</ENT>
                        <ENT>14,149</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>14,608.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Reporting Requirements: Master</ENT>
                        <ENT>46 U.S.C. 2306(b)(2); 33 CFR 27.3</ENT>
                        <ENT>2,830</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>2,922.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Immersion Suits</ENT>
                        <ENT>46 U.S.C. 3102(c)(1); 33 CFR 27.3</ENT>
                        <ENT>14,149</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>14,608.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Inspection Permit</ENT>
                        <ENT>46 U.S.C. 3302(i)(5); 33 CFR 27.3</ENT>
                        <ENT>2,951</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>3,047.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Inspection; General</ENT>
                        <ENT>46 U.S.C. 3318(a); 33 CFR 27.3</ENT>
                        <ENT>14,149</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>14,608.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Inspection; Nautical School Vessel</ENT>
                        <ENT>46 U.S.C. 3318(g); 33 CFR 27.3</ENT>
                        <ENT>14,149</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>14,608.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Inspection; Failure to Give Notice in accordance with (IAW) 3304(b)</ENT>
                        <ENT>46 U.S.C. 3318(h); 33 CFR 27.3</ENT>
                        <ENT>2,830</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>2,922.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Inspection; Failure to Give Notice IAW 3309(c)</ENT>
                        <ENT>46 U.S.C. 3318(i); 33 CFR 27.3</ENT>
                        <ENT>2,830</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>2,922.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Inspection; Vessel ≥1600 Gross Tons</ENT>
                        <ENT>46 U.S.C. 3318(j)(1); 33 CFR 27.3</ENT>
                        <ENT>28,304</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>29,221.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Inspection; Vessel &lt;1600 Gross Tons (GT)</ENT>
                        <ENT>46 U.S.C. 3318(j)(1); 33 CFR 27.3</ENT>
                        <ENT>5,661</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>5,844.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Inspection; Failure to Comply with 3311(b)</ENT>
                        <ENT>46 U.S.C. 3318(k); 33 CFR 27.3</ENT>
                        <ENT>28,304</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>29,221.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Inspection; Violation of 3318(b)-3318(f)</ENT>
                        <ENT>46 U.S.C. 3318(l); 33 CFR 27.3</ENT>
                        <ENT>14,149</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>14,608.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">List/count of Passengers</ENT>
                        <ENT>46 U.S.C. 3502(e); 33 CFR 27.3</ENT>
                        <ENT>294</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>304.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Notification to Passengers</ENT>
                        <ENT>46 U.S.C. 3504(c); 33 CFR 27.3</ENT>
                        <ENT>29,505</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>30,461.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Notification to Passengers; Sale of Tickets</ENT>
                        <ENT>46 U.S.C. 3504(c); 33 CFR 27.3</ENT>
                        <ENT>1,474</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>1,522.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Copies of Laws on Passenger Vessels; Master</ENT>
                        <ENT>46 U.S.C. 3506; 33 CFR 27.3</ENT>
                        <ENT>590</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>609.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Liquid Bulk/Dangerous Cargo</ENT>
                        <ENT>46 U.S.C. 3718(a)(1); 33 CFR 27.3</ENT>
                        <ENT>73,764</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>76,155.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Uninspected Vessels</ENT>
                        <ENT>46 U.S.C. 4106; 33 CFR 27.3</ENT>
                        <ENT>12,397</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>12,799.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Recreational Vessels (maximum for related series of violations)</ENT>
                        <ENT>46 U.S.C. 4311(b)(1); 33 CFR 27.3</ENT>
                        <ENT>390,271</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>402,920.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Recreational Vessels; Violation of 4307(a)</ENT>
                        <ENT>46 U.S.C. 4311(b)(1); 33 CFR 27.3</ENT>
                        <ENT>7,805</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>8,058.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Recreational vessels</ENT>
                        <ENT>46 U.S.C. 4311(d); 33 CFR 27.3</ENT>
                        <ENT>2,951</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>3,047.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Uninspected Commercial Fishing Industry Vessels</ENT>
                        <ENT>46 U.S.C. 4507; 33 CFR 27.3</ENT>
                        <ENT>12,397</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>12,799.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Abandonment of Barges</ENT>
                        <ENT>46 U.S.C. 4703; 33 CFR 27.3</ENT>
                        <ENT>2,100</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>2,168.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Load Lines</ENT>
                        <ENT>46 U.S.C. 5116(a); 33 CFR 27.3</ENT>
                        <ENT>13,508</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>13,946.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Load Lines; Violation of 5112(a)</ENT>
                        <ENT>46 U.S.C. 5116(b); 33 CFR 27.3</ENT>
                        <ENT>27,018</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>27,894.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Load Lines; Violation of 5112(b)</ENT>
                        <ENT>46 U.S.C. 5116(c); 33 CFR 27.3</ENT>
                        <ENT>13,508</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>13,946.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Reporting Marine Casualties</ENT>
                        <ENT>46 U.S.C. 6103(a); 33 CFR 27.3</ENT>
                        <ENT>47,061</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>48,586.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Reporting Marine Casualties; Violation of 6104</ENT>
                        <ENT>46 U.S.C. 6103(b); 33 CFR 27.3</ENT>
                        <ENT>12,397</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>12,799.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Manning of Inspected Vessels; Failure to Report Deficiency in Vessel Complement</ENT>
                        <ENT>46 U.S.C. 8101(e); 33 CFR 27.3</ENT>
                        <ENT>2,233</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>2,305.</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="53856"/>
                        <ENT I="01">Manning of Inspected Vessels</ENT>
                        <ENT>46 U.S.C. 8101(f); 33 CFR 27.3</ENT>
                        <ENT>22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Manning of Inspected Vessels; Employing or Serving in Capacity not Licensed by USCG</ENT>
                        <ENT>46 U.S.C. 8101(g); 33 CFR 27.3</ENT>
                        <ENT>22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Manning of Inspected Vessels; Freight Vessel &lt;100 GT, Small Passenger Vessel, or Sailing School Vessel</ENT>
                        <ENT>46 U.S.C. 8101(h); 33 CFR 27.3</ENT>
                        <ENT>2,951</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>3,047.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Watchmen on Passenger Vessels</ENT>
                        <ENT>46 U.S.C. 8102(a)</ENT>
                        <ENT>2,951</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>3,047.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Citizenship Requirements</ENT>
                        <ENT>46 U.S.C. 8103(f)</ENT>
                        <ENT>1,474</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>1,522.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Watches on Vessels; Violation of 8104(a) or (b)</ENT>
                        <ENT>46 U.S.C. 8104(i)</ENT>
                        <ENT>22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Watches on Vessels; Violation of 8104(c), (d), (e), or (h)</ENT>
                        <ENT>46 U.S.C. 8104(j)</ENT>
                        <ENT>22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Staff Department on Vessels</ENT>
                        <ENT>46 U.S.C. 8302(e)</ENT>
                        <ENT>294</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>304.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Officer's Competency Certificates</ENT>
                        <ENT>46 U.S.C. 8304(d)</ENT>
                        <ENT>294</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>304.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Coastwise Pilotage; Owner, Charterer, Managing Operator, Agent, Master or Individual in Charge</ENT>
                        <ENT>46 U.S.C. 8502(e)</ENT>
                        <ENT>22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Coastwise Pilotage; Individual</ENT>
                        <ENT>46 U.S.C. 8502(f)</ENT>
                        <ENT>22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Federal Pilots</ENT>
                        <ENT>46 U.S.C. 8503</ENT>
                        <ENT>70,752</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>73,045.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Merchant Mariners Documents</ENT>
                        <ENT>46 U.S.C. 8701(d)</ENT>
                        <ENT>1,474</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>1,522.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Crew Requirements</ENT>
                        <ENT>46 U.S.C. 8702(e)</ENT>
                        <ENT>22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Small Vessel Manning</ENT>
                        <ENT>46 U.S.C. 8906</ENT>
                        <ENT>47,061</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>48,586.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Pilotage: Great Lakes; Owner, Charterer, Managing Operator, Agent, Master or Individual in Charge</ENT>
                        <ENT>46 U.S.C. 9308(a)</ENT>
                        <ENT>22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Pilotage: Great Lakes; Individual</ENT>
                        <ENT>46 U.S.C. 9308(b)</ENT>
                        <ENT>22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Pilotage: Great Lakes; Violation of 9303</ENT>
                        <ENT>46 U.S.C. 9308(c)</ENT>
                        <ENT>22,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>23,048.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Pay Advances to Seamen</ENT>
                        <ENT>46 U.S.C. 10314(a)(2)</ENT>
                        <ENT>1,474</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>1,522.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Pay Advances to Seamen; Remuneration for Employment</ENT>
                        <ENT>46 U.S.C. 10314(b)</ENT>
                        <ENT>1,474</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>1,522.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Allotment to Seamen</ENT>
                        <ENT>46 U.S.C. 10315(c)</ENT>
                        <ENT>1,474</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>1,522.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Seamen Protection; General</ENT>
                        <ENT>46 U.S.C. 10321</ENT>
                        <ENT>10,226</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>10,557.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Coastwise Voyages: Advances</ENT>
                        <ENT>46 U.S.C. 10505(a)(2)</ENT>
                        <ENT>10,226</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>10,557.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Coastwise Voyages: Advances; Remuneration for Employment</ENT>
                        <ENT>46 U.S.C. 10505(b)</ENT>
                        <ENT>10,226</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>10,557.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Coastwise Voyages: Seamen Protection; General</ENT>
                        <ENT>46 U.S.C. 10508(b)</ENT>
                        <ENT>10,226</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>10,557.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Effects of Deceased Seamen</ENT>
                        <ENT>46 U.S.C. 10711</ENT>
                        <ENT>590</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>609.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Complaints of Unfitness</ENT>
                        <ENT>46 U.S.C. 10902(a)(2)</ENT>
                        <ENT>1,474</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>1,522.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Proceedings on Examination of Vessel</ENT>
                        <ENT>46 U.S.C. 10903(d)</ENT>
                        <ENT>294</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>304.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Permission to Make Complaint</ENT>
                        <ENT>46 U.S.C. 10907(b)</ENT>
                        <ENT>1,474</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>1,522.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Accommodations for Seamen</ENT>
                        <ENT>46 U.S.C. 11101(f)</ENT>
                        <ENT>1,474</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>1,522.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Medicine Chests on Vessels</ENT>
                        <ENT>46 U.S.C. 11102(b)</ENT>
                        <ENT>1,474</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>1,522.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Destitute Seamen</ENT>
                        <ENT>46 U.S.C. 11104(b)</ENT>
                        <ENT>294</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>304.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Wages on Discharge</ENT>
                        <ENT>46 U.S.C. 11105(c)</ENT>
                        <ENT>1,474</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>1,522.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Log Books; Master Failing to Maintain</ENT>
                        <ENT>46 U.S.C. 11303(a)</ENT>
                        <ENT>590</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>609.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Log Books; Master Failing to Make Entry</ENT>
                        <ENT>46 U.S.C. 11303(b)</ENT>
                        <ENT>590</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>609.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Log Books; Late Entry</ENT>
                        <ENT>46 U.S.C. 11303(c)</ENT>
                        <ENT>443</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>457.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Carrying of Sheath Knives</ENT>
                        <ENT>46 U.S.C. 11506</ENT>
                        <ENT>148</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>153.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Documentation</ENT>
                        <ENT>46 U.S.C. 12151(a)(1)</ENT>
                        <ENT>19,324</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>19,950.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Documentation of Vessels—Related to Activities involving mobile offshore drilling units</ENT>
                        <ENT>46 U.S.C. 12151 (a)(2)</ENT>
                        <ENT>32,208</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>33,252.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Documentation; Fishery Endorsement</ENT>
                        <ENT>46 U.S.C. 12151(c)</ENT>
                        <ENT>147,675</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>152,461.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Numbering of Undocumented Vessels—Willful violation</ENT>
                        <ENT>46 U.S.C. 12309(a)</ENT>
                        <ENT>14,754</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>15,232.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Numbering of Undocumented Vessels</ENT>
                        <ENT>46 U.S.C. 12309(b)</ENT>
                        <ENT>2,951</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>3,047.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Identification System</ENT>
                        <ENT>46 U.S.C. 12507(b)</ENT>
                        <ENT>24,793</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>25,597.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Measurement of Vessels</ENT>
                        <ENT>46 U.S.C. 14701</ENT>
                        <ENT>54,038</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>55,789.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Measurement; False Statements</ENT>
                        <ENT>46 U.S.C. 14702</ENT>
                        <ENT>54,038</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>55,789.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Commercial Instruments and Maritime Liens</ENT>
                        <ENT>46 U.S.C. 31309</ENT>
                        <ENT>24,793</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>25,597.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Commercial Instruments and Maritime Liens; Mortgagor</ENT>
                        <ENT>46 U.S.C. 31330(a)(2)</ENT>
                        <ENT>24,793</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>25,597.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Commercial Instruments and Maritime Liens; Violation of 31329</ENT>
                        <ENT>46 U.S.C. 31330(b)(2)</ENT>
                        <ENT>61,982</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>63,991.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Ports and Waterway Safety Regulations</ENT>
                        <ENT>46 U.S.C. 70036(a); 33 CFR 27.3</ENT>
                        <ENT>111,031</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>114,630.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Navigation: Regattas or Marine Parades; Unlicensed Person in Charge</ENT>
                        <ENT>46 U.S.C. 70041(d)(1)(B); 33 CFR 27.3</ENT>
                        <ENT>11,162</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>11,524.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Navigation: Regattas or Marine Parades; Owner Onboard Vessel</ENT>
                        <ENT>46 U.S.C. 70041(d)(1)(C); 33 CFR 27.3</ENT>
                        <ENT>11,162</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>11,524.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vessel Navigation: Regattas or Marine Parades; Other Persons</ENT>
                        <ENT>46 U.S.C. 70041(d)(1)(D); 33 CFR 27.3</ENT>
                        <ENT>5,580</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>5,761.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Port Security</ENT>
                        <ENT>46 U.S.C. 70119(a)</ENT>
                        <ENT>41,093</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>42,425.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Port Security—Continuing Violations</ENT>
                        <ENT>46 U.S.C. 70119(b)</ENT>
                        <ENT>73,837</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>76,230.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Maritime Drug Law Enforcement</ENT>
                        <ENT>46 U.S.C. 70506(c)</ENT>
                        <ENT>6,813</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>7,034.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hazardous Materials: Related to Vessels</ENT>
                        <ENT>49 U.S.C. 5123(a)(1)</ENT>
                        <ENT>96,624</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>99,756.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hazardous Materials: Related to Vessels—Penalty from Fatalities, Serious Injuries/Illness or substantial Damage to Property</ENT>
                        <ENT>49 U.S.C. 5123(a)(2)</ENT>
                        <ENT>225,455</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>232,762.</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="53857"/>
                        <ENT I="01">Hazardous Materials: Related to Vessels; Training</ENT>
                        <ENT>49 U.S.C. 5123(a)(3)</ENT>
                        <ENT>582</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>601.</ENT>
                    </ROW>
                    <TNOTE>
                        * Office of Mgmt. and Budget, Exec. Office of the President, M-24-07, Implementation of Penalty Inflation Adjustments for 2024, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 19, 2023) (
                        <E T="03">https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf</E>
                        ).
                    </TNOTE>
                    <TNOTE>** Enacted under the Tariff Act; exempt from inflation adjustments.</TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD2">E. Transportation Security Administration</HD>
                <P>The Transportation Security Administration (TSA) is updating its civil penalties regulation in accordance with the 2015 Act. Pursuant to its statutory authority in 49 U.S.C. 46301(a)(1), (4), (5), (6), 49 U.S.C. 46301(d)(2), (8), and 49 U.S.C. 114(u), TSA may impose penalties for violations of statutes that TSA administers, including penalties for violations of implementing regulations or orders. Note that pursuant to division K, title I, sec. 1904(b)(1)(I), of Public Law 115-254, 132 Stat. 3186, 3545 (Oct. 5, 2018), the TSA Modernization Act—part of the FAA Reauthorization Act of 2018—the former 49 U.S.C. 114(v), which relates to penalties, was re-designated as 49 U.S.C. 114(u).</P>
                <P>
                    TSA assesses these penalties for a wide variety of aviation and surface security requirements, including violations of TSA's requirements applicable to Transportation Worker Identification Credentials (TWIC),
                    <SU>28</SU>
                    <FTREF/>
                     as well as violations of requirements described in chapter 449 of title 49 of the U.S.C. These penalties can apply to a wide variety of situations, as described in the statutory and regulatory provisions, as well as in guidance that TSA publishes. Below is a table showing the 2024 adjustment for the penalties that TSA administers.
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See, e.g.,</E>
                         46 U.S.C. 70105, 49 U.S.C. 46302 and 46303, and 49 U.S.C. chapter 449.
                    </P>
                </FTNT>
                <GPOTABLE COLS="5" OPTS="L2,nj,p7,7/8,i1" CDEF="s75,r50,r50,12,r50">
                    <TTITLE>Table 5—Transportation Security Administration Civil Penalties Adjustments</TTITLE>
                    <BOXHD>
                        <CHED H="1">Penalty name</CHED>
                        <CHED H="1">Citation</CHED>
                        <CHED H="1">
                            Penalty amount as adjusted
                            <LI>in the 2023 FR</LI>
                        </CHED>
                        <CHED H="1">Multiplier *</CHED>
                        <CHED H="1">
                            New penalty as adjusted
                            <LI>by this final rule</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Violation of 49 U.S.C. ch. 449 (except secs. 44902, 44903(d), 44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909), or 49 U.S.C. 46302 or 46303, a regulation prescribed, or order issued thereunder by a person operating an aircraft for the transportation of passengers or property for compensation</ENT>
                        <ENT>49 U.S.C. 46301(a)(1), (4), (5), (6); 49 U.S.C. 46301(d)(2), (8); 49 CFR 1503.401(c)(3)</ENT>
                        <ENT>$40,272 (up to a total of $644,343 per civil penalty action)</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$41,577 (up to a total of $665,226 per civil penalty action).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Violation of 49 U.S.C. ch. 449 (except secs. 44902, 44903(d), 44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909), or 49 U.S.C. 46302 or 46303, a regulation prescribed, or order issued thereunder by an individual (except an airman serving as an airman), any person not operating an aircraft for the transportation of passengers or property for compensation, or a small business concern</ENT>
                        <ENT>49 U.S.C. 46301(a)(1), (4), (5); 49 U.S.C. 46301(d)(8); 49 CFR 1503.401(c)</ENT>
                        <ENT>$16,108 (up to a total of $80,544 for individuals or small businesses, $644,343 for others)</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$16,630 (up to a total of $83,154 for individuals or small businesses, $665,226 for others).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Violation of any other provision of title 49 U.S.C. or of 46 U.S.C. ch. 701, a regulation prescribed, or order issued thereunder</ENT>
                        <ENT>49 U.S.C. 114(u); 49 CFR 1503.401(b)</ENT>
                        <ENT>$13,785 (up to a total of $68,928 total for individuals or small businesses, $551,417 for others)</ENT>
                        <ENT>1.03241</ENT>
                        <ENT>$14,232 (up to a total of $71,162 total for individuals or small businesses, $569,288 for others).</ENT>
                    </ROW>
                    <TNOTE>
                        * Office of Mgmt. and Budget, Exec. Office of the President, M-24-07, Implementation of Penalty Inflation Adjustments for 2024, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 19, 2022) (
                        <E T="03">https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf</E>
                        ).
                    </TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD1">IV. Administrative Procedure Act</HD>
                <P>
                    The Administrative Procedure Act (“APA”) (5 U.S.C. 551 
                    <E T="03">et seq.</E>
                    ) require agencies, when conducting rulemaking, to provide advance public notice, seek public comment, and provide a thirty-day delayed effective date. An agency may issue a rule without first providing an opportunity for notice and comment if the agency makes a finding of good cause that that notice and comment procedures are impracticable, unnecessary, or contrary to the public interest. Notice and comment procedures are unnecessary, for example, if Congress requires non-discretionary action of an agency, leaving the agency without discretion to vary its action in response to the views or suggestions of public commenters.
                </P>
                <P>With respect to the annual inflation adjustments, DHS finds that notice and comment procedures are not required. The 2015 Act had instructed agencies to make the required annual adjustments “notwithstanding section 553 of title 5 of the U.S.C.” (See 28 U.S.C. 2461 note). Furthermore, DHS has good cause to forgo notice and comment procedures because such procedures would be unnecessary due to DHS's lack of discretion in updating the penalties. As required by the 2015 Act, DHS is updating the penalty amounts by applying the cost-of-living adjustment multiplier that OMB has provided to agencies. For the same reasons, DHS also finds that it has good cause to forgo a delayed effective date under section 553(d) of the APA.</P>
                <P>
                    With respect to the penalties that Coast Guard has added in this 
                    <PRTPAGE P="53858"/>
                    rulemaking, DHS finds that there is good cause to bypass notice and comment procedures. In this rule, the Coast Guard adds penalties to Table 1 in 33 CFR part 27. The penalties address master key control systems (46 U.S.C. 3106(d)), passenger vessel safety and security (46 U.S.C. 3507(h)(1)(A) and 46 U.S.C. 3508(d)), engine cut-off switches (46 U.S.C. 4311(c)), employing qualified available U.S. citizens or residents (46 U.S.C. 8106(f)(2)-(3)), the requirement to report sexual assault and harassment (46 U.S.C. 10104(a)(2) and 46 U.S.C. 10104(d)(2)), vessel escort operations and towing assistance (46 U.S.C. 55112(d)), and the regulation of vessels in the territorial waters of the United States (46 U.S.C. 70052(c). See Table 3, “U.S. Coast Guard Civil Penalty Additions,” above for more information on the penalties that the Coast Guard is adding to Table 1 in 33 CFR part 27. DHS finds that there is good cause to forgo notice and comment procedures for these additions because notice and comment procedures would be unnecessary. Notice and comment would not change either the initial maximum statutory penalties (set by their authorizing statutes) or the multiplier (set by OMB). The authorizing statutes for these penalties and the 2015 Act leave the Coast Guard no discretion to consider any other alternatives for setting the penalties. For the reasons stated above, DHS also finds that good cause exists to forgo a 30-day delayed effective date under section 553(d) of the APA.
                </P>
                <HD SOURCE="HD1">V. Regulatory Analyses</HD>
                <HD SOURCE="HD2">A. Executive Orders 12866 and 13563</HD>
                <P>Executive Orders 12866 (“Regulatory Planning and Review”), as amended by Executive Order 14094 (“Modernizing Regulatory Review”), and 13563 (“Improving Regulation and Regulatory Review”) direct agencies to assess the 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). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility.</P>
                <P>
                    OMB has not designated this final rule a “significant regulatory action” under section 3(f) of Executive Order 12866, as amended by Executive Order 14094. Accordingly, OMB has not reviewed this rule. This final rule makes nondiscretionary adjustments to existing civil monetary penalties in accordance with the 2015 Act and OMB guidance.
                    <SU>29</SU>
                    <FTREF/>
                     DHS therefore did not consider alternatives and does not have the flexibility to alter the adjustments of the civil monetary penalty amounts as provided in this rule. To the extent this final rule increases civil monetary penalties, it would result in an increase in transfers from persons or entities assessed a civil monetary penalty to the government.
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         Office of Mgmt. and Budget, Exec. Office of the President, M-24-07, Implementation of Penalty Inflation Adjustments for 2024, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 19, 2023) (
                        <E T="03">https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf</E>
                        ).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Regulatory Flexibility Act</HD>
                <P>The Regulatory Flexibility Act applies only to rules for which an agency publishes a notice of proposed rulemaking pursuant to 5 U.S.C. 553(b). See 5 U.S.C. 601-612. The Regulatory Flexibility Act does not apply to this final rule because a notice of proposed rulemaking was not required for the reasons stated above.</P>
                <HD SOURCE="HD2">C. Unfunded Mandates Reform Act</HD>
                <P>The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538, requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or Tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. This final rule will not result in such an expenditure.</P>
                <HD SOURCE="HD2">D. Paperwork Reduction Act</HD>
                <P>The provisions of the Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35, and its implementing regulations, 5 CFR part 1320, do not apply to this final rule, because this final rule does not trigger any new or revised recordkeeping or reporting.</P>
                <HD SOURCE="HD1">VI. Signing Authorities</HD>
                <P>The amendments to 19 CFR part 4 in this document are issued in accordance with 19 CFR 0.2(a), which provides that the authority of the Secretary of the Treasury with respect to CBP regulations that are not related to customs revenue functions was transferred to the Secretary of Homeland Security pursuant to Section 403(l) of the Homeland Security Act of 2002. Accordingly, this final rule to amend such regulations may be signed by the Secretary of Homeland Security (or his or her delegate).</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects</HD>
                    <CFR>8 CFR Part 270</CFR>
                    <P>Administrative practice and procedure, Aliens, Employment, Fraud, Penalties.</P>
                    <CFR>8 CFR Part 274a</CFR>
                    <P>Administrative practice and procedure, Aliens, Employment, Penalties, Reporting and recordkeeping requirements.</P>
                    <CFR>8 CFR Part 280</CFR>
                    <P>Administrative practice and procedure, Immigration, Penalties.</P>
                    <CFR>19 CFR Part 4</CFR>
                    <P>Exports, Freight, Harbors, Maritime carriers, Oil pollution, Reporting and recordkeeping requirements, Vessels.</P>
                    <CFR>33 CFR Part 27</CFR>
                    <P>Administrative practice and procedure, Penalties.</P>
                    <CFR>49 CFR Part 1503</CFR>
                    <P>Administrative practice and procedure, Investigations, Law enforcement, Penalties.</P>
                </LSTSUB>
                <HD SOURCE="HD1">Amendments to the Regulations</HD>
                <P>Accordingly, for the reasons stated in the preamble, DHS is amending 8 CFR parts 270, 274a, and 280, 19 CFR part 4, 33 CFR part 27, and 49 CFR part 1503 as follows:</P>
                <TITLE>Title 8—Aliens and Nationality</TITLE>
                <PART>
                    <HD SOURCE="HED">PART 270—PENALTIES FOR DOCUMENT FRAUD</HD>
                </PART>
                <REGTEXT TITLE="8" PART="270">
                    <AMDPAR>1. The authority citation for part 270 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 8 U.S.C. 1101, 1103, and 1324c; Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 104-134, 110 Stat. 1321 and Pub. L. 114-74, 129 Stat. 599.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="8" PART="270">
                    <AMDPAR>2. In § 270.3, revise paragraphs (b)(1)(ii)(A) through (D) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 270.3</SECTNO>
                        <SUBJECT>Penalties.</SUBJECT>
                        <STARS/>
                        <P>(b) * * *</P>
                        <P>(1) * * *</P>
                        <P>(ii) * * *</P>
                        <P>
                            (A) 
                            <E T="03">First offense under section 274C(a)(1) through (a)(4).</E>
                             Not less than $275 and not exceeding $2,200 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act before March 27, 2008; not less than $375 and not exceeding $3,200 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act on or after March 27, 2008, and on or before November 2, 
                            <PRTPAGE P="53859"/>
                            2015; and not less than $575 and not exceeding $4,610 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act after November 2, 2015.
                        </P>
                        <P>
                            (B) 
                            <E T="03">First offense under section 274C(a)(5) or (a)(6).</E>
                             Not less than $250 and not exceeding $2,000 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act before March 27, 2008; not less than $275 and not exceeding $2,200 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act on or after March 27, 2008, and on or before November 2, 2015; and not less than $487 and not exceeding $3,887 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act after November 2, 2015.
                        </P>
                        <P>
                            (C) 
                            <E T="03">Subsequent offenses under section 274C(a)(1) through (a)(4).</E>
                             Not less than $2,200 and not more than $5,500 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act before March 27, 2008; not less than $3,200 and not exceeding $6,500 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act occurring on or after March 27, 2008 and on or before November 2, 2015; and not less than $4,610 and not more than $11,524 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act after November 2, 2015.
                        </P>
                        <P>
                            (D) 
                            <E T="03">Subsequent offenses under section 274C(a)(5) or (a)(6).</E>
                             Not less than $2,000 and not more than $5,000 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act before March 27, 2008; not less than $2,200 and not exceeding $5,500 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act occurring on or after March 27, 2008, and on or before November 2, 2015; and not less than $3,887 and not more than $9,718 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act after November 2, 2015.
                        </P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 274a—CONTROL OF EMPLOYMENT OF ALIENS</HD>
                </PART>
                <REGTEXT TITLE="8" PART="274a">
                    <AMDPAR>3. The authority citation for part 274a continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 8 U.S.C. 1101, 1103, 1105a, 1324a; 48 U.S.C. 1806; 8 CFR part 2; Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 114-74, 129 Stat. 599.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="8" PART="274a">
                    <AMDPAR>4. In § 274a.8, revise paragraph (b) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 274a.8</SECTNO>
                        <SUBJECT>Prohibition of indemnity bonds.</SUBJECT>
                        <STARS/>
                        <P>
                            (b) 
                            <E T="03">Penalty.</E>
                             Any person or other entity who requires any individual to post a bond or security as stated in this section shall, after notice and opportunity for an administrative hearing in accordance with section 274A(e)(3)(B) of the Act, be subject to a civil monetary penalty of $1,000 for each violation before September 29, 1999, of $1,100 for each violation occurring on or after September 29, 1999, but on or before November 2, 2015, and of $2,789 for each violation occurring after November 2, 2015, and to an administrative order requiring the return to the individual of any amounts received in violation of this section or, if the individual cannot be located, to the general fund of the Treasury.
                        </P>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="8" PART="274a">
                    <AMDPAR>5. In § 274a.10, revise paragraphs (b)(1)(ii)(A) through (C) and paragraph (b)(2) introductory text to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 274a.10</SECTNO>
                        <SUBJECT>Penalties.</SUBJECT>
                        <STARS/>
                        <P>(b) * * *</P>
                        <P>(1) * * *</P>
                        <P>(ii) * * *</P>
                        <P>(A) First offense—not less than $275 and not more than $2,200 for each unauthorized alien with respect to whom the offense occurred before March 27, 2008; not less than $375 and not exceeding $3,200, for each unauthorized alien with respect to whom the offense occurred occurring on or after March 27, 2008, and on or before November 2, 2015; and not less than $698 and not more than $5,579 for each unauthorized alien with respect to whom the offense occurred occurring after November 2, 2015;</P>
                        <P>(B) Second offense—not less than $2,200 and not more than $5,500 for each unauthorized alien with respect to whom the second offense occurred before March 27, 2008; not less than $3,200 and not more than $6,500, for each unauthorized alien with respect to whom the second offense occurred on or after March 27, 2008, and on or before November 2, 2015; and not less than $5,579 and not more than $13,946 for each unauthorized alien with respect to whom the second offense occurred after November 2, 2015; or</P>
                        <P>(C) More than two offenses—not less than $3,300 and not more than $11,000 for each unauthorized alien with respect to whom the third or subsequent offense occurred before March 27, 2008; not less than $4,300 and not exceeding $16,000, for each unauthorized alien with respect to whom the third or subsequent offense occurred on or after March 27, 2008, and on or before November 2, 2015; and not less than $8,369 and not more than $27,894 for each unauthorized alien with respect to whom the third or subsequent offense occurred after November 2, 2015; and</P>
                        <STARS/>
                        <P>(2) A respondent determined by the Service (if a respondent fails to request a hearing) or by an administrative law judge, to have failed to comply with the employment verification requirements as set forth in § 274a.2(b), shall be subject to a civil penalty in an amount of not less than $100 and not more than $1,000 for each individual with respect to whom such violation occurred before September 29, 1999; not less than $110 and not more than $1,100 for each individual with respect to whom such violation occurred on or after September 29, 1999, and on or before November 2, 2015; and not less than $281 and not more than $2,789 for each individual with respect to whom such violation occurred after November 2, 2015. In determining the amount of the penalty, consideration shall be given to:</P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 280—IMPOSITION AND COLLECTION OF FINES</HD>
                </PART>
                <REGTEXT TITLE="8" PART="280">
                    <AMDPAR>6. The authority citation for part 280 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 8 U.S.C. 1103, 1221, 1223, 1227, 1229, 1253, 1281, 1283, 1284, 1285, 1286, 1322, 1323, 1330; 66 Stat. 173, 195, 197, 201, 203, 212, 219, 221-223, 226, 227, 230; Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 114-74, 129 Stat. 599.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="8" PART="280">
                    <AMDPAR>7. In § 280.53, revise paragraphs (b)(1) through (15) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 280.53</SECTNO>
                        <SUBJECT>Civil monetary penalties inflation adjustment.</SUBJECT>
                        <STARS/>
                        <P>(b) * * *</P>
                        <P>(1) Section 231(g) of the Act, penalties for non-compliance with arrival and departure manifest requirements for passengers, crewmembers, or occupants transported on commercial vessels or aircraft arriving to or departing from the United States: From $1,643 to $1,696.</P>
                        <P>(2) Section 234 of the Act, penalties for non-compliance with landing requirements at designated ports of entry for aircraft transporting aliens: From $4,465 to $4,610.</P>
                        <P>(3) Section 240B(d) of the Act, penalties for failure to depart voluntarily: From $1,881 minimum/$9,413 maximum to $1,942 minimum/$9,718 maximum.</P>
                        <P>
                            (4) Section 243(c)(1)(A) of the Act, penalties for violations of removal 
                            <PRTPAGE P="53860"/>
                            orders relating to aliens transported on vessels or aircraft, under section 241(d) of the Act, or for costs associated with removal under section 241(e) of the Act: From $3,765 to $3,887.
                        </P>
                        <P>(5) Penalties for failure to remove alien stowaways under section 241(d)(2) of the Act: From $9,413 to $9,718.</P>
                        <P>(6) Section 251(d) of the Act, penalties for failure to report an illegal landing or desertion of alien crewmen, and for each alien not reported on arrival or departure manifest or lists required in accordance with section 251 of the Act: From $446 to $460; and penalties for use of alien crewmen for longshore work in violation of section 251(d) of the Act: From $11,162 to $11,524.</P>
                        <P>(7) Section 254(a) of the Act, penalties for failure to control, detain, or remove alien crewmen: From $1,116 minimum/$6,696 maximum to $1,152 minimum/$6,913 maximum.</P>
                        <P>(8) Section 255 of the Act, penalties for employment on passenger vessels of aliens afflicted with certain disabilities: From $2,232 to $2,304.</P>
                        <P>(9) Section 256 of the Act, penalties for discharge of alien crewmen: From $3,348 minimum/$6,696 maximum to $3,457 minimum/$6,913 maximum.</P>
                        <P>(10) Section 257 of the Act, penalties for bringing into the United States alien crewmen with intent to evade immigration laws: From $22,324 maximum to $23,048 maximum.</P>
                        <P>(11) Section 271(a) of the Act, penalties for failure to prevent the unauthorized landing of aliens: From $6,696 to $6,913.</P>
                        <P>(12) Section 272(a) of the Act, penalties for bringing to the United States aliens subject to denial of admission on a health-related ground: From $6,696 to $6,913.</P>
                        <P>(13) Section 273(b) of the Act, penalties for bringing to the United States aliens without required documentation: From $6,696 to $6,913.</P>
                        <P>(14) Section 274D of the Act, penalties for failure to depart: From $942 maximum to $973 maximum, for each day the alien is in violation.</P>
                        <P>(15) Section 275(b) of the Act, penalties for improper entry: From $94 minimum/$472 maximum to $97 minimum/$487 maximum, for each entry or attempted entry.</P>
                    </SECTION>
                </REGTEXT>
                <TITLE>Title 19—Customs Duties</TITLE>
                <PART>
                    <HD SOURCE="HED">PART 4—VESSELS IN FOREIGN AND DOMESTIC TRADES</HD>
                </PART>
                <REGTEXT TITLE="19" PART="4">
                    <AMDPAR>8. The authority citation for part 4 continues to read in part as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>5 U.S.C. 301; 19 U.S.C. 66, 1415, 1431, 1433, 1434, 1624, 2071 note; 46 U.S.C. 501, 60105.</P>
                    </AUTH>
                    <STARS/>
                    <EXTRACT>
                        <P>Sections 4.80, 4.80a, and 4.80b also issued under 19 U.S.C. 1706a; 28 U.S.C. 2461 note; 46 U.S.C. 12112, 12117, 12118, 50501-55106, 55107, 55108, 55110, 55114, 55115, 55116, 55117, 55119, 56101, 55121, 56101, 57109; Pub. L. 108-7, Division B, Title II, § 211;</P>
                        <STARS/>
                        <P>Section 4.92 also issued under 28 U.S.C. 2461 note; 46 U.S.C. 55111;</P>
                        <STARS/>
                    </EXTRACT>
                </REGTEXT>
                <REGTEXT TITLE="19" PART="4">
                    <AMDPAR>9. In § 4.80, revise paragraphs (b)(2) and (i) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 4.80</SECTNO>
                        <SUBJECT>Vessels entitled to engage in coastwise trade.</SUBJECT>
                        <STARS/>
                        <P>(b) * * *</P>
                        <P>(2) The penalty imposed for the unlawful transportation of passengers between coastwise points is $300 for each passenger so transported and landed on or before November 2, 2015, and $971 for each passenger so transported and landed after November 2, 2015 (46 U.S.C. 55103, as adjusted by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015).</P>
                        <STARS/>
                        <P>(i) Any vessel, entitled to be documented and not so documented, employed in a trade for which a Certificate of Documentation is issued under the vessel documentation laws (see § 4.0(c)), other than a trade covered by a registry, is liable to a civil penalty of $500 for each port at which it arrives without the proper Certificate of Documentation on or before November 2, 2015, and $1,617 for each port at which it arrives without the proper Certificate of Documentation after November 2, 2015 (19 U.S.C. 1706a, as adjusted by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015). If such a vessel has on board any foreign merchandise (sea stores excepted), or any domestic taxable alcoholic beverages, on which the duty and taxes have not been paid or secured to be paid, the vessel and its cargo are subject to seizure and forfeiture.</P>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="19" PART="4">
                    <AMDPAR>10. In § 4.92, revise the third sentence to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 4.92</SECTNO>
                        <SUBJECT>Towing.</SUBJECT>
                        <P>* * * The penalties for violation of this section occurring after November 2, 2015, are a fine of from $1,132 to $3,558 against the owner or master of the towing vessel and a further penalty against the towing vessel of $193 per ton of the towed vessel (46 U.S.C. 55111, as adjusted by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015).</P>
                    </SECTION>
                </REGTEXT>
                <TITLE>Title 33—Navigation and Navigable Waters</TITLE>
                <PART>
                    <HD SOURCE="HED">PART 27—ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION</HD>
                </PART>
                <REGTEXT TITLE="33" PART="27">
                    <AMDPAR>11. The authority citation for part 27 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>Secs. 1-6, Pub. L. 101-410, 104 Stat. 890, as amended by Sec. 31001(s)(1), Pub. L. 104-134, 110 Stat. 1321 (28 U.S.C. 2461 note); Department of Homeland Security Delegation No. 0170.1, sec. 2 (106).</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="33" PART="27">
                    <AMDPAR>12. In § 27.3, revise the third sentence of the introductory text and Table 1 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 27.3</SECTNO>
                        <SUBJECT>Penalty adjustment table.</SUBJECT>
                        <P>* * * The adjusted civil penalty amounts listed in Table 1 to this section are applicable for penalty assessments issued after June 28, 2024, with respect to violations occurring after November 2, 2015. * * *</P>
                        <GPOTABLE COLS="3" OPTS="L2,nj,i1" CDEF="s50,r150,16">
                            <TTITLE>Table 1 to § 27.3—Civil Monetary Penalty Inflation Adjustments</TTITLE>
                            <BOXHD>
                                <CHED H="1">U.S. Code citation</CHED>
                                <CHED H="1">Civil monetary penalty description</CHED>
                                <CHED H="1">
                                    2024 Adjusted
                                    <LI>maximum</LI>
                                    <LI>penalty amount</LI>
                                    <LI>($)</LI>
                                </CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="01">14 U.S.C. 521(c)</ENT>
                                <ENT>Saving Life and Property</ENT>
                                <ENT>$12,958</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">14 U.S.C. 521(e)</ENT>
                                <ENT>Saving Life and Property; Intentional Interference with Broadcast</ENT>
                                <ENT>1,330</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">14 U.S.C. 936(i)</ENT>
                                <ENT>Confidentiality of Medical Quality Assurance Records (first offense)</ENT>
                                <ENT>6,508</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">14 U.S.C. 936(i)</ENT>
                                <ENT>Confidentiality of Medical Quality Assurance Records (subsequent offenses)</ENT>
                                <ENT>43,394</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">19 U.S.C. 70</ENT>
                                <ENT>Obstruction of Revenue Officers by Masters of Vessels</ENT>
                                <ENT>9,704</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">19 U.S.C. 70</ENT>
                                <ENT>Obstruction of Revenue Officers by Masters of Vessels—Minimum Penalty</ENT>
                                <ENT>2,264</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">19 U.S.C. 1581(d)</ENT>
                                <ENT>
                                    Failure to Stop Vessel When Directed; Master, Owner, Operator or Person in Charge 
                                    <SU>1</SU>
                                </ENT>
                                <ENT>5,000</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">19 U.S.C. 1581(d)</ENT>
                                <ENT>
                                    Failure to Stop Vessel When Directed; Master, Owner, Operator or Person in Charge—Minimum Penalty 
                                    <SU>1</SU>
                                </ENT>
                                <ENT>1,000</ENT>
                            </ROW>
                            <ROW>
                                <PRTPAGE P="53861"/>
                                <ENT I="01">33 U.S.C. 471</ENT>
                                <ENT>Anchorage Ground/Harbor Regulations General</ENT>
                                <ENT>14,069</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 474</ENT>
                                <ENT>Anchorage Ground/Harbor Regulations St. Mary's River</ENT>
                                <ENT>971</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 495(b)</ENT>
                                <ENT>Bridges/Failure to Comply with Regulations</ENT>
                                <ENT>35,516</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 499(c)</ENT>
                                <ENT>Bridges/Drawbridges</ENT>
                                <ENT>35,516</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 502(c)</ENT>
                                <ENT>Bridges/Failure to Alter Bridge Obstructing Navigation</ENT>
                                <ENT>35,516</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 533(b)</ENT>
                                <ENT>Bridges/Maintenance and Operation</ENT>
                                <ENT>35,516</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1208(a)</ENT>
                                <ENT>Bridge to Bridge Communication; Master, Person in Charge or Pilot</ENT>
                                <ENT>2,587</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1208(b)</ENT>
                                <ENT>Bridge to Bridge Communication; Vessel</ENT>
                                <ENT>2,587</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1321(b)(6)(B)(i)</ENT>
                                <ENT>Oil/Hazardous Substances: Discharges (Class I per violation)</ENT>
                                <ENT>23,048</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1321(b)(6)(B)(i)</ENT>
                                <ENT>Oil/Hazardous Substances: Discharges (Class I total under paragraph)</ENT>
                                <ENT>57,617</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1321(b)(6)(B)(ii)</ENT>
                                <ENT>Oil/Hazardous Substances: Discharges (Class II per day of violation)</ENT>
                                <ENT>23,048</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1321(b)(6)(B)(ii)</ENT>
                                <ENT>Oil/Hazardous Substances: Discharges (Class II total under paragraph)</ENT>
                                <ENT>288,080</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1321(b)(7)(A)</ENT>
                                <ENT>Oil/Hazardous Substances: Discharges (per day of violation) Judicial Assessment</ENT>
                                <ENT>57,617</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1321(b)(7)(A)</ENT>
                                <ENT>Oil/Hazardous Substances: Discharges (per barrel of oil or unit discharged) Judicial Assessment</ENT>
                                <ENT>2,305</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1321(b)(7)(B)</ENT>
                                <ENT>Oil/Hazardous Substances: Failure to Carry Out Removal/Comply With Order (Judicial Assessment)</ENT>
                                <ENT>57,617</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1321(b)(7)(C)</ENT>
                                <ENT>Oil/Hazardous Substances: Failure to Comply with Regulation Issued Under 1321(j) (Judicial Assessment)</ENT>
                                <ENT>57,617</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1321(b)(7)(D)</ENT>
                                <ENT>Oil/Hazardous Substances: Discharges, Gross Negligence (per barrel of oil or unit discharged) Judicial Assessment</ENT>
                                <ENT>6,913</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1321(b)(7)(D)</ENT>
                                <ENT>Oil/Hazardous Substances: Discharges, Gross Negligence—Minimum Penalty (Judicial Assessment)</ENT>
                                <ENT>230,464</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1322(j)</ENT>
                                <ENT>Marine Sanitation Devices; Operating</ENT>
                                <ENT>9,704</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1322(j)</ENT>
                                <ENT>Marine Sanitation Devices; Sale or Manufacture</ENT>
                                <ENT>25,871</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1608(a)</ENT>
                                <ENT>International Navigation Rules; Operator</ENT>
                                <ENT>18,139</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1608(b)</ENT>
                                <ENT>International Navigation Rules; Vessel</ENT>
                                <ENT>18,139</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1908(b)(1)</ENT>
                                <ENT>Pollution from Ships; General</ENT>
                                <ENT>90,702</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 1908(b)(2)</ENT>
                                <ENT>Pollution from Ships; False Statement</ENT>
                                <ENT>18,139</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 2072(a)</ENT>
                                <ENT>Inland Navigation Rules; Operator</ENT>
                                <ENT>18,139</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 2072(b)</ENT>
                                <ENT>Inland Navigation Rules; Vessel</ENT>
                                <ENT>18,139</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 2609(a)</ENT>
                                <ENT>Shore Protection; General</ENT>
                                <ENT>63,991</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 2609(b)</ENT>
                                <ENT>Shore Protection; Operating Without Permit</ENT>
                                <ENT>25,597</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 2716a(a)</ENT>
                                <ENT>Oil Pollution Liability and Compensation</ENT>
                                <ENT>57,617</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 3852(a)(1)(A)</ENT>
                                <ENT>Clean Hulls; Civil Enforcement</ENT>
                                <ENT>52,753</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 3852(a)(1)(A)</ENT>
                                <ENT>Clean Hulls; related to false statements</ENT>
                                <ENT>70,337</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">33 U.S.C. 3852(c)</ENT>
                                <ENT>Clean Hulls; Recreational Vessels</ENT>
                                <ENT>7,034</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">42 U.S.C. 9609(a)</ENT>
                                <ENT>Hazardous Substances, Releases, Liability, Compensation (Class I)</ENT>
                                <ENT>69,733</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">42 U.S.C. 9609(b)</ENT>
                                <ENT>Hazardous Substances, Releases, Liability, Compensation (Class II)</ENT>
                                <ENT>69,733</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">42 U.S.C. 9609(b)</ENT>
                                <ENT>Hazardous Substances, Releases, Liability, Compensation (Class II subsequent offense)</ENT>
                                <ENT>209,202</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">42 U.S.C. 9609(c)</ENT>
                                <ENT>Hazardous Substances, Releases, Liability, Compensation (Judicial Assessment)</ENT>
                                <ENT>69,733</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">42 U.S.C. 9609(c)</ENT>
                                <ENT>Hazardous Substances, Releases, Liability, Compensation (Judicial Assessment subsequent offense)</ENT>
                                <ENT>209,202</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 80509(a)</ENT>
                                <ENT>Safe Containers for International Cargo</ENT>
                                <ENT>7,622</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 70305(c)</ENT>
                                <ENT>Suspension of Passenger Service</ENT>
                                <ENT>76,230</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 2110(e)</ENT>
                                <ENT>Vessel Inspection or Examination Fees</ENT>
                                <ENT>11,524</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 2115</ENT>
                                <ENT>Alcohol and Dangerous Drug Testing</ENT>
                                <ENT>9,380</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 2302(a)</ENT>
                                <ENT>Negligent Operations: Recreational Vessels</ENT>
                                <ENT>8,485</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 2302(a)</ENT>
                                <ENT>Negligent Operations: Other Vessels</ENT>
                                <ENT>42,425</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 2302(c)(1)</ENT>
                                <ENT>Operating a Vessel While Under the Influence of Alcohol or a Dangerous Drug</ENT>
                                <ENT>9,380</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 2306(a)(4)</ENT>
                                <ENT>Vessel Reporting Requirements: Owner, Charterer, Managing Operator, or Agent</ENT>
                                <ENT>14,608</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 2306(b)(2)</ENT>
                                <ENT>Vessel Reporting Requirements: Master</ENT>
                                <ENT>2,922</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3102(c)(1)</ENT>
                                <ENT>Immersion Suits</ENT>
                                <ENT>14,608</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3106(d)</ENT>
                                <ENT>Master Key Control System</ENT>
                                <ENT>1,032</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3302(i)(5)</ENT>
                                <ENT>Inspection Permit</ENT>
                                <ENT>3,047</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3318(a)</ENT>
                                <ENT>Vessel Inspection; General</ENT>
                                <ENT>14,608</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3318(g)</ENT>
                                <ENT>Vessel Inspection; Nautical School Vessel</ENT>
                                <ENT>14,608</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3318(h)</ENT>
                                <ENT>Vessel Inspection; Failure to Give Notice in accordance with (IAW) 3304(b)</ENT>
                                <ENT>2,922</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3318(i)</ENT>
                                <ENT>Vessel Inspection; Failure to Give Notice IAW 3309(c)</ENT>
                                <ENT>2,922</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3318(j)(1)</ENT>
                                <ENT>Vessel Inspection; Vessel ≥1600 Gross Tons</ENT>
                                <ENT>29,221</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3318(j)(1)</ENT>
                                <ENT>Vessel Inspection; Vessel &lt;1600 Gross Tons (GT)</ENT>
                                <ENT>5,844</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3318(k)</ENT>
                                <ENT>Vessel Inspection; Failure to Comply with 3311(b)</ENT>
                                <ENT>29,221</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3318(l)</ENT>
                                <ENT>Vessel Inspection; Violation of 3318(b)-3318(f)</ENT>
                                <ENT>14,608</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3502(e)</ENT>
                                <ENT>List/count of Passengers</ENT>
                                <ENT>304</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3504(c)</ENT>
                                <ENT>Notification to Passengers</ENT>
                                <ENT>30,461</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3504(c)</ENT>
                                <ENT>Notification to Passengers; Sale of Tickets</ENT>
                                <ENT>1,522</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3506</ENT>
                                <ENT>Copies of Laws on Passenger Vessels; Master</ENT>
                                <ENT>609</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3507(h)(1)(A)</ENT>
                                <ENT>Passenger Vessel Security and Safety; Daily Penalty &amp; Maximum Penalty</ENT>
                                <ENT>
                                    25,810 Daily/
                                    <LI>51,621 Maximum</LI>
                                </ENT>
                            </ROW>
                            <ROW>
                                <PRTPAGE P="53862"/>
                                <ENT I="01">46 U.S.C. 3508(d)</ENT>
                                <ENT>Passenger Vessel Security and Safety; Crewmembers Crime Scene Preservation Training; Maximum Penalty</ENT>
                                <ENT>51,621</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 3718(a)(1)</ENT>
                                <ENT>Liquid Bulk/Dangerous Cargo</ENT>
                                <ENT>76,155</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 4106</ENT>
                                <ENT>Uninspected Vessels</ENT>
                                <ENT>12,799</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 4311(b)(1)</ENT>
                                <ENT>Recreational Vessels (maximum for related series of violations)</ENT>
                                <ENT>402,920</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 4311(b)(1)</ENT>
                                <ENT>Recreational Vessels; Violation of 4307(a)</ENT>
                                <ENT>8,058</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 4311(c)</ENT>
                                <ENT>Engine Cut-Off Switches; Violation of 4312(b), First Offense</ENT>
                                <ENT>103</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 4311(c)</ENT>
                                <ENT>Engine Cut-Off Switches; Violation of 4312(b), Second Offense</ENT>
                                <ENT>258</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 4311(c)</ENT>
                                <ENT>Engine Cut-Off Switches; Violation of 4312(b), Subsequent to Second Offense</ENT>
                                <ENT>516</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 4311(d)</ENT>
                                <ENT>Recreational Vessels</ENT>
                                <ENT>3,047</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 4507</ENT>
                                <ENT>Uninspected Commercial Fishing Industry Vessels</ENT>
                                <ENT>12,799</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 4703</ENT>
                                <ENT>Abandonment of Barges</ENT>
                                <ENT>2,168</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 5116(a)</ENT>
                                <ENT>Load Lines</ENT>
                                <ENT>13,946</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 5116(b)</ENT>
                                <ENT>Load Lines; Violation of 5112(a)</ENT>
                                <ENT>27,894</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 5116(c)</ENT>
                                <ENT>Load Lines; Violation of 5112(b)</ENT>
                                <ENT>13,946</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 6103(a)</ENT>
                                <ENT>Reporting Marine Casualties</ENT>
                                <ENT>48,586</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 6103(b)</ENT>
                                <ENT>Reporting Marine Casualties; Violation of 6104</ENT>
                                <ENT>12,799</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8101(e)</ENT>
                                <ENT>Manning of Inspected Vessels; Failure to Report Deficiency in Vessel Complement</ENT>
                                <ENT>2,305</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8101(f)</ENT>
                                <ENT>Manning of Inspected Vessels</ENT>
                                <ENT>23,048</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8101(g)</ENT>
                                <ENT>Manning of Inspected Vessels; Employing or Serving in Capacity not Licensed by U.S. Coast Guard (USCG)</ENT>
                                <ENT>23,048</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8101(h)</ENT>
                                <ENT>Manning of Inspected Vessels; Freight Vessel &lt;100 GT, Small Passenger Vessel, or Sailing School Vessel</ENT>
                                <ENT>3,047</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8102(a)</ENT>
                                <ENT>Watchmen on Passenger Vessels</ENT>
                                <ENT>3,047</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8103(f)</ENT>
                                <ENT>Citizenship Requirements</ENT>
                                <ENT>1,522</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8104(i)</ENT>
                                <ENT>Watches on Vessels; Violation of 8104(a) or (b)</ENT>
                                <ENT>23,048</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8104(j)</ENT>
                                <ENT>Watches on Vessels; Violation of 8104(c), (d), (e), or (h)</ENT>
                                <ENT>23,048</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8106(f)</ENT>
                                <ENT>Employing Qualified Available U.S. Citizens or Residents</ENT>
                                <ENT>
                                    10,324 Daily/
                                    <LI>103,241 Maximum</LI>
                                </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8302(e)</ENT>
                                <ENT>Staff Department on Vessels</ENT>
                                <ENT>304</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8304(d)</ENT>
                                <ENT>Officer's Competency Certificates</ENT>
                                <ENT>304</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8502(e)</ENT>
                                <ENT>Coastwise Pilotage; Owner, Charterer, Managing Operator, Agent, Master or Individual in Charge</ENT>
                                <ENT>23,048</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8502(f)</ENT>
                                <ENT>Coastwise Pilotage; Individual</ENT>
                                <ENT>23,048</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8503</ENT>
                                <ENT>Federal Pilots</ENT>
                                <ENT>73,045</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8701(d)</ENT>
                                <ENT>Merchant Mariners Documents</ENT>
                                <ENT>1,522</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8702(e)</ENT>
                                <ENT>Crew Requirements</ENT>
                                <ENT>23,048</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 8906</ENT>
                                <ENT>Small Vessel Manning</ENT>
                                <ENT>48,586</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 9308(a)</ENT>
                                <ENT>Pilotage: Great Lakes; Owner, Charterer, Managing Operator, Agent, Master or Individual in Charge</ENT>
                                <ENT>23,048</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 9308(b)</ENT>
                                <ENT>Pilotage: Great Lakes; Individual</ENT>
                                <ENT>23,048</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 9308(c)</ENT>
                                <ENT>Pilotage: Great Lakes; Violation of 9303</ENT>
                                <ENT>23,048</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10104(a)(2)</ENT>
                                <ENT>Requirement to Report Sexual Assault and Harassment; Mandatory Reporting by Responsible Entity of a Vessel</ENT>
                                <ENT>51,621</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10104(d)(2)</ENT>
                                <ENT>Requirement to Report Sexual Assault and Harassment; Company After Action Summary, violation of 10104(d)(1)</ENT>
                                <ENT>25,810</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10104(d)(2)</ENT>
                                <ENT>Requirement to Report Sexual Assault and Harassment; Company After Action Summary, Daily Noncompliance Penalty</ENT>
                                <ENT>516</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10104(d)(2)</ENT>
                                <ENT>Requirement to Report Sexual Assault and Harassment; Company After Action Summary, Civil Penalty Maximum</ENT>
                                <ENT>51,621</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10314(a)(2)</ENT>
                                <ENT>Pay Advances to Seamen</ENT>
                                <ENT>1,522</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10314(b)</ENT>
                                <ENT>Pay Advances to Seamen; Remuneration for Employment</ENT>
                                <ENT>1,522</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10315(c)</ENT>
                                <ENT>Allotment to Seamen</ENT>
                                <ENT>1,522</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10321</ENT>
                                <ENT>Seamen Protection; General</ENT>
                                <ENT>10,557</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10505(a)(2)</ENT>
                                <ENT>Coastwise Voyages: Advances</ENT>
                                <ENT>10,557</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10505(b)</ENT>
                                <ENT>Coastwise Voyages: Advances; Remuneration for Employment</ENT>
                                <ENT>10,557</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10508(b)</ENT>
                                <ENT>Coastwise Voyages: Seamen Protection; General</ENT>
                                <ENT>10,557</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10711</ENT>
                                <ENT>Effects of Deceased Seamen</ENT>
                                <ENT>609</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10902(a)(2)</ENT>
                                <ENT>Complaints of Unfitness</ENT>
                                <ENT>1,522</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10903(d)</ENT>
                                <ENT>Proceedings on Examination of Vessel</ENT>
                                <ENT>304</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 10907(b)</ENT>
                                <ENT>Permission to Make Complaint</ENT>
                                <ENT>1,522</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 11101(f)</ENT>
                                <ENT>Accommodations for Seamen</ENT>
                                <ENT>1,522</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 11102(b)</ENT>
                                <ENT>Medicine Chests on Vessels</ENT>
                                <ENT>1,522</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 11104(b)</ENT>
                                <ENT>Destitute Seamen</ENT>
                                <ENT>304</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 11105(c)</ENT>
                                <ENT>Wages on Discharge</ENT>
                                <ENT>1,522</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 11303(a)</ENT>
                                <ENT>Log Books; Master Failing to Maintain</ENT>
                                <ENT>609</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 11303(b)</ENT>
                                <ENT>Log Books; Master Failing to Make Entry</ENT>
                                <ENT>609</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 11303(c)</ENT>
                                <ENT>Log Books; Late Entry</ENT>
                                <ENT>457</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 11506</ENT>
                                <ENT>Carrying of Sheath Knives</ENT>
                                <ENT>153</ENT>
                            </ROW>
                            <ROW>
                                <PRTPAGE P="53863"/>
                                <ENT I="01">46 U.S.C. 12151(a)(1)</ENT>
                                <ENT>Vessel Documentation</ENT>
                                <ENT>19,950</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 12151(a)(2)</ENT>
                                <ENT>Documentation of Vessels—Related to activities involving mobile offshore drilling units</ENT>
                                <ENT>33,252</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 12151(c)</ENT>
                                <ENT>Vessel Documentation; Fishery Endorsement</ENT>
                                <ENT>152,461</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 12309(a)</ENT>
                                <ENT>Numbering of Undocumented Vessels—Willful violation</ENT>
                                <ENT>15,232</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 12309(b)</ENT>
                                <ENT>Numbering of Undocumented Vessels</ENT>
                                <ENT>3,047</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 12507(b)</ENT>
                                <ENT>Vessel Identification System</ENT>
                                <ENT>25,597</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 14701</ENT>
                                <ENT>Measurement of Vessels</ENT>
                                <ENT>55,789</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 14702</ENT>
                                <ENT>Measurement; False Statements</ENT>
                                <ENT>55,789</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 31309</ENT>
                                <ENT>Commercial Instruments and Maritime Liens</ENT>
                                <ENT>25,597</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 31330(a)(2)</ENT>
                                <ENT>Commercial Instruments and Maritime Liens; Mortgagor</ENT>
                                <ENT>25,597</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 31330(b)(2)</ENT>
                                <ENT>Commercial Instruments and Maritime Liens; Violation of 31329</ENT>
                                <ENT>63,991</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 55112(d)</ENT>
                                <ENT>Vessel Escort Operations and Towing Assistance</ENT>
                                <ENT>10,324</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 70052(c)</ENT>
                                <ENT>Regulation of Vessels in Territorial Waters of the United States</ENT>
                                <ENT>25,810</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 70036(a)</ENT>
                                <ENT>Ports and Waterways Safety Regulations</ENT>
                                <ENT>114,630</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 70041(d)(1)(B)</ENT>
                                <ENT>Vessel Navigation: Regattas or Marine Parades; Unlicensed Person in Charge</ENT>
                                <ENT>11,524</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 70041(d)(1)(C)</ENT>
                                <ENT>Vessel Navigation: Regattas or Marine Parades; Owner Onboard Vessel</ENT>
                                <ENT>11,524</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 70041(d)(1)(D)</ENT>
                                <ENT>Vessel Navigation: Regattas or Marine Parades; Other Persons</ENT>
                                <ENT>5,761</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 70119(a)</ENT>
                                <ENT>Port Security</ENT>
                                <ENT>42,425</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 70119(b)</ENT>
                                <ENT>Port Security—Continuing Violations</ENT>
                                <ENT>76,230</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">46 U.S.C. 70506</ENT>
                                <ENT>Maritime Drug Law Enforcement; Penalties</ENT>
                                <ENT>7,034</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">49 U.S.C. 5123(a)(1)</ENT>
                                <ENT>Hazardous Materials: Related to Vessels—Maximum Penalty</ENT>
                                <ENT>99,756</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">49 U.S.C. 5123(a)(2)</ENT>
                                <ENT>Hazardous Materials: Related to Vessels—Penalty from Fatalities, Serious Injuries/Illness or Substantial Damage to Property</ENT>
                                <ENT>232,762</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">49 U.S.C. 5123(a)(3)</ENT>
                                <ENT>Hazardous Materials: Related to Vessels—Training</ENT>
                                <ENT>601</ENT>
                            </ROW>
                            <TNOTE>
                                <SU>1</SU>
                                 Enacted under the Tariff Act of 1930 exempt from inflation adjustments.
                            </TNOTE>
                        </GPOTABLE>
                    </SECTION>
                </REGTEXT>
                <TITLE>Title 49—Transportation</TITLE>
                <PART>
                    <HD SOURCE="HED">PART 1503—INVESTIGATIVE AND ENFORCEMENT PROCEDURES</HD>
                </PART>
                <REGTEXT TITLE="49" PART="1503">
                    <AMDPAR>13. The authority citation for part 1503 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>6 U.S.C. 1142; 18 U.S.C. 6002; 28 U.S.C. 2461 (note); 49 U.S.C. 114, 20109, 31105, 40113-40114, 40119, 44901-44907, 46101-46107, 46109-46110, 46301, 46305, 46311, 46313-46314; Pub. L. 104-134, as amended by Pub. L. 114-74.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="1503">
                    <AMDPAR>14. In § 1503.401, revise paragraphs (b)(1) and (2) and (c)(1), (2), and (3) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 1503.401</SECTNO>
                        <SUBJECT>Maximum penalty amounts.</SUBJECT>
                        <STARS/>
                        <P>(b) * * *</P>
                        <P>(1) For violations that occurred on or before November 2, 2015, $10,000 per violation, up to a total of $50,000 per civil penalty action, in the case of an individual or small business concern (“small business concern” as defined in section 3 of the Small Business Act (15 U.S.C. 632)). For violations that occurred after November 2, 2015, $14,232 per violation, up to a total of $71,162 per civil penalty action, in the case of an individual or small business concern; and</P>
                        <P>(2) For violations that occurred on or before November 2, 2015, $10,000 per violation, up to a total of $400,000 per civil penalty action, in the case of any other person. For violations that occurred after November 2, 2015, $14,232 per violation, up to a total of $569,288 per civil penalty action, in the case of any other person.</P>
                        <P>(c) * * *</P>
                        <P>(1) For violations that occurred on or before November 2, 2015, $10,000 per violation, up to a total of $50,000 per civil penalty action, in the case of an individual or small business concern (“small business concern” as defined in section 3 of the Small Business Act (15 U.S.C. 632)). For violations that occurred after November 2, 2015, $16,630 per violation, up to a total of $83,154 per civil penalty action, in the case of an individual (except an airman serving as an airman), or a small business concern.</P>
                        <P>(2) For violations that occurred on or before November 2, 2015, $10,000 per violation, up to a total of $400,000 per civil penalty action, in the case of any other person (except an airman serving as an airman) not operating an aircraft for the transportation of passengers or property for compensation. For violations that occurred after November 2, 2015, $16,630 per violation, up to a total of $665,226 per civil penalty action, in the case of any other person (except an airman serving as an airman) not operating an aircraft for the transportation of passengers or property for compensation.</P>
                        <P>(3) For violations that occurred on or before November 2, 2015, $25,000 per violation, up to a total of $400,000 per civil penalty action, in the case of a person operating an aircraft for the transportation of passengers or property for compensation (except an individual serving as an airman). For violations that occurred after November 2, 2015, $41,577 per violation, up to a total of $665,226 per civil penalty action, in the case of a person (except an individual serving as an airman) operating an aircraft for the transportation of passengers or property for compensation.</P>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <NAME>Jonathan E. Meyer,</NAME>
                    <TITLE>General Counsel, U.S. Department of Homeland Security.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14121 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-04- 9110-05- 9110-9P- 9111-14- 9111-28-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Coast Guard</SUBAGY>
                <CFR>33 CFR Part 165</CFR>
                <DEPDOC>[Docket No. USCG-2024-0568]</DEPDOC>
                <SUBJECT>Safety Zone; San Francisco Giants Fireworks, San Francisco Bay, San Francisco, CA</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, DHS.</P>
                </AGY>
                <ACT>
                    <PRTPAGE P="53864"/>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notification of enforcement of regulation.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Coast Guard will enforce the safety zone for the San Francisco Giants Fireworks in the Captain of the Port San Francisco area of responsibility during the dates and times noted in the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section. This action is necessary to protect personnel, vessels, and the marine environment from the hazards associate with the fireworks display. During the enforcement period unauthorized persons and vessels are prohibited from entering into, transiting through, or remaining in the safety zone unless authorized by the patrol Commander (PATCOM), or any Official Patrol defined as other law enforcement agencies on scene.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The regulations in 33 CFR 165.1191 will be enforced for the location identified in Table 1 to § 165.1191, Item number 1, from 11:30 a.m. until 10:40 p.m. on June 28, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                         If you have questions about this notification of enforcement, call or email Lieutenant William Harris, U.S. Coast Guard Sector San Francisco, Waterways Management Division; telephone (415) 399-7443, email 
                        <E T="03">SFWaterways@uscg.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Coast Guard will enforce regulations in 33 CFR 165.1191 for the safety zone in 33 CFR 165.1191 Table 1, Item number 1 for the San Francisco Giants Fireworks from 11:30 a.m. until 10:40 p.m. on June 28, 2024. The safety zone will extend to all navigable waters of the San Francisco Bay, from surface to bottom, within a circle formed by connecting all points 100 feet outwards of the fireworks barge during the loading, transit, and arrival from the loading location to the display location and until the start of the fireworks display. From 11:30 a.m. until 9 p.m. on June 28, 2024, the fireworks barge will be loading pyrotechnics from Pier 68 in San Francisco, CA. The fireworks barge will remain at the loading location until its transit to the display location. From 9 p.m. to 9:30 p.m. on June 28, 2024, the loaded fireworks barge will transit from Pier 68 to the launch site near Pier 48 in approximate position 37°46′36″ N, 122°22′56″ W (NAD 83) where it will remain until the conclusion of the fireworks display. Upon commencement of the 10-minute fireworks display, scheduled to begin at the conclusion of the baseball game, between 9:40 p.m. and 10 p.m. on June 28, 2024, the safety zone will increase in size and encompass all navigable waters of the San Francisco Bay, from surface to bottom, within a circle formed by connecting all points 700 feet out from the fireworks barge near Pier 48 in approximate position 37°46′36″ N, 122°22′56″ W (NAD 83). This safety zone will be enforced from 11:30 a.m. until 10:40 p.m. on June 28, 2024, unless the COTP announces a shorter enforcement period via Marine Information Broadcast.</P>
                <P>Under the provisions of 33 CFR 165.1191, unauthorized persons or vessels are prohibited from entering into, transiting through, or anchoring in the safety zone during all applicable effective dates and times, unless authorized to do so by the PATCOM or other Official Patrol, defined as a Federal, State, or local law enforcement agency on scene to assist the Coast Guard in enforcing the safety zone. During the enforcement period, if you are the operator of a vessel in one of the safety zones you must comply with the direction from the PATCOM or other Official Patrol. The PATCOM or Official Patrol may, upon request, allow the transit of commercial vessels through regulated areas when it is safe to do so.</P>
                <P>
                    In addition to this notice of enforcement in the 
                    <E T="04">Federal Register</E>
                    , the Coast Guard plans to provide notification of this enforcement period via the Local Notice to Mariners.
                </P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Jordan M. Baldueza, </NAME>
                    <TITLE>Captain, U.S. Coast Guard, Captain of the Port San Francisco.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14356 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-04-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Coast Guard</SUBAGY>
                <CFR>33 CFR Part 165</CFR>
                <DEPDOC>[Docket Number USCG-2024-0553]</DEPDOC>
                <RIN>RIN 1625-AA00</RIN>
                <SUBJECT>Safety Zone; Ohio River, Point Pleasant, WV</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, DHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Coast Guard is establishing a temporary safety zone for navigable waters of the Ohio River between mile marker 265 and 266. The safety zone is needed to protect personnel, vessels, and the marine environment from potential hazards created by a fireworks display near Point Pleasant, WV, on July 6, 2024. Entry of vessels or persons into this zone is prohibited unless specifically authorized by the Captain of the Port Sector Ohio Valley, or designated representative.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective on July 6, 2024, from 9:45 p.m. to 11:15 p.m.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        To view documents mentioned in this preamble as being available in the docket, go to 
                        <E T="03">https://www.regulations.gov,</E>
                         type USCG-2024-0553 in the search box and click “Search.” Next, in the Document Type column, select “Supporting &amp; Related Material.”
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have questions about this rule, call or email Petty Officer Juan-Maria Varisco at Marine Safety Unit Huntington Waterways Management Division, U.S. Coast Guard; telephone 304-733-0198 Ext. 2125, email 
                        <E T="03">juanmaria.a.varisco2@uscg.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">I. Table of Abbreviations</HD>
                <EXTRACT>
                    <FP SOURCE="FP-1">CFR Code of Federal Regulations</FP>
                    <FP SOURCE="FP-1">DHS Department of Homeland Security</FP>
                    <FP SOURCE="FP-1">FR Federal Register</FP>
                    <FP SOURCE="FP-1">NPRM Notice of proposed rulemaking</FP>
                    <FP SOURCE="FP-1">§ Section </FP>
                    <FP SOURCE="FP-1">U.S.C. United States Code</FP>
                </EXTRACT>
                <HD SOURCE="HD1">II. Background Information and Regulatory History</HD>
                <P>The Coast Guard is issuing this temporary rule under authority in 5 U.S.C. 553(b)(B). This statutory provision authorizes an agency to issue a rule without prior notice and opportunity to comment when the agency for good cause finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” The Coast Guard finds that good cause exists for not publishing a notice of proposed rulemaking (NPRM) with respect to this rule because it is impracticable. We must establish the safety zone by July 6, 2024, to protect the public from potential hazards associated with the planned events and we lack sufficient time to request public comments and respond to these comments before the safety zone must be established.Potential hazards could be falling debris from firework displays launched over the river.</P>
                <P>
                    Also, under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days after publication in the 
                    <E T="04">Federal Register</E>
                    . Delaying the effective date of this rule would be impracticable and contrary to the public interest because immediate action is needed to respond to the potential safety hazards associated with the City of Point Pleasant Liberty Fest taking place on the 
                    <PRTPAGE P="53865"/>
                    Ohio River, between mile marker 265 to 266.
                </P>
                <HD SOURCE="HD1">III. Legal Authority and Need for Rule</HD>
                <P>The Coast Guard is issuing this rule under authority in 46 U.S.C. 70034. The Captain of the Port Sector Ohio Valley (COTP) has determined that potential hazards associated with the City of Point Pleasant Liberty Fest will be a safety concern for anyone between mile marker 265 and mile marker 266 on the Ohio River, Point Pleasant, WV, on July 6, 2024. This rule is needed to protect participants, vessels, and the marine environment in these navigable waters for the duration of the event.</P>
                <HD SOURCE="HD1">IV. Discussion of the Rule</HD>
                <P>This rule establishes a safety zone from 9:45 p.m. to 11:15 p.m. on July 6, 2024. The safety zone will cover all navigable waters within mile marker 265 to miler marker 266 of the Ohio River near Point Pleasant, WV. The duration of the zone is intended to ensure the safety of vessels and these navigable waters before, during, and after the scheduled 10:00 p.m. to 11:00 p.m. fireworks display. No vessel or person would be permitted to enter the safety zone without obtaining permission from the COTP or a designated representative.</P>
                <HD SOURCE="HD1">V. Regulatory Analyses</HD>
                <P>We developed this rule after considering numerous statutes and Executive orders related to rulemaking. Below we summarize our analyses based on a number of these statutes and Executive orders, and we discuss First Amendment rights of protestors.</P>
                <HD SOURCE="HD2">A. Regulatory Planning and Review</HD>
                <P>Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits. This rule has not been designated a “significant regulatory action,” under section 3(f) of Executive Order 12866, as amended by Executive Order 14094 (Modernizing Regulatory Review). Accordingly, this rule has not been reviewed by the Office of Management and Budget (OMB).</P>
                <P>This regulatory action determination is based on size, location, duration, and time-of-day of the safety zone. This safety zone would impact a small, designated area of the Ohio River for 1.5 hours where vessel traffic is normally light. Moreover, the Coast Guard would issue a Broadcast Notice to Mariners via VHF-FM marine channel 16 about the zone, and the rule would allow vessels to seek permission to enter the zone.</P>
                <HD SOURCE="HD2">B. Impact on Small Entities</HD>
                <P>The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as amended, requires Federal agencies to consider the potential impact of regulations on small entities during rulemaking. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities.</P>
                <P>While some owners or operators of vessels intending to transit the safety zone may be small entities, for the reasons stated in section V.A above, this rule will not have a significant economic impact on any vessel owner or operator.</P>
                <P>
                    Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this rule. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please call or email the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section.
                </P>
                <P>Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard.</P>
                <HD SOURCE="HD2">C. Collection of Information</HD>
                <P>This rule will not call for a new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).</P>
                <HD SOURCE="HD2">D. Federalism and Indian Tribal Governments</HD>
                <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this rule under that Order and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in Executive Order 13132.</P>
                <P>Also, this rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it does not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes.</P>
                <HD SOURCE="HD2">E. Unfunded Mandates Reform Act</HD>
                <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.</P>
                <HD SOURCE="HD2">F. Environment</HD>
                <P>
                    We have analyzed this rule under Department of Homeland Security Directive 023-01, Rev. 1, associated implementing instructions, and Environmental Planning COMDTINST 5090.1 (series), which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have determined that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This rule involves a safety zone lasting only 1.5 hours that will prohibit vessels from entering the navigable waters between mile marker 265 and 266. It is categorically excluded from further review under paragraph L60(a) of Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 1. A Record of Environmental Consideration supporting this determination is available in the docket. For instructions on locating the docket, see the 
                    <E T="02">ADDRESSES</E>
                     section of this preamble.
                </P>
                <HD SOURCE="HD2">G. Protest Activities</HD>
                <P>
                    The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to call or email the 
                    <PRTPAGE P="53866"/>
                    person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section to coordinate protest activities so that your message can be received without jeopardizing the safety or security of people, places, or vessels.
                </P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 33 CFR Part 165</HD>
                    <P>Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.</P>
                </LSTSUB>
                <P>For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS</HD>
                </PART>
                <REGTEXT TITLE="33" PART="165">
                    <AMDPAR>1. The authority citation for part 165 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 46 U.S.C. 70034, 70051, 70124; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Department of Homeland Security Delegation No. 00170.1, Revision No. 01.3.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="33" PART="165">
                    <AMDPAR>2. Add § 165.T08-0553 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 165.T08-0553</SECTNO>
                        <SUBJECT>Safety Zone; Ohio River, Point Pleasant, WV.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Location.</E>
                             The following area is a safety zone: All waters adjacent to Point Pleasant on the Ohio River, from surface to bottom, from mile markers 265 and 266.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Definitions.</E>
                             As used in this section, 
                            <E T="03">designated representative</E>
                             means a Coast Guard Patrol Commander, including a Coast Guard coxswain, petty officer, or other officer operating a Coast Guard vessel and a Federal, State, and local officer designated by or assisting the Captain of the Port Sector Ohio Valley (COTP) in the enforcement of the safety zone.
                        </P>
                        <P>
                            (c) 
                            <E T="03">Regulations.</E>
                             (1) Under the general safety zone regulations in subpart C of this part, you may not enter the safety zone described in paragraph (a) of this section unless authorized by the COTP or the COTP's designated representative.
                        </P>
                        <P>(2) To seek permission to enter, contact the COTP or the COTP's representative by VHF-FM marine radio channel 16 or phone at 1-800-253-7465. Those in the safety zone must comply with all lawful orders or directions given to them by the COTP or the COTP's designated representative.</P>
                        <P>
                            (d) 
                            <E T="03">Enforcement period.</E>
                             This safety zone will be subject to enforcement from 9:45 p.m. through 11:15 p.m. on July 6, 2024.
                        </P>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>H.R. Mattern,</NAME>
                    <TITLE>Captain, U.S. Coast Guard, Captain of the Port Sector Ohio Valley.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14193 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-04-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Coast Guard</SUBAGY>
                <CFR>33 CFR Part 165</CFR>
                <DEPDOC>[Docket Number USCG-2024-0562]</DEPDOC>
                <RIN>RIN 1625-AA00</RIN>
                <SUBJECT>Safety Zone: Port of Los Angeles, Main Channel</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, DHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Coast Guard is establishing a temporary safety zone around a firework display platform located in the Port of Los Angeles. The safety zone will encompass the navigable waters within a 1,000-foot radius of the pyrotechnic platform located in the main channel of the Port of Los Angeles, CA. The safety zone is needed to protect personnel, vessels, and the marine environment from potential hazards created by the firework show. Entry of vessels or persons into these zones is prohibited unless specifically authorized by the Captain of the Port, Los Angeles-Long Beach.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective from June 28, 2024, from 8:30 p.m. to 10 p.m.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        To view documents mentioned in this preamble as being available in the docket, go to 
                        <E T="03">https://www.regulations.gov,</E>
                         type USCG-2024-0562 in the search box and click “Search.” Next, in the Document Type column, select “Supporting &amp; Related Material.”
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have questions about this rule, call or email LCDR Kevin Kinsella, U.S. Coast Guard Sector Los Angeles-Long Beach; telephone (310) 521-3861, email 
                        <E T="03">D11-SMB-SectorLALB-WWM@uscg.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">I. Table of Abbreviations</HD>
                <EXTRACT>
                    <FP SOURCE="FP-1">CFR Code of Federal Regulations</FP>
                    <FP SOURCE="FP-1">DHS Department of Homeland Security</FP>
                    <FP SOURCE="FP-1">FR Federal Register</FP>
                    <FP SOURCE="FP-1">NPRM Notice of proposed rulemaking</FP>
                    <FP SOURCE="FP-1">§ Section </FP>
                    <FP SOURCE="FP-1">U.S.C. United States Code</FP>
                </EXTRACT>
                <HD SOURCE="HD1">II. Background Information and Regulatory History</HD>
                <P>
                    The Coast Guard is issuing this temporary rule under authority in 5 U.S.C. 553(b)(B). This statutory provision authorizes an agency to issue a rule without prior notice and opportunity to comment when the agency for good cause finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” 
                    <E T="03">Id.</E>
                     The Coast Guard finds that good cause exists for not publishing a notice of proposed rulemaking (NPRM) with respect to this rule because doing so would be impracticable and contrary to the public interest. The Captain of the Port, Los Angeles-Long Beach (COTP) was notified of the impending event less than 15 days in advance and immediate action is needed to respond to the potential safety hazardous associated with the large display of pyrotechnics within the Port of Los Angeles.
                </P>
                <P>
                    Also, under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days after publication in the 
                    <E T="04">Federal Register</E>
                    . Delaying the effective date of this rule would be impracticable and contrary to the public interest because immediate action is needed to ensure navigational safety amidst the potential safety hazards associated with the event.
                </P>
                <HD SOURCE="HD1">III. Legal Authority and Need for Rule</HD>
                <P>The Coast Guard is issuing this rule under authority in 46 U.S.C. 70034. The COTP has determined that potential hazards associated with the firework show occurring on June 28, 2024, will be a safety concern for anyone within a 1,000-foot radius of the pyrotechnics platforms. This rule is needed to protect personnel, vessels, and the marine environment in the navigable waters before, during and after the scheduled firework event within the designated safety zones.</P>
                <HD SOURCE="HD1">IV. Discussion of the Rule</HD>
                <P>This rule establishes a safety zone from 8:30 p.m. until 10 p.m. on June 28, 2024. The safety zone will cover all navigable waters within a 1,000-foot radius of the pyrotechnics platform located in the Port of Los Angeles main channel in approximate position: 33°44′40″ N 118°16′27″ W. The duration of the zones is intended to protect personnel, vessels, and the marine environment in these navigable waters before, during, and after the scheduled events. No vessel or person will be permitted to enter the safety zone without obtaining permission from the COTP or a designated representative.</P>
                <HD SOURCE="HD1">V. Regulatory Analyses</HD>
                <P>
                    We developed this rule after considering numerous statutes and Executive orders related to rulemaking. Below we summarize our analyses based on a number of these statutes and Executive orders, and we discuss First Amendment rights of protestors.
                    <PRTPAGE P="53867"/>
                </P>
                <HD SOURCE="HD2">A. Regulatory Planning and Review</HD>
                <P>Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits. This rule has not been designated a “significant regulatory action,” under section 3(f) of Executive Order 12866, as amended by Executive Order 14094 (Modernizing Regulatory Review). Accordingly, this rule has not been reviewed by the Office of Management and Budget (OMB).</P>
                <P>This regulatory action determination is based on the size, location, duration, and time-of-day of the safety zone. The Coast Guard will be issuing Broadcast Notice to Mariners via VHF-FM marine channel 16 about the zones, and the rule would allow vessels to seek permission to enter the zone.</P>
                <HD SOURCE="HD2">B. Impact on Small Entities</HD>
                <P>The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as amended, requires Federal agencies to consider the potential impact of regulations on small entities during rulemaking. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities.</P>
                <P>While some owners or operators of vessels intending to transit the safety zone may be small entities, for the reasons stated in section V.A. above, this rule will not have a significant economic impact on any vessel owner or operator.</P>
                <P>
                    Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this rule. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please call or email the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section.
                </P>
                <P>Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard.</P>
                <HD SOURCE="HD2">C. Collection of Information</HD>
                <P>This rule will not call for a new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).</P>
                <HD SOURCE="HD2">D. Federalism and Indian Tribal Governments</HD>
                <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this rule under that Order and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in Executive Order 13132.</P>
                <P>Also, this rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it does not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes.</P>
                <HD SOURCE="HD2">E. Unfunded Mandates Reform Act</HD>
                <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.</P>
                <HD SOURCE="HD2">F. Environment</HD>
                <P>
                    We have analyzed this rule under Department of Homeland Security Directive 023-01, Rev. 1, associated implementing instructions, and Environmental Planning COMDTINST 5090.1 (series), which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have determined that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This rule involves a safety zone lasting only 1.5 hours that will prohibit entry within a 1,000-foot radius of the pyrotechnics platform used for the firework event. It is categorically excluded from further review under paragraph L60(a) of Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 1 For instructions on locating the docket, see the 
                    <E T="02">ADDRESSES</E>
                     section of this preamble.
                </P>
                <HD SOURCE="HD2">G. Protest Activities</HD>
                <P>
                    The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to call or email the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section to coordinate protest activities so that your message can be received without jeopardizing the safety or security of people, places, or vessels.
                </P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 33 CFR Part 165</HD>
                    <P>Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.</P>
                </LSTSUB>
                <P>For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS</HD>
                </PART>
                <REGTEXT TITLE="33" PART="165">
                    <AMDPAR>1. The authority citation for part 165 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 46 U.S.C. 70034, 70051, 70124; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Department of Homeland Security Delegation No. 00170.1, Revision No. 01.3.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="33" PART="165">
                    <AMDPAR>2. Add § 165.T11-169 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 165.T11-169</SECTNO>
                        <SUBJECT>Safety Zone: Port of Los Angeles, Main Channel.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Location.</E>
                             The following area is a safety zone: All waters from surface to bottom, within a 1,000-foot radius of the designated firework display platforms located in Port of Los Angeles, Main Channel in approximate position 33°44′40″ N 118°16′27″ W. These coordinates are based on the North American Datum of 1983.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Definitions.</E>
                             As used in this section, 
                            <E T="03">designated representative</E>
                             means a Coast Guard Patrol Commander, including a Coast Guard coxswain, petty officer, or other officer operating a Coast Guard vessel and a Federal, State, and local officer designated by or assisting the COTP in the enforcement of the safety zone.
                        </P>
                        <P>
                            (c) 
                            <E T="03">Regulations.</E>
                             (1) Under the general safety zone regulations in subpart C of 
                            <PRTPAGE P="53868"/>
                            this part, you may not enter the safety zone described in paragraph (a) of this section unless authorized by the COTP or the COTP's designated representative.
                        </P>
                        <P>(2) To seek permission to enter, contact the PATCOM, the COTP's representative, by VHF-FM Channel 13 (156.65 MHz) or 16 (156.8MHz). Those in the safety zone must comply with all lawful orders or directions given to them by the COTP or the COTP's designated representative.</P>
                        <P>
                            (d) 
                            <E T="03">Enforcement period.</E>
                             This section will be enforced during the following dates and times: June 28, 2024, from 8:30 p.m. to 10 p.m.
                        </P>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <NAME>S.L. Crecy,</NAME>
                    <TITLE>Captain, U.S. Coast Guard, Captain of the Port, Los Angeles-Long Beach.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14234 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-04-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Coast Guard</SUBAGY>
                <CFR>33 CFR Part 165</CFR>
                <DEPDOC>[Docket Number USCG-2024-0558]</DEPDOC>
                <RIN>RIN 1625-AA00</RIN>
                <SUBJECT>Safety Zone; Laguna Madre, South Padre Island, TX</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, DHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Coast Guard is establishing a temporary safety zone for certain navigable waters in the Laguna Madre. The safety zone is needed to protect personnel, vessels, and the marine environment from potential hazards created by a firework display launched from a barge in the Laguna Madre, South Padre Island, Texas. Entry of vessels or persons into this zone is prohibited unless specifically authorized by the Captain of the Port Sector Corpus Christi or a designated representative.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective from 9:30 p.m. through 11:59 p.m. on July 4, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        To view documents mentioned in this preamble as being available in the docket, go to 
                        <E T="03">https://www.regulations.gov,</E>
                         type USCG-2024-0558 in the “SEARCH” box and click “SEARCH.” Click on Open Docket Folder on the line associated with this rule.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have questions on this rule, call or email Lieutenant Commander Anthony Garofalo, Sector Corpus Christi Waterways Management Division, U.S. Coast Guard; telephone 361-939-5130, email 
                        <E T="03">CCWaterways@uscg.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">I. Table of Abbreviations</HD>
                <EXTRACT>
                    <FP SOURCE="FP-1">CFR Code of Federal Regulations</FP>
                    <FP SOURCE="FP-1">DHS Department of Homeland Security</FP>
                    <FP SOURCE="FP-1">FR Federal Register</FP>
                    <FP SOURCE="FP-1">NPRM Notice of proposed rulemaking</FP>
                    <FP SOURCE="FP-1">§ Section </FP>
                    <FP SOURCE="FP-1">U.S.C. United States Code</FP>
                </EXTRACT>
                <HD SOURCE="HD1">II. Background Information and Regulatory History</HD>
                <P>The Coast Guard is issuing this temporary rule without prior notice and opportunity to comment pursuant to authority under section 5 U.S.C. 553(b), originally promulgated as § 4(a) of the Administrative Procedure Act (APA). This provision authorizes an agency to issue a rule without prior notice and opportunity to comment when the agency for good cause finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing a notice of proposed rulemaking (NPRM) with respect to this rule because it is impracticable. We must establish this safety zone immediately to protect personnel, vessels, and the marine environment from potential hazards created by the fireworks display and lack sufficient time to provide a reasonable comment period and then to consider those comments before issuing the rule.</P>
                <P>
                    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days after publication in the 
                    <E T="04">Federal Register</E>
                    . Delaying the effective date of this rule would be contrary to the public interest because immediate action is needed to respond to the potential safety hazards associated with fireworks launched from a barge in the waters of the Laguna Madre.
                </P>
                <HD SOURCE="HD1">III. Legal Authority and Need for Rule</HD>
                <P>The Coast Guard is issuing this rule under authority in 46 U.S.C. 70034. The Captain of the Port Sector Corpus Christi (COTP) has determined that potential hazards associated with the fireworks displays occurring from 9:30 p.m. through 11:59 p.m. on the night of July 4, 2024, will be a safety concern for anyone in the waters of the Laguna Madre area within a 700-yard radius of the following point; 26°6′02.1″ N, 97°10′17.7″ W. The purpose of this rule is to ensure the safety of vessels and persons on these navigable waters who might otherwise be in the safety zone while the display of the fireworks takes place in the Laguna Madre.</P>
                <HD SOURCE="HD1">IV. Discussion of the Rule</HD>
                <P>This rule establishes a temporary safety zone on the night of July 4, 2024. The safety zone will encompass certain navigable waters of the Laguna Madre defined by a 700-yard radius around the launching platform. The regulated area encompasses a 700-yard radius from the following point; 26°6′02.1″ N, 97°10′17.7″ W. The fireworks display will take place in waters of the Laguna Madre. No vessel or person is permitted to enter the temporary safety zone during the effective period without obtaining permission from the COTP or a designated representative, who may be contacted on Channel 16 VHF-FM (156.8 MHz) or by telephone at 361-939-0450. The Coast Guard will issue Broadcast Notices to Mariners, Local Notices to Mariners, and/or Safety Marine Information Broadcasts, as appropriate.</P>
                <HD SOURCE="HD1">V. Regulatory Analyses</HD>
                <P>We developed this rule after considering numerous statutes and Executive orders related to rulemaking. Below we summarize our analyses based on a number of these statutes and Executive orders, and we discuss First Amendment rights of protestors.</P>
                <HD SOURCE="HD2">A. Regulatory Planning and Review</HD>
                <P>Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits. This rule has not been designated a “significant regulatory action,” under Executive Order 12866, as amended by Executive Order 14094 (Modernizing Regulatory Review). Accordingly, this rule has not been reviewed by the Office of Management and Budget (OMB).</P>
                <P>This regulatory action determination is based on the size, location, and duration of the safety zone. The temporary safety zone will be enforced for a short period of 2.5 hours on the nights of July 4, 2024. The zone is limited to a 700-yard radius from the launching position of in the navigable waters of the Laguna Madre. In addition, the rule does not completely restrict the traffic within a waterway, and it allows mariners to request permission to enter the zone.</P>
                <HD SOURCE="HD2">B. Impact on Small Entities</HD>
                <P>
                    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, does not apply to rules not subject to notice and comment. As the Coast Guard has, for good cause, waived notice and comment requirement that would otherwise apply to this rulemaking, the Regulatory 
                    <PRTPAGE P="53869"/>
                    Flexibility Act's provisions do not apply here.
                </P>
                <HD SOURCE="HD2">C. Collection of Information</HD>
                <P>This rule will not call for a new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).</P>
                <HD SOURCE="HD2">D. Federalism and Indian Tribal Governments</HD>
                <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this rule under that Order and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in Executive Order 13132.</P>
                <P>
                    Also, this rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it does not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. If you believe this rule has implications for federalism or Indian tribes, please contact the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section above.
                </P>
                <HD SOURCE="HD2">E. Unfunded Mandates Reform Act</HD>
                <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.</P>
                <HD SOURCE="HD2">F. Environment</HD>
                <P>We have analyzed this rule under Department of Homeland Security Directive 023-01, and Environmental Planning, COMDTINST 5090.1 (series), which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f) and have determined that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This rule involves establishment of a temporary safety zone for navigable waters of the Laguna Madre in a zone defined by a 700-yard radius from the following coordinate: 26°6′02.1″ N, 97°10′17.7″ W. The safety zone is needed to protect personnel, vessels, and the marine environment from potential hazards created by fireworks display in the waters of the Laguna Madre. It is categorically excluded from further review under paragraph L60(c) of Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 1.</P>
                <HD SOURCE="HD2">G. Protest Activities</HD>
                <P>
                    The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to contact the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section to coordinate protest activities so that your message can be received without jeopardizing the safety or security of people, places or vessels.
                </P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 33 CFR Part 165</HD>
                    <P>Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.</P>
                </LSTSUB>
                <P>For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS</HD>
                </PART>
                <REGTEXT TITLE="33" PART="165">
                    <AMDPAR>1. The authority citation for part 165 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 46 U.S.C. 70034, 70051, 70124; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Department of Homeland Security Delegation No. 00170.1, Revision No. 01.3.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="33" PART="165">
                    <AMDPAR>2. Add § 165.T08-0558 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 165.T08-0558</SECTNO>
                        <SUBJECT>Safety Zone; Laguna Madre, South Padre Island, TX.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Location.</E>
                             The following area is a safety zone: all navigable waters of the Laguna Madre encompassed by a 700-yard radius from the following point; 26°6′02.1″ N, 97°10′17.7″ W.
                        </P>
                        <P>
                            (b) 
                            <E T="03">Enforcement period.</E>
                             This section is subject to enforcement from 9:30 p.m. through 11:59 p.m. on July 4, 2024.
                        </P>
                        <P>
                            (c) 
                            <E T="03">Regulations.</E>
                             (1) According to the general regulations in § 165.23 of this part, entry into the temporary safety zone described in paragraph (a) of this section is prohibited unless authorized by the Captain of the Port Sector Corpus Christi (COTP) or a designated representative. They may be contacted on Channel 16 VHF-FM (156.8 MHz) or by telephone at 361-939-0450.
                        </P>
                        <P>(2) If permission is granted, all persons and vessels shall comply with the instructions of the COTP or designated representative.</P>
                        <P>
                            (d) 
                            <E T="03">Information broadcasts.</E>
                             The COTP or a designated representative will inform the public of the enforcement times and date for this safety zone through Broadcast Notices to Mariners, Local Notices to Mariners, and/or Safety Marine Information Broadcasts as appropriate.
                        </P>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>David C. Barata,</NAME>
                    <TITLE>RADM, U.S. Coast Guard, Commander, Eighth Coast Guard District.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14319 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-04-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Bureau of Land Management</SUBAGY>
                <CFR>43 CFR Part 2800</CFR>
                <DEPDOC>[BLM_HQ_FRN_MO# 4500177145]</DEPDOC>
                <RIN>RIN 1004-AE78</RIN>
                <SUBJECT>Rights-of-Way, Leasing, and Operations for Renewable Energy; Corrections</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Land Management, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; corrections.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Bureau of Land Management (BLM) is correcting a final rule that appeared in the 
                        <E T="04">Federal Register</E>
                         on May 1, 2024.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective on July 1, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Jayme Lopez, Interagency Coordination Liaison, by phone at (520) 235-4581, or by email at 
                        <E T="03">energy@blm.gov</E>
                         for information relating to the BLM Renewable Energy programs and information about the final rule. Please use “RIN 1004-AE78” in the subject line.
                    </P>
                    <P>
                        Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States. For a summary of the final rule, please see the final rule summary document in docket BLM-2024-08099 on 
                        <E T="03">www.regulations.gov</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    In FR Doc. 2024-08099 beginning on page 35634 in the 
                    <E T="04">Federal Register</E>
                     of Wednesday, May 
                    <PRTPAGE P="53870"/>
                    1, 2024, the following corrections are made:
                </P>
                <SECTION>
                    <SECTNO>§ 2801.5</SECTNO>
                    <SUBJECT>[Corrected]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="43" PART="2800">
                    <AMDPAR>On page 35677, in the first column, amendatory instruction 2.b.v. is corrected to read</AMDPAR>
                    <P>“v. Adding the term `Megawatt hour (MWh) rate' and revising the term “Reasonable costs”; and”</P>
                </REGTEXT>
                <SECTION>
                    <SECTNO>§ 2804.26</SECTNO>
                    <SUBJECT>[Corrected]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="43" PART="2800">
                    <AMDPAR>On page 35679, in the first column, in amendatory instruction 13, § 2804.26 is corrected by adding paragraph (a)(9) to read as follows:</AMDPAR>
                    <P>(a) * * * </P>
                    <P>(9) You do not comply with a deficiency notice (see § 2804.25(c) of this subpart) within the time specified in the notice.</P>
                    <STARS/>
                </REGTEXT>
                <SECTION>
                    <SECTNO>§ 2805.11</SECTNO>
                    <SUBJECT>[Corrected]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="43" PART="2800">
                    <AMDPAR>On page 35679, in the third column, amendatory instruction 19 is corrected to read “19. Amend § 2805.11 by revising the section heading and paragraphs (c)(2) introductory text and (c)(2)(iv) and (v) and adding paragraph (c)(4) to read as follows:”</AMDPAR>
                </REGTEXT>
                <P>This action by the Principal Deputy Assistant Secretary is taken pursuant to an existing delegation of authority.</P>
                <SIG>
                    <NAME>Steven H. Feldgus,</NAME>
                    <TITLE>Principal Deputy Assistant Secretary, Land and Minerals Management.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14299 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4331-29-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Administration for Children and Families</SUBAGY>
                <CFR>45 CFR Part 265</CFR>
                <RIN>RIN 0970-AD04</RIN>
                <SUBJECT>Temporary Assistance for Needy Families Work Outcomes Measures</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Family Assistance (OFA), Administration for Children and Families (ACF), Department of Health and Human Services (HHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Interim final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This interim final rule modifies ACF regulations in order to implement the statutory changes enacted by section 304 of the Fiscal Responsibility Act of 2023 (FRA) related to the reporting of work outcomes under the Temporary Assistance for Needy Families (TANF) program. ACF is promulgating this rule as an interim final rule to ensure states and territories have sufficient time to comply with data collection for fiscal year 2025.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This interim final rule (IFR) is effective on October 1, 2024. Comments on this IFR must be received on or before December 26, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>ACF encourages the public to submit comments electronically to ensure they are received in a timely manner. You may submit comments, identified by Regulatory Information Number (RIN) 0970-AD04, by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal: https://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        Instructions: All submissions received must include the agency name and RIN (0970-AD04) for this rulemaking. All comments received will be posted without change to 
                        <E T="03">https://www.regulations.gov,including any personal information provided.</E>
                    </P>
                    <P>We will not consider comments received beyond the 180-day comment period in modifying the interim final rule. You may find the following suggestions helpful for preparing your comments:</P>
                    <P>• Be specific;</P>
                    <P>• Address only issues raised by the rulemaking in the interim final rule and the information collections, not the changes to the statute itself;</P>
                    <P>• Explain reasons for any objections or recommended changes;</P>
                    <P>• Propose appropriate alternatives; and</P>
                    <P>• Reference the specific section of the interim final rule being addressed.</P>
                    <P>
                        You can obtain copies of the proposed collection of information and submit comments by emailing 
                        <E T="03">infocollection@acf.hhs.gov.</E>
                         Identify all requests by the title of the information collection.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Lauren Frohlich, TANF Data Division, Office of Family Assistance, ACF, at 
                        <E T="03">TANFdata@acf.hhs.gov</E>
                         or 202-401-9275. Deaf and hard of hearing individuals may call 202-401-9275 through their chosen relay service or 711 between 8 a.m. and 7 p.m. Eastern Time.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Table of Contents</HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">I. Background</FP>
                    <FP SOURCE="FP-2">II. Themes From Consultation and Research</FP>
                    <FP SOURCE="FP1-2">A. Workforce System Alignment</FP>
                    <FP SOURCE="FP1-2">B. Equity</FP>
                    <FP SOURCE="FP-2">III. Regulations</FP>
                    <FP SOURCE="FP1-2">A. Definition of Exit</FP>
                    <FP SOURCE="FP1-2">B. Work Outcomes Data Sources</FP>
                    <FP SOURCE="FP1-2">C. Federal Matching for Calculating Work Outcomes of TANF Exiters</FP>
                    <FP SOURCE="FP1-2">D. State-Level Matching for the Supplemental Work Outcomes Report</FP>
                    <FP SOURCE="FP1-2">E. Secondary School Diploma or its Recognized Equivalent Attainment Rate</FP>
                    <FP SOURCE="FP-2">IV. Justification for Interim Final Rule</FP>
                    <FP SOURCE="FP-2">V. Collection of Information Requirements</FP>
                    <FP SOURCE="FP1-2">A. Reports</FP>
                    <FP SOURCE="FP1-2">B. Request for Feedback</FP>
                    <FP SOURCE="FP1-2">C. Review and Approval of the Information Collection</FP>
                    <FP SOURCE="FP-2">VI. Regulatory Review and Analysis</FP>
                </EXTRACT>
                <HD SOURCE="HD1">I. Background</HD>
                <P>The Fiscal Responsibility Act (FRA) of 2023, Public Law 118-5, requires each state, in consultation with the Secretary of the Department of Health and Human Services (HHS), to collect and report information relating to work outcomes measures for work-eligible individuals in the Temporary Assistance for Needy Families (TANF) Program. Section 304 of the legislation requires HHS to issue regulations implementing these new requirements. It states, “in order to ensure nationwide comparability of data, the Secretary, after consultation with the Secretary of Labor and with States, shall issue regulations governing the reporting of performance indicators under this subsection.”</P>
                <P>We are updating the existing TANF data regulations (45 CFR part 265, Data Collection and Reporting Requirements) to reflect the new reporting requirements. “Each state . . . shall collect and submit to the Secretary the information necessary for each indicator. . . .” Section 304. “State” is defined to mean “the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and American Samoa.” 42 U.S.C. 619 (5). States and territories must begin reporting on those requirements in fiscal year (FY) 2025. For the remainder of the preamble, we will use the term “states” to refer to states and territories. These provisions do not apply to Tribal TANF programs.</P>
                <P>Section 304 of the FRA specifies that to ensure nationwide comparability of data, all states must collect and submit “the information necessary” to determine four indicators of performance. These are:</P>
                <P>• Employment Rate—2nd Quarter After Exit: The percentage of individuals who were work-eligible individuals as of the time of exit from the program, who are in unsubsidized employment during the second quarter after the exit;</P>
                <P>
                    • Employment Retention Rate—4th Quarter After Exit: The percentage of individuals who were work-eligible individuals as of the time of exit from the program who were in unsubsidized employment in the second quarter after the exit, who are also in unsubsidized 
                    <PRTPAGE P="53871"/>
                    employment during the fourth quarter after the exit;
                </P>
                <P>• Median Earnings—2nd Quarter After Exit: The median earnings of individuals who were work-eligible individuals as of the time of exit from the program, who are in unsubsidized employment during the second quarter after the exit; and</P>
                <P>• Secondary School Diploma or its Recognized Equivalent Attainment Rate: The percentage of individuals who have not attained 24 years of age, are attending high school or enrolled in an equivalency program, and are work-eligible individuals or were work-eligible individuals as of the time of exit from the program, who obtain a high school degree or its recognized equivalent while receiving assistance under the state program funded under this part or within one year after the exit.</P>
                <P>Further, the statute required HHS to consult with states and the Department of Labor (DOL) before issuing regulations. In response, HHS engaged in consultation including issuing a Request for Information (RFI) (88 FR 82902, November 27, 2023) providing states and the general public with an opportunity to provide input, hosted listening sessions with state TANF leadership and data leads, held meetings with the DOL and the Department of Education (ED), and had discussions with practitioners and researchers as part of the Workforce IT Support Center Steering Committee and the National Association of Welfare Research Statistics annual conference. Through these discussions, we identified promising practices and recommendations for policy options.</P>
                <HD SOURCE="HD1">II. Themes From Consultation and Research</HD>
                <P>Written responses to ACF's RFI included responses from state TANF agencies and social services departments, national associations that represent state and county human services agencies, and a small number of advocacy groups. The use of “state” in the summary of comments below refers to both states who responded directly and associations who collected comments and responded on behalf of member states.</P>
                <HD SOURCE="HD2">A. Workforce System Alignment</HD>
                <P>TANF's new statutory work outcomes measures are similar to the performance measures established by the Workforce Innovation and Opportunity Act of 2014 (WIOA). DOL and ED shared lessons learned from implementing WIOA that inform our implementation of TANF's work outcomes measures, such as factors impacting the implementation timeline and data quality across sources. States also shared their experiences with WIOA and several respondents encouraged ACF—in partnership with DOL—to support opportunities for state workforce and human services agencies to engage in peer learning and information sharing around the new measures. They requested ACF, where possible, foster the alignment through shared definitions, data sources, and report timeframes. They noted that supporting alignment with WIOA outcome reporting strengthens collaboration between TANF and the broader workforce system, which will yield operational efficiencies across programs, identification of promising practices, a more client-centered culture, and improved service delivery.</P>
                <P>We appreciate the time and attention that respondents gave to reviewing the RFI and preparing their comments. This IFR seeks to make the new reporting requirements as useful as possible for program improvement, considers the challenges of implementation, and provides flexibility for states when possible.</P>
                <HD SOURCE="HD2">B. Equity</HD>
                <P>The Office of Family Assistance (OFA) is committed to improving the equitable administration of all OFA programs for the children and families we serve. In the RFI, we asked in what ways equity should be considered when implementing work outcome measures.</P>
                <P>Respondents expressed gratitude for our consideration of equity in the implementation of the work outcomes measures. All noted the advantages of collecting and reporting data disaggregated by race, ethnicity, age, disability, and other demographic characteristics or geography.</P>
                <P>We appreciate the importance of understanding outcome disparities in the TANF program, and we are committed to providing increased technical assistance to states on how to use their own data to understand outcomes disparities in the TANF program so that they can better ensure equity throughout the system.</P>
                <P>Respondents also made suggestions for practices in the context of work outcomes that could support equity. We remain committed to supporting states as they identify and explore meaningful ways of addressing disparities and ensuring equity.</P>
                <HD SOURCE="HD1">III. Regulations</HD>
                <P>The following discussion provides information on the changes we are making in 45 CFR part 265. We discuss how we will operationalize the statutory changes enacted in the FRA related to the reporting of work outcomes under the TANF program.</P>
                <P>In § 265.2, “What definitions apply to this part?”, we added definitions of “exit” and “unsubsidized employment” for the purpose of calculating the Work Outcomes of TANF Exiters Report and the Secondary School Diploma or its Recognized Equivalent Attainment Rate. We also defined “secondary school diploma” and its “recognized equivalent.”</P>
                <P>We added two new reporting requirements. States are required to submit the data required for the Work Outcomes of TANF Exiters Report quarterly and the Secondary School Diploma or its Recognized Equivalent Attainment Rate annually. The regulation also includes the option for states to voluntarily submit their own calculated work outcomes measures. The regulation details what to include in the supplemental report for states who choose to submit one. In addition to submitting the Work Outcomes of TANF Exiters Report, any state that does not have an Unemployment Insurance program and thus is currently unable to submit quarterly wage data to the ACF-designated wage match source will be required to submit the Supplemental Work Outcomes Report.</P>
                <P>Other revisions:</P>
                <P>• Section 265.1 What does this part cover?—replaced outdated reference to section 413 (rankings of State TANF programs) with section 411(f).</P>
                <P>• Section 265.3 What reports must the State file on a quarterly basis?— added quarterly report Work Outcomes of TANF Exiters Report and details of (1) Employment Rate—2nd Quarter After Exit; (2) Employment Retention Rate—4th Quarter After Exit; and (3) Median Earnings—2nd Quarter After Exit.</P>
                <P>• Section 265.4 When are quarterly reports due?—added Work Outcomes of TANF Exiters Report.</P>
                <P>• Section 265.5 May States use sampling?—clarified that sampling is not allowed for either Work Outcomes of TANF Exiters Report or Secondary School Diploma or its Recognized Equivalent Attainment Rate and moves that clause to paragraph (d).</P>
                <P>• Section 265.6 Must States file reports electronically?—added Work Outcomes of TANF Exiters Report, Secondary School Diploma or its Recognized Equivalent Attainment Rate, and Supplemental Work Outcomes Report.</P>
                <P>
                    • Section 265.7 How will we determine if the State is meeting the quarterly reporting requirements?—
                    <PRTPAGE P="53872"/>
                    added requirements for Work Outcomes of TANF Exiters Report.
                </P>
                <P>• Section 265.9 What information must the State file annually?—added paragraphs (f), the Secondary School Diploma or its Recognized Equivalent Attainment Rate, and (g), Supplemental Work Outcomes Report.</P>
                <P>• Section 265.10 When are annual reports due?—clarified due dates of all annual reports in § 265.9.</P>
                <HD SOURCE="HD2">A. Definition of Exit</HD>
                <P>The work outcomes measures depend on a definition of what it means to “exit” the TANF program. The legislation defines “exit” as, “with respect to a State program funded under this part, ceases to receive assistance under the program funded by this part.”</P>
                <P>
                    We believe, and states concurred during consultation, that further clarification of what it means to “exit” the TANF program is necessary to ensure consistency across states' interpretations of the exiting population. Research studies and state respondents warned about the issue of “churn,” in which individuals and families cycle on and off the TANF caseload due to temporary jobs, shifting life circumstances, sanctions, or terminations of assistance for not meeting program administrative requirements. We note that TANF “leavers” studies from the early 2000s often defined a “leaver” as someone who has left cash assistance for at least two months, while WIOA defines a “common exit” as a participant not receiving DOL-administered services for at least 90 days.
                    <SU>1</SU>
                    <FTREF/>
                     DOL, states, researchers, and advocacy organizations all recommended that the TANF work outcomes measures align with WIOA's performance measures as much as possible, in order to support coordination between TANF and WIOA programs and their shared participants. That approach is supported by the statutory language requiring the Department to consult with DOL. For these reasons, and to account for the impact of churn, we are defining “exit” as a 
                    <E T="03">family</E>
                     having not received TANF assistance for at least 90 days. We are using “family” in the definition to account for the cases where, for example, due to sanction, the state removes the needs of the work-eligible individual from the assistance payment while continuing to provide assistance to the family. In other words, a work-eligible individual will be included as an exiter in these measures only when their 
                    <E T="03">family</E>
                     ceases to receive assistance, and will not meet the definition of an exiter when the needs of the work-eligible individual are removed from the assistance payment but the family continues to receive assistance. An individual in the family must have been “a work-eligible individual,” as defined in 45 CFR 261.2(n)(1), in their last month of assistance.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         See 
                        <E T="03">https://aspe.hhs.gov/tanf-leavers-applicants-caseload-studies</E>
                         and 
                        <E T="03">https://www.dol.gov/agencies/eta/performance/definitions.</E>
                    </P>
                </FTNT>
                <P>
                    Multiple respondents to the RFI stressed the importance of taking into account the reasons someone would exit TANF. Some individuals may have been taken off TANF because of a sanction for noncompliance with work activities, while others obtained jobs or moved out of state. States are currently required to report to ACF on the reasons for case closure in section two (2) of the TANF Data Report (ACF-199). However, states interpret and use the reporting categories of reasons for case closure inconsistently. For instance, on average, states reported that 34 percent of closed cases were closed due to “other/unknown” reasons, but across states that percentage ranged from 5 to 98 percent in FY 2022.
                    <SU>2</SU>
                    <FTREF/>
                     While OFA has decided not to use this IFR to modify the data reporting elements for case closure, we encourage states to improve the quality of their reporting for the existing data element in the TANF Data Report (ACF-199). OFA will include recommendations in guidance to states on how to improve the quality of this data element.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">Characteristics and Financial Circumstances of TANF Recipients, Fiscal Year 2022,</E>
                         Office of Family Assistance, Administration for Children and Families (
                        <E T="03">https://www.acf.hhs.gov/ofa/data/characteristics-and-financial-circumstances-tanf-recipients-fiscal-year-2022</E>
                        ).
                    </P>
                </FTNT>
                <P>We note that some states may move individuals out of the TANF program and into separate state programs (funded by maintenance-of-effort funds) or solely state-funded programs (not reported as maintenance-of-effort). For some states, these may be distinctly different programs, while for other states the difference may just be the funding source. The statute clearly states “with respect to State program funded under this part” which refers only to the TANF program, and not separate state programs or solely state-funded programs. Therefore, when considering who exited TANF for this data collection, states should include those work-eligible individuals who were moved to separate state programs or solely-state funded programs and have not received TANF-funded assistance in at least 90 days.</P>
                <HD SOURCE="HD2">B. Work Outcomes Data Sources</HD>
                <P>States are proud of the work they are doing to improve TANF outcomes. Some states are already collecting and studying data for employment, retention, and income and are eager to share the results and best practices. These states explained both the benefits and drawbacks of the systems they use. Many included specific timelines, charts, and other visuals to depict the level of complexity involved. Others offered their templates and experience to ACF as we develop guidance and technical assistance products.</P>
                <P>
                    States that have already implemented similar measures rely on wage data for administration of state programs, using a combination of sources including state departments of labor, state unemployment insurance wage records, the State Wage Interchange System (SWIS), and the National Directory of New Hires (NDNH).
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         State Welfare (“TANF” or “IV-A”) Agencies are authorized to request NDNH information to carry out state responsibilities under programs funded under part A of title IV of the Social Security Act, specifically 42 U.S.C. 653(j)(3). Section 304 of the FRA amended section 411 of the Social Security Act (42 U.S.C. 611) to specify that each state, in consultation with the Secretary of HHS, shall collect and submit the information necessary for the reporting of work outcomes for fiscal year 2025 and each fiscal year thereafter.
                    </P>
                </FTNT>
                <P>Others expressed trepidation around the new measures. Most notably, they expressed concern around the resources and time required to implement data sharing agreements, system changes, and new processes. These commenters welcome a national approach that allows them to maintain their focus on program improvement.</P>
                <P>Nearly all respondents noted the value in standard measures and the utility of having a centralized data match at the Federal level to meet the requirement of “nationwide comparability of data” in section 304 of the FRA. They also noted that the employment landscape can vary from region to region and state to state. They requested that ACF provide appropriate context when measures are published. Respondents noted macroeconomics (cost of living, unemployment rates, geography, state minimum wage, impacts of natural disasters etc.), program design and policy (county-administered versus state, benefit caps, political climate), and participant demographics (sex, gender, race, income, family status, disability, formerly incarcerated) as some of the factors that inform the outcome measures.</P>
                <P>
                    Taking into consideration the comments we received, ACF is 
                    <PRTPAGE P="53873"/>
                    instituting a two-pronged approach: Federal matching for calculating Work Outcomes of TANF Exiters and a Supplemental Work Outcomes Report. Consultations with states and DOL, ED, and others informed our two-pronged approach and raised several important considerations. States expressed concerns about the implementation timeline if state-level data sharing agreements were needed, but other states were concerned about the lag in results with a Federal match that would make the outcomes less useful. ACF heard from various stakeholders that, while a Federal-level match with the NDNH has the benefit of reporting wages earned across state lines and from Federal employment, state-level matches could include other sources of wage data such as self-employment or gig work. Each data source and methodology has its own strengths and shortcomings, and these new measures provide an opportunity for learning about the best tools for assessing and improving outcomes for TANF exiters. More information about Federal matching for calculating Work Outcomes of TANF Exiters and the Supplemental Work Outcomes Report is below.
                </P>
                <HD SOURCE="HD2">C. Federal Matching for Calculating Work Outcomes of TANF Exiters</HD>
                <P>
                    For the first three statutory measures (
                    <E T="03">i.e.,</E>
                     work outcomes of TANF exiters), states will report information to ACF that is necessary to calculate the measures of work outcomes of TANF exiters at the Federal level. Specifically, states will be required to submit Social Security Numbers (SSNs) of all work-eligible individuals who exit TANF in a given quarter on a quarterly basis. ACF will then match those SSNs with quarterly wage records in the NDNH, which is a national database of wage and employment information on most American workers administered by ACF's Office of Child Support Services.
                    <SU>4</SU>
                    <FTREF/>
                     In FY 2022, over 752 million quarterly wage records were submitted to the NDNH.
                    <SU>5</SU>
                    <FTREF/>
                     ACF will use these matched results to compute the first three work outcomes measures on behalf of states. This approach will allow for standardized measures and will not require states to initiate new data-sharing agreements at the state level. We understand that Guam does not currently have an Unemployment Insurance program and therefore does not submit quarterly wage data to the NDNH. Guam will still need to submit the Work Outcomes of TANF Exiters report so that ACF is able to capture outcomes of individuals who find work outside of Guam after exiting the Guam TANF Program. In addition, any state, like Guam, that does not have an Unemployment Insurance program and thus is currently unable to submit quarterly wage records to the ACF-designated wage match source will be required to submit the Supplemental Work Outcomes Report. That report will be used to calculate the same performance measures as those in the Work Outcomes of TANF Exiters Report. We will work closely with Guam to assess the data and provide technical assistance to support calculating the performance measures.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         For more detail on the NDNH: 
                        <E T="03">https://www.acf.hhs.gov/sites/default/files/documents/ocse/a_guide_to_the_national_directory_of_new_hires.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         FY 2022 Preliminary Data Report and Tables from Table P-97 (
                        <E T="03">https://www.acf.hhs.gov/css/policy-guidance/fy-2022-preliminary-data-report-and-tables</E>
                        ).
                    </P>
                </FTNT>
                <P>The Work Outcomes of TANF Exiters measures have various operational timelines. The measures themselves specify employment and earnings at different intervals following exit. Further, as noted above, the definition of “exit” includes a 90 day wait period. ACF will provide subsequent guidance on and technical support regarding which “exiters” to include in each quarterly data submission. ACF will run matches each quarter so that states will not need to track or re-identify work-eligible individuals the second and fourth quarters after they exited TANF.</P>
                <P>ACF will continue to explore how to share information gained from the Federal-level match to make the data available to and useful for state TANF programs, in addition to satisfying the reporting requirements of the FRA. This may involve providing preliminary match results to states on a quarterly basis before the data have settled and been finalized.</P>
                <HD SOURCE="HD2">D. State-Level Matching for the Supplemental Work Outcomes Report</HD>
                <P>
                    Several states requested the option to provide additional data that would enrich the outcomes generated from a centralized data match. The states that have systems and data-sharing agreements in place believe those systems to be timelier and more comprehensive. Notably, some states reported that they will continue to produce their own performance measure reports due not only to local statutory requirements but also to support program partnership and continuous improvement. ACF wants to empower states to analyze their own data for program improvement and policy decision-making. To support this effort, these regulations establish an additional Supplemental Work Outcomes Report to be submitted annually by interested states. This will allow states that already have performance reporting infrastructure in place to provide calculated outcomes measures results with alternative data sources. The report will include documentation of data sources and methodology to assess validity and support ongoing learning and identification of best practices. ACF will encourage this voluntary submission as a way for states and the Federal government to promote and learn more about alternative data sources as compared to matching to wage data at the Federal level. ACF will report on findings from the Supplemental Work Outcomes Report as part of ongoing learning and context for state performance measures. This report will be mandatory for any state, like Guam, that does not have an Unemployment Insurance program and is thus unable to submit quarterly wage data to the ACF-designated wage match source. The Supplemental Work Outcomes Report also provides an avenue for continued alignment with WIOA performance measures; states that have highly coordinated TANF and workforce agencies could demonstrate the benefits of state-level data matching (potentially through SWIS) and the addition of supplemental wage information, such as for those who are self-employed or participate in gig work and are not systematically captured in quarterly wage records. ACF is committed to providing technical assistance and support to states interested in developing their own infrastructure to calculate work outcomes, including helping develop relationships across state agencies, data system modifications, data sharing agreements, and data analysis capacity. ACF began this work with the TANF Data Collaborative 
                    <SU>6</SU>
                    <FTREF/>
                     and plans to continue to find innovative ways to support states as they focus on better outcomes for TANF recipients and exiters.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The TANF Data Collaborative was a 30-month pilot program that offered technical assistance and training to support cross-disciplinary teams of staff at eight state and county TANF programs in the routine use of TANF and other administrative data to inform policy and practice. Learn more about the program and participants here: 
                        <E T="03">https://www.acf.hhs.gov/opre/report/tanf-data-collaborative-pilot-profiles-collection-data-analytics-projects-state-county.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">E. Secondary School Diploma or Its Recognized Equivalent Attainment Rate</HD>
                <P>
                    ACF has experience with TANF outcomes measures similar to the ones that the Work Outcomes for TANF Exiters Report will capture, through the 
                    <PRTPAGE P="53874"/>
                    former High Performance Bonus measures, 42 U.S.C. 603(a)(4), and more recently for performance measures that are reported as part of the Congressional Budget Justification. However, ACF has little experience collecting information related to the Secondary School Diploma or its Recognized Equivalent Attainment Rate (hereafter Secondary School Diploma Attainment Rate) for TANF participants and exiters. States reported to us that they also have little experience with this type of measure and anticipated that it would be more difficult to implement.
                </P>
                <P>The Secondary School Diploma Attainment Rate measure presents its own unique challenges, and states have requested support for implementing this measure. Participant surveys may be the most direct way to obtain the data; however, states requested technical assistance to increase survey response rates. In addition, states want guidance for navigating the complex network of educational systems and setting up data-sharing agreements with the various entities involved.</P>
                <P>We learned from our research, consultations, and the RFI that some states have existing longitudinal databases and cross-department agreements that would be well-suited for calculating these measures. Other states did not have this type of existing access and infrastructure. The ED, DOL, and respondents to the RFI emphasized that there are multiple ways a person may earn a secondary school diploma or recognized equivalent, including but not limited to adult school/education, community college, or public or private high school within K-12 systems. Local education agencies often have different geographical maps from TANF offices or workforce investment boards. For some states, secondary school equivalency testing may be independent of state government, while for others, such testing may be managed by state education agencies.</P>
                <P>The wide range of structures and readiness for collecting information for this measure across states led us to the decision to leave the data source selection up to the states, following sub-regulatory guidance from ACF. ACF will provide thorough guidance and technical support for the calculation of the rate, including who belongs in the numerator and denominator. States must use universe-level data in their calculations, meaning that the rate should be based on the entire population that meets the criteria and not a sample of that population.</P>
                <P>ACF recognizes that the typical secondary academic calendar is at odds with the Federal fiscal year and annual submission of the data for the Secondary School Diploma Attainment Rate. This is further complicated by the range of timelines of the various data sources and tracking individuals after exit. We note that the Secondary School Diploma Attainment Rate submission is on a longer lag because of the nature and complexity of the data and the 1-year post-exit wait period. ACF will provide guidance on and technical support regarding the reporting periods that should be covered in a given annual report. We acknowledge states are only able to submit information known to them at the time of reporting and commit to providing additional guidance to manage the level of effort associated with tracking this small subset of TANF participants.</P>
                <P>ACF intends to support states in finding innovative ways to collect this information. ACF will ask for sources and methodology as part of the reporting to assess validity of the measure and to support ongoing learning and identification of best practices. Our Federal partners have learned a lot already from states' implementation of WIOA's credential attainment measure, which has some helpful parallels.</P>
                <HD SOURCE="HD1">IV. Justification for Interim Final Rule</HD>
                <P>
                    The Administrative Procedure Act (APA) generally requires agencies to follow certain procedures when promulgating rules. 5 U.S.C. 551 
                    <E T="03">et seq.</E>
                     Under section 553(b)(B)) of the APA, however, a notice of proposed rulemaking is not required when an agency, for good cause, finds (and incorporates the finding and a brief statement of reasons in the rule issued) that notice and public comment is impracticable, unnecessary, or contrary to the public interest. We find that good cause exists because, under the specific circumstances here, it is impracticable to provide an opportunity for notice and comment prior to issuing this rule.
                </P>
                <P>Providing notice and comment before issuing this rule was impracticable because of the limited time period following the statute's enactment in June 2023 for ACF to consult with states and DOL and then promulgate regulations with sufficient lead-time for states to make necessary system changes to comply with the statutory reporting obligations beginning on October 1, 2024. States will need to plan for, budget, and implement systems changes to comply with data collection and reporting requirements for fiscal year 2025. This may require states to reallocate their budgets, modify existing contracts, and/or enter into new ones, modify and/or enter into new data sharing agreements, and create and/or modify systems for data collection. We are issuing an IFR so that states have time to complete each of these necessary steps before the October 1, 2024, compliance date.</P>
                <P>It also was not practicable to provide notice and comment because we needed time to consult with the DOL and with states, as required by section 304 of the FRA, prior to issuing regulations. In addition to being statutorily mandated, the consultation period was necessary to allow ACF to obtain state input on a number of technical questions before moving forward with the rule making process. This technical information from states was key to the agency's thinking and approach around this rulemaking. Consultations with DOL and ED began in July 2023, just one month after the statute was enacted, and have continued throughout the development of this regulation.</P>
                <P>The consultation period, described in greater detail in section II above, included a RFI which was published on November 27, 2023. ACF had received 24 comments on the RFI by January 11, 2024. The RFI outlined several possible approaches and factors that needed to be considered and sought public comment. Those comments informed the approach set forth in this IFR.</P>
                <P>
                    In addition to issuing the RFI, ACF met with states and conducted listening sessions between September 2023 and January 2024. Almost all states, whether during listening sessions or in response to the RFI, requested that ACF expedite the issuance of regulations and develop guidance as soon as possible. Many respondents wrote that it will take several months or more to set up the necessary infrastructure required to respond to the requirements of the FRA. States specifically requested that the Department convey as soon as possible how it is interpreting Congress' definition of the statutory term “exit” so that states could provide the specifications necessary to their contractors or in-house developers so that they could begin the task of system changes. In anticipation of the implementation, some states have initiated system changes without the definition of “exit,” whereas others are waiting on guidance so that they do not risk costly updates that need to be modified. Further delay of the regulation could lead to states applying the statute ineffectively or inconsistently, which could ultimately reduce the data quality and comparability of the measures. Our goal has been to issue regulations as soon as possible so that states can make sound decisions on the allocation of resources 
                    <PRTPAGE P="53875"/>
                    and operationalize plans in time for the fiscal year 2025 reporting deadlines.
                </P>
                <P>We believe that issuing an IFR is in the interest of the entities that must meet the reporting requirements, and the effective date for this IFR is justified and reasonable. Although this IFR is being published with an effective date of October 1, 2024, we encourage interested parties to provide comments through December 26, 2024, so that we may have the benefit of public participation in advance of issuing a final rule. ACF will modify the IFR's provisions if warranted by public comments. As we implement the IFR, we welcome public comments on any relevant implementation issues, and we will take those comments into consideration in developing the final rule.</P>
                <HD SOURCE="HD1">V. Collection of Information Requirements</HD>
                <P>
                    The Paperwork Reduction Act (PRA), 44 U.S.C. 3501 
                    <E T="03">et seq.,</E>
                     provides that a Federal agency generally cannot conduct or sponsor a collection of information, and the public is generally not required to respond to an information collection, unless it is approved by the Office of Management and Budget (OMB) under the PRA and displays a currently valid OMB Control Number. In addition, notwithstanding any other provisions of law, no person shall generally be subject to penalty for failing to comply with a collection of information that does not display a valid Control Number. See 5 CFR 1320.5(a) and 1320.6.
                </P>
                <P>This interim final rule includes the following new information collections.</P>
                <FP SOURCE="FP-1">• Work Outcomes of TANF Exiters Report</FP>
                <FP SOURCE="FP-1">• Secondary School Diploma or its Recognized Equivalent Rate</FP>
                <FP SOURCE="FP-1">• Supplemental Work Outcomes Report</FP>
                <P>As required by PRA, we will submit the proposed information collection(s) to OMB for review and approval.</P>
                <HD SOURCE="HD2">A. Reports</HD>
                <P>
                    <E T="03">Work Outcomes of TANF Exiters Report:</E>
                     Quarterly, states will be required to submit Social Security numbers (SSNs) of all work-eligible individuals who exit TANF in a given quarter. Each state must file the report within 45 days following the end of the quarter (QE). The report must contain the SSNs of all individuals who are confirmed to have exited during the reporting period. An individual's exit date is confirmed when 90 days have elapsed since the participant last received assistance. States submit SSNs 45 days after the QE in which their exit date was confirmed. For example:
                </P>
                <EXTRACT>
                    <P>An individual exits on November 23, 2024 (FY 2025, Quarter [Q]1). For the state to confirm the exit date, 90-days must elapse since the participant last received assistance. The exit date is confirmed on February 21, 2025 (FY 2025, Q2). The individual's SSN is included as an exiter in the quarter ending (QE) March 31, 2025 report (FY 2025, Q2), covering reporting period October 1, 2024-December 31, 2024 (FY 2025, Q1).</P>
                    <P>ACF will then match the SSN with quarterly wage records in the NDNH to obtain records from two quarters after the individual's exit (FY 2025, Q3) through four quarters after the individual's exit (FY 2026, Q1). ACF will use the matched results to compute the measures on behalf of states: Employment Rate—2nd Quarter After Exit; Employment Retention Rate—4th Quarter After Exit; and Median Earnings—2nd Quarter After Exit.</P>
                </EXTRACT>
                <P>
                    <E T="03">Secondary School Diploma Attainment Rate:</E>
                     Annually, states will be asked to submit their calculated rate following the definitions and formula set by ACF. The report must include documentation of methodology and data sources.
                </P>
                <P>
                    <E T="03">Supplemental Work Outcomes Report:</E>
                     Annually, states have the option to submit the state's calculation of the first three work outcomes, following the definitions and formulas set by ACF. The report must include documentation of methodology and data sources. Any state like Guam that does not have an Unemployment Insurance program and thus is currently unable to submit quarterly wage records to the ACF-designated wage match source will be required to submit the Supplemental Work Outcomes Report.
                </P>
                <HD SOURCE="HD2">B. Request for Feedback</HD>
                <P>
                    In compliance with the requirements of Section 3506(c)(2)(A) of the PRA, the ACF is soliciting public comment on the specific aspects of the information collection described above. You can request copies of the proposed collections by emailing 
                    <E T="03">infocollection@acf.hhs.gov.</E>
                     ACF requests comments on these new collections, including but not limited to the quality, utility, and clarity of the information to be collected and the estimated time to complete.
                </P>
                <P>ACF is particularly interested in feedback on the estimated time to complete each of the new information collections. Currently, ACF is estimating the time to complete as follows:</P>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s100,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1">
                            Work
                            <LI>outcomes of</LI>
                            <LI>TANF exiters</LI>
                            <LI>report</LI>
                        </CHED>
                        <CHED H="1">
                            Secondary school
                            <LI>diploma </LI>
                            <LI>attainment</LI>
                            <LI>rate</LI>
                        </CHED>
                        <CHED H="1">
                            Supplemental work
                            <LI>outcomes</LI>
                            <LI>report</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Annual Estimated Number of Respondents</ENT>
                        <ENT>54</ENT>
                        <ENT>54</ENT>
                        <ENT>54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Total Number of Responses per Respondent Each Year</ENT>
                        <ENT>4</ENT>
                        <ENT>1</ENT>
                        <ENT>1</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Average Burden Hours per Response</ENT>
                        <ENT>16</ENT>
                        <ENT>100</ENT>
                        <ENT>30</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Total Annual Burden Hours</ENT>
                        <ENT>3456</ENT>
                        <ENT>5400</ENT>
                        <ENT>1620</ENT>
                    </ROW>
                </GPOTABLE>
                <P>In estimating time to complete, you should include the time associated with activities necessary to complete the requests. This should include the time associated with the following example activities (as applicable):</P>
                <FP SOURCE="FP-1">• Reviewing instructions</FP>
                <FP SOURCE="FP-1">• Compiling information or materials to respond</FP>
                <FP SOURCE="FP-1">• Acquiring, installing, and utilizing technology and systems</FP>
                <FP SOURCE="FP-1">• Updating current technology and systems</FP>
                <FP SOURCE="FP-1">• Completing and reviewing collected information</FP>
                <FP SOURCE="FP-1">• Finalizing and sending information</FP>
                <P>
                    Submit comments to 
                    <E T="03">infocollection@acf.hhs.gov</E>
                     by August 27, 2024. Consideration will be given to comments and suggestions submitted within the timeframe specified.
                </P>
                <HD SOURCE="HD2">C. Review and Approval of the Information Collection</HD>
                <P>The comments received in response to this notification will fulfill the requirement for a 60-day comment period in compliance with the requirements of section 3506(c)(2)(A) of the PRA. We will submit an information collection request for these new proposed collections to OMB for review and approval following consideration of public comment. These requirements will not become effective until approved by OMB.</P>
                <HD SOURCE="HD1">VI. Regulatory Review and Analysis</HD>
                <P>
                    We have examined the impacts of the final rule under Executive Order 12866, 
                    <PRTPAGE P="53876"/>
                    Executive Order 13563, Executive Order 14094, the Regulatory Flexibility Act (5 U.S.C. 601-612), the Congressional Review Act/Small Business Regulatory Enforcement Fairness Act (5 U.S.C. 801, Pub. L. 104-121), and the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4).
                </P>
                <P>Executive Orders 12866, 13563, and 14094 direct us to assess all benefits, costs, and transfers of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages; distributive impacts; and equity). Rules are “significant” under Executive Order 12866, section 3(f)(1) (as amended by Executive Order 14094), if they “have an annual effect on the economy of $200 million or more (adjusted every 3 years by the Administrator of [the Office of Information and Regulatory Affairs (OIRA)] for changes in gross domestic product); or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, territorial, or tribal governments or communities.” This interim final rule implements the data collection and reporting requirements of section 304 of the Fiscal Responsibility Act of 2023, which could entail a small incremental increase in time spent by state governments for these activities. Thus, this interim final rule is not a significant regulatory action under Executive Order 12866, section 3(f)(1).</P>
                <P>Because this rule is not likely to result in an annual effect on the economy of $100 million or more or meet other criteria specified in the Congressional Review Act/Small Business Regulatory Enforcement Fairness Act, this interim final rule does not fall within the scope of 5 U.S.C. 804(2).</P>
                <P>The Regulatory Flexibility Act requires us to analyze regulatory options that would minimize any significant impact of a rule on small entities. The Secretary certifies that this interim final rule will not result in a significant impact on a substantial number of small entities. The primary impact is on state governments, which are not considered small entities under the RFA.</P>
                <P>The Unfunded Mandates Reform Act of 1995 (UMRA) generally requires that each agency conduct a cost-benefit analysis, identify and consider a reasonable number of regulatory alternatives, and select the least costly, most cost-effective, or least burdensome alternative that achieves the objectives of the rule before promulgating any proposed or final rule that includes a Federal mandate that may result in expenditures of more than $100 million (adjusted for inflation) in at least one year by state, local, and tribal governments, or by the private sector. The current threshold after adjustment for inflation using the Implicit Price Deflator for the Gross Domestic Product is $183 million, reported in 2023 dollars. This interim final rule will not result in an unfunded mandate in any year that meets or exceeds this amount.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 45 CFR Part 265</HD>
                    <P>Employment, Grant programs—social programs, Public assistance programs, Reporting and recordkeeping requirements.</P>
                </LSTSUB>
                <P>For the reasons discussed in the preamble, the OFA amends 45 CFR part 265 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 265—DATA COLLECTION AND REPORTING REQUIREMENTS</HD>
                </PART>
                <REGTEXT TITLE="45" PART="265">
                    <AMDPAR>1. The authority citation for part 265 is revised to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 42 U.S.C. 603, 605, 607, 609, 611, and 613.</P>
                    </AUTH>
                </REGTEXT>
                  
                <REGTEXT TITLE="45" PART="265">
                    <AMDPAR>2. Amend § 265.1 by:</AMDPAR>
                    <AMDPAR>a. Revising paragraph (a);</AMDPAR>
                    <AMDPAR>b. Removing footnote 1 from paragraph (b) introductory text;</AMDPAR>
                    <AMDPAR>c. Revising paragraphs (b)(2) and (3); and</AMDPAR>
                    <AMDPAR>d. Adding paragraphs (b)(4) and (5).</AMDPAR>
                    <P>The revisions and additions read as follows:</P>
                    <SECTION>
                        <SECTNO>§ 265.1</SECTNO>
                        <SUBJECT>What does this part cover?</SUBJECT>
                        <P>(a) This part explains how we will collect the information required by section 411(a) of the Act (data collection and reporting); the information required to implement section 407 of the Act (work participation requirements), as authorized by section 411(a)(1)(A)(xii); the information required to implement section 409 (penalties), section 403 (grants to States), section 405 (administrative provisions), section 411(b) (report to Congress), and section 411(f) (reporting performance indicators); and the data necessary to carry out our financial management and oversight responsibilities.</P>
                        <P>(b) * * *</P>
                        <P>(2) The expenditure data in the quarterly TANF Financial Report (or, as applicable, the Territorial Financial Report);</P>
                        <P>(3) The definitions and other information on the State's TANF and MOE programs that must be filed annually;</P>
                        <P>(4) The definitions and other information necessary for the Work Outcomes of TANF Exiters Report; and</P>
                        <P>(5) The definitions and other information necessary for the Secondary School Diploma or its Recognized Equivalent Attainment Rate.</P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="45" PART="265">
                    <AMDPAR>3. Amend § 265.2 by:</AMDPAR>
                    <AMDPAR>a. Revising paragraph (a); and</AMDPAR>
                    <AMDPAR>b. Adding paragraphs (c) through (e).</AMDPAR>
                    <P>The revision and additions read as follows:</P>
                    <SECTION>
                        <SECTNO>§ 265.2</SECTNO>
                        <SUBJECT>What definitions apply to this part?</SUBJECT>
                        <P>(a) Except as provided in paragraphs (b) through (e) of this section, the general TANF definitions at §§ 260.30 through 260.33 and the definitions of a work-eligible individual and the work activities in § 261.2 of this chapter apply to this part.</P>
                        <STARS/>
                        <P>(c) For purposes of the Work Outcomes of TANF Exiters Report and the Secondary School Diploma or its Recognized Equivalent Attainment Rate, exit is the date that a family with a work-eligible individual ceases to receive assistance (as defined in § 260.31) from the TANF program. The last day of assistance cannot be determined until 90 days have elapsed since the participant last received assistance.</P>
                        <P>(d) For purposes of the Work Outcomes of TANF Exiters Report, unsubsidized employment means full- or part-time employment in the private or public sector after exiting the TANF program.</P>
                        <P>(e) For purposes of the Secondary School Diploma or its Recognized Equivalent Attainment Rate:</P>
                        <P>(1) A secondary school diploma is a “regular high school diploma” as that term is defined in 21 U.S.C. 7801(43), the Elementary and Secondary Education Act of 1965 (ESEA), as amended by the Every Student Succeeds Act (ESSA).</P>
                        <P>(2) A recognized equivalent to a secondary school diploma is a certification recognized by a State that signifies that a student has completed the State's requirements for a high school education.</P>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="45" PART="265">
                    <AMDPAR>4. Amend § 265.3 by:</AMDPAR>
                    <AMDPAR>a. Revising paragraph (a)(1); and</AMDPAR>
                    <AMDPAR>b. Adding paragraph (g).</AMDPAR>
                    <P>The revision and addition read as follows:</P>
                    <SECTION>
                        <SECTNO>§ 265.3</SECTNO>
                        <SUBJECT>What reports must the State file on a quarterly basis?</SUBJECT>
                        <P>(a) * * *</P>
                        <P>(1) Each State must collect on a monthly basis, and file on a quarterly basis, the data specified in the TANF Data Report, the TANF Financial Report (or, as applicable, the Territorial Financial Report), and the Work Outcomes of TANF Exiters Report.</P>
                        <STARS/>
                        <PRTPAGE P="53877"/>
                        <P>
                            (g) 
                            <E T="03">Work Outcomes of TANF Exiters Report.</E>
                             Each State must file the Social Security numbers of all work-eligible individuals, as defined in § 261.2(n), who have exited the program, as defined in § 265.2(b). This information will be used for calculating the following Work Outcomes performance indicators:
                        </P>
                        <P>(1) Employment Rate—2nd Quarter After Exit: the percentage of individuals who were work-eligible individuals as of the time of exit from the program, who are employed during the second quarter after the exit;</P>
                        <P>(2) Employment Retention Rate—4th Quarter After Exit: the percentage of individuals who were work-eligible individuals as of the time of exit from the program who were employed in the second quarter after the exit, who are also employed during the fourth quarter after the exit; and</P>
                        <P>(3) Median Earnings—2nd Quarter After Exit: the median earnings of individuals who were work-eligible individuals as of the time of exit from the program, who are employed during the second quarter after the exit.</P>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="45" PART="265">
                    <AMDPAR>5. Amend § 265.4 by adding paragraph (d) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 265.4</SECTNO>
                        <SUBJECT>When are quarterly reports due?</SUBJECT>
                        <STARS/>
                        <P>(d) Each State must file the Work Outcomes of TANF Exiters Report within 45 days following the end of the quarter.</P>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="45" PART="265">
                    <AMDPAR>6. Amend § 265.5 by:</AMDPAR>
                    <AMDPAR>a. Removing the last sentence of paragraph (a); and</AMDPAR>
                    <AMDPAR>b. Adding paragraph (d).</AMDPAR>
                    <P>The addition reads as follows:</P>
                    <SECTION>
                        <SECTNO>§ 265.5</SECTNO>
                        <SUBJECT>May States use sampling?</SUBJECT>
                        <STARS/>
                        <P>(d) States may not use sampling to report expenditure data, data included in the Work Outcomes of TANF Exiters Report, or data included in the Secondary School Diploma or its Recognized Equivalent Attainment Rate.</P>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="45" PART="265">
                    <AMDPAR>7. Revise § 265.6 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 265.6</SECTNO>
                        <SUBJECT>Must States file reports electronically?</SUBJECT>
                        <P>
                            Each State must file all reports (
                            <E T="03">i.e.,</E>
                             the TANF Data Report, the TANF Financial Report (or, as applicable, the Territorial Financial Report), the SSP-MOE Data Report, the Work Outcomes of TANF Exiters Report, and the Secondary School Diploma or its Recognized Equivalent Attainment Rate) electronically, based on format specifications that we will provide.
                        </P>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="45" PART="265">
                    <AMDPAR>8. Amend § 265.7 by:</AMDPAR>
                    <AMDPAR>a. Revising paragraph (a);</AMDPAR>
                    <AMDPAR>b. Redesignating paragraphs (e) and (f) as paragraphs (f) and (g); and</AMDPAR>
                    <AMDPAR>c. Adding new paragraph (e).</AMDPAR>
                    <P>The revision and addition read as follows:</P>
                    <SECTION>
                        <SECTNO>§ 265.7</SECTNO>
                        <SUBJECT>How will we determine if the State is meeting the quarterly reporting requirements?</SUBJECT>
                        <P>(a) Each State's quarterly reports (the TANF Data Report, the TANF Financial Report (or Territorial Financial Report), the SSP-MOE Data Report, and the Work Outcomes of TANF Exiters Report) must be complete and accurate and filed by the due date.</P>
                        <STARS/>
                        <P>(e) For the Work Outcomes of TANF Exiters Report, “complete and accurate report” means that:</P>
                        <P>(1) The reported data accurately reflect information available to the State in case records, and automated data systems;</P>
                        <P>
                            (2) The State reports data on all applicable elements (
                            <E T="03">i.e.,</E>
                             no data are missing); and
                        </P>
                        <P>(3) The State reports universe data on all work eligible individuals who exited TANF in a particular quarter.</P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="45" PART="265">
                    <AMDPAR>9. Amend § 265.9 by:</AMDPAR>
                    <AMDPAR>a. Removing footnote 7 from paragraph (c)(9); and</AMDPAR>
                    <AMDPAR>b. Adding paragraphs (f) and (g).</AMDPAR>
                    <P>The additions read as follows:</P>
                    <SECTION>
                        <SECTNO>§ 265.9</SECTNO>
                        <SUBJECT>What information must the State file annually?</SUBJECT>
                        <STARS/>
                        <P>(f) Each State must submit the percentage of individuals who have not attained 24 years of age, are attending high school or enrolled in an equivalency program, and are work-eligible individuals or were work-eligible individuals as of the time of exit from the program, who obtain a high school degree or its recognized equivalent while receiving assistance under the State program funded under this part or within one year after the individuals exit from the program. The Secondary School Diploma or its Recognized Equivalent Attainment Rate report must include methodology and documentation of data sources.</P>
                        <P>(g) On a voluntary basis, a State may also submit calculated work outcomes measures that follow the definitions of the Work Outcomes of TANF Exiters (as defined in § 265.3(g)) based on alternative data sources. The report must include documentation of data sources. In addition to the Work Outcomes of TANF Exiters Report, this Supplemental Work Outcomes Report is mandatory for any State that is unable to submit quarterly wage data to the ACF-designated wage match source.</P>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="45" PART="265">
                    <AMDPAR>10. Revise § 265.10 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 265.10</SECTNO>
                        <SUBJECT>When are the annual reports due?</SUBJECT>
                        <P>The annual reports required by § 265.9 are due 45 days after the end of the fiscal year.</P>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <NAME>Xavier Becerra,</NAME>
                    <TITLE>Secretary, Department of Health and Human Services.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-13865 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4184-36-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Pipeline and Hazardous Materials Safety Administration</SUBAGY>
                <CFR>49 CFR Part 192</CFR>
                <DEPDOC>[Docket No. PHMSA-2013-0255; Amdt. No. 192-136]</DEPDOC>
                <RIN>RIN 2137-AF06</RIN>
                <SUBJECT>Pipeline Safety: Requirement of Valve Installation and Minimum Rupture Detection Standards: Response to Petition for Reconsideration; Additional Technical Corrections</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Pipeline and Hazardous Materials Safety Administration (PHMSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Correction amendments; response to petition for reconsideration.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In response to a Petition for Reconsideration of an August 1, 2023, technical correction rule, PHMSA is issuing additional corrections codifying a decision of the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) regarding the final rule titled “Pipeline Safety: Requirement of Valve Installation and Minimum Rupture Detection Standards.”</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>These amendments are effective as of June 28, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Robert Jagger, Senior Transportation Specialist, by email at 
                        <E T="03">robert.jagger@dot.gov,</E>
                         or by telephone at 202-366-4361.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    On April 8, 2022, PHMSA published a final rule titled “Pipeline Safety: Requirement of Valve Installation and Minimum Rupture Detection Standards” 
                    <SU>1</SU>
                    <FTREF/>
                     (Valve Rule) amending the Federal pipeline safety regulations (49 CFR parts 190 through 199) to, among other provisions, require the installation of rupture-mitigation valves (RMV) or alternative equivalent technologies and establish minimum performance standards for the operation of those valves to mitigate the public safety and 
                    <PRTPAGE P="53878"/>
                    environmental consequences of ruptures on gas and hazardous liquid (including carbon dioxide) pipelines. On May 16, 2023, the D.C. Circuit vacated the Valve Rule's regulatory amendments as they applied to gathering pipelines (gathering lines).
                    <SU>2</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         87 FR 20940 (Apr. 8, 2022).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See GPA Midstream Ass'n</E>
                         v. 
                        <E T="03">U.S. Dep't of Transp.,</E>
                         67 F.4th 1188 (D.C. Cir. 2023). The court left in place those regulations as applied to gas and hazardous liquid transmission pipelines.
                    </P>
                </FTNT>
                <P>Subsequently, on August 1, 2023, PHMSA issued “Pipeline Safety: Requirement of Valve Installation and Minimum Rupture Detection Standards: Technical Corrections,” 88 FR 50056 (Aug. 1, 2023) (Correction Rule), which updated provisions of the pipeline safety regulations, as amended by the Valve Rule, to codify the D.C. Circuit's decision. On August 30, 2023, the American Petroleum Institute (API) and GPA Midstream Association (GPA) jointly filed a Petition for Reconsideration (Petition) of the Correction Rule. The Petition requested two regulatory amendments pertaining to the D.C. Circuit's May 2023 decision.</P>
                <P>First, API and GPA noted that, although § 192.9(c) provides an exception for Type A gathering lines from the requirements at § 192.617(b) through (d), corresponding references to Type A gathering lines remained within § 192.617(c) and (d). API and GPA requested PHMSA remove those references within § 192.617(c) and (d) to better conform to the D.C. Circuit decision.</P>
                <P>
                    Second, API and GPA also noted that, although PHMSA amended the definition of “notification of potential rupture” at §§ 192.3 and 195.2 to exclude gathering lines, that exclusion was not made explicit within a companion provision in operating requirements at § 192.635(a). API and GPA requested PHMSA add a disclaimer to § 192.635 to align with the changes made to the definition for “notification of potential rupture” to conform with the D.C. Circuit order specifying that § 192.635(a) is not applicable to gas gathering lines. PHMSA recently granted the Petition by response letter to GPA and API.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         PHMSA's response to API and GPA's Petition and Supplement Letter can be found in rulemaking docket no. PHMSA-2013-0255 on 
                        <E T="03">www.regulations.gov.</E>
                         PHMSA incorporates by reference its response in its entirety within this Notice.
                    </P>
                </FTNT>
                <P>On September 22, 2023, GPA and API filed a “Supplement Letter” to the Petition requesting revision of § 195.418(b)(2)(ii) (regarding the spacing interval of shut-off valves on transmission pipeline segments carrying highly volatile liquids) and the groups filed an additional “Supplement Letter” on May 30, 2024, requesting revision of § 195.260(c) (regarding spacing from endpoints of transmission pipeline segments in high consequence areas). PHMSA denied each of these supplements as an untimely petition for reconsideration, and, according to § 190.335(a), will assess them as petitions for rulemaking under §§ 190.331 and 190.333.</P>
                <HD SOURCE="HD1">I. Conforming Corrections Implementing Judicial Decision</HD>
                <P>In response to the August 30, 2023, Petition, PHMSA makes the following further amendments to the pipeline safety regulations in conformity with the D.C. Circuit decision. PHMSA revises § 192.617(b) through (d) to remove references to Type A gas gathering lines from those requirements and clarify that those provisions are inapplicable to gas gathering lines. Additionally, PHMSA revises § 192.635 to add a disclaimer explicitly stating that section does not apply to gas gathering lines within a new paragraph (c) to align with the previously revised definition for “notification of potential rupture” at § 192.3. Making these amendments conforms to the D.C. Circuit decision.</P>
                <HD SOURCE="HD1">II. Regulatory Analyses and Notices</HD>
                <HD SOURCE="HD2">A. Statutory/Legal Authority and Good Cause for Immediate Adoption Without Prior Notice and Comment</HD>
                <P>
                    This document is published under the authority of the Secretary of Transportation delegated to the PHMSA Administrator pursuant to 49 CFR 1.97. Among the statutory authorities delegated to PHMSA are the authorities vested in the Secretary under the Federal Pipeline Safety Statutes (49 U.S.C. 60101 
                    <E T="03">et seq.</E>
                    ). Section 60102(a) authorizes issuance of regulations governing design, installation, inspection, emergency plans and procedures, testing, construction, extension, operation, replacement, and maintenance of pipeline facilities. 
                    <E T="03">See also</E>
                     49 U.S.C. 60102(n) (requiring the Secretary to issue regulations requiring the installation of RMVs or equivalent technology on new and entirely replaced transmission lines). Other authorities delegated to PHMSA include 49 U.S.C. 5103 (regulatory authority to prescribe regulations for transportation of hazardous materials) and 30 U.S.C. 185(w)(3) (authority to prescribe reporting requirements for pipelines traversing Federal lands).
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See also</E>
                         87 FR at 20978 (Valve Rule statutory authorities).
                    </P>
                </FTNT>
                <P>
                    PHMSA finds it has good cause to make the judicially conforming corrections without notice and comment pursuant to section 553(b) of the Administrative Procedure Act (APA, 5 U.S.C. 551 
                    <E T="03">et seq.</E>
                    ). Section 553(b)(B) of the APA provides that, when an agency for good cause finds that notice and public procedure are impracticable, unnecessary, or contrary to the public interest, the agency may issue a rule without providing notice and an opportunity for public comment. The APA good cause exception applies “when rulemaking without notice and comment is a reasonable and perhaps inevitable response to a court order” such that the court order would make additional comment “utterly unnecessary.” 
                    <E T="03">EME Homer City Generation, LP</E>
                     v. 
                    <E T="03">EPA,</E>
                     795 F.3d 118, 134-35 (D.C. Cir. 2015) (internal quotations omitted). These corrections rectify unintended omissions from PHMSA's August 1, 2023, Correction Rule to ensure the regulations conform with judicial review of the final Valve Rule. Good cause exists to further ensure part 192 conforms with the D.C. Circuit's order,
                    <SU>5</SU>
                    <FTREF/>
                     and PHMSA finds that additional comment on these corrections is unnecessary as no comment here can “change[ ] that fact” of the court's order to vacate the Valve Rule amendments as to gathering lines. 
                    <E T="03">See EME Homer,</E>
                     795 F.3d at 135.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">GPA Midstream Ass'n,</E>
                         67 F.4th at 1202.
                    </P>
                </FTNT>
                <P>
                    Similarly, good cause authorizes the immediate effective date of these additional corrections. Section 553(d)(3) of the APA provides that a rule should take effect not less than 30 days after publication in the 
                    <E T="04">Federal Register</E>
                    , except for when good cause is found by the agency and published within the rule allowing for earlier effect. 5 U.S.C. 553(d)(3). “[T]he purpose of the thirty-day waiting period is to give affected parties a reasonable time to adjust their behavior before the final rule takes effect.” 
                    <E T="03">Omnipoint Corp.</E>
                     v. 
                    <E T="03">F.C.C.,</E>
                     78 F.3d 620, 630 (D.C. Cir. 1996). PHMSA finds that, for the same reasons stated above, there is good cause under section 553(d)(3) of the APA to make these revisions effective immediately upon publication in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <HD SOURCE="HD2">B. Executive Order 12866 and DOT Regulatory Policies and Procedures</HD>
                <P>
                    This document has been evaluated in accordance with Executive Order 12866 (“Regulatory Planning and Review”),
                    <SU>6</SU>
                    <FTREF/>
                     Executive Order 14094 (“Modernizing Regulatory Review”),
                    <SU>7</SU>
                    <FTREF/>
                     and DOT Order 2100.6A (“Rulemaking and Guidance 
                    <PRTPAGE P="53879"/>
                    Procedures”) and is considered not significant; therefore, this document has not been reviewed by the Office of Management and Budget (OMB). PHMSA finds that the conforming corrections herein impose no incremental compliance costs beyond those assessed earlier in the Valve Rule, nor do they adversely affect safety, as the corrections merely codify the results of judicial review limiting the scope of application of the Valve Rule, and otherwise are consistent with the Valve Rule.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         58 FR 51735 (Oct. 4, 1993).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         88 FR 21879 (Apr. 11, 2023).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Regulatory Flexibility Act</HD>
                <P>
                    The analytical requirements of the Regulatory Flexibility Act, as amended by the Small Business Regulatory Flexibility Fairness Act of 1996 (RFA, 5 U.S.C. 601 
                    <E T="03">et seq.</E>
                    ), do not apply when the agency finds good cause under the APA to adopt a rule without prior notice and comment.
                    <SU>8</SU>
                    <FTREF/>
                     Because PHMSA has “good cause” under the APA to forego comment on the corrections herein, no RFA analysis is required.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         5 U.S.C. 603-604. 
                        <E T="03">See also</E>
                         Small Business Administration, “A Guide for Government Agencies: How to Comply with the Regulatory Flexibility Act” 55 (2017).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">D. Paperwork Reduction Act</HD>
                <P>The corrections in this document impose no new or revised information collection requirements. As explained above, the changes being made in this document are non-substantive, and they will require no change to the current incident and annual reporting forms and their respective instructions as discussed in the preamble of the Valve Rule.</P>
                <HD SOURCE="HD2">E. Unfunded Mandates Reform Act of 1995</HD>
                <P>
                    PHMSA analyzed the corrections in this document pursuant to the Unfunded Mandates Reform Act of 1995 (UMRA, 2 U.S.C. 1501 
                    <E T="03">et seq.</E>
                    ) and determined that the corrections do not impose enforceable duties of $100 million or more, adjusted for inflation, in any one year, on state, local, or tribal governments, or on the private sector. Because the corrections impose no new incremental compliance costs beyond those already assessed in the Valve Rule, PHMSA's earlier UMRA analysis prepared for the Valve Rule need not be changed.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Final Regulatory Impact Analysis, Doc. No. PHMSA-2013-0255-0046.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">F. National Environmental Policy Act</HD>
                <P>
                    The National Environmental Policy Act of 1969 (NEPA, 42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    ) requires Federal agencies to prepare a detailed statement on major Federal actions significantly affecting the quality of the human environment. PHMSA analyzed the Valve Rule in accordance with NEPA, implementing Council on Environmental Quality regulations (40 CFR parts 1500 through 1508), and DOT implementing policies (DOT Order 5610.1C, “Procedures for Considering Environmental Impacts”) and determined the Valve Rule would not significantly affect the quality of the human environment.
                    <SU>10</SU>
                    <FTREF/>
                     PHMSA has determined that the corrections in this document have no effect on its earlier NEPA analysis, as the corrections simply reflect the Valve Rule as modified by judicial review.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Final Environmental Assessment, Doc. No. PHMSA-2013-0255-0045.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">G. Executive Order 13132 (Federalism)</HD>
                <P>
                    PHMSA has analyzed this document in accordance with the principles and criteria contained in Executive Order 13132 (“Federalism”).
                    <SU>11</SU>
                    <FTREF/>
                     PHMSA has previously determined that the Valve Rule did not impose any substantial direct effect on the States, the relationship between the National Government and the States, or the distribution of power and responsibilities among the various levels of government, 
                    <E T="03">see</E>
                     87 FR at 20978. Because the judicially conforming corrections herein are consistent with the Valve Rule as modified by judicial review, the consultation and funding requirements of Executive Order 13132 do not apply.
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         64 FR 43255 (Aug. 10, 1999).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Moreover, PHMSA determined that the Valve Rule did not impose substantial direct compliance costs on state and local governments.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">H. Executive Order 13211</HD>
                <P>
                    PHMSA analyzed the Valve Rule and determined that the requirements of Executive Order 13211 (“Actions Concerning Regulations that Significantly Affect Energy Supply, Distribution, or Use”) 
                    <SU>13</SU>
                    <FTREF/>
                     did not apply. These judicially conforming corrections to the Valve Rule are not a “significant energy action” under Executive Order 13211, as they are not a significant regulatory action, and they are not likely to have a significant adverse effect on supply, distribution, or energy use. Further, OMB has not designated the corrections herein as a significant energy action.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         66 FR 28355 (May 22, 2001).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">I. Executive Order 13175</HD>
                <P>
                    This document was analyzed in accordance with the principles and criteria contained in Executive Order 13175 (“Consultation and Coordination with Indian Tribal Governments”) 
                    <SU>14</SU>
                    <FTREF/>
                     and DOT Order 5301.1 (“Department of Transportation Policies, Programs, and Procedures Affecting American Indians, Alaska Natives, and Tribes”). Because none of the corrections in this final rule have tribal implications or impose substantial direct compliance costs on Indian tribal governments, the funding and consultation requirements of Executive Order 13175 do not apply.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         65 FR 67249 (Nov. 6, 2000).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">J. Executive Order 13609 and International Trade Analysis</HD>
                <P>
                    Under Executive Order 13609 (“Promoting International Regulatory Cooperation”),
                    <SU>15</SU>
                    <FTREF/>
                     agencies must consider whether the impacts associated with significant variations between domestic and international regulatory approaches are unnecessary or may impair the ability of American business to export and compete internationally. In meeting shared challenges involving health, safety, labor, security, environmental, and other issues, international regulatory cooperation can identify approaches that are at least as protective as those that are or would be adopted in the absence of such cooperation. International regulatory cooperation can also reduce, eliminate, or prevent unnecessary differences in regulatory requirements. The judicially conforming corrections to the Valve Rule in this document do not impact international trade.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         77 FR 26413 (May 4, 2012).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">K. Regulation Identifier Number (RIN)</HD>
                <P>A RIN is assigned to each regulatory action listed in the Unified Agenda of Federal Regulations. The Regulatory Information Service Center publishes the Unified Agenda in April and October of each year. The RIN contained in the heading of this document can be used to cross-reference this action with the Unified Agenda.</P>
                <HD SOURCE="HD2">L. Severability</HD>
                <P>The purpose of these corrections is to conform with the outcome of judicial review of the Valve Rule. The provisions amended herein focus on disparate topics. Therefore, PHMSA finds that each correction in this rule is severable and able to function independently from the others. Further, these provisions are severable from the Correction Rule and from the Valve Rule. In the event a court were to invalidate one or more of the unique amendments in this rule, the remaining provisions should stand, thus allowing their continued effect.</P>
                <LSTSUB>
                    <PRTPAGE P="53880"/>
                    <HD SOURCE="HED">List of Subjects in 49 CFR Part 192</HD>
                    <P>Gas, Natural Gas, Pipeline Safety, Reporting and Recordkeeping Requirements.</P>
                </LSTSUB>
                <P>In consideration of the foregoing, PHMSA makes the following correcting amendments to 49 CFR part 192:</P>
                <PART>
                    <HD SOURCE="HED">PART 192—TRANSPORTATION OF NATURAL GAS AND OTHER GAS BY PIPELINE: MINIMUM FEDERAL SAFETY STANDARDS</HD>
                </PART>
                <REGTEXT TITLE="49" PART="192">
                    <AMDPAR>1. The authority citation for part 192 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>
                            30 U.S.C. 185(w)(3), 49 U.S.C. 5103, 60101 
                            <E T="03">et. seq.,</E>
                             and 49 CFR 1.97.
                        </P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="192">
                    <AMDPAR>2. Amend § 192.617 by revising paragraphs (b), (c) introductory text, and (d) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 192.617</SECTNO>
                        <SUBJECT>Investigation of failures and incidents.</SUBJECT>
                        <STARS/>
                        <P>
                            (b) 
                            <E T="03">Post-failure and incident lessons learned.</E>
                             Each operator of a transmission or distribution pipeline must develop, implement, and incorporate lessons learned from a post-failure or incident review into its written procedures, including personnel training and qualification programs; and design, construction, testing, maintenance, operations, and emergency procedure manuals and specifications.
                        </P>
                        <P>
                            (c) 
                            <E T="03">Analysis of rupture and valve shutoffs.</E>
                             If an incident on an onshore gas transmission pipeline involves the closure of a rupture-mitigation valve (RMV), as defined at § 192.3, or the closure of alternative equivalent technology, the operator of the pipeline must also conduct a post-incident analysis of all of the factors that may have impacted the release volume and the consequences of the incident and identify and implement operations and maintenance measures to prevent or minimize the consequences of a future incident. The requirements of this paragraph (c) are not applicable to gas distribution or gas gathering pipelines. The analysis must include all relevant factors impacting the release volume and consequences, including, but not limited to, the following:
                        </P>
                        <STARS/>
                        <P>
                            (d) 
                            <E T="03">Rupture post-failure and incident summary.</E>
                             If a failure or incident on an onshore gas transmission pipeline involves the identification of a rupture following a notification of potential rupture, or the closure of an RMV (as those terms are defined at § 192.3), or the closure of an alternative equivalent technology, the operator of the pipeline must complete a summary of the post-failure or incident review required by paragraph (c) of this section within 90 days of the incident, and while the investigation is pending, conduct quarterly status reviews until the investigation is complete and a final post-incident summary is prepared. The final post-failure or incident summary, and all other reviews and analyses produced under the requirements of this section, must be reviewed, dated, and signed by the'operator's appropriate senior executive officer. The final post-failure or incident summary, all investigation and analysis documents used to prepare it, and records of lessons learned must be kept for the useful life of the pipeline. The requirements of this paragraph (d) are not applicable to gas distribution or gas gathering pipelines.
                        </P>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="192">
                    <AMDPAR>3. Amend § 192.635 by adding paragraph (c) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 192.635</SECTNO>
                        <SUBJECT>Notification of potential rupture.</SUBJECT>
                        <STARS/>
                        <P>(c) This section does not apply to any gas gathering line.</P>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <DATED>Issued in Washington, DC, on June 20, 2024, under authority delegated in 49 CFR 1.97.</DATED>
                    <NAME>Tristan H. Brown,</NAME>
                    <TITLE>Deputy Administrator.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14116 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-60-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Pipeline and Hazardous Materials Safety Administration</SUBAGY>
                <CFR>49 CFR Parts 192</CFR>
                <DEPDOC>[Docket No. PHMSA-2016-0002; Amdt. No. 192-137]</DEPDOC>
                <RIN>RIN 2137-AF13</RIN>
                <SUBJECT>Pipeline Safety: Periodic Updates of Regulatory References to Technical Standards and Miscellaneous Amendments; Technical Correction</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Pipeline and Hazardous Materials Safety Administration (PHMSA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>PHMSA is issuing a technical correction to regulations promulgated in its April 29, 2024, final rule titled “Periodic Updates of Regulatory References to Technical Standards and Miscellaneous Amendments.” The correction addresses text that was inadvertently deleted or omitted by the final rule.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This correction is effective June 28, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P/>
                    <P>
                        <E T="03">Technical Information:</E>
                         Rod Seeley by phone at 281-513-1741 or by email at 
                        <E T="03">rodrick.m.seeley@dot.gov.</E>
                    </P>
                    <P>
                        <E T="03">Regulatory Information:</E>
                         Brianna Wilson by phone at 771-215-0969 or by email at 
                        <E T="03">brianna.wilson@dot.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">I. Background and Need for Technical Correction</HD>
                <P>
                    On April 29, 2024, PHMSA published a final rule titled “Pipeline Safety: Periodic Updates of Regulatory References to Technical Standards and Miscellaneous Amendments,” 
                    <SU>1</SU>
                    <FTREF/>
                     which incorporates by reference all or parts of more than 20 new or updated voluntary, consensus industry technical standards. The amendments in the final rule allow pipeline operators to use current technologies, improved materials, and updated industry and management practices. Additionally, the final rule clarified certain regulatory provisions and made several editorial corrections. This notice identifies a technical correction at 49 CFR 192.121(c)(2)(iv), as set forth below. The final rule inadvertently deleted or omitted text found at Table 1 under § 192.121(c)(2)(iv). The publication of this correction is needed to ensure that the final rule reads as intended.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         89 FR 33264 (Apr. 29, 2024).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Regulatory Analyses and Notices</HD>
                <HD SOURCE="HD2">A. Statutory/Legal Authority</HD>
                <P>
                    Statutory authority for this notice's correction to the final rule, as with the final rule itself, whose discussion of statutory authority at Section VI., 89 FR 33264, is adopted herein by reference, is provided by the Federal Pipeline Safety Act (49 U.S.C. 60101 
                    <E T="03">et seq.</E>
                    ). The Secretary delegated his authority under the Federal Pipeline Safety Act to the PHMSA Administrator under 49 CFR 1.97.
                </P>
                <P>
                    PHMSA finds it has good cause to make this correction without notice and comment pursuant to section 553(b) of the Administrative Procedure Act (APA, 5 U.S.C. 551 
                    <E T="03">et seq.</E>
                    ). Section 553(b)(B) of the APA provides that, when an agency for good cause finds that notice and public procedure are impracticable, unnecessary, or contrary to the public interest, the agency may issue a rule without providing notice and an opportunity for public comment. As explained above, the textual alterations herein consist of an editorial and technical correction, including revision to or codification of regulatory language inadvertently deleted or omitted by the final rule, consistent with statements in the administrative record. The technical 
                    <PRTPAGE P="53881"/>
                    correction makes no substantive changes to the final rule but merely facilitate its implementation by aligning the regulatory text with the explanatory material in the final rule's preamble, amendatory text, and administrative record. Because the final rule is the product of an extensive administrative record with numerous opportunities for public comment, including through written comments and the Pipeline Advisory Committees, PHMSA finds that additional comment on the correction herein is unnecessary.
                </P>
                <P>
                    The immediate effective date of the correction contained in this document is authorized under 5 U.S.C. 553(d)(3) of the APA. Section 553(d)(3) provides that a rule should take effect “not less than 30 days” after publication in the 
                    <E T="04">Federal Register</E>
                    , except for when good cause is found by the agency and published within the rule, thus allowing for earlier effectiveness. 5 U.S.C. 553(d)(3). “[T]he purpose of the thirty-day waiting period is to give affected parties a reasonable time to adjust their behavior before the final rule takes effect.” 
                    <E T="03">Omnipoint Corp.</E>
                     v. 
                    <E T="03">F.C.C.,</E>
                     78 F.3d 620, 630 (D.C. Cir. 1996). PHMSA finds that good cause under section 553(d)(3) of the APA supports making the revisions effective upon publication in the 
                    <E T="04">Federal Register</E>
                     because the editorial and technical correction at § 192.121 (c)(2)(iv) is consistent with the preamble of the final rule and Advisory Committee discussions on the subject.
                </P>
                <HD SOURCE="HD2">B. Executive Order 12866 and 14094, and DOT Regulatory Policies and Procedures</HD>
                <P>
                    This correction has been evaluated in accordance with existing policies and procedures and is considered not significant under each of Executive Orders 12866 (“Regulatory Planning and Review”) 
                    <SU>2</SU>
                    <FTREF/>
                     and 14094 (“Modernizing Regulatory Review”),
                    <SU>3</SU>
                    <FTREF/>
                     and DOT Order 2100.6A (“Rulemaking and Guidance Procedures”); therefore, this notice has not been reviewed by the Office of Management and Budget (OMB). PHMSA finds that the editorial and technical correction herein, in all respects consistent with the final rule, imposes no incremental compliance costs nor adversely affects safety, as it merely corrects a non-substantive typographical error made during the drafting of the final rule and restores the intent of the final rule as discussed in its preamble and supporting documentation.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         58 FR 51735, (Oct. 4, 1993).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         88 FR 21879 (Apr. 11, 2023).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Regulatory Flexibility Act, Executive Order 13272, and DOT Policies and Procedures</HD>
                <P>
                    The Regulatory Flexibility Act (5 U.S.C. 601 
                    <E T="03">et seq.</E>
                    ) requires agencies to review regulations to assess their impact on small entities unless the agency head certifies that a rulemaking will not have a significant economic impact on a substantial number of small entities including small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations under 50,000. The Regulatory Flexibility Act directs agencies to establish exceptions and differing compliance standards for small businesses, where possible to do so and still meet the objectives of applicable regulatory statutes. Executive Order 13272 (“Proper Consideration of Small Entities in Agency Rulemaking”) 
                    <SU>4</SU>
                    <FTREF/>
                     requires agencies to establish procedures and policies to promote compliance with the Regulatory Flexibility Act and to “thoroughly review draft rules to assess and take appropriate account of the potential impact” of the rules on small businesses, governmental jurisdictions, and small organizations. The DOT posts its implementing guidance on a dedicated web page.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         67 FR 53461 (Aug. 16, 2002).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         DOT, “Rulemaking Requirements Related to Small Entities,” 
                        <E T="03">https://www.transportation.gov/regulations/rulemaking-requirements-concerning-small-entities</E>
                         (last accessed June 17, 2021).
                    </P>
                </FTNT>
                <P>
                    As explained in the Final Regulatory Flexibility Analysis (FRFA), PHMSA found that the final rule would not have a significant impact on a substantial number of small entities.
                    <SU>6</SU>
                    <FTREF/>
                     Therefore, PHMSA expects that these corrections—like the amendments in the final rule—will not have a significant economic impact on a substantial number of small entities. Because the technical corrections herein will impose no new incremental compliance costs, PHMSA understands the analysis in the FRFA remains unchanged.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         89 FR 33264, 33276.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">D. Paperwork Reduction Act</HD>
                <P>The correction in this document imposes no new or revised information collection requirements beyond those discussed in the final rule.</P>
                <HD SOURCE="HD2">E. Unfunded Mandates Reform Act of 1995</HD>
                <P>
                    PHMSA analyzed the correction in this notice under the factors in the Unfunded Mandates Reform Act of 1995 (UMRA, 2 U.S.C. 1501 
                    <E T="03">et seq.</E>
                    ) and determined that the corrections to the final rule herein do not impose enforceable duties of $100 million or more, adjusted for inflation, in any one year, on State, local, or Tribal governments, or on the private sector. PHMSA prepared an analysis of the UMRA considerations in the final rule, which is available in the docket for the rulemaking. Because the correction herein will impose no new incremental compliance costs, the analysis in that UMRA discussion for the final rule remains unchanged.
                </P>
                <HD SOURCE="HD2">F. Environmental Assessment</HD>
                <P>
                    The National Environmental Policy Act of 1969 (NEPA, 42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    ) requires Federal agencies to prepare a detailed statement on major Federal actions significantly affecting the quality of the human environment. PHMSA analyzed the final rule in accordance with NEPA, implementing Council on Environmental Quality regulations (40 CFR parts 1500-1508), and DOT implementing policies (DOT Order 5610.1C, “Procedures for Considering Environmental Impacts”) and determined the final rule would not significantly affect the quality of the human environment.
                    <SU>7</SU>
                    <FTREF/>
                     The correction to the final rule in this notice has no effect on PHMSA's earlier NEPA analysis, as it is consistent with, and facilitates compliance with, the final rule.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         89 FR 33264, 33276-78 (Apr. 29, 2024).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">G. Privacy Act Statement</HD>
                <P>
                    In accordance with 5 U.S.C. 553(c), the DOT solicits comments from the public to inform its rulemaking process. The DOT posts these comments, without edit, including any personal information the commenter provided, to 
                    <E T="03">www.regulations.gov,</E>
                     as described in the system of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
                    <E T="03">www.dot.gov/privacy.</E>
                </P>
                <HD SOURCE="HD2">H. Executive Order 13132 (Federalism)</HD>
                <P>
                    PHMSA has analyzed this correction in accordance with the principles and criteria contained in Executive Order 13132 (“Federalism”).
                    <SU>8</SU>
                    <FTREF/>
                     The correction herein is consistent with, and facilitates compliance with, the final rule, and does not have any substantial direct effect on the States, the relationship between the Federal Government and the States, or the distribution of power and responsibilities among the various levels of government beyond what was accounted for in the final rule. This notice does not contain any provision that imposes any substantial direct compliance costs on State or local 
                    <PRTPAGE P="53882"/>
                    governments, nor any new provision that preempts State law. Therefore, the consultation and funding requirements of Executive Order 13132 do not apply.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         64 FR 43255 (Aug. 10, 1999).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">I. Executive Order 13211</HD>
                <P>
                    Executive Order 13211 (“Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use”) 
                    <SU>9</SU>
                    <FTREF/>
                     requires federal agencies to prepare a Statement of Energy Effects for any “significant energy action.” The correction herein does not invoke any issues under Executive Order 13211.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         66 FR 28355 (May 22, 2001).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">J. Executive Order 13175</HD>
                <P>
                    This correction was analyzed in accordance with the principles and criteria contained in Executive Order 13175 (“Consultation and Coordination with Indian Tribal Governments”) 
                    <SU>10</SU>
                    <FTREF/>
                     and DOT Order 5301.1A (“Department of Transportation Tribal Consultation Policies and Procedures”). Executive Order 13175 and DOT Order 5301.1A require DOT Operating Administrations to assure meaningful and timely input from Native American tribal government representatives in the development of rules that significantly or uniquely affect tribal communities by imposing “substantial direct compliance costs” or “substantial direct effects” on such communities, or the relationship and distribution of power between the Federal Government and Native American tribes. Because the correction herein does not have Tribal implications or impose substantial direct compliance costs on Indian Tribal governments, the funding and consultation requirements of Executive Order 13175 do not apply.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         65 FR 67249 (Nov. 6, 2000).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">K. Executive Order 13609 and International Trade Analysis</HD>
                <P>
                    Under Executive Order 13609 (“Promoting International Regulatory Cooperation”),
                    <SU>11</SU>
                    <FTREF/>
                     agencies must consider whether the impacts associated with significant variations between domestic and international regulatory approaches are unnecessary or may impair the ability of American business to export and compete internationally. In meeting shared challenges involving health, safety, labor, security, environmental, and other issues, international regulatory cooperation can identify approaches that are at least as protective as those that are or would be adopted in the absence of such cooperation. International regulatory cooperation can also reduce, eliminate, or prevent unnecessary differences in regulatory requirements. The correction to the final rule in this notice does not impact international trade.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         77 FR 26413 (May 4, 2012).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">L. National Technology Transfer and Advancement Act</HD>
                <P>
                    The National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) directs federal agencies to use voluntary consensus standards in their regulatory activities unless doing so would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (
                    <E T="03">e.g.,</E>
                     specification of materials, test methods, or performance requirements) that are developed or adopted by voluntary consensus standard bodies. The final rule adopted more than 20 new or updated voluntary, consensus industry technical standards. The correction herein does not change the final rule's analysis.
                </P>
                <HD SOURCE="HD2">M. Cybersecurity and Executive Order 14028</HD>
                <P>
                    Executive Order 14028 (“Improving the Nation's Cybersecurity”) 
                    <SU>12</SU>
                    <FTREF/>
                     directed the federal government to improve its efforts to identify, deter, and respond to “persistent and increasingly sophisticated malicious cyber campaigns.” The correction herein does not invoke any cybersecurity issues.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         86 FR 26633 (May 17, 2021).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">N. Severability</HD>
                <P>This correction does not present any issues with severability.</P>
                <HD SOURCE="HD2">O. Regulation Identifier Number (RIN)</HD>
                <P>A RIN is assigned to each regulatory action listed in the Unified Agenda of Federal Regulations. The Regulatory Information Service Center publishes the Unified Agenda in April and October of each year. The RIN contained in the heading of this document can be used to cross-reference this action with the Unified Agenda.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 49 CFR Part 192</HD>
                    <P>Incorporation by reference, Pipeline safety, Natural gas.</P>
                </LSTSUB>
                <HD SOURCE="HD1">Correction</HD>
                <P>
                    In FR Doc. 2024-08624 that appears on page 33281 of the 
                    <E T="04">Federal Register</E>
                     on Monday, April 29, 2024, the following correction is made:
                </P>
                <REGTEXT TITLE="49" PART="192">
                    <AMDPAR>1. On page 33281, in column 1, in amendatory instruction 8, paragraph (c)(2)(iv) is corrected to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 192.121</SECTNO>
                        <SUBJECT>[Corrected]</SUBJECT>
                        <STARS/>
                        <P>(c) * * *</P>
                        <P>(2) * * *</P>
                        <P>(iv) The wall thickness for a given outside diameter is not less than that listed in Table 1 to this paragraph (c)(2)(iv):</P>
                        <GPOTABLE COLS="3" OPTS="L2,p7,7/8,i1" CDEF="s25,12,12">
                            <TTITLE>
                                Table 1 to Paragraph 
                                <E T="01">(c)(2)(iv)</E>
                            </TTITLE>
                            <BOXHD>
                                <CHED H="1">PE pipe: minimum wall thickness and SDR values</CHED>
                                <CHED H="2">
                                    Pipe size 
                                    <LI>(inches)</LI>
                                </CHED>
                                <CHED H="2">
                                    Minimum wall thickness
                                    <LI>(inches)</LI>
                                </CHED>
                                <CHED H="2">
                                    Corresponding dimension
                                    <LI>ratio (values)</LI>
                                </CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="01">
                                    <FR>1/2</FR>
                                    ″ CTS
                                </ENT>
                                <ENT>0.090</ENT>
                                <ENT>7</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">
                                    <FR>1/2</FR>
                                    ″ IPS
                                </ENT>
                                <ENT>0.090</ENT>
                                <ENT>9.3</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">
                                    <FR>3/4</FR>
                                    ″ CTS
                                </ENT>
                                <ENT>0.090</ENT>
                                <ENT>9.7</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">
                                    <FR>3/4</FR>
                                    ″ IPS
                                </ENT>
                                <ENT>0.095</ENT>
                                <ENT>11</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">1″ CTS</ENT>
                                <ENT>0.099</ENT>
                                <ENT>11</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">1″ IPS</ENT>
                                <ENT>0.119</ENT>
                                <ENT>11</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">
                                    1 
                                    <FR>1/4</FR>
                                    ″ CTS
                                </ENT>
                                <ENT>0.121</ENT>
                                <ENT>11</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">
                                    1 
                                    <FR>1/4</FR>
                                    ″ IPS
                                </ENT>
                                <ENT>0.151</ENT>
                                <ENT>11</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">
                                    1 
                                    <FR>1/2</FR>
                                    ″ IPS
                                </ENT>
                                <ENT>0.173</ENT>
                                <ENT>11</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">2″</ENT>
                                <ENT>0.216</ENT>
                                <ENT>11</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">3″</ENT>
                                <ENT>0.259</ENT>
                                <ENT>13.5</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">4″</ENT>
                                <ENT>0.265</ENT>
                                <ENT>17</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">6″</ENT>
                                <ENT>0.315</ENT>
                                <ENT>21</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">8″</ENT>
                                <ENT>0.411</ENT>
                                <ENT>21</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">10″</ENT>
                                <ENT>0.512</ENT>
                                <ENT>21</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">12″</ENT>
                                <ENT>0.607</ENT>
                                <ENT>21</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">16″</ENT>
                                <ENT>0.762</ENT>
                                <ENT>21</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">18″</ENT>
                                <ENT>0.857</ENT>
                                <ENT>21</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">20″</ENT>
                                <ENT>0.952</ENT>
                                <ENT>21</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">22″</ENT>
                                <ENT>1.048</ENT>
                                <ENT>21</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">24″</ENT>
                                <ENT>1.143</ENT>
                                <ENT>21</ENT>
                            </ROW>
                        </GPOTABLE>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <DATED>Issued in Washington, DC, on June 20, 2024, under authority delegated in 49 CFR 1.97.</DATED>
                    <NAME>Tristan H. Brown,</NAME>
                    <TITLE>Deputy Administrator.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14115 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-60-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 622</CFR>
                <DEPDOC>[Docket No. 140819686-5999-02; RTID 0648-XE065]</DEPDOC>
                <SUBJECT>Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 2024 Commercial Closure for Gag in the South Atlantic</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary rule; closure.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        NMFS implements an accountability measure for the commercial sector of gag in South Atlantic Federal waters. NMFS projects that commercial landings of gag will reach the adjusted commercial quota for 2024. Therefore, NMFS closes the commercial sector of gag in South 
                        <PRTPAGE P="53883"/>
                        Atlantic Federal waters to protect the gag resource from overfishing.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This temporary rule is effective from 12:01 a.m. local time June 30, 2024, through December 31, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mary Vara, NMFS Southeast Regional Office, telephone: 727-824-5305, email: 
                        <E T="03">mary.vara@noaa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The snapper-grouper fishery of the South Atlantic includes gag and is managed under the Fishery Management Plan for the Snapper-Grouper Fishery of the South Atlantic Region (FMP). The FMP was prepared by the South Atlantic Fishery Management Council and NMFS, and is implemented by NMFS under the authority of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act) by regulations at 50 CFR part 622. All weights in this temporary rule are in gutted weight.</P>
                <P>On October 23, 2023, NMFS implemented the final rule for Amendment 53 to the FMP (88 FR 65135, September 21, 2023). Among other measures for gag, the final rule specified the commercial annual catch limit (ACL) in 2024 at 128,096 pounds (lb) or 58,103 kilograms (kg) [50 CFR 622.190(a)(7)(ii)]. However, on April 26, 2024, NMFS implemented an accountability measure (AM) for the commercial harvest of gag, because commercial landings in 2023 exceeded the commercial ACL that year (89 FR 21214, March 27, 2024). The commercial AM reduced the commercial ACL of gag for the 2024 fishing year to 62,922 lb (28,541 kg).</P>
                <P>Under 50 CFR 622.193(c)(1)(i), NMFS is required to close the commercial sector for the harvest of gag during the rest of the fishing year when its ACL, which is equivalent to the commercial quota specified in § 622.190(a)(7), has been reached or is projected to be reached. NMFS projects that commercial landings of gag will reach the adjusted commercial quota for the 2024 fishing year. Therefore, the commercial sector of gag is closed beginning June 30, 2024, and will remain closed through December 31, 2024.</P>
                <P>The recreational harvest of gag in the South Atlantic is also closed for the rest of 2024 (89 FR 19513, March 19, 2024). Therefore, gag may not be harvested or possessed in or from South Atlantic Federal waters during this commercial closure, and the sale or purchase of gag from the South Atlantic is prohibited. These prohibitions apply to any person on a vessel issued a Federal commercial or charter vessel/headboat permit for South Atlantic snapper-grouper in South Atlantic Federal waters or state waters. The prohibition on sale or purchase does not apply to gag that were harvested, landed ashore, and sold before the effective period of this commercial closure, and were held in cold storage by a dealer or processor [50 CFR 622.190(c)(1)(i)]. The operator of a vessel with a valid Federal commercial vessel permit for South Atlantic snapper-grouper with gag on the vessel must have landed and bartered, traded, or sold such gag before June 30, 2024.</P>
                <P>The 2025 fishing season for the commercial harvest of South Atlantic gag opens again on May 1, 2025 [50 CFR 622.183(b)(1)].</P>
                <HD SOURCE="HD1">Classification</HD>
                <P>NMFS issues this action pursuant to section 305(d) of the Magnuson-Stevens Act. This action is required by 50 CFR 622.193(c)(1)(i), issued pursuant to section 304(b), and is exempt from review under Executive Order 12866.</P>
                <P>Pursuant to 5 U.S.C. 553(b)(B), there is good cause to waive prior notice and an opportunity for public comment on this action, as notice and comment are unnecessary and contrary to the public interest. Such procedures are unnecessary because the regulations associated with the commercial closure of the gag have already been subject to notice and public comment, and all that remains is to notify the public of the closure. Prior notice and opportunity for public comment on this action is contrary to the public interest because of the need to immediately implement the commercial closure to protect the gag resource in the South Atlantic. The capacity of the commercial fishing fleet allows for rapid harvest of the commercial quota, and any delay in the closure could result in the exceedance of the applicable quota. Prior notice and opportunity for public comment would require time and would potentially result in a harvest that exceeds the commercial quota.</P>
                <P>For the reasons just stated, NMFS also finds good cause to waive the 30-day delay in the effectiveness of this action under 5 U.S.C. 553(d)(3).</P>
                <AUTH>
                    <HD SOURCE="HED">
                        <E T="04">Authority:</E>
                          
                    </HD>
                    <P>
                        16 U.S.C. 1801 
                        <E T="03">et seq.</E>
                    </P>
                </AUTH>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Lindsay Fullenkamp,</NAME>
                    <TITLE>Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14332 Filed 6-25-24; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 622</CFR>
                <DEPDOC>[Docket No. 240506-0129; RTID 0648-XE036]</DEPDOC>
                <SUBJECT>Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; Reef Fish Resources of the Gulf of Mexico; 2024 Recreational Harvest Closure for Gag</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary rule; closure.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>NMFS implements an accountability measure (AM) for the gag recreational sector in the exclusive economic zone (EEZ) of the Gulf of Mexico (Gulf) for the 2024 fishing year. NMFS has projected that the 2024 recreational annual catch target (ACT) for gag will be reached by September 16, 2024. Therefore, NMFS closes the recreational sector for Gulf gag on September 16, 2024, and it will remain closed through the end of the fishing year on December 31, 2024. This closure is necessary to protect the Gulf gag resource.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This temporary rule is effective from 12:01 a.m. local time on September 16, 2024, through December 31, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Frank Helies, NMFS Southeast Regional Office, 727-824-5305, 
                        <E T="03">frank.helies@noaa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>NMFS manages the Gulf reef fish fishery that includes gag under the Fishery Management Plan for the Reef Fish Resources of the Gulf of Mexico (FMP). The Gulf of Mexico Fishery Management Council (Council) prepared the FMP, which was approved by the Secretary of Commerce, and is implemented by NMFS under the authority of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act) through regulations at 50 CFR part 622. All weights described in this temporary rule are in gutted weight.</P>
                <P>
                    On June 1, 2024, NMFS implemented a final rule for Amendment 56 to the FMP that modified management of gag in the Gulf EEZ (89 FR 40419, May 10, 2024). For gag, that final rule revised the commercial and recreational catch levels, the recreational AMs, and the recreational fishing season. For the recreational sector, the revised recreational annual catch limit (ACL) for 
                    <PRTPAGE P="53884"/>
                    2024 is 288,000 pounds (lb) (130,635 kilograms (kg)), and the recreational ACT is 230,000 lb (104,326 kg) (50 CFR 622.41(d)(2)(i)). These catch limits are based on the projections from the most recent stock assessment, which included estimates of recreational landings in Florida derived from and the Florida Fish and Wildlife Conservation Commission's State Reef Fish Survey (SRFS). The revised recreational AM states that if recreational landings reach or are projected to reach the applicable recreational ACT, then NMFS will close the recreational sector for the remainder of the fishing year (50 CFR 622.41(d)(2)(ii)). The recreational AMs also state that if NMFS estimates that gag recreational landings have exceeded the applicable recreational ACL and gag is overfished, then in the following fishing year, the recreational ACL and recreational ACT will be reduced by the amount of the recreational ACL overage in the prior fishing year unless the best scientific information available determines that greater, lesser, or no overage adjustment is necessary (50 CFR 622.41(d)(2)(iii)). The final rule also implemented a seasonal closure of the gag recreational sector to prohibit harvest annually from January 1 through August 31 in the Gulf EEZ (50 CFR 622.34(e)).
                </P>
                <P>In 2023, NMFS implemented a temporary rule to reduce overfishing of gag while the Gulf of Mexico Fishery Management Council developed Amendment 56 (88 FR 27701, May 3, 2023; 88 FR 69553, October 6, 2023). The temporary rule reduced the 2023 recreational ACL for gag to 403,759 lb (183,142 kg). The 2023 recreational ACL was derived, in part, using landings estimates for Florida from the Marine Recreational Information Program (MRIP) Fishing Effort Survey (FES). Final 2023 landings estimates from MRIP-FES were 737,706 lb (334,618 kg).</P>
                <P>Because the catch limits in the final rule for Amendment 56 were derived, in part, using estimates from SRFS, these catch limits are not directly comparable to the 2023 catch limits. To determine the magnitude of the 2023 overage as compared to the 2024 ACL, NMFS calibrated the 2023 recreational ACL and recreational landings to be consistent with the estimates produced by SRFS. This calibration results in a 2023 recreational ACL of 211,588 lb (95,975 kg) and 2023 recreational landings of 336,182 lb (152,490 kg), which exceed the ACL by 124,624 lb (56,528 kg). Therefore consistent with the recreational AM at 50 CFR 622.41(d)(2)(iii) the 2024 recreational ACL and ACT are reduced by the amount of the 2023 recreational ACL overage. For the 2024 fishing year, the resulting adjusted recreational ACL is 163,376 lb (74,106 kg) and the adjusted recreational ACT is 105,376 lb (47,798 kg).</P>
                <P>The 2024 recreational fishing season opens on September 1, and NMFS projects that the 2024 adjusted recreational ACT for Gulf gag of 105,376 lb (47,798 kg) will be reached as of September 16, 2024. This closure date is based on projected harvest rates using recreational landings from 2020 through 2023, and the evaluation of five scenarios that generated closure dates ranging from September 13, 2024, to September 22, 2024. To increase the likelihood of constraining harvest to the 2024 adjusted recreational ACT, NMFS is acting conservatively by implementing a closure date near the low end of the projections. Accordingly, this temporary rule closes the recreational sector for Gulf gag effective at 12:01 a.m., local time, on September 16, 2024, through the end of the fishing year on December 31, 2024.</P>
                <P>During the recreational closure, the bag and possession limits of gag in or from the Gulf EEZ are zero. The prohibition on possession of gag also applies in state waters of the Gulf for any vessel issued a valid Federal charter vessel/headboat permit for Gulf reef fish.</P>
                <HD SOURCE="HD1">Classification</HD>
                <P>NMFS issues this action pursuant to section 305(d) of the Magnuson-Stevens Act. This action is required by 50 CFR 622.41(d)(2)(ii) and (iii), which were issued pursuant to section 304(b) of the Magnuson-Stevens Act, and is exempt from review under Executive Order 12866.</P>
                <P>Pursuant to 5 U.S.C. 553(b)(B), there is good cause to waive prior notice and an opportunity for public comment on this action, as notice and comment are unnecessary and contrary to the public interest. Such procedures are unnecessary because the regulations associated with the closure of recreational harvest of gag at 50 CFR 622.41(d)(2)(ii) and the reduction of the gag recreational ACL and ACT at 50 CFR 622.41(d)(2)(iii) have already been subject to notice and public comment, and all that remains is to notify the public of the closure based on the adjusted ACT. Prior notice and opportunity for public comment are contrary to the public interest. Prior notice and opportunity for public comment would require time and many of those affected by the length of the recreational fishing seasons, particularly for-hire operations that book trips for clients in advance, need as much notice as NMFS is able to provide to adjust their business plans to account for changes to the recreational fishing season.</P>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P>
                        16 U.S.C. 1801 
                        <E T="03">et seq.</E>
                    </P>
                </AUTH>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Karen H. Abrams,</NAME>
                    <TITLE>Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14225 Filed 6-25-24; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 648</CFR>
                <DEPDOC>[Docket No. 231215-0305; RTID 0648-XE067]</DEPDOC>
                <SUBJECT>Fisheries of the Northeastern United States; Summer Flounder Fishery; Quota Transfer From Virginia to Massachusetts</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary rule; quota transfer.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>NMFS announces that the Commonwealth of Virginia is transferring a portion of its 2024 commercial summer flounder quota to the Commonwealth of Massachusetts. This adjustment to the 2024 fishing year quota is necessary to comply with the Summer Flounder, Scup, and Black Sea Bass Fishery Management Plan (FMP) quota transfer provisions. This announcement informs the public of the revised 2024 commercial quotas for Virginia and Massachusetts.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective June 27, 2024, through December 31, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Laura Deighan, Fishery Management Specialist, (978) 281-9184.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Regulations governing the summer flounder fishery are found in 50 CFR 648.100 through 648.111. These regulations require annual specification of a commercial quota that is apportioned among the coastal states from Maine through North Carolina. The process to set the annual commercial quota and the percent allocated to each state is described in § 648.102, and the final 2024 allocations were published on December 21, 2023 (88 FR 88266).</P>
                <P>
                    The final rule implementing amendment 5 to the FMP, as published in the 
                    <E T="04">Federal Register</E>
                     on December 17, 
                    <PRTPAGE P="53885"/>
                    1993 (58 FR 65936), provided a mechanism for transferring summer flounder commercial quota from one state to another. Two or more states, under mutual agreement and with the concurrence of the NMFS Greater Atlantic Regional Administrator, can transfer or combine summer flounder commercial quota under § 648.102(c)(2). The Regional Administrator is required to consider three criteria in the evaluation of requests for quota transfers or combinations: (1) the transfers or combinations would not preclude the overall annual quota from being fully harvested; (2) the transfers address an unforeseen variation or contingency in the fishery; and (3) the transfers are consistent with the objectives of the FMP and the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act). The Regional Administrator has determined these three criteria have been met for the transfer approved in this notification.
                </P>
                <P>Virginia is transferring 490 pounds (lb; 222 kilograms (kg)) to Massachusetts through a mutual agreement between the states. This transfer was requested to repay landings made by an out-of-state permitted vessel under a safe harbor agreement. The revised summer flounder quotas for 2024 are: Virginia, 1,895,267 lb (859,679 kg); and Massachusetts, 608,183 lb (275,867 kg).</P>
                <HD SOURCE="HD1">Classification</HD>
                <P>NMFS issues this action pursuant to section 305(d) of the Magnuson-Stevens Act. This action is required by 50 CFR 648.102(c)(2)(i) through (iv), which was issued pursuant to section 304(b) of the Magnuson-Stevens Act, and is exempted from review under Executive Order 12866.</P>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P>
                         16 U.S.C. 1801 
                        <E T="03">et seq.</E>
                    </P>
                </AUTH>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Karen H. Abrams,</NAME>
                    <TITLE>Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14218 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </RULE>
    </RULES>
    <VOL>89</VOL>
    <NO>125</NO>
    <DATE>Friday, June 28, 2024</DATE>
    <UNITNAME>Proposed Rules</UNITNAME>
    <PRORULES>
        <PRORULE>
            <PREAMB>
                <PRTPAGE P="53886"/>
                <AGENCY TYPE="F">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>Agricultural Marketing Service</SUBAGY>
                <CFR>9 CFR Part 201</CFR>
                <DEPDOC>[Doc. No. AMS-FTPP-21-0046]</DEPDOC>
                <RIN>RIN 0581-AE04</RIN>
                <SUBJECT>Fair and Competitive Livestock and Poultry Markets</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Agricultural Marketing Service, Department of Agriculture.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Proposed rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The United States Department of Agriculture's (USDA or Department) Agricultural Marketing Service (AMS) proposes to amend the regulations under the Packers and Stockyards Act of 1921 (the P&amp;S Act or the Act) to clarify the unfair practices that the P&amp;S Act prohibits. The proposed rule would define unfair practices as conduct that harms market participants and conduct that harms the market. Combined, these comprehensively define the contours of “unfair practices” under the P&amp;S Act. The purpose of this proposed rule is to promote fair and competitive markets in the livestock, meats, poultry, and live poultry markets.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received by August 27, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Comments must be submitted through the Federal e-rulemaking portal at 
                        <E T="03">https://www.regulations.gov</E>
                         and should reference the document number and the date and page number of this issue of the 
                        <E T="04">Federal Register</E>
                        . AMS strongly prefers comments be submitted electronically. However, written comments may be submitted (
                        <E T="03">i.e.,</E>
                         postmarked) via mail to Docket No. AMS-FTPP-21-0046, S. Brett Offutt, Chief Legal Officer, Packers and Stockyards Division, USDA, AMS, FTPP; Room 2097-S, Mail Stop 3601, 1400 Independence Ave. SW, Washington, DC 20250-3601. All comments submitted in response to this proposed rule will be included in the record and will be made available to the public. Please be advised that the identity of individuals or entities submitting comments will be made public on the internet at the address provided above. Parties who wish to comment anonymously may do so by entering “N/A” in the fields that would identify the commenter. Pursuant to 5 U.S.C. 553(b)(4), a plain language summary of this proposed rule is available on 
                        <E T="03">https://www.regulations.gov</E>
                         in the docket for this rulemaking.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        S. Brett Offutt, Chief Legal Officer/Policy Advisor, Packers and Stockyards Division, USDA AMS Fair Trade Practices Program, 1400 Independence Ave. SW, Washington, DC 20250; Phone: (202) 690-4355; or email: 
                        <E T="03">S.Brett.Offutt@usda.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Table of Contents</HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">I. Authority</FP>
                    <FP SOURCE="FP-2">II. Purpose of This Rulemaking</FP>
                    <FP SOURCE="FP1-2">A. Unfair Practices and Prior Rulemakings</FP>
                    <FP SOURCE="FP1-2">B. Statutory Language of the Act</FP>
                    <FP SOURCE="FP1-2">C. Legislative History of the Act</FP>
                    <FP SOURCE="FP1-2">D. Court Decisions</FP>
                    <FP SOURCE="FP-2">III. The Proposed Rule</FP>
                    <FP SOURCE="FP1-2">A. Proposed § 201.308(a) and (b)</FP>
                    <FP SOURCE="FP1-2">B. Evaluation of Potential Injury to Market Participants</FP>
                    <FP SOURCE="FP1-2">C. Proposed § 201.308(c) and (d)</FP>
                    <FP SOURCE="FP1-2">D. Evaluation of Potential Injury to the Market</FP>
                    <FP SOURCE="FP1-2">E. Contracts</FP>
                    <FP SOURCE="FP1-2">F. Protected Parties</FP>
                    <FP SOURCE="FP-2">IV. Severability</FP>
                    <FP SOURCE="FP-2">V. Request for Comments</FP>
                    <FP SOURCE="FP-2">VI. Regulatory Analysis</FP>
                    <FP SOURCE="FP1-2">A. Paperwork Reduction Act</FP>
                    <FP SOURCE="FP1-2">B. Executive Orders 12866, 13563, and 14094</FP>
                    <FP SOURCE="FP1-2">C. Regulatory Impact Analysis</FP>
                    <FP SOURCE="FP1-2">D. Regulatory Flexibility Analysis</FP>
                    <FP SOURCE="FP1-2">E. Executive Order 13175—Consultation and Coordination With Indian Tribal Governments</FP>
                    <FP SOURCE="FP1-2">F. Executive Order 12988—Civil Justice Reform</FP>
                    <FP SOURCE="FP1-2">G. Civil Rights Impact Analysis</FP>
                    <FP SOURCE="FP1-2">H. E-Government Act</FP>
                    <FP SOURCE="FP1-2">I. Unfunded Mandates Reform Act</FP>
                </EXTRACT>
                <HD SOURCE="HD1">I. Authority</HD>
                <P>Section 407 of the Act (7 U.S.C. 228) provides that the Secretary “may make such rules, regulations, and orders as may be necessary to carry out the provisions of this Act.” The Secretary has delegated the responsibility for administering the P&amp;S Act to AMS. Within AMS, the Packers and Stockyards Division (PSD) of the Fair-Trade Practices Program has responsibility for the day-to-day administration of the Act. The current regulations implementing the Act are found in title 9, part 201, of the Code of Federal Regulations (CFR). Based on the authority Congress delegated to the Secretary to administer the P&amp;S Act, AMS is proposing this rule to amend 9 CFR part 201 to specify the practices that are unfair and in violation of the P&amp;S Act.</P>
                <P>
                    Prior to this rulemaking, the decisions of USDA's Judicial Officer,
                    <SU>1</SU>
                    <FTREF/>
                     acting for the Secretary, have comprised the bulk of USDA's interpretation of the meaning of “unfair” under the P&amp;S Act, and the Judicial Officer's final decisions have the same force as regulation.
                    <SU>2</SU>
                    <FTREF/>
                     Those decisions make clear that “harm to competition can be proven by showing harm to competitors; . . . the Packers and Stockyards Act does not require that the person harmed be a direct competitor of the person causing the harm, viz., it would be a violation of the Packers and Stockyards Act if it were shown that a packer caused harm, which the Packers and Stockyards Act is designed to prevent . . . .” 
                    <SU>3</SU>
                    <FTREF/>
                     Although, the Federal courts have not expressly rejected the Judicial Officer's overall interpretation of the Packers and Stockyards Act, courts have inconsistently applied the Judicial Officer's decisions. As a result, AMS proposes this regulation to provide a clear interpretation and promote consistency and predictability in its application of the law.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         The position of Judicial Officer was established pursuant to the Act of April 4, 1940 (7 U.S.C. 450c-450g); Reorganization Plan No. 2 of 1953, 18 FR 3219 (1953), reprinted in 5 U.S.C. app. at 1490 (1994); and sec. 212(a)(1) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6912(a)(1)).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See, e.g., City of Arlington, Tex.</E>
                         v. 
                        <E T="03">F.C.C.,</E>
                         668 F.3d 229, 240 (5th Cir. 2012), aff'd, 569 U.S. 290 (2013) (“It is well-established that agencies can choose to announce new rules through adjudication rather than rulemaking.” (
                        <E T="03">citing NLRB</E>
                         v. 
                        <E T="03">Bell Aerospace Co.,</E>
                         416 U.S. 267, 294 (1974))); 
                        <E T="03">Mobil Exploration &amp; Producing N. Am., Inc.</E>
                         v. 
                        <E T="03">FERC,</E>
                         881 F.2d 193, 198 (5th Cir.1989); 
                        <E T="03">see also Sec. &amp; Exch. Comm'n</E>
                         v. 
                        <E T="03">Chenery Corp.,</E>
                         332 U.S. 194, 207 (1947) (“The scope of our review of an administrative order wherein a new principle is announced and applied is no different from that which pertains to ordinary administrative action.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">In re: IBP, Inc.,</E>
                         57 Agric. Dec. 1353 (U.S.D.A. July 31, 1998).
                    </P>
                </FTNT>
                <PRTPAGE P="53887"/>
                <HD SOURCE="HD1">II. Purpose of This Rulemaking</HD>
                <P>
                    Congress enacted the P&amp;S Act, 7 U.S.C. 181 
                    <E T="03">et seq.,</E>
                     to promote fairness, reasonableness, and transparency in the livestock, meat, and poultry marketplace by prohibiting practices contrary to these goals. Enacted in 1921 “to comprehensively regulate packers, stockyards, marketing agents and dealers,” 
                    <SU>4</SU>
                    <FTREF/>
                     the Act, among other things, prohibits actions that hinder integrity and competition in the livestock, meat, and poultry markets. Section 202(a) of the Act states that it is unlawful for any packer, swine contractor, or live poultry dealer to “[e]ngage in or use any unfair, unjustly discriminatory, or deceptive practice or device.” 
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">Hays Livestock Comm'n Co.</E>
                         v. 
                        <E T="03">Maly Livestock Comm'n Co.,</E>
                         498 F.2d 925, 927 (10th Cir. 1974).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         7 U.S.C. 192(a).
                    </P>
                </FTNT>
                <P>
                    Congress granted rulemaking and enforcement authority to USDA to ensure that appropriate competitive and fair trade and market protections are afforded to those participating in agricultural activities pertaining to livestock, meat, and poultry.
                    <SU>6</SU>
                    <FTREF/>
                     To date, USDA has largely left these determinations to a case-by-case analysis. Court decisions interpreting this statute, however, have not been consistent with respect to the evidence needed to establish, and the legal standard that applies to, unlawful unfair practices under section 202(a) of the Act, particularly as to whether competitive injury is a requirement and what the term “unfair practice or device” means. This proposed rule, therefore, seeks to clarify what falls under the scope of unfair practice or device.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         See section 407 (7 U.S.C. 228(a)): “The Secretary may make such rules, regulations, and orders as may be necessary to carry out the provisions of this chapter. . .”. Congress understood it was giving the Secretary “the power to prevent packers, stockyards, companies, and all persons in the stockyards from engaging in unfair, unjustly discriminatory or deceptive practices or devices.” Report of the House Committee on Agriculture, H.R. Rep. No. 77 67th Congress, 1st session at pg. 2 (May 18, 1921). When amending the statute in 1987, this authority with respect to live poultry dealers was explained: “the Packers and Stockyards Administration will retain jurisdiction as the act currently provides. These transactions include things like weighing practices and contract compliance.” 133 Cong. Rec. H9000-02, 133 Cong. Rec. H9000-02, H9002, 1987 WL 850252.
                    </P>
                </FTNT>
                <P>From the plain language of the text, section 202 of the Act is broader than the antitrust laws and does not necessarily require harm to competition as that term is understood under the antitrust laws. The term “unfair” applies to conduct that harms the market (anticompetitive harm) and conduct that harms market participants (market abuse), similar to section 5 of the Federal Trade Commission Act, which prohibits both unfair methods of competition and unfair and deceptive acts or practices. Based on the text of section 202, legislative history, and both agency and judicial decisions, this proposed rule defines the term unfair. Those definitions draw on longstanding understandings of the term unfair both under the Act as well as the related Federal Trade Commission Act. The proposed rule also clarifies that the statute addresses conduct in its incipiency, does not require proof of actual harm, nor does it require proof of predatory intent.</P>
                <P>USDA recognizes that some courts have recently required proof of competitive injury before finding that conduct is unfair. Those courts were not offered an alternative definition for unfair, which this rulemaking would propose. A competitive injury requirement cannot be imposed in a way that abrogates part of a statute. To the degree requiring a “competitive injury” precludes finding conduct is unfair when it satisfies criteria in the proposed rule, such a requirement would unduly limit the reach of section 202(a) and is improper. Moreover, the statute and P&amp;S Act case law make plain that competitive injury under the P&amp;S Act is broader than harm to competition under the antitrust laws. To the extent that “competitive injury” is shorthand for the scope of harm section 202 reaches, competitive injury as understood under the P&amp;S Act should include both harms to the market and harms to market participants as defined in the proposed rule.</P>
                <HD SOURCE="HD2">A. Unfair Practices and Prior Rulemakings</HD>
                <P>
                    Section 202(a) of the Act prohibits any unfair practice or device. The Act does not, however, specify what those practices and devices are, and in section 228(a), Congress has granted to the Secretary the authority to interpret and apply the Act to effectuate its purposes. Under the Act, this authority includes complete supervisory and regulatory power, which includes, 
                    <E T="03">inter alia,</E>
                     “the power to prevent packers . . . from engaging in unfair, unjustly discriminatory or deceptive practices or devices.” 
                    <SU>7</SU>
                    <FTREF/>
                     USDA has consistently viewed the Act as prohibiting both market abuses (unfair trade practices) and competitively unfair conduct or unreasonable acts and practices (including anticompetitive conduct) owing to the adverse impact both have on the fair functioning of the marketplace and the importance of ensuring that producers can obtain the full value of their livestock and poultry despite economic power imbalances.
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         H.R. Rep. no. 67-77 at 2 (1921).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Michael Kades, “Protecting Livestock Producers and Chicken Growers,” chapter 3, 
                        <E T="03">Washington Center for Equitable Growth,</E>
                         May 5, 2022, 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/.</E>
                         (The report provides the following acknowledgement: “A U.S. Department of Agriculture-Washington Center for Equitable Growth cooperative agreement supported the research and writing of this report. The findings and conclusions in this report are those of the author and should not be construed to represent any official U.S. Department of Agriculture or U.S. government determination or policy.”).
                    </P>
                </FTNT>
                <P>The Department has consistently interpreted unfair practices—and thus applied the Act—to protect producer welfare and advance fair-trade practices in the livestock, meat, and poultry industries. The Department's policy on unfair practices has not changed throughout the course of its enforcement of the Act.</P>
                <P>
                    In 2010, the Department issued a proposed rule that was never finalized (“2010 proposed rule”). The 2010 proposed rule was broader in scope than this proposed rule. It addressed undue or unreasonable preference or advantage; undue or unreasonable prejudice or disadvantage; criteria related to reasonable notice of a suspension of the delivery of birds under a poultry growing arrangement; when a requirement of additional capital investments over the life of a poultry growing arrangement or swine production contract constitutes a violation of the P&amp;S Act; and whether a packer, swine contractor or live poultry dealer has provided a reasonable period of time for a grower or a swine producer to remedy a breach of contract that could lead to termination of the growing arrangement or production contract (75 FR 35338; June 22, 2010). As it relates to the scope of this proposed rulemaking, the preamble to the 2010 proposed rule stated that “Section 202(a) of the P&amp;S Act prohibits `any unfair, unjustly discriminatory, or deceptive practice.' ” The preamble also stated that “USDA has consistently taken the position that, in some cases, a violation of section 202(a) or (b) can be proven without proof of predatory intent, competitive injury, or likelihood of injury.” 
                    <SU>9</SU>
                    <FTREF/>
                     But the USDA “always understood that an act or practice's effect on competition can be relevant and, in certain circumstances, even dispositive[.]” The proposed regulation attempted to define competition, and proposed a series of specific violations of the Act including: “Any act that causes competitive injury 
                    <PRTPAGE P="53888"/>
                    or creates a likelihood of competitive injury.”
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         75 FR 35338, 35340 (June 22, 2010).
                    </P>
                </FTNT>
                <P>The 2010 proposed rule was never finalized due to a series of appropriations riders from fiscal years 2012 through 2015 that prevented the Department from working on rules related to the subjects covered in the 2010 proposed rule.</P>
                <P>In 2016, the Department issued an interim final rule that, in relevant part, addressed the scope of section 202(a) and (b) of the P&amp;S Act (“2016 IFR”). The 2016 IFR published what had been issued as the 2010 proposed rule with slight modifications. However, the 2016 IFR reiterated “USDA has consistently taken the position that, in some cases, a violation of section 202(a) or (b) can be proven without proof of predatory intent, competitive injury, or likelihood of competitive injury.” (81 FR 92556, 92567; December 20, 2016). The 2016 IFR preamble also stated that “USDA has always understood that an act or practice's effect on competition can be relevant and, in certain circumstances, even dispositive with respect to whether an act or practice violates sections 202(a) and/or (b).” The 2016 IFR did not define competition or describe when harm to competition would not be required.</P>
                <P>
                    In 2017, following a change in administration, finalization of the 2016 IFR was delayed, and ultimately withdrawn (82 FR 48594; October 18, 2017). The 2016 IFR was withdrawn on the grounds that USDA believed that specific rule would not have effectively addressed court decisions in several U.S. Courts of Appeals, that the courts would not have deferred to it, and that the “good cause” justification for dispensing with notice and comment was inadequate. At that time, the Department further determined that “[p]rotracted litigation to both interpret this regulation and defend it serves neither the interests of the livestock and poultry industries nor GIPSA.” 
                    <SU>10</SU>
                    <FTREF/>
                     The 2017 withdrawal did not alter the longstanding position of USDA articulated in the 2010 proposed rule and again in the 2016 IFR.
                    <SU>11</SU>
                    <FTREF/>
                     Nor did the withdrawal announce a policy against regulation in general.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Scope of section 202(a) and (b) of the Packers and Stockyards Act, 82 FR 48594, 48597 (Oct. 18, 2017).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         82 FR 48594, 48596 (Oct. 18, 2017) (“The purpose of the IFR was to clarify that conduct or actions may violate 7 U.S.C. 192(a) and (b) without adversely affecting, or having a likelihood of adversely affecting, competition. This reiterated USDA's longstanding interpretation that not all violations of the P&amp;S Act require a showing of harm or likely harm to competition. Contrary to comments that GIPSA failed to show that USDA's interpretation was longstanding, USDA has adhered to this interpretation of the P&amp;S Act for decades. DOJ has filed amicus briefs with several Federal appellate courts arguing against the need to show the likelihood of competitive harm for all violations of 7 U.S.C. 192(a) and (b).” (footnotes omitted)).
                    </P>
                </FTNT>
                <P>The current proposed rule is less about a judicial debate over competitive injury and instead would establish a more workable standard for USDA to consistently apply in its own administrative hearings and investigations, which in turn would provide a standard that the public can more easily understand. And the current rule is being issued through notice and comment. Thus, AMS does not believe that the same concerns that prompted withdrawal of the 2016 IFR apply to this proposal.</P>
                <P>
                    In sum, it has always been USDA's position that it is not necessary in every case to demonstrate competitive injury in order to show a violation of section 202(a). But USDA has also consistently recognized that any act or practice that harms or is likely to harm competition also violates the statute.
                    <SU>12</SU>
                    <FTREF/>
                     This proposed rule provides a basis for the public to understand precisely how USDA would apply the statute to both categories of harms.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See id.</E>
                         at 92568.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Statutory Language of the Act</HD>
                <P>
                    The P&amp;S Act's language and structure support USDA's longstanding position on section 202(a) and (b), as well as USDA's position on the Act's legislative history and purposes. Congress drafted section 202(a) to reach a range of unfair practices and devices, such as anticompetitive practices, market abuses, or other distortions of the competitive process.
                    <SU>13</SU>
                    <FTREF/>
                     Congress proscribed “unfair” practices without limitation, using terms like section 202's proscription of “deceptive” and “unjust” conduct commonly understood then and now to encompass more than conduct causing competitive injury.
                    <SU>14</SU>
                    <FTREF/>
                     Congress confirmed this plain meaning by amending the P&amp;S Act to add specific instances of conduct prohibited as unfair that do not involve any inherent likelihood of competitive injury.
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         Michael Kades, “Protecting Livestock Producers and Chicken Growers,” chapter 3, 
                        <E T="03">Washington Center for Equitable Growth,</E>
                         May 5, 2022, 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/.</E>
                         quoting, 
                        <E T="03">inter alia,</E>
                         Herbert Hovenkamp, “Does the Packers and Stockyards Act Require Antitrust Harm?” (Philadelphia: Faculty Scholarship at Penn Law, 2011), available at 
                        <E T="03">https://scholarship.law.upenn.edu/faculty_scholarship/1862.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         When the P&amp;S Act was enacted, 
                        <E T="03">Webster's New International Dictionary</E>
                         defined “unfair” as “[n]ot fair in act or character; disingenuous; using or involving trick or artifice; dishonest; unjust; inequitable” (2d. definition); “unjust” as “[c]haracterized by injustice; contrary to justice and right; wrongful”; “undue” as “[n]ot right; not lawful or legal; violating legal or equitable rights; improper” (2d. definition); and “unreasonable” as “[n]ot conformable to reason; irrational” or “immoderate; exorbitant.” 
                        <E T="03">Webster's New International Dictionary</E>
                         578, 2237, 2238, 2245, 2248 (1st ed. 1917). This is the same understanding of the terms today.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         See sections 409, 410.
                    </P>
                </FTNT>
                <P>
                    Unlike with other provisions of section 202, Congress chose not to limit section 202(a) and (b) to specific types of competitive injuries identified in other sections of the Act.
                    <SU>16</SU>
                    <FTREF/>
                     While section 202(c) through (f) include provisions that address particular competitive injuries—such as where a practice has the tendency, effect, or purpose of “creating a monopoly” or “restraining commerce”—those limitations are absent from section 202(a) and (b).
                    <SU>17</SU>
                    <FTREF/>
                     This difference confirms that section 202(a) and (b) do not require a showing of competitive injury for such conduct.
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         Michael Kades, “Protecting Livestock Producers and Chicken Growers,” chapter 3, 
                        <E T="03">Washington Center for Equitable Growth,</E>
                         May 5, 2022, 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/,</E>
                         quoting, 
                        <E T="03">inter alia,</E>
                         Herbert Hovenkamp, “Does the Packers and Stockyards Act Require Antitrust Harm?” (Philadelphia: Faculty Scholarship at Penn Law, 2011), available at 
                        <E T="03">https://scholarship.law.upenn.edu/faculty_scholarship/1862.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         More specifically, subsection (c) reaches certain sales that apportion supply “if such apportionment has the tendency or effect of restraining commerce or of creating a monopoly.” Subsection (d) reaches sales and other transfers wherein parties “receive from or for any other person, any article for the purpose or with the effect of manipulating or controlling prices, or of creating a monopoly in the acquisition of, buying, selling, or dealing in, any article, or of restraining commerce. Subsection (e) reaches a course of business or any act with “the purpose or with the effect of manipulating. or controlling prices, or of creating a monopoly in the acquisition of, buying, selling, or dealing in, any article, or of restraining commerce.”
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">Department of Homeland Sec.</E>
                         v. MacLean, 135 S. Ct. 913, 919 (2015), citing 
                        <E T="03">Russello</E>
                         v. 
                        <E T="03">United States,</E>
                         464 U.S. 16, 23 (1983): “Congress generally acts intentionally when it uses particular language in one section of a statute but omits it in another.”
                    </P>
                </FTNT>
                <P>
                    Moreover, Congress has amended the P&amp;S Act to confirm the Department's longstanding view that there are specific instances of conduct that are prohibited as “unfair” that do not involve any inherent likelihood of competitive injury.
                    <SU>19</SU>
                    <FTREF/>
                     In 1976, Congress confirmed that failing to pay, when due, for livestock and meats was an “unfair practice” under the P&amp;S Act, and it did not require any harm to competition to be a violation of section 202(a).
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See, e.g.,</E>
                         secs. 409 and 410 of the P&amp;S Act.
                    </P>
                </FTNT>
                <P>
                    The prevailing interpretation of section 312 of the P&amp;S Act, which uses similar language, further confirms USDA's interpretation of section 202(a). 
                    <PRTPAGE P="53889"/>
                    Courts have recognized that the proper analysis under this provision depends on “the facts of each case,” 
                    <SU>20</SU>
                    <FTREF/>
                     and that these sections may apply in the absence of competitive injury.
                    <SU>21</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">Capitol Packing Company</E>
                         v. 
                        <E T="03">United States,</E>
                         350 F.2d 67, 76 (10th Cir. 1965); see also 
                        <E T="03">Spencer Livestock Comm'n Co.</E>
                         v. 
                        <E T="03">USDA,</E>
                         1988.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">Spencer Livestock Comm'n Co.</E>
                         v. 
                        <E T="03">USDA,</E>
                         841 F.2d 1451, 1454 (9th Cir. 1988): section 312 covers “a deceptive practice, whether or not it harmed consumers or competitors.”
                    </P>
                </FTNT>
                <P>
                    Furthermore, even with respect to subsections of the Act that do focus on competitive harm, the text of those subsections indicates that competitive harm under the P&amp;S Act goes beyond the types of competitive injuries cognizable under Federal antitrust laws.
                    <SU>22</SU>
                    <FTREF/>
                     For example, section 202(d) through (f) unambiguously apply to market injuries that the antitrust laws often do not reach—such as price manipulation, where a single-firm practice “manipulat[es] or control[s] price” or otherwise restrains trade, irrespective of conspiracy. These prohibitions in the relevant subsections are each embedded within “or” clauses that otherwise cover prohibitions that are squarely about anticompetitive conduct cognizable under Federal antitrust laws. Further, section 202(a) and (b) must cover conduct not covered by section 202(d) through (f) or section 202(a) and (b) would be superfluous. The presence of all of these provisions in the P&amp;S Act shows, at a minimum, the regulatory scheme for fair competition under the P&amp;S Act is broader than competitive injury under the Federal antitrust laws and at least as broad as section 5 of the Federal Trade Commission Act.
                    <SU>23</SU>
                    <FTREF/>
                     And, when compared to antitrust statutes, the P&amp;S Act, like section 5 of the Federal Trade Commission Act (FTC Act), covers incipient threats to competition and potential injuries to market participants. In addition, the P&amp;S Act's remedial purposes prohibit incipient violations of the P&amp;S Act even if the practice has no potential anti-competitive or impact on markets at all.
                    <SU>24</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         In particular see the FTC Act (15 U.S.C. 41 
                        <E T="03">et seq.</E>
                        ), Sherman Antitrust Act (15 U.S.C. 1 
                        <E T="03">et seq.</E>
                        ), and the Clayton Antitrust Act (15 U.S.C. 12 
                        <E T="03">et seq.</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Fed. Trade Comm'n, Policy Statement Regarding the Scope of Unfair Methods of Competition Under Section 5 of the FTC Act, 9 (Nov. 10, 2022) (discussing competitive injuries cognizable under section 5 of the FTC Act that are not cognizable under the Sherman or Clayton Act); 
                        <E T="03">Been</E>
                         v. 
                        <E T="03">O.K. Indus., Inc.,</E>
                         495 F.3d 1217, 1241 (10th Cir. 2007) (Hartz, J. concurring) (“[I]t would be somewhat surprising if `unfair practices' under the PSA had a narrower meaning than `unfair methods of competition' in the FTCA.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See, e.g.,</E>
                          
                        <E T="03">Bowman</E>
                         v. 
                        <E T="03">United States Dep't of Agric.,</E>
                         363 F.2d 81, 85 (5th Cir. 1966) (finding the Department's insolvency standard was not an abuse of discretion because it helps to prevent the unfair practice of late payment).
                    </P>
                </FTNT>
                <P>In short, section 202(a) covers unfair conduct beyond harm to competition, and where harm to competition is relevant, the P&amp;S Act is broader than the antitrust laws.</P>
                <HD SOURCE="HD2">C. Legislative History of the Act</HD>
                <P>
                    The legislative history and purposes of the P&amp;S Act also support USDA's interpretation of section 202(a) with regard to the role of competitive injury. As the Supreme Court has stated, when interpreting a statute, a provision “must take meaning from its historical setting.” 
                    <SU>25</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">United States</E>
                         v. 
                        <E T="03">Henning,</E>
                         344 U.S. 66, 72 (1952).
                    </P>
                </FTNT>
                <P>
                    The genesis of the P&amp;S Act predates its enactment by several decades.
                    <SU>26</SU>
                    <FTREF/>
                     On May 16, 1888, the U.S. Senate authorized an investigation “to determine whether there exists or has existed any combination . . . on the part of those engaged in buying and shipping meat products, by reason of which the prices of beef and beef cattle have been so controlled or affected as to diminish the price paid the producer without lessening the cost of meat to the consumer.” 
                    <SU>27</SU>
                    <FTREF/>
                     In 1902, a bill of equity was filed by the United States to enjoin the alleged conspiracy as a violation of the antitrust laws. In 1903, an injunction was issued, which was sustained by the U.S. Supreme Court.
                    <SU>28</SU>
                    <FTREF/>
                     The dominance and unfair or unreasonable anticompetitive conduct of the packers continued; on February 7, 1917, President Wilson directed the Federal Trade Commission (FTC) to investigate and report the facts with respect to the packing industry.
                    <SU>29</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         10 N. Harl, Agricultural Law sec. 71.4. (1987), 71-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         61 Cong. Rec. 2614.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">Swift &amp; Co.</E>
                         v. 
                        <E T="03">United States,</E>
                         196 U.S. 375 (1905).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">Stafford</E>
                         v. 
                        <E T="03">Wallace,</E>
                         258 U.S. 495 (1922).
                    </P>
                </FTNT>
                <P>
                    The FTC meat industry investigation found that, in 1916, the Big Five 
                    <SU>30</SU>
                    <FTREF/>
                     (the five largest meatpackers) controlled the processing of 82 percent of cattle, 79 percent of calves, 87 percent of sheep, and 63 percent of swine in the U.S.
                    <SU>31</SU>
                    <FTREF/>
                     The Big Five also controlled an interlocking network of feed mills, stockyards, and transportation infrastructure that supported the industry. As extensively documented in an FTC report, those five packers used their market power to engage in a range of practices to further entrench their dominance of the meat industry.
                    <SU>32</SU>
                    <FTREF/>
                     The FTC report documented a number of complaints by producers that the U.S. Supreme Court summarized in the synopsis of the case upholding the constitutionality of the P&amp;S Act, including excessive charges by stockyards for hay and other facilities, the duplication of commissions by commission men and dealers, and fraudulent reporting of livestock being crippled in transit, in addition to suppression of competition through collusion.
                    <SU>33</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         The highly concentrated meatpacking industry of the early 20th century was controlled by the industry's “Big Five” operators of Armour, Cudahy, Morris, Swift, and Wilson.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         “Annual Report for 1918,” FTC, p. 23, 
                        <E T="03">https://www.ftc.gov/sites/default/files/documents/reports_annual/annual-report-1918/ar1918_0.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         Stafford at 501-502.
                    </P>
                </FTNT>
                <P>
                    Following the FTC's report, and before the passage of the signed a consent decree in 1920.
                    <SU>34</SU>
                    <FTREF/>
                     The decree enjoined the packers from pursuing combinations to monopolize the purchase and control the price of livestock and the sale and distribution of meat products, and from being involved in other food sectors.
                    <SU>35</SU>
                    <FTREF/>
                     In this way, the decree sought to break the industry up vertically, underscoring the broad approach of the P&amp;S Act.
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">United States</E>
                         v. 
                        <E T="03">Swift &amp; Co.,</E>
                         Equity No. 37623 (Sup. Ct. of D.C. 1920); 
                        <E T="03">United States</E>
                         v. 
                        <E T="03">Swift &amp; Co.,</E>
                         286 U.S. 106 (1932).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         Id. at 399; 
                        <E T="03">see, generally,</E>
                         Michael C. Stumo &amp; Douglas J. O'Brien, “Antitrust Unfairness vs. Equitable Unfairness in Farmer/meat Packer Relationships,” 8 Drake J. Agric. L. 91 (2003).
                    </P>
                </FTNT>
                <P>
                    After the consent decree, the Senate and House of Representatives held extensive hearings on several bills to address problems related to concentration and market domination in the meat industry, one of which, H.R. 6320, eventually became the P&amp;S Act of 1921.
                    <SU>36</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         See 10 N. Harl, Agricultural Law sec. 71.2. (1987).
                    </P>
                </FTNT>
                <P>
                    The House of Representatives' report on the P&amp;S Act stated, “A careful study of the bill, will . . . convince one that it and existing laws, give the Secretary of Agriculture complete inquisitorial, visitorial, supervisory, and regulatory power over the packers, stockyards and all activities connected therewith; that it is the most comprehensive measure and extends farther than any previous law in the regulation of private business, in time of peace, except possibly the Interstate Commerce Act.” 
                    <SU>37</SU>
                    <FTREF/>
                     The Conference Report on the P&amp;S Act stated that: “Congress intends to exercise, in the bill, the fullest control of the packers and stockyards which the Constitution permits . . .”.
                    <SU>38</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         House Report No. 67-77, at 2 (1921).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         House Report No. 67-324, at 3 (1921).
                    </P>
                </FTNT>
                <P>
                    It was emphasized by Representative Samuel T. Rayburn (later Speaker of the House of Representatives) that although Congress “gave the Federal Trade 
                    <PRTPAGE P="53890"/>
                    Commission wide powers” to prohibit unfair methods of competition, the authority of the Commission at that time was not as broad as that given to “the Secretary of Agriculture under this bill,” which became the P&amp;S Act.
                    <SU>39</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         61 Cong. Rec. 1806. When the P&amp;S Act was passed, the FTC was authorized to prohibit only unfair methods of competition. Congress later gave the FTC additional authority to police unfair and deceptive acts or practices. See infra notes 53-57.
                    </P>
                </FTNT>
                <P>
                    Congress subsequently made clear, through further legislative developments, that its goals for the statute extended beyond the prohibition of anticompetitive conduct in the manner of the antitrust laws. For instance, in a 1935 amendment adding live poultry dealers to the coverage of section 202(a) and (b), Congress amended the text to specify that “[t]he handling of the great volume of live poultry . . . is attendant with various unfair, deceptive, and fraudulent practices and devices, resulting in the producers sustaining sundry losses and receiving prices far below the reasonable value of their live poultry . . . ” 
                    <SU>40</SU>
                    <FTREF/>
                     Similarly, the House Committee Report regarding 1958 amendments identified “[t]he primary purpose” of the P&amp;S Act as “assur[ing] fair competition and fair trade practices” and “safeguard[ing] farmers . . . against receiving less than the true market value of their livestock.” 
                    <SU>41</SU>
                    <FTREF/>
                     In accordance with this legislative history, courts and commentators have, over a span exceeding 70 years, recognized that although the purposes of the P&amp;S Act include proscribing anticompetitive conduct, they are not limited solely to conduct that injures competition as understood in the antitrust laws.
                    <SU>42</SU>
                    <FTREF/>
                     Indeed, for these seven decades, USDA has regularly maintained and enforced a wide range of fair trade rules and principles including prompt payment, standardized weights and measures, sufficient bonding and solvency, prohibitions on commercial bribery, and more. These rules and enforcement mandates play important roles in protecting market participants from abuse, and to that end, they proscribe conduct that USDA has also viewed as distorting the competitive process within the livestock, meat, and poultry markets.
                    <SU>43</SU>
                    <FTREF/>
                     To that end, proscribing abuses of market participants is integral to any effort to understand “harm to competition” under the P&amp;S Act itself.
                    <SU>44</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         Public Law 74-272, 49 Stat. 648, 648 (1935).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         H.R. Rep. No. 85-1048 (1957), reprinted in 1958 U.S.C.C.A.N. 5212, 5213 (emphasis added); 
                        <E T="03">see also, e.g., id.</E>
                         at 5213 (further observing that protection extends to “unfair, deceptive, unjustly discriminatory” practices by “small” companies in addition to “monopolistic practices.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         See, 
                        <E T="03">e.g.,</E>
                         Stafford, 258 U.S. at 513-14; Spencer Livestock, 841 F.2d 1451, 1455 (9th Cir. 1988); 
                        <E T="03">United States</E>
                         v. 
                        <E T="03">Perdue Farms, Inc.,</E>
                         680 F.2d 277, 280 (2d Cir. 1982); 
                        <E T="03">Bruhn's Freezer Meats of Chi., Inc.</E>
                         v. 
                        <E T="03">United States Dep't of Agric.,</E>
                         438 F.2d 1332, 1336-37 (8th Cir. 1971); 
                        <E T="03">Bowman</E>
                         v. 
                        <E T="03">USDA,</E>
                         363 F.2d 81, 85 (5th Cir. 1966); 
                        <E T="03">United States</E>
                         v. 
                        <E T="03">Donahue Bros.,</E>
                         59 F.2d 1019, 1023 (8th Cir. 1932).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         See, 
                        <E T="03">e.g.,</E>
                         In re: Central California Livestock, Inc. d/b/a Machlin Meat Packing Company, 15 Agric. Dec. 97, 110 (1956).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         Michael Kades, “Protecting Livestock Producers and Chicken Growers,” 
                        <E T="03">Washington Center for Equitable Growth,</E>
                         May 5, 2022, 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/.</E>
                    </P>
                </FTNT>
                <P>
                    Nor is the statutory history of the P&amp;S Act monolithic: it was used as a pattern for other laws as well, notably changes to the FTC Act. When Congress passed the FTC Act in 1914, the statute prohibited only unfair methods of competition, which was a then-new term of art with a broad scope.
                    <SU>45</SU>
                    <FTREF/>
                     In 1937, the Supreme Court in 
                    <E T="03">FTC</E>
                     v. 
                    <E T="03">Raladam Co.</E>
                     gave a narrowing interpretation, holding that the FTC's unfairness authority was limited to conduct causing competitive injury.
                    <SU>46</SU>
                    <FTREF/>
                     Congress disapproved of this interpretation, and in 1938 it passed the Wheeler-Lea Act,
                    <SU>47</SU>
                    <FTREF/>
                     which clarified the expansiveness of the FTC's unfairness authority by specifying that it covers acts or practices that injure consumers, regardless of whether the acts or practices may also injure competition.
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">American Airlines, Inc.</E>
                         v. 
                        <E T="03">North American Airlines, Inc.,</E>
                         351 U.S. 79, 85 (1956); 
                        <E T="03">Fed. Trade Comm'n</E>
                         v. 
                        <E T="03">Motion Picture Advertising Service Co.,</E>
                         344 U.S. 392, 394-95 (1953); 
                        <E T="03">Fed. Trade Comm'n</E>
                         v. 
                        <E T="03">R. F. Keppel &amp; Bro., Inc.,</E>
                         291 U.S. 304, 310 (1934).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">FTC</E>
                         v. 
                        <E T="03">Raladam Co.,</E>
                         283 U.S. 643, 649 (1931). The Supreme Court later relaxed this holding. 
                        <E T="03">FTC</E>
                         v. 
                        <E T="03">Raladam Co.,</E>
                         316 U.S. 149 (1942). 
                        <E T="03">See</E>
                         Luke Herrine, “The Folklore of Unfairness,” 96 N.Y.U. L. Rev. 431, 465-66, 470-71 (2021).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         The Wheeler-Lea Act, ch. 49 sec. 2, 52 Stat. 111 (1938); Stephanie W. Kanwit, 1 Fed. Trade Comm'n. sec. 3:5 (2023-2024).
                    </P>
                </FTNT>
                <P>
                    Notably, the Wheeler-Lea Act was modeled on the P&amp;S Act, specifically section 202(a)'s prohibition on unfair practices that injure producers. When the FTC proposed the Wheeler-Lea Act, the FTC pointed to the P&amp;S Act as the precedent for its text.
                    <SU>48</SU>
                    <FTREF/>
                     If it were not enough that the FTC succeeded—that it persuaded Congress to pass the Wheeler-Lea Act by relying on the P&amp;S Act as precedent for prohibiting unfair practices without a competitive injury requirement—the 17 years of P&amp;S enforcement prior to the Wheeler-Lea Act are especially telling. During the period from 1921 to 1938, the Secretary frequently found unfairness violations under section 202 that would 
                    <E T="03">not</E>
                     have been “unfair methods of competition” under the narrowing gloss the Supreme Court applied in 
                    <E T="03">Raladam</E>
                    —and that Congress subsequently rejected by passing the Wheeler-Lea Act.
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         Charles Wesley Dunn, Wheeler-Lea Act: A Statement of its Legislative Record 411, 418 (1938) (testimony of Ewin Davis, Chair, FTC). The FTC did, however, propose an expansion of its authority to include “unfair acts in commerce” in 1919, before the P&amp;S Act was proposed. High Cost of Living as Affected by Trust and Monopolies, Hearings Before the H. Comm. on the Judiciary, 66th Cong., 1st Sess. 25-26 (1919).
                    </P>
                </FTNT>
                <P>
                    The design of the P&amp;S Act's text, and the legislative history, thus clearly reflect Congressional intent that the Act's unfairness authority extend beyond unfair methods of competition.
                    <SU>49</SU>
                    <FTREF/>
                     The Act “was framed in language designed to permit the fullest control of packers and stockyards which the Constitution permits, and its coverage was to encompass the complete chain of commerce and give the Secretary of Agriculture complete regulatory power over packers and all activities connected therewith.” 
                    <SU>50</SU>
                    <FTREF/>
                     It was hailed as a “far-reaching measure and extend[ing] further than any previous law into the regulation of private business.” 
                    <SU>51</SU>
                    <FTREF/>
                     If the existing antitrust laws and the consent decree signed by the Big Five packers had been sufficient to protect market participants from unfair practices, Congress would not have passed the P&amp;S Act.
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         Michael Kades, “Protecting Livestock Producers and Chicken Growers,” 
                        <E T="03">Washington Center for Equitable Growth,</E>
                         May 5, 2022, 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">Bruhn's Freezer Meats of Chicago, Inc.</E>
                         v. 
                        <E T="03">USDA,</E>
                         438 F.2d 1332, 1339 (8th Cir. 1971), citing H.R. Rep. No. 67-324 (1921); H.R. Rep. No. 67-77 (1921).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         61 Cong. Rec. 1801 (1921), statement of Rep. Haugen; see also 
                        <E T="03">Wilson &amp; Co.</E>
                         v. 
                        <E T="03">Benson,</E>
                         286 F.2d 891, 895 (7th Cir. 1961): “The legislative history shows Congress understood the sections of the [Act] under consideration were broader in scope than the antecedent legislation,'” citing 61 Cong. Rec. 1805 (1921).
                    </P>
                </FTNT>
                <P>
                    The P&amp;S Act's legislative history demonstrates Congress intended the Act to cover a broader range of conduct than is covered by the Sherman Act and Clayton Act. Congress intended to regulate practices that would violate those two antitrust laws and practices that would be unfair under the FTC Act, as well as the “special mischiefs and injuries inherent in livestock and poultry traffic.” 
                    <SU>52</SU>
                    <FTREF/>
                     Particularities in the market structure and operation of the livestock, meat, and poultry industries compelled Congress to create a statute specific to them; to regulate fair trade practices among livestock and poultry producers, stockyards, meat packers, swine contractors, and live poultry dealers; and to ensure equal access to 
                    <PRTPAGE P="53891"/>
                    markets.
                    <SU>53</SU>
                    <FTREF/>
                     In these industries, a handful of firms owning a small number of capital-intensive slaughter and meat processing plants exercised substantial market power over thousands of producers spread across rural communities.
                    <SU>54</SU>
                    <FTREF/>
                     These conditions continue today and are even more important in light of increased industry concentration. For example, in 2019 the four-firm concentration ratio (the combined market share of the four largest firms in the industry) was as follows: 53% for broiler chickens, 55% for turkeys, 67% for hogs, and 85% for fed cattle.
                    <SU>55</SU>
                    <FTREF/>
                     These concentrated industries procure their poultry and livestock for processing from a large number of unconcentrated farms engaged in livestock and poultry production, including 14,144 farms raising broilers under contract, 47,510 farms that sold hogs and pigs, and 25,783 farms with cattle on feed in 2022.
                    <SU>56</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See</E>
                          
                        <E T="03">Spencer Livestock Comm'n Co.</E>
                         v. 
                        <E T="03">USDA,</E>
                         841 F.2d 1451, 1455 (9th Cir. 1988); 
                        <E T="03">Armour &amp; Co.</E>
                         v. 
                        <E T="03">United States,</E>
                         402 F.2d 712 (7th Cir. 1968).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         Live Poultry Dealers were added to the Packers and Stockyards Act in 1935 by 49 Stat. 648 (August 14, 1935), and most recently modified in 1987 by 101 Stat. 917, Public Law 100-173 (November 23, 1987). Swine Contractors were added by amendment in 2002, 116 Stat. 134, Public Law 107-171 (May 13, 2002).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         The imbalance of market power and size between producers, growers, and concentrated processors is discussed in MacDonald, J. M., Dong, X., &amp; Fuglie, K. (2023). Concentration and competition in U.S. agribusiness (Report No. EIB-256). U.S. Department of Agriculture, Economic Research Service. 
                        <E T="03">https://doi.org/10.32747/2023.8054022.ers.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         Industry concentration is discussed in more detail below in the Regulatory Impact Analysis section; additional four-firm concentration data is provided in table 1 of that section.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         USDA, National Agricultural Statistics Service, “2022 Census of Agriculture: United States Summary and State Data,” issued February 2024, tables 38, 24, and 71.
                    </P>
                </FTNT>
                <P>
                    Further, as held by the U.S. Court of Appeals for the Ninth Circuit, the Act was intended to “assure fair competition and fair trade practices in livestock marketing.” 
                    <SU>57</SU>
                    <FTREF/>
                     “Fair competition” is consistent with the view of the P&amp;S Act as a device for protecting against not only Sherman and Clayton Act violations but also other unfair methods of competition that tend to negatively affect market conditions, embodied for example in the prohibitions in 202(d) and (e) of the Act.
                    <SU>58</SU>
                    <FTREF/>
                     However, “fair trade practices” has a different connotation, going beyond practices that cause (or tend to cause) competitive injury to include practices that harm market participants, specifically producers, as well as other regulated entities and consumers. This term invokes a standard of equitable unfairness, which does not implicate market conditions, competition, efficiency, or consumer welfare.
                    <SU>59</SU>
                    <FTREF/>
                     USDA has long viewed keeping a marketplace free from abusive conduct for participants as part and parcel of maintaining a fair competitive landscape even if the unfair practice is directed at only a few individuals or firms. To the extent that violations of P&amp;S Act section 202(a) require a showing of “harm to competition” under the P&amp;S Act, that would necessarily have to cover both competitively unfair conduct and market abuses.
                </P>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         
                        <E T="03">Spencer Livestock Comm'n Co.</E>
                         v. 
                        <E T="03">USDA</E>
                        , 841 F.2d 1451, 1455 (9th Cir. 1988), citing H.R. Rep. No. 1048, 85th Cong., 2d Sess., 
                        <E T="03">reprinted in</E>
                         1958 U.S. Code Cong. &amp; Admin. News 5212, 5213.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         7 U.S.C. 192.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         
                        <E T="03">See</E>
                         Michael C. Stumo &amp; Douglas J. O'Brien, “Antitrust Unfairness vs. Equitable Unfairness in Farmer/meat Packer Relationships,” 8 Drake J. Agric. L. 91 (2003); 
                        <E T="03">see, also</E>
                          
                        <E T="03">Swift &amp; Co.</E>
                         v. 
                        <E T="03">United States</E>
                        , 308 F.2d 849, 853 (7th Cir. 1962) (noting that the petitioner claimed that the P&amp;S Act would be violated if its practice was “contrary to good morals because characterized by deception, fraud, had faith or oppression[.]”). See also interpretations of unfair practices in various Federal and State contexts, such as the recent guidance by the U.S. Department of Transportation 85 FR 78707 (2020). Other commentary concurs. 
                        <E T="03">See</E>
                         Michael Kades, “Protecting Livestock Producers and Chicken Growers,” 
                        <E T="03">Washington Center for Equitable Growth</E>
                        , May 5, 2022, 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/;</E>
                         Peter C. Carstensen, “The Packers and Stockyards Act: A History of Failure to Date,” The CPI Antitrust Journal (2) (2010), available at 
                        <E T="03">https://www.competitionpolicyinternational.com/assets/Uploads/CarstensenAPR-2.pdf;</E>
                         Herbert Hovenkamp, “Does the Packers and Stockyards Act Require Antitrust Harm?” (Philadelphia: Faculty Scholarship at Penn Law, 2011), available at 
                        <E T="03">https://scholarship.law.upenn.edu/faculty_scholarship/1862.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">D. Court Decisions</HD>
                <P>
                    Courts for decades have made it clear that section 202 of the P&amp;S Act reaches beyond the antitrust laws.
                    <SU>60</SU>
                    <FTREF/>
                     That is consistent with USDA's approach to enforcement since the earliest days of the Act. As discussed extensively in section III.A. below, USDA has enforced the Act to prohibit a wide range of unfair practices that harm individual market participants.
                    <SU>61</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         
                        <E T="03">See, e.g.,</E>
                         In re Pilgrim's Pride, 728 F.3d 457, 460 (5th Cir. 2013): “violations of the PSA are not strictly limited to the traditional antitrust realms of price-fixing conspiracies and monopolization”; 
                        <E T="03">Swift &amp; Co.</E>
                         v. 
                        <E T="03">US</E>
                        , 393 F.3d 247, 253 (7th Cir. 1968): section 202's prohibitions “are broader and more far-reaching than the Sherman Act or even section 5 of the Federal Trade Commission Act”; 
                        <E T="03">Swift &amp; Co.</E>
                         v. 
                        <E T="03">US</E>
                        , 308 F.3d 849, 853 (7th Cir. 1962): section 202 is “broader in scope than antecedent legislation such as [the Sherman Act, section 2 of the Clayton Act, section 5 of the FTC Act, and section 3 of the Interstate Commerce Act]”.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         See, 
                        <E T="03">e.g.,</E>
                         Michael Kades, “Protecting Livestock Producers and Chicken Growers,” 
                        <E T="03">Washington Center for Equitable Growth,</E>
                         May 5, 2022; 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/;</E>
                         Peter C. Carstensen, “The Packers and Stockyards Act: A History of Failure to Date,” The CPI Antitrust Journal (2) (2010), available at 
                        <E T="03">https://www.competitionpolicyinternational.com/assets/Uploads/CarstensenAPR-2.pdf;</E>
                         see also Herbert Hovenkamp, “Does the Packers and Stockyards Act Require Antitrust Harm?” (Philadelphia: Faculty Scholarship at Penn Law, 2011), available at 
                        <E T="03">https://scholarship.law.upenn.edu/faculty_scholarship/1862.</E>
                    </P>
                </FTNT>
                <P>
                    AMS has observed that rising market concentration and the growth of vertical contracting in the late 1990s and early 2000s—including insufficient USDA enforcement of the Act—led to increased private actions under the P&amp;S Act.
                    <SU>62</SU>
                    <FTREF/>
                     Starting in the 1970s, Congress expanded the Act to authorize private rights of action in Federal court, which could be filed with respect to livestock starting in 1976, and with respect to poultry starting in 1987.
                    <SU>63</SU>
                    <FTREF/>
                     By the late 1990s and early 2000s, the Federal courts faced private cases making claims based on alleged unfair practices. In the majority of these cases the Federal courts did not rely upon the opinions of USDA's Judicial Officer, and have come to conflicting conclusions about how to interpret section 202(a) and (b) of the Act.
                    <SU>64</SU>
                    <FTREF/>
                     And indeed, notably commencing in 2005 with the Eleventh Circuit's decision in 
                    <E T="03">Pickett</E>
                     v. 
                    <E T="03">Tyson Fresh Meats, Inc.,</E>
                     a handful of Circuits have held that private litigants could establish conduct is “unfair” in violation of section 202(a) 
                    <E T="03">only</E>
                     with evidence that the behavior caused competitive injury as a marketwide harm.
                    <SU>65</SU>
                    <FTREF/>
                     The courts incorporating a competitive injury requirement point to the P&amp;S Act's “antitrust origins,” although those courts also readily acknowledge that the P&amp;S Act is broader than the antitrust laws.
                </P>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         Peter C. Carstensen, “The Packers &amp; Stockyards Act: A History of Failure to Date,” The CPI Antitrust Journal (April 2010), available at 
                        <E T="03">https://www.competitionpolicyinternational.com/assets/Uploads/CarstensenAPR-2.pdf;</E>
                         see also, generally, Leonard, Christopher, “The Meat Racket
                        <E T="03">”</E>
                         (2014); see also, 
                        <E T="03">e.g.,</E>
                         C. Robert Taylor, “Legal and Economic Issues with the Courts' Rulings in 
                        <E T="03">Pickett</E>
                         v. 
                        <E T="03">Tyson Fresh Meats, Inc.,</E>
                         a Buyer Power Case,” American Antitrust Institute Working Paper No. 07-08, Feb. 2007, available at 
                        <E T="03">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1103635</E>
                         (last accessed April 2024). See, 
                        <E T="03">e.g.,</E>
                          
                        <E T="03">IBP, Inc.</E>
                         v. 
                        <E T="03">Glickman</E>
                        , 187 F.3d 974, 978 (8th Cir. 1999).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         Sec. 308, 7 U.S.C. 209; Sept. 13, 1976, 90 Stat. 1250, Public Law 94-410; Nov. 23, 1987, 101 Stat. 918, Public Law 100-173.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         See, generally, John Shively, “Competition Under the Packers and Stockyards Act: What Now?” 15 Drake J. Agric. L. 419 (Fall 2010).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         
                        <E T="03">Wheeler</E>
                         v. 
                        <E T="03">Pilgrim's Pride Corp.,</E>
                         591 F.3d 355 (5th Cir. 2009) (
                        <E T="03">en banc</E>
                        );
                        <E T="03"> Been</E>
                         v. 
                        <E T="03">O.K. Industries, Inc.,</E>
                         495 F.3d 1217 (10th Cir. 2007); 
                        <E T="03">London</E>
                         v. 
                        <E T="03">Fieldale Farms Corp.,</E>
                         410 F.3d 1295 (11th Cir. 2005); 
                        <E T="03">Pickett</E>
                         v. 
                        <E T="03">Tyson Fresh Meats, Inc.,</E>
                         420 F.3d 1272 (11th Cir. 2005).
                    </P>
                </FTNT>
                <P>
                    Courts that apply a standard with a competitive-injury component, however, are far from unanimous in their interpretation of the P&amp;S Act's prohibitions, generally, and of competitive injury, specifically. The 
                    <PRTPAGE P="53892"/>
                    Tenth Circuit has required competitive injury for unfairness but not deception claims, while the Fifth and Sixth Circuit appear to require “competitive injury” even for deception claims. Similarly, although the Tenth Circuit in 
                    <E T="03">Been</E>
                     v. 
                    <E T="03">O.K. Industries, Inc.</E>
                     adopted the competitive injury requirement, it had previously found violations of section 202 for failure to pay (
                    <E T="03">Hays Livestock</E>
                    ), market agent's loan to packer, which was a conflict of interest, (
                    <E T="03">Capitol Livestock</E>
                    ), and failing to disclose a change in grading system (
                    <E T="03">Excel</E>
                    ).
                    <SU>66</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>66</SU>
                         Even some decisions that have required competitive injury define it more broadly than what might be required to establish antitrust injury. See 
                        <E T="03">e.g., Wheeler,</E>
                         591 F.3d at 370 n.5 (Jones, J., concurring) (regulation needed “to curb practices that resulted in producers receiving far below the reasonable value of their live poultry”); 
                        <E T="03">id.</E>
                         at 370 (“the PSA was intended to prevent the abuse of monopoly”); 
                        <E T="03">Been,</E>
                         495 F.3d at 1234 (manipulation of prices constitutes competitive injury).
                    </P>
                </FTNT>
                <P>
                    Some decisions seemingly apply a higher standard than what the antitrust laws require. In 
                    <E T="03">Pickett,</E>
                     after a jury found that Tyson's vertical supply restrictions adversely affected competition by artificially reducing Tyson's purchase price for cattle, the court required the plaintiff to further rebut Tyson's claimed countervailing justifications in order to establish harm to competition. In 
                    <E T="03">London</E>
                     v. 
                    <E T="03">Fieldale Farms Corp.,</E>
                     the court invoked a Sherman Act standard in holding that a plaintiff must show that the defendant's unfair, discriminatory, or deceptive practice adversely affects or is likely to adversely affect competition,
                    <SU>67</SU>
                    <FTREF/>
                     but the case also quoted with approval 
                    <E T="03">Armour&amp; Co.</E>
                     v. 
                    <E T="03">United States,</E>
                    <SU>68</SU>
                    <FTREF/>
                     which held that a violation of section 5 of the FTC Act—which is broader than the Sherman Act—would be sufficient. As discussed below, section 5 reaches conduct that does not violate the Sherman Act, and liability under section 5 does not depend on demonstrable anticompetitive effects or proof of the defendant's market power. The Act reaches practices “not merely in their fruition, but also in their incipiency” if they “could lead to trade restraints and practices deemed undesirable” and also “conduct which, although not a violation of the letter of the antitrust laws, is close to a violation or is contrary to their spirit.” 
                    <SU>69</SU>
                    <FTREF/>
                     In 
                    <E T="03">Been,</E>
                     the court similarly required that the plaintiffs show that the “specific practices have the effect of injuring competition or are likely to do so,” but then it went further, requiring 
                    <E T="03">more</E>
                     than courts ordinarily require to prove even a Sherman Act violation. In 
                    <E T="03">Been,</E>
                     plaintiffs had to show the practices resulted in both lower prices for producers 
                    <E T="03">and</E>
                     higher prices for retail consumers.
                    <SU>70</SU>
                    <FTREF/>
                     Finally, 
                    <E T="03">Wheeler</E>
                     v. 
                    <E T="03">Pilgrim's Pride Corp.</E>
                     held that “an anti-competitive effect is necessary” to prove a violation of section 202(a) of the P&amp;S Act, despite citing with approval 
                    <E T="03">Farrow</E>
                     v. 
                    <E T="03">U.S. Dep't of Agr.,</E>
                    <SU>71</SU>
                    <FTREF/>
                     where the court held that harm to competition merely “can be found” sufficient to demonstrate violation of the P&amp;S Act. Moreover, the courts' varying interpretations of section 202(a)—including those that have required competitive injury—apply inconsistent legal standards to the evidence. Or, as it has been observed: “courts' application of the harm-to-competition test is inconsistent with their own antitrust rules that they claim to be applying.” 
                    <SU>72</SU>
                    <FTREF/>
                     Simply, “harm to competition” fails even its basic function as the judicial stand-in for well-articulated contours of a prohibition on unfair practices.
                </P>
                <FTNT>
                    <P>
                        <SU>67</SU>
                         
                        <E T="03">London</E>
                         v. 
                        <E T="03">Fieldale Farms Corp.,</E>
                         410 F.3d 1295, 1303 (11th Cir. 2005).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>68</SU>
                         
                        <E T="03">Armour &amp; Co.</E>
                         v. 
                        <E T="03">United States,</E>
                         402 F.2d 712 (7th Cir. 1968).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>69</SU>
                         
                        <E T="03">E.I. du Pont de Nemours</E>
                         v. 
                        <E T="03">Fed. Trade Comm'n (Ethyl)</E>
                        , 729 F.2d 128, 136-37 (2d Cir. 1984).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>70</SU>
                         
                        <E T="03">Been</E>
                         v. 
                        <E T="03">O.K. Industries, Inc.,</E>
                         495 F.3d 1217, 1232 (10th Cir. 2007). Also, there seems to be no consideration of the fact that price manipulation is an express violation of section 202(d) and 202(e) of the P&amp;S Act.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>71</SU>
                         760 F.2d 211, 214 (8th Cir. 1985).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>72</SU>
                         Michael Kades, “Protecting Livestock Producers and Chicken Growers,” 
                        <E T="03">Washington Center for Equitable Growth,</E>
                         May 5, 2022, 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/.</E>
                    </P>
                </FTNT>
                <P>
                    At the same time, other courts have either explicitly rejected a competitive injury requirement or have found violations without addressing the impact on competition.
                    <SU>73</SU>
                    <FTREF/>
                     Disagreement among the courts over the need for competitive injury and what the term means makes enforcement difficult and has created a legal patchwork in which different rules apply depending on the presiding circuit. The lack of consistent legal standards has adversely affected the Department's ability to maintain fair and competitive livestock and poultry markets and ensure producers can obtain the full value of their products and services. Livestock and poultry industries are inherently interstate activities, with activities, services, and trading regularly occurring across multiple states and in regional and national markets. Much like the FTC's policy statements have defined its national approaches to unfair practices and unfair methods of competition, a workable rule governing how the prohibitions on unfair practices will operate and be enforced is important for providing clarity to market participants and for AMS to effectuate its nationwide statutory obligation to ensure fair and competitive livestock, meat, and poultry markets, and ensure livestock producers and poultry growers can secure the full value for their products and services.
                    <SU>74</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>73</SU>
                         See, 
                        <E T="03">e.g., M &amp; M Poultry</E>
                         v. 
                        <E T="03">Pilgrim's Pride Corp.,</E>
                         No. 2:15-CV-32, 2015 WL 13841400, at *8 (N.D.W. Va. Oct. 26, 2015); 
                        <E T="03">Triple R Ranch, LLC</E>
                         v. 
                        <E T="03">Pilgrim's Pride Corp.,</E>
                         456 F. Supp. 3d 775, 778 (N.D.W. Va. 2019); 
                        <E T="03">Hedrick</E>
                         v. 
                        <E T="03">S. Bonaccurso &amp; Sons, Inc.,</E>
                         466 F. Supp. 1025, 1031 (E.D. Pa. 1978).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>74</SU>
                         Michael Kades, “Protecting Livestock Producers and Chicken Growers,” 
                        <E T="03">Washington Center for Equitable Growth,</E>
                         May 5, 2022; 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/.</E>
                    </P>
                </FTNT>
                <P>The cases mentioned above all applied different standards despite all claiming to have derived their standards from the Act and the caselaw. These opinions gave little or no guidance on the practices that would satisfy their standards. Moreover, in the cases adopting a competitive injury requirement, the litigants did not offer an affirmative definition of “unfair” like the criteria in the proposed rule. Those courts never addressed whether “unfair” applies to harms typically treated as unfair practices under the FTC Act.</P>
                <P>This ambiguity and inconsistency across judicial interpretations of the statute impedes enforcement of the Act under section 202(a) because to date neither the Department nor the public have had appropriate clarity on the meaning of “unfair” under the P&amp;S Act. Further, to the extent courts have limited application of the P&amp;S Act's protections against unfair practices to anticompetitive or unfair conduct that causes competitive injury, those courts' decisions are contrary to both the legislative text and Congressional intent.</P>
                <P>
                    For over a decade, USDA has received repeated calls from the public to address these court decisions which frustrate the purposes of the Act,
                    <SU>75</SU>
                    <FTREF/>
                     although USDA 
                    <PRTPAGE P="53893"/>
                    also notes that some industry groups have generally opposed changes to the existing regulatory landscape.
                    <SU>76</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>75</SU>
                         See, 
                        <E T="03">e.g.,</E>
                         Farm Action et al., “Letter to Bruce Summers,” April 5, 2022, available at 
                        <E T="03">https://farmaction.us/wp-content/uploads/2022/04/Letter-re-Unfair-Practices-in-Violation-of-the-Packers-and-Stockyards-Act.pdf</E>
                         and 
                        <E T="03">https://farmaction.us/2022/04/07/dear-usda-issue-the-packers-and-stockyards-rules-now/</E>
                         (last accessed April 2024); Sarah Carden, “The Fall of Antitrust, the Rise of Corporate Power: Impacts of Market Concentration on Farmers and Ranchers,” Farm Action, March 2022, available at 
                        <E T="03">https://farmaction.us/wp-content/uploads/2022/04/P-S-Act-Report-for-ABA-Farm-Action.pdf;</E>
                         Hon. Keith Ellison, et al., “Letter to Hon. Tom Vilsack,” December 21, 2021, on file at USDA, referenced in Hon. Thomas Vilsack, “Letter to State Attorneys General Ellison, Hill, and Colleagues,” Sept. 26, 2022, available at 
                        <E T="03">https://www.usda.gov/media/press-releases/2023/07/19/usda-launches-historic-partnership-bipartisan-state-attorneys</E>
                         and 
                        <E T="03">https://www.usda.gov/media/press-releases/2023/07/19/usda-launches-historic-partnership-bipartisan-state-attorneys</E>
                         (last accessed April 2024); Claire Kelloway and Sarah Miller, “Food and Power: Addressing Monopolization in America's Food System,” Open Markets Institute, Sept. 21, 2021 
                        <PRTPAGE/>
                        updated version, at 12, available at 
                        <E T="03">https://www.openmarketsinstitute.org/publications/food-power-addressing-monopolization-americas-food-system</E>
                         (last accessed April 2024); see also John Shively, “Competition Under the Packers and Stockyards Act: What Now?” 15 
                        <E T="03">Drake J. Agric. L.</E>
                         419 (Fall 2010); C. Robert Taylor, “Legal and Economic Issues with the Courts' Rulings in 
                        <E T="03">Pickett</E>
                         v. 
                        <E T="03">Tyson Fresh Meats, Inc.,</E>
                         a Buyer Power Case,” American Antitrust Institute Working Paper No. 07-08, Feb. 2007, available at 
                        <E T="03">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1103635</E>
                         (last accessed April 2024); United States Department of Justice, United States Department of Agriculture, (May 2010), Public Workshops Exploring Competition in Agriculture, 
                        <E T="03">https://www.justice.gov/archives/atr/events/public-workshops-agriculture-and-antitrust-enforcement-issues-our-21st-century-economy-10</E>
                         (“As a state regulator, when I enforce my state's unfair or deceptive practices act on behalf of consumers, I don't have to demonstrate that that deceptive act injured every consumer in the state. I only have to demonstrate that one consumer. I think what we do owe our—we owe our producers at least as much as we owe the individual consumers of our respective states and a fair reading of 202(a) shouldn't require the rancher to demonstrate harm to everyone.” “The only way to protect the cash market is to halt the growth of captive supplies and possibly even roll back practice. As it should be, the language of Section 2(a) and (b) of the Packers &amp; Stockyards Act does not require the finding of harm to the industry. . . How is it that if I strong-arm someone out in the hall I could be put in jail, but if a—but to receive just and due compensation for my hard work and efforts, I have to prove that there is an injury to the industry and not just to myself? That's a pretty ridiculous test to overcome.” “Now, I understand the Packers and Stockers Act is being undermined by this proof to harm to competition. When they're cheating all of these farmers out here, they're getting a monetary advantage in the market. . . And that's the excuse that the Federal judges say that we—you know, that we can't have this law enforced”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>76</SU>
                         See, 
                        <E T="03">e.g.,</E>
                         North American Meat Institute Issue Statement on President Biden's Executive Order &amp; USDA's Proposed Changes to Packers &amp; Stockyards Rules, July 9, 2021, available at 
                        <E T="03">https://www.meatinstitute.org/press/north-american-meat-institute-issues-statement-president-bidens-executive-order-usdas</E>
                         (last accessed April 2024).
                    </P>
                </FTNT>
                <P>
                    Consistent with Executive Order 14036, this proposed rule would, however, make those changes.
                    <SU>77</SU>
                    <FTREF/>
                     Specifically, it would provide regulatory clarity in the face of these conflicting interpretations so as to more fully and effectively enforce section 202(a)'s prohibition on unfair practices. To do so, it proposes to establish clearer tests and frameworks with which to apply section 202(a)'s prohibition on unfair practices, provide guidance to those hearing enforcement cases as to what unfairness means, and, in circumstances when competition is relevant, provide a framework for assessing the impact of a practice on the competitive environment. USDA intends with this proposed rule to provide clearer standards for the Department, courts, and private parties to use in understanding what conduct the P&amp;S Act prohibits.
                </P>
                <FTNT>
                    <P>
                        <SU>77</SU>
                         Executive Order No. 14036 “Promoting Competition in the American Economy,” July 2021, available at 
                        <E T="03">https://www.whitehouse.gov/briefing-room/presidential-actions/2021/07/09/executive-order-on-promoting-competition-in-the-american-economy/.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">III. The Proposed Rule</HD>
                <P>
                    In this proposed rulemaking, AMS proposes separate comprehensive rules intended to protect both market participants and the market from harm.
                    <SU>78</SU>
                    <FTREF/>
                     In the very first docket under the P&amp;S Act in 1922, the Secretary stated: “It is not the purpose of the Act to destroy business, but to require the observance of the public's interests in the conduct of business by conforming to standards laid down in the law.” 
                    <SU>79</SU>
                    <FTREF/>
                     In other words, the Act is broader than an antitrust law; it is a comprehensive regulation of the poultry and livestock industry that enforces norms of fair behavior for the public benefit. Thus, since passage of the Act, the Department has taken the position that section 202(a) could be violated if a challenged practice injures the market to the detriment of the public interest, or if it injures market participants without any specific harm to the market. Often, in the Department's view, a challenged practice could cause both kinds of injuries in unison.
                </P>
                <FTNT>
                    <P>
                        <SU>78</SU>
                         Although using different terms, this understanding is consistent with the consensus academic literature. See, 
                        <E T="03">e.g.,</E>
                         Michael Kades, “Protecting Livestock Producers and Chicken Growers,” 
                        <E T="03">Washington Center for Equitable Growth,</E>
                         May 5, 2022, 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/;</E>
                         Peter C. Carstensen, “The Packers and Stockyards Act: A History of Failure to Date,” The CPI Antitrust Journal (2) (2010), available at 
                        <E T="03">https://www.competitionpolicyinternational.com/assets/Uploads/CarstensenAPR-2.pdf;</E>
                         Herbert Hovenkamp, “Does the Packers and Stockyards Act Require Antitrust Harm?” (Philadelphia: Faculty Scholarship at Penn Law, 2011), available at 
                        <E T="03">https://scholarship.law.upenn.edu/faculty_scholarship/1862.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>79</SU>
                         
                        <E T="03">Kansas City Live Stock Exchange</E>
                         v. 
                        <E T="03">Armour and Company and Fowler Packing Company</E>
                        , Docket No. 1 (August 30, 1922).
                    </P>
                </FTNT>
                <P>
                    For example, a supply broker was found to have engaged in both an unfair and deceptive practice in agreeing to provide a hidden “kickback” that affords unduly preferential treatment to a powerful retailer at the expense of rival retailers. Indeed, the practice was unfair both in the sense that it specifically injured the rival retailers, who were forced to pay discriminatorily higher broker fees, and in the sense that it harmed competition because the hidden competitive advantage bestowed upon the powerful retailer tampered with the competitive process for procuring supply.
                    <SU>80</SU>
                    <FTREF/>
                     This comprehensive analytical approach, which the Secretary applied in cases as diverse as failure to pay in full 
                    <SU>81</SU>
                    <FTREF/>
                     and price cutting,
                    <SU>82</SU>
                    <FTREF/>
                     never required the Secretary to draw distinctions between unfair conduct that injures producers, unfair conduct that injures competition, or unfair conduct that caused both kinds of injury. But in analyzing these cases the Judicial Officer determined harm to an individual or harm to competition in each separate administrative case rather than a specific “test” or “rule.”
                </P>
                <FTNT>
                    <P>
                        <SU>80</SU>
                         
                        <E T="03">Trunz Pork Stores</E>
                         v. 
                        <E T="03">Wallace</E>
                        , 70 F.2d 688 (2d Cir. 1934).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>81</SU>
                         
                        <E T="03">De Jong Packing Co.</E>
                         v. 
                        <E T="03">U.S. Dep't of Agric.,</E>
                         618 F.2d 1329, 1337 (9th Cir. 1980): agreeing that failing to pay for condemned cattle within one business day following sale was an “unfair practice”. The violations in this case occurred in 1972 and 1974. Id. at 1333.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>82</SU>
                         
                        <E T="03">See Wilson &amp; Co.</E>
                         v. 
                        <E T="03">Benson</E>
                        , 286 F.2d 891, 895 (7th Cir. 1961).
                    </P>
                </FTNT>
                <P>In building the analytical framework for this proposed rule, USDA considered, in addition to the forgoing, the contemporaneous statutory history of section 5 of the FTC Act, which bans both unfair methods of competition and unfair or deceptive acts or practices. While Congress never limited the scope of the P&amp;S Act's “unfair practices” to “unfair methods of competition,” the first FTC Act was purportedly so limited. The amendments to the FTC Act in 1938 reflected Congress's intent to make the scope of the FTC Act more aligned with the P&amp;S Act's broader scope.</P>
                <P>A standard should be consistent and consistently applied, so this proposed rule would explain the P&amp;S Act in terms more widely understood. USDA has found the framework of the FTC Act and the FTC's policy statements useful in understanding the past century of USDA's administrative and Federal caselaw.</P>
                <P>Thus, for this proposed rule, USDA employs an analytical structure similar to that presently used by the FTC and proposes two analyses. First, proposed § 201.308(a) and (b) would protect against injuries to market participants from unfair practices. Second, proposed § 201.308(c) and (d) would protect the market from unfair practices. When the Secretary considers whether an injurious practice rises to the level of an unfair practice, either or both approaches may be relied on.</P>
                <P>
                    Although the proposed tests are distinct, in the context of the P&amp;S Act, they are not mutually exclusive. Just as it has always been true that an unfair practice can be simultaneously injurious to individual market participants and to market conditions more generally, an unfair practice under this proposed rule may be unfair to an individual market participant (under proposed 
                    <PRTPAGE P="53894"/>
                    § 201.308(a)), to markets (under proposed § 201.308(c)), or unfair under each proposed test.
                </P>
                <P>Thus, based on the statutory language, administrative case law, and Federal case law, this proposed regulation clarifies that unfair acts under the P&amp;S Act apply to harms to market participants and harms to the market. The scope of section 202(a) is similar to section 5 of the FTC Act, which prohibits both unfair and deceptive acts or practices and unfair methods of competition. Further, the operative definition of harm to market participants (substantial harm, not reasonably unavoidable, and not outweighed by benefits) is analogous to the codified definition of unfairness under the FTC Act. The operative definition for harm to the market is analogous to the principles the FTC has adopted in that context (collusive, coercive, predatory, restrictive, deceitful or exclusionary method of competition that may negatively affect competitive conditions).</P>
                <HD SOURCE="HD2">A. Proposed § 201.308(a) and (b)</HD>
                <P>USDA proposes the addition of § 201.308(a) and (b) as a comprehensive rule for unfair practices with respect to market participants.</P>
                <P>
                    The proposed test under § 201.308(a) for whether a practice unfairly injures market participants is similar to the FTC's test for consumer protection injuries. Under the FTC Act, an unfair practice is an act or practice that “causes or is likely to cause substantial injury to consumers that is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition.” 
                    <SU>83</SU>
                    <FTREF/>
                     Harm to competition is not part of the test. Although section 202(a) of the P&amp;S Act's authority precedes the FTC's 1980 policy statement and subsequent Congressional amendments to the FTC Act, the FTC's current approach offers useful pillars around which to anchor P&amp;S case law that has developed over the years.
                    <SU>84</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>83</SU>
                         15 U.S.C. 45(n).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>84</SU>
                         See Michael Kades, then of Washington Center for Equitable Growth, reaching a similar conclusion in “Protecting Livestock Producers and Chicken Growers,” chapter 3, 
                        <E T="03">Washington Center for Equitable Growth,</E>
                         May 5, 2022, 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/;</E>
                         see also, Peter C. Carstensen, “The Packers and Stockyards Act: A History of Failure to Date,” The CPI Antitrust Journal (2) (2010), available at 
                        <E T="03">https://www.competitionpolicyinternational.com/assets/Uploads/CarstensenAPR-2.pdf;</E>
                         see also Herbert Hovenkamp, “Does the Packers and Stockyards Act Require Antitrust Harm?” (Philadelphia: Faculty Scholarship at Penn Law, 2011), available at 
                        <E T="03">https://scholarship.law.upenn.edu/faculty_scholarship/1862</E>
                        .
                    </P>
                </FTNT>
                <P>USDA thus proposes under § 201.308(a) that a practice is unfair if the practice (1) causes or is likely to cause substantial injury to one or more market participants, which (2) the participant or participants cannot reasonably avoid, and which (3) the regulated entity that has engaged in the act cannot justify by establishing countervailing benefits to the market participant or participants or to competition in the market that outweighs the substantial injury or likelihood of substantial injury. Application of these three elements, when combined, explain the outcome of a great many of the cases brought under the P&amp;S Act, and provide a clear and workable standard for adjudicating many kinds of unfairness claims.</P>
                <P>
                    The simplest example that illustrates the principles underlying these proposed provisions is the failure to pay for meat,
                    <SU>85</SU>
                    <FTREF/>
                     live poultry,
                    <SU>86</SU>
                    <FTREF/>
                     or livestock.
                    <SU>87</SU>
                    <FTREF/>
                     First, it causes a substantial injury to the seller or grower. When a seller or grower delivers product to a regulated entity and the entity arbitrarily refuses to pay, the seller or grower loses the value of the product, and they lose the opportunity to use the capital from selling their product to grow more food, invest in their farm, or process more products. Second, they cannot avoid this breach of contract. Instead, they must either engage in costly litigation or settle for less than they are owed. Finally, there is no benefit to the market for the purchaser to fail to pay for the product they received. If this practice is adopted by all purchasers, the sellers become increasingly less efficient as trust fails and less livestock, meat, and poultry is produced. Thus, even if the seller or grower is eventually paid, and suffers no loss of business, the regulated entity's failure to pay when due can still cause substantial, unavoidable market injury. That is, in the aggregate, even a small delay suffered by many producers produces a substantial harm.
                </P>
                <FTNT>
                    <P>
                        <SU>85</SU>
                         In Re: Rotches Pork Packers, Inc. &amp; David A. Rotches., 46 Agric. Dec. 573, 579 (1987).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>86</SU>
                         
                        <E T="03">In Re: Empire Kosher Poultry, Inc.,</E>
                         No. P &amp; S Docket No. D-10-0109, 2010 WL 7088565, at *6 (U.S.D.A. July 20, 2010), 
                        <E T="03">aff'd Empire Kosher Poultry, Inc.</E>
                         v. 
                        <E T="03">U.S. Dep't of Agric.,</E>
                         475 F. App'x 438, 444 (3d Cir. 2012).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>87</SU>
                         Courts that examine the history of the P&amp;S Act often overlook that failure to pay in full was an “unfair practice” under the Act for many decades before Congress clarified that delay of a single payment for livestock was an unfair “practice” under the P&amp;S Act in 1976. For example, in 
                        <E T="03">In re: Eastern Meats, Inc.,</E>
                         21 Agric. Dec. 134, 141, (1962), the Judicial Officer found “without a doubt” failing to timely pay the full amount agreed for a single shipment of meat was “an unfair and deceptive practice and device” and cited administrative cases. And, in 
                        <E T="03">In Re: Mid-W. Veal Distributors, d/b/a Nagle Packing Co., &amp; Milton Nagle,</E>
                         43 Agric. Dec. 1124, 1138 (U.S.D.A. July 13, 1984) USDA's Judicial Officer noted it had been held consistently in cases arising under both title II and title III of the P&amp;S Act that failure to pay, when due, for livestock constitutes a violation of sections 202(a) and 312(a) of the P&amp;S Act., citing 
                        <E T="03">In re Rosenthal,</E>
                         36 Agric. Dec. 210 (1976); 
                        <E T="03">In re San Jose Valley Veal, Inc.,</E>
                         34 Agric. Dec. 966 (1975); 
                        <E T="03">In re Sebastopal Meat Company, Inc.,</E>
                         28 Agric. Dec. 435, (1969), aff'd, 440 F.2d 983 (9th Cir. 1971); 
                        <E T="03">In re Nolan E. Poovey, Jr.,</E>
                         27 Agric. Dec. 1512 (1968); 
                        <E T="03">In re Joe Doctorman &amp; Son, Inc.,</E>
                         28 Agric. Dec. 840 (1969); 
                        <E T="03">In re S.M. Jamison,</E>
                         28 Agric. Dec. 581 (1969); 
                        <E T="03">In re Neil Harlan,</E>
                         25 Agric. Dec. 5 (1966); 
                        <E T="03">In re Royce Lehman Moore,</E>
                         26 Agric. Dec. 230 (1967); 
                        <E T="03">In re Augustin Brothers Co,</E>
                         27 Agric. Dec. 350 (1968); 
                        <E T="03">In re R.J. &amp; C.W. Fletcher, Inc.,</E>
                         23 Agric. Dec. 1400 (1964); 
                        <E T="03">In re Rosenthal Packing Co.,</E>
                         19 Agric. Dec. 971 (1960); 
                        <E T="03">In re Harry Thomas,</E>
                         35 Agric. Dec. 490 (1976).
                    </P>
                </FTNT>
                <P>
                    Similar principles have guided the Secretary's interpretation for the entire history of the Act. In the 1956 decision in 
                    <E T="03">In re: Central California Livestock, Inc. d/b/a Machlin Meat Packing Company,</E>
                     the Judicial Officer held that accord and satisfaction could not be a defense to the failure to pay for livestock because a refusal to abide by contract terms that occurs after the livestock is slaughtered leaves the seller or grower with no other remedy than to sue. If a refusal to pay is not based upon a bona fide dispute, but rather is a deliberate policy of contract noncompliance, then it is “obvious that by the activities in issue the respondent engaged in or used an unfair practice” in violation of section 202(a) of the Act.
                    <SU>88</SU>
                    <FTREF/>
                     And “[n]ot only was it unfair to the sellers but it was unfair competitively with respect to other packers.” 
                    <SU>89</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>88</SU>
                         In re: Central California Livestock, Inc. d/b/a Machlin Meat Packing Company, 15 Agric. Dec. 97, 110 (1956).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>89</SU>
                         Id.
                    </P>
                </FTNT>
                <P>
                    Even in 1956 those principles were not a new application of section 202(a). In 1937, USDA Secretary Wallace found that discounting the agreed upon price for a defect (so-called oily hogs) undiscoverable until after slaughter rather than as a condition of the contract was an “unfair, unjustly discriminatory, and deceptive practice” in violation of section 202(a) of the Act.
                    <SU>90</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>90</SU>
                         
                        <E T="03">Secretary of Agriculture</E>
                         v. 
                        <E T="03">Scala Packing Company, Inc.,</E>
                         Bureau of Animal Industry Docket No. 581 (January 7, 1937).
                    </P>
                </FTNT>
                <P>
                    Congress drafted the Act to provide every participant in the industry due consideration, and honest, transparent, and equitable treatment. Accordingly, dishonest, hidden, and inequitable practices that injure market participants, like mis-weighing, are unfair because the producer or grower suffers a substantial injury that they cannot avoid. For example, a producer delivers their product for the regulated entity to establish the grade, weight, and payment. The producer's loss of physical control of the animal is 
                    <PRTPAGE P="53895"/>
                    inherent in a failure-to-pay or a mis-weighing case, illustrating the unavoidability of the injury.
                </P>
                <P>
                    Some elements of the dangers of unavoidable injuries have informed prior rulemaking. For example, when USDA required packers to pay on actual hot weights—the weight before the carcass is cooled to storage temperatures—in 1968, USDA noted that allowing packers to set shrinkage amounts for a projected weight after refrigeration (a cold weight) was an unfair and deceptive practice: “In these instances, the packer decides what shrinkage factor he will use. . . The farmer is not in a position to bargain freely on the basis of a full understanding of the contract terms which are within the control of the packer and can only accept or reject the bid offered by the packer.” 
                    <SU>91</SU>
                    <FTREF/>
                     Market participants are often at the mercy of regulated entities, who often pay based on factors that the livestock seller or poultry grower is unable to personally witness or negotiate, thus making their injury from the use of variable cold weights or shrinkage unavoidable.
                </P>
                <FTNT>
                    <P>
                        <SU>91</SU>
                         Purchase of Livestock by Packers on a Carcass Grade, Carcass Weight, or Carcass Grade and Weight Basis, 33 FR 2760, 2761 (Feb. 9, 1968).
                    </P>
                </FTNT>
                <P>
                    Even absent an express rule, the principles maintaining that unjustified practices that produce unavoidable injury violate section 202(a) of the Act have been, and still are, applied in “unfair practices” cases.
                    <SU>92</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>92</SU>
                         
                        <E T="03">E.g. In Re: Excel Corp.,</E>
                         No. P. &amp; S. Docket No. 99-0010, 2003 WL 205562, at *31 (U.S.D.A. Jan. 30, 2003) (finding that producers were likely injured by Respondent's failure to notify hog producers of its undetectable change in lean formula, and regardless, the practice impeded competition); 
                        <E T="03">In Re: Stull Meats, Inc.,</E>
                         49 Agric. Dec. 309, 329 (U.S.D.A. Feb. 15, 1990) (finding in a commercial bribery case that “the type of violations alleged and proven in this case are not only unfair to the firm being overcharged for its purchases . . . but also to the competitors . . . who are not in a position to gain entry . . . unless they are willing to make the same illegal inducements to its agent”); 
                        <E T="03">c.f. In Re: Cedar Vale Sale Barn, Inc., Doyle Hawkins &amp; Jerry Mullins.,</E>
                         52 Agric. Dec. 546, 554 (1993) (check kiting poses a great risk to the sellers of livestock); 
                        <E T="03">In Re: Great Am. Veal, Inc. A Corp., &amp; Thomas Burke, an Individual,</E>
                         48 Agric. Dec. 183, 198 (U.S.D.A. Jan. 19, 1989) (holding that dissipating the statutory trust “enacted to protect livestock sellers” was unfair).
                    </P>
                </FTNT>
                <P>The final factor in the proposed regulation at § 201.308(a) is that the conduct does not violate section 202(a) of the Act if regulated entities prove that countervailing benefits to producers, growers, or to competition outweigh the harm. In practice, the question is whether the regulated entity can show benefits of the alleged unfair conduct outweigh the injury or likely injury.</P>
                <P>
                    The proposed rule allows the consideration of not only harm to the market, but also likely harm to Congressional policy goals concerning the structure of agricultural markets over and against possible countervailing benefits to other producers or the market.
                    <SU>93</SU>
                    <FTREF/>
                     Congressional policy goals have included, for example, supporting new, beginning, and military veteran producers.
                    <SU>94</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>93</SU>
                         Michael Kades, “Protecting Livestock Producers and Chicken Growers,” chapter 4, 
                        <E T="03">Washington Center for Equitable Growth,</E>
                         May 5, 2022, 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>94</SU>
                         See, 
                        <E T="03">e.g.,</E>
                         “How to Start a Farm: Beginning Farmers and Ranchers,” available at 
                        <E T="03">https://www.farmers.gov/your-business/beginning-farmers</E>
                         (last accessed April 2024); Congressional Research Service, “Farm Bill Primer: Beginning and Underserved Producers,” May 2022, available at 
                        <E T="03">https://crsreports.congress.gov/product/pdf/IF/IF12096/2.</E>
                    </P>
                </FTNT>
                <P>
                    Balancing allegedly unfair conduct against countervailing benefits is not a new consideration for the Secretary. For example, when examining the allegedly unfair and discriminatory preferences given to one group of sellers over others in 
                    <E T="03">In re: IBP, Inc.</E>
                     (57 Agric. Dec. 1353 (U.S.D.A. July 31, 1998)), the Department considered whether right of first refusal of the contract terms was “worth extra payment” and whether the contract was profitable for both the buyers and the sellers of livestock. Preferences for lengthening extra delivery times justified higher payments (even if higher payment was not proven), and so concluded that the practice was not unduly discriminatory.
                    <SU>95</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>95</SU>
                         The Judicial Officer also considered the specific right of first refusal a practice that was likely to harm competition in violation of section 202 of the P&amp;S Act. While the 8th Circuit agreed with the legal statements of the Judicial Officer—specifically that the Act prevents likely harm to competition—the court disagreed with the factual conclusions and reversed. 
                        <E T="03">IBP, Inc.</E>
                         v. 
                        <E T="03">Glickman,</E>
                         187 F.3d 974, 978 (8th Cir. 1999).
                    </P>
                </FTNT>
                <P>
                    Accordingly, when examining the practice, “actual competition carried on in good faith by normally fair methods not `heretofore regarded as opposed to good morals because characterized by deception, bad faith, fraud, or oppression['] . . . is a fact which must be given substantial weight . . . .” 
                    <SU>96</SU>
                    <FTREF/>
                     Unfair practices under section 202 is not only a matter of unfair market conditions; the intention and results of the unfair acts and practices are relevant.
                    <SU>97</SU>
                    <FTREF/>
                     For example, if a company intends to act to monopolize, even if the intended mechanism would not achieve it, the practice would be unfair. Moreover, some practices have no benefit, even if unintentional: mis-weighing, failing to pay when due for livestock or meats, failure to maintain a bond, and insolvency.
                </P>
                <FTNT>
                    <P>
                        <SU>96</SU>
                         
                        <E T="03">Swift &amp; Co.</E>
                         v. 
                        <E T="03">Wallace,</E>
                         105 F.2d 848, 856 (7th Cir. 1939).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>97</SU>
                         
                        <E T="03">See Armour &amp; Co.</E>
                         v. 
                        <E T="03">United States,</E>
                         402 F.2d 712, 717 (7th Cir. 1968).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Evaluation of Potential Injury to Market Participants</HD>
                <P>
                    To date, no court has disagreed with the principle that the P&amp;S Act not only reaches practices that directly injure, such as failures to pay and changes to the terms of payment without notice, but also acts that are likely to cause injury. Congress designed the Act to prevent actual monetary loss 
                    <SU>98</SU>
                    <FTREF/>
                     and those practices are “unfair” even though they require no evidentiary showing of completed injury. Even courts that have adopted the competitive injury standard have affirmed that the Act does not require actual harm. The Fifth Circuit stated, the “Act is designed to `. . . prevent potential injury by stopping unlawful practices in their incipiency. Proof of a particular injury is not required.' ” 
                    <SU>99</SU>
                    <FTREF/>
                     Those potential injuries may be any injury the Act was designed to prevent, including financial loss to sellers.
                    <SU>100</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>98</SU>
                         
                        <E T="03">See In re: Arizona Livestock Auction, Inc.,</E>
                         55 Agric. Dec. 1121 (U.S.D.A. Nov. 21, 1996) (finding that the purpose of title III of the Act was “to protect the producer or seller from monetary loss”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>99</SU>
                         
                        <E T="03">Bowman</E>
                         v. 
                        <E T="03">United States Dep't of Agric.,</E>
                         363 F.2d 81, 85 (5th Cir. 1966) (finding the Department's insolvency standard was not an abuse of discretion).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>100</SU>
                         Id.
                    </P>
                </FTNT>
                <P>
                    Therefore, the Department has taken the view that some practices must be stopped before they harm market participants.
                    <SU>101</SU>
                    <FTREF/>
                     For example, a packer operating while insolvent or without a bond can present a great risk of potential harm to the livestock sellers who may find that their livestock is being used to finance a packer's operations.
                    <SU>102</SU>
                    <FTREF/>
                     If the undercapitalized packer fails, even with the rights of a floating trust, livestock sellers are vulnerable to protracted litigation and non-payment. The livestock seller's ability to participate in the market would be imperiled, the magnitude of potential injury would be great, and without prior knowledge of the insolvency, the seller's ability to freely 
                    <PRTPAGE P="53896"/>
                    exercise decision-making would be undermined.
                </P>
                <FTNT>
                    <P>
                        <SU>101</SU>
                         
                        <E T="03">See</E>
                         In Re: Corn State Meat Co., Inc.; Terrance P. (Terry) Prince, Jr. &amp; James L. Wiggs., 45 Agric. Dec. 995, 1023 (U.S.D.A. May 8, 1986); c.f. In Re: Danny Cobb &amp; Crockett Livestock Sales Co., Inc., 48 Agric. Dec. 234, 234 (U.S.D.A. Feb. 13, 1989) (finding bonds protect against incipient violations); In Re: Paul Rodman &amp; David Rodman, 47 Agric. Dec. 885, 903-04 (U.S.D.A. May 27, 1988) (finding there is a duty to prevent all unlawful acts under the P&amp;S Act, including the potential losses from failing to maintain a custodial account).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>102</SU>
                         For an example of how under-capitalization can force producers to finance the operation of a livestock buyer, see 
                        <E T="03">Van Wyk</E>
                         v. 
                        <E T="03">Bergland,</E>
                         570 F.2d 701, 704 (8th Cir. 1978).
                    </P>
                </FTNT>
                <P>
                    As another example, an exclusive agreement between packers and livestock dealers not to bid against one another might severely restrict the ability of other livestock sellers to participate in the market, because packers would not accept offers from other livestock dealers or from sellers directly.
                    <SU>103</SU>
                    <FTREF/>
                     The agreement is an unfair practice, among other reasons, because it injures sellers by restricting them from making offers and thus tends to subvert market forces. Proposed § 201.308(a) recognizes that although a specific injury has not occurred, the potential for injury is so great that the Secretary must stop the practice in advance.
                    <SU>104</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>103</SU>
                         See 9 CFR 201.70; 
                        <E T="03">Swift &amp; Co. v.</E>
                          
                        <E T="03">United States,</E>
                         393 F.2d 247 (7th Cir. 1968).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>104</SU>
                         A similar analysis would be if a group of packers conspire to force stockyards to sell on the basis of a “subject” sales terms—that is, granting the packer the right to refuse to honor the purchase after a delivery inspection at the packing plant rather than on the basis of an “as is” sales term—then that behavior is likely to interfere with the free exercise of decision making by market participants. See 
                        <E T="03">De Jong Packing Co.</E>
                         v. 
                        <E T="03">U.S. Dep't of Agric.,</E>
                         618 F.2d 1329, 1337 (9th Cir. 1980).
                    </P>
                </FTNT>
                <P>Proposed § 201.308(b) is intended to explain those instances where likely or potential harms to producers rise to violations of the P&amp;S Act, and so this rulemaking sets out factors or criteria that attempt to cover that broad scope. Thus, the Secretary retains the statutory authority to identify and regulate unfair practices or devices in a manner not predicted by this proposed rule, either through subsequent rulemaking or in particular enforcement matters.</P>
                <P>First, proposed § 201.308(b)(1) includes consideration of the extent to which the practice may impede or restrict the ability to participate in a market, interfere with the free exercise of decision-making by market participants, tend to subvert the operation of competitive market forces, deny a covered producer the full value of their products or services, or violate traditional doctrines of law or equity.</P>
                <P>This is not entirely dissimilar from comment (g) in the Restatement (Third) of Unfair Competition, which noted that unfair practices are not merely a matter of antitrust harms: </P>
                <EXTRACT>
                    <P>
                        Courts continue to evaluate competitive practices against generalized standards of fairness and social utility . . . . An act or practice is likely to be judged unfair only if it substantially interferes with the ability of others to compete on the merits of their products or otherwise conflicts with accepted principles of public policy recognized by statute or common law. 
                        <SU>105</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             Restatement (Third) of Unfair Competition section 1 (1995).
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>Thus, proposed § 201.308(b)(1) provides standards to evaluate when a practice under § 201.308(a) is likely to cause a substantial injury.</P>
                <P>
                    Second, proposed § 201.308(b)(2) provides a clarification of “substantial injury” by considering the magnitude of a likely injury that the Secretary must halt: an injury may be substantial if it causes significant harm to one market participant or if it imposes a small harm to many market participants. AMS does not propose to eliminate from regulatory oversight those injuries that the Department has deemed in past cases as substantial. A single failure to pay, for even a relatively small amount of money, is sufficiently substantial for USDA to bring administrative action against a regulated entity, and to be a basis for an order of the Secretary to cease and desist. Notably, an injury that does not harm a market participant is not a violation of the Act.
                    <SU>106</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>106</SU>
                         
                        <E T="03">See In Re: Arizona Livestock Auction, Inc.,</E>
                         55 Agric. Dec. 1121 (1996) (finding that injury to a cow did not result in any injury the Act was designed to prevent).
                    </P>
                </FTNT>
                <P>Third, in proposed § 201.308(b)(3) AMS proposes considering the extent to which the producer would have to take unreasonable steps to avoid injury. An injury is not reasonably avoidable solely because the practice has been disclosed. A market participant is also not required to take unreasonable steps, such as exiting the market or making unreasonable additional investments or efforts, to avoid the harm. The harder it is for market participants to escape the injury, the more likely the harm would be to occur and the more likely that it would not be reasonably avoidable.</P>
                <P>Again, returning to failure to pay, it would be unreasonable for a livestock seller to cease selling livestock on the open market to prevent themselves from being victims of a breach of contract or to ask them to accept revised contract terms after delivery of the livestock. To determine otherwise would undermine the regulatory purpose, which is to give the producers of livestock, and the growers of poultry, the opportunity to receive the fair value of their participation in the market. Nor would it benefit consumers to encourage producers to leave the market or accept substandard payment terms that would discourage appropriate market participation.</P>
                <HD SOURCE="HD2">C. Proposed § 201.308(c) and (d)</HD>
                <P>AMS proposes § 201.308(c) and (d) as a comprehensive rule with respect to markets.</P>
                <P>Unfair practices are not only those that injure producers, but also those that may negatively impact competition because they injure or tend to injure competition or competitive market conditions. AMS takes the position in this proposed rulemaking that harmful methods of competition under the P&amp;S Act are similar to the practices that the FTC and the courts have long recognized as either anticompetitive or unfair: collusive, coercive, predatory, restrictive, deceitful or exclusionary methods of competition that may negatively affect competitive conditions.</P>
                <P>
                    Congress intended the prohibitions in section 202(a) (and, also, section 312(a)) of the P&amp;S Act to go further than the prohibition in section 5 of the FTC Act against “unfair methods of competition.” 
                    <SU>107</SU>
                    <FTREF/>
                     Not only did the P&amp;S Act address deceptive practices before the FTC Act did so, but it also includes many prohibitions that the FTC Act does not. In that breadth, there has been no real dispute that the P&amp;S Act should prohibit at least as much as the FTC Act itself.
                    <SU>108</SU>
                    <FTREF/>
                     Thus, as the Ninth Circuit explained, “section 202(a) should be read liberally enough to encompass the types of anti-competitive practices properly deemed `unfair' by the Federal Trade Commission.” 
                    <SU>109</SU>
                    <FTREF/>
                     The FTC has long prosecuted collusive, coercive, predatory, restrictive, deceitful or exclusionary actions that tend to negatively affect competitive conditions as unfair methods of competition.
                    <SU>110</SU>
                    <FTREF/>
                     Moreover, USDA has regularly cited FTC precedent in interpreting the P&amp;S Act.
                    <SU>111</SU>
                    <FTREF/>
                     As the Ninth Circuit has noted, “While sec. 202 of the Packers and Stockyards Act may have been made broader than antecedent antitrust legislation in order to achieve its 
                    <PRTPAGE P="53897"/>
                    remedial purpose, it nonetheless incorporates the basic antitrust blueprint of the Sherman Act and other pre-existing antitrust legislation such as the Clayton Act and the [Federal] Trade Commission Act.” 
                    <SU>112</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>107</SU>
                         61 Cong. Rec. 1805-06.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>108</SU>
                         
                        <E T="03">Been</E>
                         v. 
                        <E T="03">O.K. Indus., Inc.,</E>
                         495 F.3d 1217, 1241 (10th Cir. 2007) (Hartz, J. concurring) (“[I]t would be somewhat surprising if `unfair practices' under the PSA had a narrower meaning than `unfair methods of competition' in the FTCA.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>109</SU>
                         
                        <E T="03">Armour and Company</E>
                         v. 
                        <E T="03">United States,</E>
                         402 F.2d 712 (7th Cir. 1968).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>110</SU>
                         
                        <E T="03">E.I. du Pont de Nemours &amp; Co.</E>
                         v. 
                        <E T="03">F.T.C.,</E>
                         729 F.2d 128, 137 (2d Cir. 1984) (citing examples: 
                        <E T="03">FTC</E>
                         v. 
                        <E T="03">Texaco, Inc.,</E>
                         393 U.S. 223, 89 S.Ct. 429, 21 L.Ed.2d 394 (1968); 
                        <E T="03">Atlantic Refining Co.</E>
                         v. 
                        <E T="03">FTC,</E>
                         381 U.S. 357, 85 S.Ct. 1498, 14 L.Ed.2d 443 (1965); 
                        <E T="03">FTC</E>
                         v. 
                        <E T="03">Brown Shoe Co.,</E>
                         384 U.S. 316, 86 S.Ct. 1501, 16 L.Ed.2d 587 (1966); 
                        <E T="03">FTC</E>
                         v. 
                        <E T="03">Beech-Nut Packing Co.,</E>
                         257 U.S. 441, 42 S.Ct. 150, 66 L.Ed. 307 (1922), 
                        <E T="03">FTC</E>
                         v. 
                        <E T="03">National Lead Co.,</E>
                         352 U.S. 419, 77 S.Ct. 502, 1 L.Ed.2d 438 (1957), 
                        <E T="03">FTC</E>
                         v. 
                        <E T="03">Cement Institute,</E>
                         333 U.S. 683, 68 S.Ct. 793, 92 L.Ed. 1010 (1948), 
                        <E T="03">Sugar Institute, Inc.</E>
                         v. 
                        <E T="03">United States,</E>
                         297 U.S. 553, 56 S.Ct. 1629, 80 L.Ed. 859 (1935), 
                        <E T="03">FTC</E>
                         v. 
                        <E T="03">R.F. Keppel &amp; Bro., Inc.,</E>
                         291 U.S. 304, 54 S.Ct. 423, 78 L.Ed. 814 (1934), 
                        <E T="03">FTC</E>
                         v. 
                        <E T="03">Motion Picture Advertising Service Co.,</E>
                         344 U.S. 392, 73 S.Ct. 361, 97 L.Ed. 426 (1953)).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>111</SU>
                         
                        <E T="03">Armour &amp; Co.</E>
                         v. 
                        <E T="03">United States,</E>
                         402 F.2d 712, 722 (7th Cir. 1968); see also In Re: Ozark Cnty. Cattle Co., Inc., et. al., 49 Agric. Dec. 336 (1990); In Re: Corn State Meat Co., Inc.; et. al., 45 Agric. Dec. 995, 1012 (1986).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>112</SU>
                         
                        <E T="03">De Jong Packing Co.</E>
                         v. 
                        <E T="03">U.S. Dep't of Agric.,</E>
                         618 F.2d 1329, 1335 (9th Cir. 1980).
                    </P>
                </FTNT>
                <P>
                    Thus, AMS proposes § 201.308(c) to capture at least conduct that would violate the antitrust laws, conduct that would constitute an unfair method of competition under the FTC Act, and conduct that courts or administrative officers have held violates the P&amp;S Act's unfairness prohibition. Practices that do violate the antitrust laws therefore are within the umbra of this rulemaking. So too is “conduct which, although not a violation of the letter of the antitrust laws, is close to a violation or is contrary to their spirit,” 
                    <SU>113</SU>
                    <FTREF/>
                     and practices that “not merely in their fruition, but also in their incipiency . . . could lead to . . . trade restraints and practices deemed undesirable.”
                </P>
                <FTNT>
                    <P>
                        <SU>113</SU>
                         
                        <E T="03">Ethyl,</E>
                         729 F.2d at 136-37.
                    </P>
                </FTNT>
                <P>
                    Conduct falls within proposed § 201.308(c) if it harms competition or has the tendency to negatively affect competitive conditions, impairs market participants' ability to compete, or reduces the likelihood of potential or nascent competition, notwithstanding that it may or may not yet have done so. If the practice is analyzed similarly to an antitrust violation, the Secretary will, where appropriate, consider any buyer- or seller-side anticompetitive effect on price (including the price paid to producers), output, quality, choice, innovation, bargaining power in the market for services or products, the imposition or presence of entry barriers, the imposition or presence of information asymmetries, the entrenching or extending of a dominant position, or the distortion of the competitive process, among other anticompetitive or competitively unfair effects.
                    <SU>114</SU>
                    <FTREF/>
                     In some cases, it is not necessary to measure the effect on competitive conditions expressly because the conduct, is a per se violation, or otherwise on its face tends to distort, impair, or frustrate the competitive process, including of price discovery. Moreover, section 202 of the P&amp;S Act prohibits unfair competition in its incipiency, consistent with the FTC Act and the Clayton Act.
                </P>
                <FTNT>
                    <P>
                        <SU>114</SU>
                         See, generally, Merger Guidelines, (2023), U.S. Department of Justice and Federal Trade Commission, 
                        <E T="03">https://www.ftc.gov/system/files/ftc_gov/pdf/2023_merger_guidelines_final_12.18.2023.pdf;</E>
                         FTC, Policy Statement Regarding the Scope of Unfair Methods of Competition Under Section 5 of the FTC Act, 9 (Nov. 10, 2022).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">D. Evaluation of Potential Injury to the Market</HD>
                <P>
                    Because the courts have been clear that behavior that is likely to harm competition violates the P&amp;S Act, AMS proposes standards with respect to injuries that are likely to harm the market. Like other statutes, such as the FTC Act and the Clayton Act, the P&amp;S Act prohibits competition harms in their incipiency.
                    <SU>115</SU>
                    <FTREF/>
                     The antitrust laws recognize a wide range of harms, which this proposed rule would fully encompass.
                    <SU>116</SU>
                    <FTREF/>
                     Because the Act is intended to protect the market from harm and protect producers and consumers from unfair practices, there does not need to be any proof that any harm to the market has yet occurred: only that the threat the Act is designed to prevent is 
                    <E T="03">likely.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>115</SU>
                         
                        <E T="03">Daniels</E>
                         v. 
                        <E T="03">United States,</E>
                         242 F.2d 39, 42 (7th Cir. 1957) (“It is the duty of a regulatory agency to prevent potential injury by stopping unlawful practices in their incipiency. Proof of a particular injury is not required.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>116</SU>
                         See, generally, Merger Guidelines, (2023), U.S. Department of Justice and Federal Trade Commission, 
                        <E T="03">https://www.ftc.gov/system/files/ftc_gov/pdf/2023_merger_guidelines_final_12.18.2023.pdf;</E>
                         FTC, Policy Statement Regarding the Scope of Unfair Methods of Competition Under Section 5 of the FTC Act, 9 (Nov. 10, 2022).
                    </P>
                </FTNT>
                <P>Accordingly, AMS proposes standards in § 201.308(d) for the Secretary to consider when examining practices that likely pose a threat to the competitiveness of markets. These standards include (1) the extent to which the practice impedes or restricts the ability to participate in a market; tends to subvert the operation of competitive market forces; interferes with the free exercise of decision-making by market participants; violates traditional doctrines of law or equity; or has indicia of oppressiveness, such as evidence of anticompetitive intent or purpose or absence of an independent legitimate business reason for the conduct; and (2) the extent to which the practice tends to foreclose or impair the opportunities of market participants, reduces competition between rivals, limits choice, distorts or impedes the process of competition, or denies a market participant the full value of their products or services.</P>
                <P>
                    Thus, proposed § 201.308(d) addresses harms that are likely to threaten markets, including “acts and practices which, when full blown would violate the Sherman Act and the Clayton Act.” 
                    <SU>117</SU>
                    <FTREF/>
                     These include several practices that have been directly found to constitute incipiency violations by the Federal courts or in FTC administrative proceedings, which the FTC details in full in its policy statement regarding the scope of unfair methods of competition under section 5 of the FTC Act.
                    <SU>118</SU>
                    <FTREF/>
                     The Secretary may also consider violations of other laws and equity. Thus, when considering harm to markets, the proposed rule allows the consideration of harm that is cognizable under laws that further policy goals concerning the structure of agricultural markets.
                    <SU>119</SU>
                    <FTREF/>
                     The proposed rule recognizes that regulatory enforcement may take into account policies such as increasing market diversity through new, beginning, and military veteran producers,
                    <SU>120</SU>
                    <FTREF/>
                     and increasing supply chain resiliency including through investing in new and expanded meat and poultry processing.
                    <SU>121</SU>
                    <FTREF/>
                     Moreover, USDA's 
                    <PRTPAGE P="53898"/>
                    Judicial Officer has explained that section 202(a) of the P&amp;S Act includes within its scope every trade practice which is an “unfair method of competition” under section 5 of the FTC Act or is otherwise prohibited by the Clayton Act or the Robinson-Patman Act.
                    <SU>122</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>117</SU>
                         
                        <E T="03">Fed. Trade Comm'n</E>
                         v. 
                        <E T="03">Motion Picture Advertising Service Co.,</E>
                         344 U.S. 392, 394-95 (1953) (noting that “Congress advisedly left the concept [of unfair methods of competition] flexible . . . [and] designed it to supplement and bolster the Sherman Act and the Clayton Act[,] [so as] to stop . . . acts and practices [in their incipiency] which, when full blown, would violate those Acts[,] . . . as well as to condemn as ` “unfair methods of competition” ' existing violations of them”); 
                        <E T="03">Fed. Trade Comm'n</E>
                         v. 
                        <E T="03">Cement Institute</E>
                        , 333 U.S. 683, 708 (1948) (holding that conduct that falls short of violating the Sherman Act may violate section 5); 
                        <E T="03">Fed. Trade Comm'n</E>
                         v. 
                        <E T="03">R. F. Keppel &amp; Bro., Inc.</E>
                        , 291 U.S. 304, 310 (1934) (finding that unfair methods of competition not limited to those “which are forbidden at common law or which are likely to grow into violations of the Sherman Act”); c
                        <E T="03">.f. Brown Shoe Co.</E>
                         v. 
                        <E T="03">United States</E>
                        , 370 U.S. 294, 346 (1962) (finding section 7 of the Clayton Act also reflects the “mandate of Congress that tendencies toward concentration in industry are to be curbed in their incipiency”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>118</SU>
                         FTC, Policy Statement Regarding the Scope of Unfair Methods of Competition Under sec. 5 of the FTC Act, 9 (Nov. 10, 2022). See, 
                        <E T="03">e.g.,</E>
                          
                        <E T="03">Yamaha Motor Co.</E>
                         v. 
                        <E T="03">Fed. Trade Comm'n,</E>
                         657 F.2d 971 (8th Cir. 1981), cert. denied, 456 U.S. 915 (1982) (side agreements collateral to an anticompetitive joint-venture agreement); In re Delta/AirTran Baggage Fee Antitrust Litig., 245 F.Supp. 2d 1343, 1369-70 (N.D. Ga. 2017), aff'd sub nom., 
                        <E T="03">Siegel</E>
                         v. 
                        <E T="03">Delta Air Lines, Inc.,</E>
                         714 F. App'x 986 (11th Cir. 2018), and cert. denied, 139 S. Ct. 827 (2019) (invitations to collude); The Vons Co., FTC Complaints and Order, 1987-1993 Transfer Binder, Trade Reg. Rep. (CCH) ¶ 23,200 (Aug. 7, 1992) (series of small acquisitions, none of which were illegal individually).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>119</SU>
                         Michael Kades, “Protecting Livestock Producers and Chicken Growers,” chapter 4, 
                        <E T="03">Washington Center for Equitable Growth,</E>
                         May 5, 2022, 
                        <E T="03">https://equitablegrowth.org/research-paper/protecting-livestock-producers-and-chicken-growers/.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>120</SU>
                         See, 
                        <E T="03">e.g.,</E>
                         “How to Start a Farm: Beginning Farmers and Ranchers,” available at 
                        <E T="03">https://www.farmers.gov/your-business/beginning-farmers</E>
                         (last accessed April 2024); Congressional Research Service, “Farm Bill Primer: Beginning and Underserved Producers,” May 2022, available at 
                        <E T="03">https://crsreports.congress.gov/product/pdf/IF/IF12096/2.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>121</SU>
                         See, 
                        <E T="03">e.g.,</E>
                         “Agricultural Competition: A Plan in Support of Fair and Competitive Markets,” USDA's Report to the White House Competition Council, May 2022 (last accessed June 2022), available at 
                        <E T="03">https://www.ams.usda.gov/sites/default/files/media/USDAPlan_EO_COMPETITION.pdf;</E>
                         “USDA Agri-Food Supply Chain Assessment: Program and Policy Options for Strengthening Resilience,” available at 
                        <E T="03">
                            https://www.ams.usda.gov/supply-
                            <PRTPAGE/>
                            chain
                        </E>
                         (last accessed June 2024); “Competition and Meat Supply Chain Investments: Highlighted Comments from the Request for Information (RFI),” available at 
                        <E T="03">https://www.usda.gov/sites/default/files/documents/Competition-RFI-Anecdotes-010322.pdf</E>
                         (last accessed June 2024); FACT SHEET: The Biden-Harris Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain, available at 
                        <E T="03">https://www.whitehouse.gov/briefing-room/statements-releases/2022/01/03/fact-sheet-the-biden-harris-action-plan-for-a-fairer-more-competitive-and-more-resilient-meat-and-poultry-supply-chain/</E>
                         (last accessed June 2024).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>122</SU>
                         
                        <E T="03">In Re: ITT Cont'l Baking Co.,</E>
                         44 Agric. Dec. 748, 772 (1985); 
                        <E T="03">see also</E>
                         Stumo &amp; O'Brien, 
                        <E T="03">Antitrust Unfairness,</E>
                         8 Drake J. Agric. L. at 111.
                    </P>
                </FTNT>
                <P>Among the factors the Secretary may consider when halting a practice prior to harm occurring are whether the practice offends public policy because it has indicia of oppressiveness, such as evidence of anticompetitive intent or purpose, or absence of an independent legitimate business reason for the conduct.</P>
                <P>This factor addresses a particular danger that Congress recognized when it wrote the P&amp;S Act: abuse of the imbalance of power, and the creation of vertical relationships that would stifle competition. Congress expected the Secretary to address the power that the dominant, vertically-integrated packers and stockyards could exert in preventing a distant and less capitalized farmer or rancher from asserting their rights. This is the heart of oppressive conduct and is part of the market structure Congress expected the Secretary to regulate.</P>
                <P>
                    Moreover, this proposal extends to horizontal, vertical, and other market relationships because, historically, the Department has found that practices like certain vertical and horizontal information sharing are likely to harm competition, and therefore unfair practices prohibited by the P&amp;S Act.
                    <SU>123</SU>
                    <FTREF/>
                     USDA regulations under the P&amp;S Act (in part to address concerns relating to market agencies as regulated under title III of the Act) have also prohibited certain forms of vertical integration, common or interlocking ownership, financing, or management relationships owing to conflict of interest and impacts on market integrity and market access.
                    <SU>124</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>123</SU>
                         
                        <E T="03">See</E>
                         9 CFR 201.69 and 201.70.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>124</SU>
                         
                        <E T="03">See</E>
                         9 CFR 201.67.
                    </P>
                </FTNT>
                <P>
                    To be clear, under section 202(a) of the P&amp;S Act, if a practice is taken in good faith by normally fair methods, and not characterized by deception, bad faith, fraud, or oppression, then the practice is less likely to be unfair.
                    <SU>125</SU>
                    <FTREF/>
                     Accordingly, proposed § 201.308(d) provides that the Secretary may assess the extent to which the practice is collusive, coercive, predatory, restrictive, deceitful, or exclusionary and presents incipient threats to competition in determining whether the conduct tends to negatively impact competition by adversely affecting competitive market conditions.
                </P>
                <FTNT>
                    <P>
                        <SU>125</SU>
                         
                        <E T="03">C.f. Swift &amp; Co.</E>
                         v. 
                        <E T="03">Wallace,</E>
                         105 F.2d 848, 856 (7th Cir. 1939).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">E. Contracts</HD>
                <P>
                    This rulemaking has no particular prohibition with respect to contracts. A breach of contract, however, is unfair under section 202 if it meets the criteria of proposed § 201.308(a) or (c). For decades the Department found, without controversy, that breaches of contract could result in harm to nonbreaching parties to the agreement or to the market or to both under the Act.
                    <SU>126</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>126</SU>
                         
                        <E T="03">See In re: Central California Livestock,</E>
                         at 110. As explained above, cases 
                        <E T="03">like Central California Livestock</E>
                         are typical of the Department's findings with respect to harms to competition.
                    </P>
                </FTNT>
                <P>
                    To account for this, under proposed § 201.308(b) and (d) the Secretary may consider traditional doctrines of law and equity in determining whether there is any harm the Act was designed to prevent. Traditional common-law doctrines are fundamentally designed to ensure fairness in the functioning of the marketplace and support the normal and fair operation of market forces. In short, fair enforcement of contract, bans against unconscionable conduct, and prohibitions against deception, make a fair market work. Academics have rightly pointed out that violations of the P&amp;S Act include practices that offend public policy as established “by statutes, the common law, or otherwise—whether, in other words, it is within at least the penumbra of some common-law, statutory, or other established concept of unfairness.” 
                    <SU>127</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>127</SU>
                         Stumo &amp; O'Brien, 
                        <E T="03">Antitrust Unfairness</E>
                         at 111.
                    </P>
                </FTNT>
                <P>
                    The Department's position is that included in this set of practices are breaches of contract that are of regulatory concern. Recently, there are some courts that have claimed that Congress could not have intended breaches of contract to be violations of the P&amp;S Act.
                    <SU>128</SU>
                    <FTREF/>
                     Read to an unlimited extent, that conclusion would be contrary to the plain language of the statute. Congress intended unfair practices to include breaches of contract, not only with the passage of the Act in 1921, but also with the passage of section 409 in 1976 and section 410 in 1987. By specifically prohibiting failures to make prompt payment under contract, Congress included among unfair practices the simplest form of a contractual breach.
                </P>
                <FTNT>
                    <P>
                        <SU>128</SU>
                         
                        <E T="03">See, e.g., Been</E>
                         v. 
                        <E T="03">O.K. Indus., Inc.,</E>
                         495 F.3d 1217, 1229 (10th Cir. 2007).
                    </P>
                </FTNT>
                <P>As a matter of statutory construction, under section 312(a) of the Act it is unlawful for livestock dealers and market agencies to engage in any “unjust, unjustly discriminatory, or deceptive practice or device”; section 309 of the Act gives any injured person the right to proceed in an administrative reparation hearing before the Secretary against a market agency or livestock dealer. Breach of contract is the basis for the overwhelming majority of reparations cases, as Congress intended.</P>
                <P>
                    USDA concluded that some breaches of contract violated the Act many decades prior to the Congressional passage of section 409; administrative findings that failure to pay was a violation of the Act were some of the earliest administrative decisions. The Department issued its first regulatory prohibition against late payment for livestock in 1964.
                    <SU>129</SU>
                    <FTREF/>
                     As the Department has held with respect to allegations of the breach of the duty of good faith in the operation of contract which led to underpayment:
                </P>
                <FTNT>
                    <P>
                        <SU>129</SU>
                         29 FR 1796, Feb. 6, 1964.
                    </P>
                </FTNT>
                <EXTRACT>
                    <P>
                        [A] violation of the payment requirements in 7 U.S.C. 228b-1(a) is also a prohibited “unfair practice” under 7 U.S.C. 192 . . . . The Packers and Stockyards Act contains no requirement that injury to competition or likelihood of injury to competition must be shown in order to prove a violation of 7 U.S.C. 228b-1(a); however, 7 U.S.C. 228b-1(b) specifically provides that a violation of 7 U.S.C. 228b-1(a) shall be considered an “unfair practice” under the Packers and Stockyards Act. Thus, a violation of 7 U.S.C. 228b-1(a) is a prohibited “unfair practice” under 7 U.S.C. 192 without regard to whether injury to competition or likelihood of injury to competition is shown.
                        <SU>130</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             
                            <E T="03">In Re: Tyson Farms, Inc.,</E>
                             71 Agric. Dec. 1160, 1164 (2012).
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    This rulemaking is not intended to change the Department's position on the Act's remedial purposes to protect market participants from unfair and deceptive practices. In general, refusal to honor contracts drives honest businesses from competition because competitors cannot compete in a market where the buyer with greater capital can capture the supply without paying for it, modify contract terms after delivery, or delay payment indefinitely to extract concessions from sellers. These proposed regulations, therefore, match USDA's ability to order packers and 
                    <PRTPAGE P="53899"/>
                    swine contractors to cease these breaches of contract and penalize packers and swine contractors to deter these behaviors and to protect the public from these harms.
                    <SU>131</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>131</SU>
                         See section 203 of the P&amp;S Act, which grants the Secretary the authority to order respondents to cease and desist and pay civil penalties (7 U.S.C. 193).
                    </P>
                </FTNT>
                <P>To be clear, this proposal would not make every commercial dispute into a P&amp;S Act matter. Rather, this regulation proposes a specific framework under which claims—including ones involving a breach of contract—of unfair practices under the P&amp;S Act would be analyzed.</P>
                <HD SOURCE="HD2">F. Protected Parties</HD>
                <P>
                    This proposed rule does not limit its protection against unfair conduct by regulated entities to enumerated individuals, like producers or consumers, because the Act protects anyone that suffers a violation of the P&amp;S Act. Section 202(a) of the Act bans unfair practices in the entire market for livestock, meats, meat food products, livestock products in unmanufactured form, and live poultry. Further, P&amp;S Act section 308(a) holds all regulated entities liable for any consequential damages to the persons injured: “[i]f any person subject to this chapter violates any of the provisions of this chapter . . . he shall be liable to the person or persons injured thereby for the full amount of damages sustained in consequence of such violation.” 
                    <SU>132</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>132</SU>
                         7 U.S.C. 209.
                    </P>
                </FTNT>
                <P>
                    The Secretary has brought administrative cases under section 202(a) based on the full spectrum of market behaviors that have injured its participants. This has included practices that injured livestock sellers, livestock dealers, market agencies, stockyards, live poultry dealers, packers, retailers, and consumers.
                    <SU>133</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>133</SU>
                         
                        <E T="03">In re: Larry W. Peterman, d/b/a Meat Masters.,</E>
                         42 Agric. Dec. 1848, 1868 (1983) (injury to individual consumers); 
                        <E T="03">In re: ITT Cont'l Baking Co.,</E>
                         44 Agric. Dec. 748, 772 (1985) (injury to competitors, packers and the retailer); 
                        <E T="03">In re: Excel Corp.,</E>
                         No. P. &amp; S. Docket No. 99-0010., 2003 WL 205562 U.S.D.A. Jan. 30, 2003) (injury to producers); In Re: Empire Kosher Poultry, Inc., No. P &amp; S Docket No. D-10-0109, 2010 WL 7088565 (U.S.D.A. July 20, 2010), 
                        <E T="03">aff'd Empire Kosher Poultry, Inc.</E>
                         v. 
                        <E T="03">United States Dep't of Agric.,</E>
                         475 F. App'x 438, 444 (3d Cir. 2012) (injury to consumers).
                    </P>
                </FTNT>
                <P>Thus, this proposed rule is intended to capture everyone that Congress intended to protect, which includes any person injured by a violation of section 202(a).</P>
                <HD SOURCE="HD1">IV. Severability</HD>
                <P>This proposed regulation contains four provisions; the inclusion of each is intended to clarify the P&amp;S Act, and thus strengthen the Act's protections against unfair treatment in agricultural markets. The proposed regulation provides guidance to market participants, regulated entities, presiding courts and USDA when determining whether specific conduct is unfair under section 202(a) of the P&amp;S Act. Although each proposed provision serves to further these effects, the benefits this proposed rule seeks to provide would not be negated by the exclusion of one or more of its provisions as finalized.</P>
                <P>For example, proposed § 201.308(a), “Unfair practices with respect to market participants,” would still function without proposed § 201.308(c), “Unfair practices with respect to markets,” and vice versa. The clarifying provisions of proposed § 201.308(b) and (d) are also severable. While AMS included all the provisions to clarify the term “unfair” under the Act, the purpose of the regulation is not lost if a court severs a provision of the rule as finalized. The remaining provisions would still function sensibly and inform the interpretation of the Act.</P>
                <HD SOURCE="HD1">V. Request for Comments</HD>
                <P>
                    AMS invites comments on this proposed rule. Comments submitted on or before August 27, 2024 will be considered. Comments should reference Docket No. AMS-FTPP-21-0046 and the date and page number of this issue of the 
                    <E T="04">Federal Register</E>
                    . AMS seeks comment on the following subjects:
                </P>
                <P>1. Do the two tests described in this proposed rule appropriately guide enforcement of “unfair practices” under section 202(a) of the P&amp;S Act?</P>
                <P>2. What modifications to the proposed rule would be appropriate to meet the goals of the P&amp;S Act?</P>
                <P>3. Are the factors described in the proposed rule to contextualize the two tests appropriate? If not, are certain factors more appropriate to one or the other test?</P>
                <P>4. What other relevant factors may be considered in addition to or instead of the current factors?</P>
                <P>5. Should the Department add regulatory text to define legitimate business justifications? If so, who should bear the burden of proof and what constitutes a cognizable justification?</P>
                <P>6. Should the rulemaking consider: (a) whether the method of competition is so facially unfair that business justifications should not be entertained; (b) whether the party claiming a business justification must show that the asserted justification for the method of competition is legally cognizable, non-pretextual, and narrowly tailored to bring about a benefit while limiting the harm to the competitive process and to market participants; or (c) whether the party claiming a justification must show that the claimed benefit occurs in the same market where harm is alleged?</P>
                <P>7. Does the proposed rule appropriately define what behavior is “reasonably avoidable”? Should this language be delineated more precisely or more broadly or in other ways, and if so, how?</P>
                <P>
                    8. Should AMS provide additional guidance around incipient harms to the market, and if so, should AMS draw from Clayton Act standards,
                    <SU>134</SU>
                    <FTREF/>
                     such as whether the effect “may be substantially to lessen competition, or to tend to create a monopoly.” 
                    <SU>135</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>134</SU>
                         15 U.S.C. 18.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>135</SU>
                         See, 
                        <E T="03">e.g.,</E>
                         Phila. Nat'l Bank, 374 U.S. at 363 (1963) (Stating that a merger resulting in a market share of 30% still “presents a threat” and causes “undue concentration”). United States v. First Nat'l Bank of Lexington, 376 U.S. 665 (1964) (Stating that “the elimination of significant competition between [merging parties]” violates Section 1 of the Sherman Act: “It [can be] enough that the two . . . compete[ ]. That their competition [is] not insubstantial and that the combination [would] put an end to it”). 
                        <E T="03">Brooke Grp. Ltd.</E>
                         v. 
                        <E T="03">Brown &amp; Williamson Tobacco Corp.,</E>
                         509 U.S. 209, 229-30 (1993) (Stating that “excessive concentration[ ] and the oligopolistic price coordination it portends may be the injury to competition the Act prohibits”). Marine Bancorporation, 418 U.S. at 623-624 (Suggesting that acquisition of “perceived potential competition may substantially lessen competition or tend to create a monopoly”).
                    </P>
                </FTNT>
                <P>9. What benefits would this proposed rule provide for producers or other persons?</P>
                <P>10. What burdens would this proposed rule create for regulated entities?</P>
                <P>11. What is your preferred way to measure countervailing benefits?</P>
                <P>12. Should some things be categorically excluded from consideration as countervailing benefits, such as cross-market balancing?</P>
                <P>13. How would you describe conduct that is oppressive?</P>
                <P>14. How would this proposed rule affect competitive conditions in the livestock and poultry industries?</P>
                <P>15. Should the proposed rule treat private causes of action differently from violations of section 202(a) of the Act when enforced by the Federal Government, and if so, how?</P>
                <P>16. Would this proposed rule have any other effects on the market or market participants? If so, in what ways should they be addressed?</P>
                <P>Comments can be submitted by either of the following methods:</P>
                <P>
                    <E T="03">Federal eRulemaking Portal:</E>
                     Go to 
                    <E T="03">https://www.regulations.gov.</E>
                     Enter AMS-FTPP-21-0046 in the Search field. Select the Documents tab, then 
                    <PRTPAGE P="53900"/>
                    select the Comment button in the list of documents.
                </P>
                <P>
                    <E T="03">Postal Mail/Commercial Delivery:</E>
                     Send your comment to Docket No. AMS-FTPP-21-0046, S. Brett Offutt, Chief Legal Officer, Packers and Stockyards Division, USDA, AMS, FTPP; Room 2097-S, Mail Stop 3601, 1400 Independence Ave. SW, Washington, DC 20250-3601.
                </P>
                <HD SOURCE="HD1">VI. Regulatory Analysis</HD>
                <HD SOURCE="HD2">A. Paperwork Reduction Act</HD>
                <P>Proposed § 201.308 defines how AMS evaluates unfair acts or practices and unfair methods of competition under section 202(a) the P&amp;S Act. Proposed § 201.308 does not impose any information collection or recordkeeping requirements on any regulated entity or member of the public. Accordingly, approval by the Office of Management and Budget (OMB) is not required by the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520.</P>
                <HD SOURCE="HD2">B. Executive Orders 12866, 13563, and 14094</HD>
                <P>AMS is issuing this proposed rule in conformance with Executive Orders 12866, 13563, and 14094. Executive Orders 12866 and 13563 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). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. Executive Order 14094 reaffirms, supplements, and updates Executive Order 12866 and further directs agencies to solicit and consider input from a wide range of affected and interested parties through a variety of means.</P>
                <P>This rulemaking has been determined to be significant for the purposes of Executive Order 12866 and, therefore, has been accordingly reviewed by the OMB. As a required part of the regulatory process, AMS prepared an economic analysis of the costs and benefits of proposed § 201.308.</P>
                <HD SOURCE="HD2">C. Regulatory Impact Analysis</HD>
                <P>AMS proposes to establish § 201.308 to define how AMS evaluates unfair acts or practices and unfair methods of competition under section 202(a) the P&amp;S Act. The term “unfair” has caused confusion and contention in the industry and in courts, and this rulemaking is intended mitigate both.</P>
                <P>Paragraph (a) of proposed § 201.308 defines an unfair act or practice as one that causes or will likely cause substantial injury to a market participant, which the market participant could not reasonably avoid but is not justified by countervailing benefits to market participants or competition. Paragraph (b) includes factors the Secretary of Agriculture may consider in evaluating whether an unfair act or practice is likely to cause substantial injury. Factors include the extent to which an act or practice impedes or restricts the ability to participate in the market, the extent to which an act or practice subverts competitive market forces, the size of any potential injury, and the extent to which the act or practice interferes with free decision making.</P>
                <P>Paragraph (c) of proposed § 201.308 defines an unfair practice with respect to markets as a practice that is collusive, coercive, predatory, restrictive, deceitful, or exclusionary method of competition that may negatively affect competitive conditions.</P>
                <P>AMS intends for proposed § 201.308 to be consistent with the way USDA has interpreted section 202(a) of the Act for decades. The preamble for this rulemaking explains how USDA has defined “unfair” in past actions and how those actions are consistent with the interpretation of “unfair” in proposed § 201.308. Concerning USDA's interpretation and enforcement of “unfair” in section 202(a) of the Act, AMS does not expect proposed § 201.308 to change USDA's position on enforcement of section 202(a).</P>
                <P>Proposed § 201.308 is made of two parts. Paragraphs (a) and (b) of proposed § 201.308 concern unfair practices with respect to market participants. Paragraphs (c) and (d) concern unfair practices with respect to markets. The two parts have some similarities, and some overlapping protections. Neither part requires that proof of completed or market wide harm to competition to find a violation of the Act. This is consistent with USDA's longstanding interpretation and enforcement of the Act, but it is not consistent with all Federal court decisions.</P>
                <P>Proposed § 201.308 addresses unfairness. Unfairness is not an economic term, and it is not among the market failures that OMB has defined in Circular A-4. Some of the factors in proposed § 201.308 are intended to limit the exercise market power. But proposed § 201.308 also regulates practices unrelated to market power.</P>
                <P>
                    Exercise of market power has long been a problem in the meat packing industry. From the 1880s to 1920, a series of investigations found the largest meat packers controlling prices through a variety of methods. Those findings were much of the reason that Congress passed the Act in 1921.
                    <SU>136</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>136</SU>
                         Azzam, Azzadine and Anderson, Dale. May 1996. “Assessing Competition in Meatpacking, Economic History, Theory, and Evidence.” USDA, GIPSA. 
                        <E T="03">https://www.gipsa.usda.gov/psp/publication/con_tech%20report/rr96-6.pdf.</E>
                    </P>
                </FTNT>
                <P>Market power in livestock, meat, and poultry markets has not gone away. Academic and government sponsored research has consistently found that meat packers have some measure of market power, especially as livestock buyers. Livestock and poultry markets are characterized by atomistic livestock producers and poultry growers numbering in the tens of thousands that deal with a much smaller number of downstream packers and poultry processors that may possess some oligopsonistic characteristics. Table 1 below lists four-firm concentration ratios for fed cattle, hogs, chickens, and turkeys for 2010 through 2019. The concentration ratios were relatively stable over this period. The fed cattle industry has been the most concentrated with four firms controlling between 83 and 85 percent for the entire period.</P>
                <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                    <TTITLE>Table 1—Four-Firm Concentration Ratio in Livestock and Poultry Slaughter *</TTITLE>
                    <BOXHD>
                        <CHED H="1">Year</CHED>
                        <CHED H="1">
                            Fed cattle
                            <LI>(%)</LI>
                        </CHED>
                        <CHED H="1">
                            Hogs
                            <LI>(%)</LI>
                        </CHED>
                        <CHED H="1">
                            Chickens
                            <LI>(%)</LI>
                        </CHED>
                        <CHED H="1">
                            Turkeys
                            <LI>(%)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">2010</ENT>
                        <ENT>85</ENT>
                        <ENT>65</ENT>
                        <ENT>51</ENT>
                        <ENT>56</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2011</ENT>
                        <ENT>85</ENT>
                        <ENT>64</ENT>
                        <ENT>52</ENT>
                        <ENT>55</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2012</ENT>
                        <ENT>85</ENT>
                        <ENT>64</ENT>
                        <ENT>51</ENT>
                        <ENT>53</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2013</ENT>
                        <ENT>85</ENT>
                        <ENT>64</ENT>
                        <ENT>54</ENT>
                        <ENT>53</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2014</ENT>
                        <ENT>83</ENT>
                        <ENT>62</ENT>
                        <ENT>51</ENT>
                        <ENT>58</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2015</ENT>
                        <ENT>85</ENT>
                        <ENT>66</ENT>
                        <ENT>51</ENT>
                        <ENT>57</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="53901"/>
                        <ENT I="01">2016</ENT>
                        <ENT>84</ENT>
                        <ENT>66</ENT>
                        <ENT>50</ENT>
                        <ENT>57</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2017</ENT>
                        <ENT>83</ENT>
                        <ENT>66</ENT>
                        <ENT>51</ENT>
                        <ENT>53</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2018</ENT>
                        <ENT>84</ENT>
                        <ENT>70</ENT>
                        <ENT>54</ENT>
                        <ENT>55</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2019</ENT>
                        <ENT>85</ENT>
                        <ENT>67</ENT>
                        <ENT>53</ENT>
                        <ENT>55</ENT>
                    </ROW>
                    <TNOTE>
                        * U.S. Department of Agriculture, AMS Packers and Stockyards annual reports. Available at 
                        <E T="03">https://www.ams.usda.gov/reports/psd-annual-reports</E>
                         (last accessed 8/9/2022).
                    </TNOTE>
                </GPOTABLE>
                <P>The nature of livestock production compounds the market power problems. When livestock, are ready for slaughter, whether they are cattle, hogs, or lambs, they must go to the packer within a few weeks, or the quality starts to decrease. As the quality of the livestock fades, producers pay the costs of continuing to feed livestock while the value decreases. As a result, livestock producers are relatively determined sellers who have a limited capacity to wait for market conditions to change.</P>
                <P>
                    Market power in livestock, meat, and poultry markets is a continuing problem that USDA has regulated through the Act since the 1920s. USDA has consistently established the rules and regulations necessary to maintain fair and competitive markets, including protecting producers from marketplace abuses and injuries they could not avoid. One example is § 201.70, which requires packers to conduct their livestock buying operations independently and in competition with other packers.
                    <SU>137</SU>
                    <FTREF/>
                     Proposed § 201.308 is another step in the ongoing regulation of competition in the livestock, meat, and poultry markets. Proposed § 201.308 is designed to mitigate market power and the implications of market power especially on producers. It would also address fair trade practices in the marketplace generally. Unlike many of the regulations under the Act, proposed § 201.308 does not place any specific requirements on packers, live poultry dealers, or swine contractors.
                </P>
                <FTNT>
                    <P>
                        <SU>137</SU>
                         Source: 24 FR 3183, Apr. 24, 1959.
                    </P>
                </FTNT>
                <P>Instead, it is a method of evaluating acts, practices, and methods of competition to determine if they are violations of the Act. Proposed § 201.308 would be a new regulation, and USDA has not articulated the factors in proposed § 201.308 in enforcing violations of the Act in the past.</P>
                <P>USDA has asserted that a violation of the Federal antitrust laws may also violate the Packers and Stockyards Act but that the Packers and Stockyards Act's prohibition on unfair practices incorporates trade practices beyond those covered by the Federal antitrust laws. AMS expects that proposed § 201.308 will improve its enforcement of the Act and make livestock, meat, and poultry markets more competitive.</P>
                <HD SOURCE="HD3">Regulatory Alternatives Considered</HD>
                <P>
                    Executive Order 12866 requires an assessment of costs and benefits of potentially effective and reasonably feasible regulatory alternatives and an explanation of why the planned regulatory action is preferable to the potential alternatives. Including proposed § 201.308, AMS considered four regulatory alternatives. The first alternative that AMS considered is to maintain the 
                    <E T="03">status quo</E>
                     and not propose the new rule. The second alternative that AMS considered is to propose § 201.308 as presented in this rulemaking. This second alternative is AMS's preferred alternative as will be explained below.
                </P>
                <P>The third alternative that AMS considered is limiting the scope of proposed § 201.308 to contain only paragraphs (a) and (b) that concern unfair acts and practices of the currently proposed § 201.308. In other words, this limited scope alternative would limit the scope of the proposed regulation by eliminating paragraphs (c) and (d) which prohibit unfair practices with respect to markets.</P>
                <P>AMS considered a fourth alternative of issuing a statement of general policy rather than a new regulation, but AMS chose to propose a regulation because it expects that a regulation will be more effective. Proceeding by regulation also affords all market participants an opportunity to give input on the proposed regulation. AMS did not estimate costs and benefits for a statement of general policy, but AMS estimated costs and benefits for proposed § 201.308 and for the limited scope alternative.</P>
                <P>The proposed rule and the limited scope alternative have some similarities but proposed § 201.308 is more comprehensive. It would restrict unfair practices with respect to markets and individual market participants while the limited scope alternative would only restrict unfair practices with respect to market participants.</P>
                <P>For either proposed § 201.308 or the limited scope alternative, AMS was not able to estimate indirect costs or indirect benefits that might accrue from the proposed rule. AMS was able to estimate direct costs associated with proposed § 201.308 and the limited scope alternative. Those costs are largely comprised of regulated entities reviewing their own practices for compliance with the new regulation. The cost of reviewing practices is expected to be similar whether regulated entities review for compliance with proposed § 201.308 or the limited scope alternative. AMS does not expect that regulated packers, live poultry dealers, or swine contracts will need to make costly immediate changes in their current practices as a result of the proposed rule's implementation because the proposed rule serves as a framework for agency analysis and enforcement to address problematic practices as they may arise, rather than as a mandate to ameliorate specifically identified practices at present.</P>
                <P>With similar direct costs and uncertain indirect costs, AMS prefers the more comprehensive proposed § 201.308 over the limited scope alternative. It is more consistent with the administration's policy goals and more consistent with policies of other Federal agencies, such as the Federal Trade Commission.</P>
                <HD SOURCE="HD3">Proposed Rule: Benefits</HD>
                <P>AMS expects that proposed § 201.308 will improve its regulation of livestock, meat, and poultry markets, making the markets more competitive and fairer. Applying a quantified dollar value to the improvement would be a difficult task. Because proposed § 201.308 is a method of evaluating acts, practices, and methods of competition, the value of any improvements would depend on many unknown factors.</P>
                <P>
                    AMS expects that benefits of proposed § 201.308 would accrue to livestock producers, poultry growers, and consumers. To the extent that predatory practices are prevented, 
                    <PRTPAGE P="53902"/>
                    smaller packers, live poultry dealers, or swine contractors may benefit. Economic models of market power involve a deadweight loss to society as well transfers from producers, consumers, or both to the firms exerting market power. To the extent that proposed § 201.308 reduces acts, practices, and unfair methods that limit competition, society will benefit from the reduction in the deadweight loss, which is a loss to society due to a misallocation of resources. Livestock producers, poultry growers, consumers, competing packers, or all four might benefit from a reduction in the deadweight loss. Competition models also have a transfer component, in which income is transferred to firms exerting market power.
                </P>
                <P>As an example of potential benefits from improving competition, AMS estimated economic gains in losses for a range of hypothetical changes in market power in cattle and beef markets. Estimated gains are not available for the other livestock, meat, and poultry markets. These values are not estimates of benefits of proposed § 201.308. They are only examples that indicate possible benefits of improving competitive conditions.</P>
                <P>
                    Table 2 presents the economic changes in packer market power for cattle associated with changing level of market competition, where baseline price and quantity information are for 2023 and are from USDA's November 2023 edition of World Agricultural Supply and Demand Estimates.
                    <SU>138</SU>
                    <FTREF/>
                     The economic model to estimate the economic impacts is from Hadechek, Ma, and Sexton as are all the model parameters except for the WASDE data.
                    <SU>139</SU>
                    <FTREF/>
                     The model assumes buyer and seller market power parameters falling in the range of 0 to 1. While these are not tied to a particular form of competition, a value of 0.15 would be what the Department of Justice and FTC regard as moderate firm concentration under their joint their 2023 Merger Guidelines and 0.30 would be well into the range that it considers as highly concentrated.
                    <SU>140</SU>
                    <FTREF/>
                     The value of 0.15 corresponds to a Hirschman-Herfindahl index (HHI) of approximately 1,500, and 0.3 corresponds to HHI value of approximately 2,500 to 3,300, which is well above the value of 1,800 that is considered highly concentrated market in the 2023 Merger Guidelines.
                    <SU>141</SU>
                    <FTREF/>
                     While the intent of this proposed rule is to lower incidence of practices that are harmful to competition, one cannot discount the possibility that litigation spurred by the proposed rule could deter entry or cause firms to leave the market and hinder innovative or even practices that make the market more competitive or more efficient.
                </P>
                <FTNT>
                    <P>
                        <SU>138</SU>
                         Source: USDA, “World Agricultural Supply and Demand Estimates,” WASDE-642, November 9, 2023.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>139</SU>
                         Hadachek, Jeffrey, Meilin Ma, and Richard J. Sexton. 2023. “Market Structure and Resilience of Food Supply Chains under Extreme Events.” 
                        <E T="03">American Journal of Agricultural Economics</E>
                         1-24. 
                        <E T="03">https://doi.org/10.1111/ajae.12393.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>140</SU>
                         Ibid.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>141</SU>
                         Ibid.
                    </P>
                </FTNT>
                <P>
                    The analysis in the table below holds seller market power fixed at 0.15 and has output under packer market power parameters of 0.15 in section A and 0.30 in section B. In both sections, results are provided for 1 and 3 percent decreases in the market power parameter for the beef packer. A 3 percent change in market power is likely on the high side given that USDA does not expect that packers, live poultry dealers or swine contractors will make large changes as a result of proposed § 201.308. With the assumed decreases and base levels of market power, production increases, retail prices decrease, and the producers' price of cattle increases with a decrease in market power. With a decrease in market power, gross returns to cattle producers increase and processor variable profits (
                    <E T="03">i.e.,</E>
                     not including fixed costs) decrease. Total market benefits (the producer plus consumer surplus line) increase with a decrease in market power. When the packer market power parameter decreases by 3 percent, deadweight loss decreases $26 million and $54 million when the buyer market power parameter is 0.15 and 0.30, respectively.
                </P>
                <P>
                    To put some perspective of the size of the deadweight loss changes relative to the market value of cattle sold for slaughter, even their largest changes in table 2 are 0.18 percent the size of the forecasted value of cattle production for 2023 from USDA's November 2023 
                    <E T="03">World Agricultural Supply and Demand Estimate.</E>
                    <SU>142</SU>
                    <FTREF/>
                     Note that while the percent change in market power are in the same in parts A and B of the table, the economic impacts are larger in part B as the baseline level of market power is higher in there.
                </P>
                <FTNT>
                    <P>
                        <SU>142</SU>
                         USDA, “World Agricultural Supply and Demand Estimates,” WASDE-642, November 9, 2023.
                    </P>
                </FTNT>
                <PRTPAGE P="53903"/>
                <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s150,13,13">
                    <TTITLE>Table 2—Example of Economic Impacts of Changing Market Power in Cattle and Beef Markets</TTITLE>
                    <BOXHD>
                        <CHED H="1">Market response</CHED>
                        <CHED H="1">Three percent decrease in market power</CHED>
                        <CHED H="1">
                            One percent
                            <LI>decrease in</LI>
                            <LI>market power</LI>
                        </CHED>
                    </BOXHD>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">A. Base buyer power parameter = 0.15 Base seller power parameter = 0.15</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Change in seller market power</ENT>
                        <ENT>0.00%</ENT>
                        <ENT>0.00%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in production</ENT>
                        <ENT>0.09%</ENT>
                        <ENT>0.03%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in retail price</ENT>
                        <ENT>−0.09%</ENT>
                        <ENT>−0.03%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in farm price</ENT>
                        <ENT>0.09%</ENT>
                        <ENT>0.03%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in producer plus consumer surplus</ENT>
                        <ENT>0.17%</ENT>
                        <ENT>0.06%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in deadweight loss (million $)</ENT>
                        <ENT>−$26</ENT>
                        <ENT>−$9</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in producer gross revenue (million $)</ENT>
                        <ENT>$55</ENT>
                        <ENT>$18</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in producer gross revenue</ENT>
                        <ENT>0.18%</ENT>
                        <ENT>0.06%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in packer variable profits (million $)</ENT>
                        <ENT>−$66</ENT>
                        <ENT>−$22</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Change in packer variable profits</ENT>
                        <ENT>−0.13%</ENT>
                        <ENT>−0.04%</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">B. Base buyer power parameter = 0.30 Base seller power parameter = 0.15</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Change in seller market power</ENT>
                        <ENT>0.00%</ENT>
                        <ENT>0.00%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in production</ENT>
                        <ENT>0.18%</ENT>
                        <ENT>0.06%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in retail price</ENT>
                        <ENT>−0.16%</ENT>
                        <ENT>−0.05%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in farm price</ENT>
                        <ENT>0.18%</ENT>
                        <ENT>0.06%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in producer plus consumer surplus</ENT>
                        <ENT>0.32%</ENT>
                        <ENT>0.11%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in deadweight loss (million $)</ENT>
                        <ENT>−$54</ENT>
                        <ENT>−$18</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in producer gross revenue (million $)</ENT>
                        <ENT>$106</ENT>
                        <ENT>$35</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in producer gross revenue</ENT>
                        <ENT>0.4%</ENT>
                        <ENT>0.1%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in packer variable profits (million $)</ENT>
                        <ENT>−$120</ENT>
                        <ENT>−$40</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Change in packer variable profits</ENT>
                        <ENT>−0.24%</ENT>
                        <ENT>−0.08%</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Proposed § 201.208 would apply to all livestock, meat, and poultry industries, including hogs and pork, sheep and lamb, and poultry. Although AMS is only providing an example for cattle and beef markets, AMS would also expect benefits from a more competitive market in each of the livestock, meat, and poultry industries. Sizes of the changes would be different due to differences in size and structure of other livestock, meat, and poultry markets, but potentially much larger than the expected direct costs associated to § 201.308.</P>
                <HD SOURCE="HD3">Proposed Rule: Costs</HD>
                <HD SOURCE="HD3">Direct Administrative Costs of the Proposed Rule</HD>
                <P>AMS is not able to make quantified estimates of indirect costs or benefits associated with proposed § 201.308. However, AMS is able to estimate direct costs associated with proposed § 201.308. AMS expects that packers, swine contractors, and live poultry dealers will incur direct administrative costs of reviewing and learning the proposed rule, assessing any impacts on their business operations, and then reviewing marketing and production contracts to ensure compliance with proposed § 201.308. Direct administrative costs are estimated below for (1) firm level costs to learn and review the proposed rule and assess any impacts on their business operations; and (2) in contract level costs to review production and marketing contracts to ensure compliance with the proposed rule. AMS expects that the firm level and contract level costs are one-time costs to be incurred the first year the rule would be effective and that these costs will not be recurring costs. These estimates do not include any costs or benefits associated with changes in practices resulting from either firm level or contract level reviews.</P>
                <HD SOURCE="HD3">Direct Firm Level Administrative Costs of the Proposed Rule</HD>
                <P>AMS expects that proposed § 201.308 will prompt packers, live poultry dealers, and swine contractors to incur one-time costs to first review and learn the rule and then assess any impacts on their business operations. Firm level costs are estimated as the total value of the time required to review and learn the proposed rule and to assess any impacts on their business operations.</P>
                <P>AMS expects the direct administrative costs of complying with proposed § 201.308 will be relatively small. Proposed § 201.308 is consistent with long held USDA policy, although the position has not yet been established in regulations. Consequently, AMS expects packers, live poultry dealers, and swine contractors to make relatively few changes to their business operations and production and marketing contracts.</P>
                <P>AMS estimated firm level administrative costs by identifying the regulated entity staff that will be involved in reviewing and learning the proposed rule, assessing any impacts on their business operations, estimating the respective time requirement for each regulated entity profession, and obtaining estimates of hourly costs for each profession. AMS expects most of the time at the firm level will come from meetings with company executives, their assistants, and legal staff to review the proposed rule and assess any impacts on their business operations. At the contract level, most firms maintain their production and marketing contracts in an electronic format and IT staff will be needed to provide access to all contracts in the contract review process. Managers, assistants, and legal staff will then review the contracts to ensure compliance with the proposed rule. Multiplying estimated hours required by estimated hourly costs will yield total costs by profession, which is then summed across professions to obtain total firm level administrative costs.</P>
                <P>
                    Firm level and contract level estimates of the amount of time required to review and learn the proposed rule, assess impacts on business operation, and to review contracts were provided by AMS subject matter experts. These experts were auditors and supervisors with many years of experience in AMS's PSD conducting investigations and compliance reviews of regulated entities. AMS used data from the Bureau of Labor Statistics (BLS) Occupational 
                    <PRTPAGE P="53904"/>
                    Employment and Wage Statistics, released in May 2022, for the time values in this analysis.
                    <SU>143</SU>
                    <FTREF/>
                     BLS estimated an average hourly wage for an administrative assistant salary in animal slaughtering and processing at $20.64 per hour. The average hourly wage for managers in animal slaughtering and processing is $61.24 per hour. The average hourly wage for IT system managers in animal slaughtering and processing is $66.07 per hour. The average hourly wage for lawyers in food manufacturing is $103.81 per hour. In applying the cost estimates, AMS marked-up the wages by 41.79 percent 
                    <SU>144</SU>
                    <FTREF/>
                     to account for fringe benefits.
                </P>
                <FTNT>
                    <P>
                        <SU>143</SU>
                         Estimates are available at U.S. Bureau of Labor Statistics. Occupational Employment and Wage Statistics, available 
                        <E T="03">https://www.bls.gov/oes/special-requests/oesm22all.zip</E>
                         (accessed 7/14/2023).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>144</SU>
                         U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation—March 2023, released June 16, 2023, USDL-23-1305, table 1, p. 4. 
                        <E T="03">https://www.bls.gov/news.release/pdf/ecec.pdf</E>
                         (accessed 7/14/2023).
                    </P>
                </FTNT>
                <P>For firm level costs, AMS expects that on average, each poultry dealer, beef packer, pork packer, and swine contractor will spend 20 hours of administrative assistant time, 40 hours of management time, 5 hours of IT systems manager time, and 40 hours of legal time to learn the proposed rule and assess any impacts on their business operations.</P>
                <P>
                    For firm level costs, AMS estimated the number of regulated entities impacted, that is, the number of live poultry dealers, livestock packers, and swine contractors, from information PSD receives in its required forms. Live poultry dealers are currently required to file form PSD 3002, “Annual Report of Live Poultry Dealers,” OMB control number 0581-0308, with AMS. Ninety live poultry dealers filed annual reports with AMS for their 2021 fiscal year. Livestock packers are currently required to file form PSD 3004, “Annual Report of Packers” OMB control number 0581-0308, with AMS. Among other things, each packer reports the number of head of cattle or calves, hogs, and lamb, sheep, or goats that it processed. Three hundred sixty-five packers that processed cattle or calves, hogs, or lamb, sheep or goats filed reports or were due to file a report with AMS for their fiscal year 2021. Two hundred sixty-one were beef or veal packers, 196 were pork packers, and 139 were lamb, sheep, or goat packers.
                    <SU>145</SU>
                    <FTREF/>
                     The number of beef, pork, and lamb packers do not sum to 365 because many firms slaughtered more than one species of livestock. For instance, 345 packers slaughtered both beef and pork.
                </P>
                <FTNT>
                    <P>
                        <SU>145</SU>
                         For brevity, all beef and veal packers will be collectively referred to as beef packers and all lamb, sheep, and goat packers will be collectively referred to as lamb packers.
                    </P>
                </FTNT>
                <P>
                    AMS estimated that on average, live poultry dealers that are regulated under the proposed rule will require 20 hours of administrative time at $29.27 per hour costing the industry $53,000 
                    <SU>146</SU>
                    <FTREF/>
                    ; 40 hours of management time at $86.83 per hour costing the industry $313,000 
                    <SU>147</SU>
                    <FTREF/>
                    ; 5 hours of IT systems managers' time at $93.68 per hour costing the industry $42,000 
                    <SU>148</SU>
                    <FTREF/>
                    ; and 40 hours of an attorney's time at $147.19 per hour costing the industry $530,000 
                    <SU>149</SU>
                    <FTREF/>
                     for learning and reviewing the proposed rule and assessing any impacts on their business operations. The total cost for poultry dealers to learn and review the proposed rule is estimated to be $937,000.
                    <SU>150</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>146</SU>
                         90 live poultry dealers × $29.27 per hour × 20 hours = $52,686.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>147</SU>
                         90 live poultry dealers × $86.83 per hour × 40 hours = $312,588.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>148</SU>
                         90 live poultry dealers × $93.68 per hour × 5 hours = $42,156.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>149</SU>
                         90 live poultry dealers × $147.19 per hour × 40 hours = $529,884.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>150</SU>
                         Firm level cost for live poultry dealers is the sum of costs across professions: $52,686 (administrative assistants) + $312,588 (managers) + $42,156 (IT system managers) + $529,884 (attorneys).
                    </P>
                </FTNT>
                <P>
                    AMS utilized similar calculations to estimate the costs to packers and swine contractors, as shown in the table below. The estimated total costs will be $2.72 million 
                    <SU>151</SU>
                    <FTREF/>
                     for beef packers, $8.93 million 
                    <SU>152</SU>
                    <FTREF/>
                     for pork packers and swine contractors, and $1.45 million 
                    <SU>153</SU>
                    <FTREF/>
                     for lamb packers. The cost to pork packers is an expected $2.04 million and $6.88 million to swine contractors. Total firm level costs across all entities totals $13.13 million.
                </P>
                <FTNT>
                    <P>
                        <SU>151</SU>
                         Firm level cost for beef packers: (261 beef packers × $29.27 per hour for administrative assistants × 20 hours) + (261 beef packers × $86.83 per hour for managers × 40 hours) + (261 beef packers × $93.68 per hour for IT specialists × 5 hours) + (261 beef packers $147.19 per hour attorney time × 40 hours).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>152</SU>
                         Total firm level cost to pork markets: $2,041,262 (pork packers) + $6,884,051 (swine contractors) = $8,925,312. Firm level cost for pork packers: (196 pork packers × $29.27 per hour for administrative assistants × 20 hours) + (196 pork packers × $86.83 per hour for managers × 40 hours) + (196 pork packers × $93.68 per hour for IT specialists × 5 hours) + (196 pork packers $147.19 per hour attorney time × 40 hours). Firm level cost for swine contractors: (661 swine contractors × $29.27 per hour for administrative assistants × 20 hours) + (661 swine contractors × $86.83 per hour for managers × 40 hours) + (661 swine contractors × $93.68 per hour for IT specialists × 5 hours) + (661 swine contractors × $147.19 per hour attorney time × 40 hours).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>153</SU>
                         Firm level cost for lamb packers: (139 lamb packers × $29.27 per hour for administrative assistants × 20 hours) + (139 lamb packers × $86.83 per hour for managers × 40 hours) + (139 lamb packers × $93.68 per hour for IT specialists × 5 hours) + (139 lamb packers $147.19 per hour attorney time × 40 hours).
                    </P>
                </FTNT>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,12,10,12,10,13">
                    <TTITLE>Table 3—Firm Level, Contract Level and Total Administrative Costs in the Proposed § 201.308 ($ Millions)—Preferred Alternative</TTITLE>
                    <BOXHD>
                        <CHED H="1">Cost</CHED>
                        <CHED H="1">
                            Live poultry
                            <LI>dealers</LI>
                        </CHED>
                        <CHED H="1">
                            Beef
                            <LI>packers</LI>
                        </CHED>
                        <CHED H="1">
                            Pork packers
                            <LI>and swine</LI>
                            <LI>contractors</LI>
                        </CHED>
                        <CHED H="1">
                            Lamb
                            <LI>packers *</LI>
                        </CHED>
                        <CHED H="1">Total cost **</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Firm Level Administrative Costs</ENT>
                        <ENT>$0.94</ENT>
                        <ENT>$2.72</ENT>
                        <ENT>$8.93</ENT>
                        <ENT>$1.45</ENT>
                        <ENT>$14.03</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Contract Level Administrative Costs</ENT>
                        <ENT>4.11</ENT>
                        <ENT>0.20</ENT>
                        <ENT>1.79</ENT>
                        <ENT>0.00</ENT>
                        <ENT>6.11</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Total Administrative Costs in 2025</ENT>
                        <ENT>5.05</ENT>
                        <ENT>2.92</ENT>
                        <ENT>10.72</ENT>
                        <ENT>1.45</ENT>
                        <ENT>20.14</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10-year PV at 3 percent</ENT>
                        <ENT>4.90</ENT>
                        <ENT>2.83</ENT>
                        <ENT>10.41</ENT>
                        <ENT>1.41</ENT>
                        <ENT>19.55</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10-year PV at 7 percent</ENT>
                        <ENT>4.72</ENT>
                        <ENT>2.73</ENT>
                        <ENT>10.02</ENT>
                        <ENT>1.35</ENT>
                        <ENT>18.82</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annualized costs at 3 percent</ENT>
                        <ENT>0.57</ENT>
                        <ENT>0.33</ENT>
                        <ENT>1.22</ENT>
                        <ENT>0.16</ENT>
                        <ENT>2.29</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annualized costs at 7 percent</ENT>
                        <ENT>0.67</ENT>
                        <ENT>0.39</ENT>
                        <ENT>1.43</ENT>
                        <ENT>0.19</ENT>
                        <ENT>2.68</ENT>
                    </ROW>
                    <TNOTE>* Lamb contracts are structured differently and not counted here.</TNOTE>
                    <TNOTE>** Column and rows may not sum to total due to rounding.</TNOTE>
                </GPOTABLE>
                <PRTPAGE P="53905"/>
                <HD SOURCE="HD3">Direct Contract Level Administrative Costs of the Proposed Rule Preferred Alternative</HD>
                <P>This section estimates the costs associated with reviewing production and marketing contracts to ensure compliance with proposed § 201.308, after learning and reviewing the proposed rule and assessing any business impacts. The total cost to review contracts is estimated by multiplying the number of contracts in each industry by the estimated hours for regulated entity professionals to review the contracts and by the hourly cost of each profession.</P>
                <P>
                    AMS estimated that there are 23,047 broiler grower agreements, 8,094 swine production agreements,
                    <SU>154</SU>
                    <FTREF/>
                     1,960 hog marketing agreements,
                    <SU>155</SU>
                    <FTREF/>
                     and 1,116 feedlot agreements.
                    <SU>156</SU>
                    <FTREF/>
                     AMS does not estimate sheep production or marketing agreements because they are structured differently than contracts for other species and would not need to be reviewed under this proposed rule.
                </P>
                <FTNT>
                    <P>
                        <SU>154</SU>
                         USDA, National Agricultural Statistics Service, “2022 Census of Agriculture: United States Summary and State Data,” issued February 2024, table 24.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>155</SU>
                         An estimated 10 marketing agreements per pork packing plant × 196 pork packers.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>156</SU>
                         1,829 feedlots over 1,000 head (2022 Census of Agriculture, table 13) × an estimated 61% (the number of feedlots utilizing formula pricing).
                    </P>
                </FTNT>
                <P>The time requirement by each regulated entity professional to review production and marketing contracts would be less than the time requirement in learning and reviewing the proposed rule assessing any business impacts. AMS estimates that it will take 0.5 hours each for administrative assistants, managers, IT system managers, and attorneys to review the production and marketing contracts in the respective livestock and poultry industries.</P>
                <P>
                    The table above shows that the contract level administrative costs of reviewing the contracts are $4.11 million for poultry dealers,
                    <SU>157</SU>
                    <FTREF/>
                     $199,000 for beef packers,
                    <SU>158</SU>
                    <FTREF/>
                     $350,000 for pork packers,
                    <SU>159</SU>
                    <FTREF/>
                     and $1.44 million for swine contractors.
                    <SU>160</SU>
                    <FTREF/>
                     Lamb contracts are structured differently from other species' contracts, are mainly fixed-price contracts, and are not expected to be reviewed under this proposed rule. The total administrative cost of reviewing contracts is $6.11 million.
                    <SU>161</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>157</SU>
                         Total contract level costs for poultry dealers, $4,113,544 = (23,047 poultry dealer contracts × $29.27 per hour for administrative assistants × 0.50 hours) + (23,047 poultry dealer contracts × $86.83 per hour for managers × 0.50 hours) + (23,047 poultry dealer contracts × $93.68 per hour for IT specialists × 0.50 hours) + (23,047 poultry dealer contracts × $147.19 per hour attorney time × 0.50 hours).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>158</SU>
                         Total contract level costs for beef packers, $199,134 = (1,116 beef packer contracts × $29.27 per hour for administrative assistants × 0.50 hours) + (1,116 beef packer contracts × $86.83 per hour for managers × 0.50 hours) + (1,116 beef packer contracts × $93.68 per hour for IT specialists × 0.50 hours) + (1,099 beef packer contracts × $147.19 per hour attorney time × 0.50 hours).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>159</SU>
                         Total contract level costs for pork packers, $349,833 = (1,960 pork packer contracts × $29.27 per hour for administrative assistants × 0.50 hours) + (1,960 pork packer contracts × $86.83 per hour for managers × 0.50 hours) + (1,960 pork packer contracts × $93.68 per hour for IT specialists × 0.50 hours) + (1,960 pork packer contracts × $147.19 per hour attorney time × 0.50 hours).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>160</SU>
                         Total contract level costs for swine contractor, $1,440,660 = (8,094 swine contractors contracts × $29.27 per hour for administrative assistants × 0.50 hours) + (8,094 swine contractors contracts × $86.83 per hour for managers × 0.50 hours) + (8,094 swine contractors contracts × $93.68 per hour for IT specialists × 0.50 hours) + (8,094 swine contractors contracts × $147.19 per hour attorney time × 0.50 hours).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>161</SU>
                         Total contract level costs, $6,107,170 = $4,113,544 million for poultry dealers + $199,134 for beef packers + $349,833 for pork packers + $1,440,660 for swine contractors.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Direct Firm Level and Contract Level Administrative Costs of the Proposed Rule Preferred Alternative</HD>
                <P>Total administrative industry costs are presented in the table above. The description of estimated firm level and contract level administrative costs were presented above. AMS expects that producers will not face any costs from the proposed rule. Firm level costs to learn the proposed rule and assess any impacts on business operations are estimated to be $14.03 million and the contract level costs to review production and marketing contracts are estimated to be $6.11 million, for a total estimated administrative cost of $20.14 million in the proposed rule. AMS expects that the firm level and contract level costs which comprise the total administrative industry costs are one-time costs to be incurred the first year the proposed rule would be effective and that these costs will not be recurring costs.</P>
                <HD SOURCE="HD3">Litigation Costs—Preferred Alternative</HD>
                <P>AMS believes that proposed § 201.308 may possibly reduce litigation due to the clarity provided by the proposed rule as to the unfair practices with respect to market participants and markets that violate the Act. However, the proposed rule possibly increases litigation to the extent that AMS or producers are better able to identify unfair practices and thus may be more likely to seek relief in courts. AMS is uncertain as to which of these offsetting effects will dominate and to what extent. Therefore, AMS does not estimate litigation costs in this analysis.</P>
                <HD SOURCE="HD3">Indirect Costs</HD>
                <P>AMS is unable to quantify any costs or benefits that would arise from changing business practices due to proposed § 201.308. If AMS's enforcement of proposed § 201.308 has the effect of improving competitive conditions in the markets, then the changing market conditions would likely result in a reduction in welfare for packers and live poultry dealers and an increase for producers and consumers. These would be costs to packers and live poultry dealers, and would be offset by gains for consumers, growers, and producers.</P>
                <P>
                    Changing competitive conditions could have production efficiency effects, which may or may not be larger than market power effects,
                    <SU>162</SU>
                    <FTREF/>
                      
                    <E T="03">e.g.,</E>
                     decreasing market power could result in more smaller packers with higher production costs per unit. Hence, a full accounting of net benefits would involve analysis of demand and supply changes.
                </P>
                <FTNT>
                    <P>
                        <SU>162</SU>
                         U.S. General Accountability Office, “U.S. Agriculture: Retail Food Prices Grew Faster Than the Prices Farmers Received for Agricultural Commodities, but Economic Research Has Not Established That Concentration Has Affected These Trends,” GAO-09-746R, June 2009.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Costs and Benefits of the Limited Scope Alternative</HD>
                <P>The alternative is the same as the preferred alternative, with the exception that the alternative would limit the scope of the proposed rule to § 201.308(a) and (b). Section 201.308(c) and (d) from the preferred alternative would not be part of the limited scope alternative.</P>
                <P>Proposed § 201.308(a) protects market participants from the type of unjustified acts or practices that produce unavoidable injury that cannot be justified by countervailing benefits to producers or to competition. Proposed § 201.308(b) provides criteria under which likely injuries must be halted before actual injury occurs.</P>
                <P>Proposed § 201.308(a) defines unfair practices as those that injure market participants, while § 201.308(c) defines unfair practices as those that result in harms to the market. Both sections of the preferred alternative define “unfair” from slightly different vantage points. Combining these provisions results in a more comprehensive definition of the term “unfair.”</P>
                <P>
                    While AMS believes the inclusion of both provisions fully define the meaning and applicability of the term “unfair” under the Act, AMS considered a regulatory alternative of severing § 201.308(a) and (b) from 
                    <PRTPAGE P="53906"/>
                    § 201.308(c) and (d) and eliminating § 201.308(c) and (d) as a viable regulatory alternative. A rule of that kind meets many of the policy goals for this rulemaking. What this regulatory alternative does not do is to define unfair practices as those that result in harm to the market. Thus, this regulatory alternative provides is less comprehensive compared to the preferred alternative.
                </P>
                <P>In terms of the costs of complying with the limited scope alternative, the costs are similar, but slightly smaller than the preferred alternative. AMS expects that regulated entities will still need to spend time understanding the limited scope alternative, its impacts on its business operations, and will still need to review all contracts to ensure compliance with the proposed rule. Given the amount of overlap in defining the term “unfair” in the preferred alternative, AMS expects that regulated entities will need to spend 90 percent of the time to review the limited scope alternative, assess the impact of its businesses, and review contracts for compliance with the alternative rule.</P>
                <P>AMS expects that under the limited scope alternative live poultry dealers, packers and swine contractors expend 90 percent of the time in firm level administrative costs in learning and reviewing the alternative rule and assessing any impacts on their business operations, and 90 percent of the time in reviewing contracts. The time requirement for administrative assistants is expected to be 18 hours, 36 hours for managers, 4.5 hours for IT systems support and 36 hours for attorneys. The time requirement of reviewing production and marketing contracts is expected to be 0.45 hours for each profession. It is expected that the respective regulated entities reviewing the rule and assessing business impacts will be the same as in the preferred alternative, and their respective hourly compensation will remain the same as in the preferred alternative. The number of live poultry dealers, packers and swine contractors will also remain the same as in the preferred alternative.</P>
                <P>
                    The estimated firm level costs will be $0.84 million for poultry dealers,
                    <SU>163</SU>
                    <FTREF/>
                     $2.45 million for beef packers,
                    <SU>164</SU>
                    <FTREF/>
                     and $8.03 million for pork packers and swine contractors,
                    <SU>165</SU>
                    <FTREF/>
                     and $1.30 million for lamb packers.
                    <SU>166</SU>
                    <FTREF/>
                     The firm level cost for pork packers is $1.84 million and $6.20 million for swine contractors. Total firm level costs across all entities total $12.63 million.
                    <SU>167</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>163</SU>
                         Poultry dealer firm level costs: $47,417 (administrative assistants) + $281,329 (managers) + $37,940 (IT support) + $476,896 (legal).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>164</SU>
                         Beef packer firm level costs: $137,510 (administrative assistants) + $815,855 (managers) + $110,027 (IT support) + $1,382,997 (legal).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>165</SU>
                         Pork packer firm level costs: $103,265 (administrative assistants) + $612,672 (managers) + $82,626 (IT support) + $1,038,573 (legal). Swine contractor firm level costs: $348,254 (administrative assistants) + $2,066,207 (managers) + $278,651 (IT support) + $3,502,533 (legal).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>166</SU>
                         Lamb packer firm level costs: $73,234 (administrative assistants) + $434,497 (managers) + $58,597 (IT support) + $736,539 (legal).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>167</SU>
                         Total firm level costs: $0.84 million (poultry dealers) + $2.45 million (beef packers) + $8.03 million (pork packers and swine contractors) + $1.30 (lamb packers) = $11.82 million (total).
                    </P>
                </FTNT>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,12,10,12,10,13">
                    <TTITLE>Table 4—Firm Level, Contract Level and Total Direct Costs for Proposed § 201.308 ($ Millions)—Limited Scope Alternative</TTITLE>
                    <BOXHD>
                        <CHED H="1">Costs</CHED>
                        <CHED H="1">
                            Live
                            <LI>poultry dealers</LI>
                        </CHED>
                        <CHED H="1">
                            Beef
                            <LI>packers</LI>
                        </CHED>
                        <CHED H="1">
                            Pork
                            <LI>packers and swine</LI>
                            <LI>contractors</LI>
                        </CHED>
                        <CHED H="1">
                            Lamb 
                            <LI>packers *</LI>
                        </CHED>
                        <CHED H="1">Total costs **</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Firm level administrative costs</ENT>
                        <ENT>$0.84</ENT>
                        <ENT>$2.45</ENT>
                        <ENT>$8.03</ENT>
                        <ENT>$1.30</ENT>
                        <ENT>$12.63</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Contract level administrative costs</ENT>
                        <ENT>3.70</ENT>
                        <ENT>0.18</ENT>
                        <ENT>1.62</ENT>
                        <ENT>0.00</ENT>
                        <ENT>5.50</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Total administrative costs in 2025</ENT>
                        <ENT>4.55</ENT>
                        <ENT>2.63</ENT>
                        <ENT>9.65</ENT>
                        <ENT>1.30</ENT>
                        <ENT>18.12</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10-year PV at 3 percent</ENT>
                        <ENT>4.41</ENT>
                        <ENT>2.55</ENT>
                        <ENT>9.37</ENT>
                        <ENT>1.26</ENT>
                        <ENT>17.59</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10-year PV at 7 percent</ENT>
                        <ENT>4.25</ENT>
                        <ENT>2.45</ENT>
                        <ENT>9.02</ENT>
                        <ENT>1.22</ENT>
                        <ENT>16.94</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annualized costs at 3 percent</ENT>
                        <ENT>0.52</ENT>
                        <ENT>0.30</ENT>
                        <ENT>1.10</ENT>
                        <ENT>0.15</ENT>
                        <ENT>2.06</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annualized costs at 7 percent</ENT>
                        <ENT>0.60</ENT>
                        <ENT>0.35</ENT>
                        <ENT>1.28</ENT>
                        <ENT>0.17</ENT>
                        <ENT>2.41</ENT>
                    </ROW>
                    <TNOTE>* Lamb contracts are structured differently and thus not included here.</TNOTE>
                    <TNOTE>** Rows may not sum to Total Costs due to rounding.</TNOTE>
                </GPOTABLE>
                <P>
                    The contract level administrative costs are also presented in the table above. AMS estimated that it will cost poultry dealers $3.70 million,
                    <SU>168</SU>
                    <FTREF/>
                     $0.18 million for beef packers,
                    <SU>169</SU>
                    <FTREF/>
                     $1.62 million for pork packers and swine contractors,
                    <SU>170</SU>
                    <FTREF/>
                     and no cost to lamb packers. It is expected that lamb packers will not incur a contract level administrative cost because production and marketing contracts are structured differently, and it is not expected that the contracts will be reviewed. The contract level cost for pork packers is $315,000 and $1.30 million for swine contractors. The total contract level administrative cost is expected to be $5.50 million.
                    <SU>171</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>168</SU>
                         Poultry dealer contract level costs: $303,564 (administrative assistants) + $900,527 (managers) + $971,569 (IT support) + $1,526,530 (legal).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>169</SU>
                         Beef packer contract level costs: $14,695 (administrative assistants) + $43,594 (managers) + $47,033 (IT support) + $73,898 (legal).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>170</SU>
                         Pork packer firm level costs: $25,816 (administrative assistants) + $76,584 (managers) + $82,626 (IT support) + $129,822 (legal). Swine contractor firm level costs: $106,610 (administrative assistants) + $316,261 (managers) + $341,211 (IT support) + $536,110 (legal).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>171</SU>
                         Total contract level costs: $3.70 million (poultry dealers) + $0.18 million (beef packers) + $1.62 million (pork packers and swine contractors) = $5.50 million (total).
                    </P>
                </FTNT>
                <P>As shown in the table above, the 10-year PV costs at three percent for the proposed limited scope alternative is expected to be $17.59 million. The total cost to the poultry industry is expected to be $4.55 million, $2.62 million for beef packers, $9.65 million for pork packers and swine contractors, and $1.3 million for the lamb packers. The 10-year PV costs at seven percent for the proposed limited scope alternative is expected to be $16.94 million.</P>
                <P>The benefits of the limited scope alternative are similar to the benefits of the preferred alternative, since both alternatives provide a definition of “unfair” acts and practices and may lead to more competitive livestock, meat, and poultry markets. AMS prefers to propose the alternative of § 201.308(a) through (d) because it offers a more comprehensive guide to market participants than the limited scope alternative.</P>
                <HD SOURCE="HD2">D. Regulatory Flexibility Analysis</HD>
                <P>
                    AMS proposes to establish § 201.308 to define how AMS evaluates unfair acts or practices and unfair methods of competition under section 202(a) the 
                    <PRTPAGE P="53907"/>
                    P&amp;S Act. The term “unfair” has caused confusion and contention in the industry and in courts, and this rulemaking is intended mitigate both.
                </P>
                <P>Proposed § 201.308 is made of four parts. Paragraphs (a) and (b) of proposed § 201.308 concern unfair acts or practices with respect to market participants. Paragraphs (c) and (d) concern unfair practices with respect to markets. Parts of both of these provisions relate to the likely harms the Act was designed to prevent; paragraph (b) helps define paragraph (a), and paragraph (d) helps define paragraph (c). No part, however, requires that proof of harm to competition to find a violation of the Act. This is consistent with USDA's interpretation and enforcement of the Act, but it is not consistent with all Federal court decisions.</P>
                <P>Paragraph (a) of proposed § 201.308 defines an unfair act or practice as one that causes or will likely cause substantial injury to a market participant, which the market participant could not reasonably avoid and which the regulated entity that has engaged in the act cannot justify by establishing countervailing benefits to market participants or competition. Paragraph (b) includes factors the Secretary of Agriculture may consider when evaluating whether an unfair act or practice is likely to cause substantial injury. Factors include the extent to which an act or practice impedes or restricts the ability to participate in the market, the extent to which an act or practice subverts competitive market forces, the size any potential injury, and the extent to which the act or practice interferes with free decision making.</P>
                <P>Paragraph (c) of proposed § 201.308 defines an unfair practice with respect to markets as a practice that is collusive, coercive, predatory, restrictive, deceitful, or exclusionary and that may negatively affect competitive conditions.</P>
                <P>AMS intends for proposed § 201.308 to be consistent with the way USDA has interpreted section 202(a) of the Act for decades. The preamble for this rulemaking explains how USDA has defined “unfair” in past actions and how those actions are consistent with the interpretation of “unfair” in proposed § 201.308. Concerning USDA's interpretation and enforcement of “unfair” in section 202(a) of the Act, AMS does not expect proposed § 201.308 to change USDA's position on enforcement of section 202(a).</P>
                <P>
                    Addressing the exercise of market power is one purpose of proposed § 201.308, although it potentially addresses other issues concerning “unfairness” under the Act as well. Market power has been a problem in the meat packing industry since the invention of refrigerated rail cars enabled Chicago packers to process western livestock and ship the carcasses east at costs lower than eastern packers could achieve. From the 1880s to 1920, a series of investigations found the largest meat packers controlling prices through a variety of methods. Those findings were much of the reason that Congress passed the Act in 1921.
                    <SU>172</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>172</SU>
                         Azzam, Azzadine and Anderson, Dale, May 1996, “Assessing Competition in Meatpacking, Economic History, Theory, and Evidence,” USDA, GIPSA, 
                        <E T="03">https://www.gipsa.usda.gov/psp/publication/con_tech%20report/rr96-6.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    Market power in livestock, meat, and poultry markets is a continuing problem that USDA has regulated through the Act since the 1920s. USDA has consistently established the rules and regulations necessary to maintain fair and competitive markets, including protecting producers from marketplace abuses and harms they could not avoid. One example is § 201.70, which requires packers to conduct their livestock buying operations independently and in competition with other packers.
                    <SU>173</SU>
                    <FTREF/>
                     Proposed § 201.308 is another step in the ongoing regulation of competition in the livestock, meat, and poultry markets. Proposed § 201.308 is designed to mitigate market power and the implications of market power especially on producers. It would also address fair trade practices in the marketplace generally. Unlike many of the regulations under the Act, proposed § 201.308 does not place any specific requirements on packers, live poultry dealers, or swine contractors.
                </P>
                <FTNT>
                    <P>
                        <SU>173</SU>
                         Source: 24 FR 3183, Apr. 24, 1959.
                    </P>
                </FTNT>
                <P>Instead, it provides a framework for evaluating acts, practices, and methods of competition to determine if they are violations of the Act. Proposed § 201.308 would be a new regulation, and USDA has not articulated the factors in proposed § 201.308 as such in enforcing violations of the Act in the past. However, the preamble to the rulemaking explains that past enforcement actions under the Act have been consistent with the factors in proposed § 201.308.</P>
                <P>While proposed § 201.308 is consistent with actions that USDA has taken in the past, it is less clear what different acts or practices may violate proposed § 201.308 that USDA would not have been considered violations without the proposed rule. USDA has asserted that a violation of the Federal antitrust laws may also violate the Packers and Stockyards Act, but that the Packers and Stockyards Act's prohibition on unfair practices incorporates trade practices beyond those covered by the Federal antitrust laws. AMS expects that proposed § 201.308 will improve its enforcement of the Act and make livestock, meat, and poultry markets fairer and more competitive. AMS estimated administrative costs of proposed § 201.308 in two parts, firm level and contract level. In firm level costs, AMS expects that each small packer, swine contractor, and live poultry dealer would need to review and learn the proposed rule and to assess any impacts on their business operations. In contract level costs, AMS expects that small entities would review production and marketing contracts to ensure compliance with the proposed rule.</P>
                <HD SOURCE="HD3">Defining Small Businesses</HD>
                <P>
                    The SBA defines small businesses by their North American Industry Classification System Codes (NAICS).
                    <SU>174</SU>
                    <FTREF/>
                     Live poultry dealers, NAICS 311615, are considered small businesses if they have fewer than 1,250 employees. Meat packers, including, beef, veal, pork, lamb, and goat packers, NAICS 311611, are small businesses if they have fewer than 1,000 employees. Swine contractors, NAICS 112210, are considered small if their sales are less than $1 million annually.
                </P>
                <FTNT>
                    <P>
                        <SU>174</SU>
                         U.S. Small Business Administration. Table of Small Business Size Standards Matched to North American Industry Classification System Codes. Effective August 19, 2019. “The SBA Issues a Final Rule to Adopt NAICS 2017 for Small Business Size (last accessed 8/9/2022).” Available at 
                        <E T="03">https://www.sba.gov/article/2018/feb/27/sba-issues-final-rule-adopt-naics-2017-small-business-size-standards.</E>
                    </P>
                </FTNT>
                <P>AMS maintains data on live poultry dealers from the annual reports these firms file with AMS. Currently, 90 live poultry dealers would be subject to the regulation. Fifty-five of the live poultry dealers will be small businesses according to the SBA standard.</P>
                <P>Most packers will be small businesses, although large packers are responsible for most meat production. According to the SBA standard, there are 255 small beef packers, 185 small pork packers, and 139 small lamb packers. All lamb packers are considered small.</P>
                <P>
                    AMS does not have similar records for swine contractors because they are not required to register with AMS or provide annual reports. Table 24 of the 2022 United States Department of Agriculture (USDA) Census of Agriculture 
                    <SU>175</SU>
                    <FTREF/>
                     indicated that there were 
                    <PRTPAGE P="53908"/>
                    661 swine contractors in 2022. The Census of Agriculture table has categories for the number of head that swine contractors sold, but not the value of the head sold. AMS expects that the 461 swine contractors that sold 5,000 head of hogs or more were large businesses, and the 194 contractors that sold less than 5,000 head were small businesses.
                </P>
                <FTNT>
                    <P>
                        <SU>175</SU>
                         USDA, National Agricultural Statistics Service, “2022 Census of Agriculture: United States Summary and State Data,” issued February 2024, table 24.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Direct Firm Administrative Costs of the Proposed Rule to Small Businesses</HD>
                <P>
                    As shown in the table below, the firm level cost for small poultry dealers is $573,000,
                    <SU>176</SU>
                    <FTREF/>
                     $2.66 million for small beef packers,
                    <SU>177</SU>
                    <FTREF/>
                     $1.93 million for small pork packers,
                    <SU>178</SU>
                    <FTREF/>
                     $1.12 million for small swine contractors,
                    <SU>179</SU>
                    <FTREF/>
                     and $1.45 million for small lamb packers. The total firm level cost for small firms from the proposed rule is $7.73 million.
                    <SU>180</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>176</SU>
                         Firm level cost for poultry growing arrangements with small firms = 3.2 percent × $937,314.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>177</SU>
                         Firm level cost for small beef packers = 17.4 percent × $2,718,211.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>178</SU>
                         Firm level cost for small pork packers = 11.3 percent × $2,041,262.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>179</SU>
                         Firm level cost for small swine contractors = 8.9 percent × $5,988,395.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>180</SU>
                         Total firm level costs across small firms in livestock and poultry industries, $7,738,048 = $572,803 (live poultry dealer) + $2,655,723 (beef packer) + $1,926,701 (pork packer) + $1,135,191 (swine contractors) + $1,447,629 (lamb packer).
                    </P>
                </FTNT>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,12,10,12,10,13">
                    <TTITLE>Table 5—Total Administrative Costs in the Proposed § 201.308 to Small Businesses</TTITLE>
                    <BOXHD>
                        <CHED H="1">Cost</CHED>
                        <CHED H="1">
                            Live poultry
                            <LI>dealer</LI>
                        </CHED>
                        <CHED H="1">
                            Beef
                            <LI>packer</LI>
                        </CHED>
                        <CHED H="1">
                            Pork packer
                            <LI>and swine</LI>
                            <LI>contractor</LI>
                        </CHED>
                        <CHED H="1">
                            Lamb
                            <LI>packer *</LI>
                        </CHED>
                        <CHED H="1">Total cost **</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Firm Level Administrative Costs</ENT>
                        <ENT>573,000</ENT>
                        <ENT>2,656,000</ENT>
                        <ENT>3,062,003</ENT>
                        <ENT>1,448,000</ENT>
                        <ENT>7,738,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Contract Level Administrative Costs</ENT>
                        <ENT>131,000</ENT>
                        <ENT>35,000</ENT>
                        <ENT>168,000</ENT>
                        <ENT>0</ENT>
                        <ENT>334,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Total Administrative Costs in 2025</ENT>
                        <ENT>704,000</ENT>
                        <ENT>2,690,000</ENT>
                        <ENT>3,230,000</ENT>
                        <ENT>1,448,000</ENT>
                        <ENT>8,072,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10-year PV at 3 percent</ENT>
                        <ENT>683,000</ENT>
                        <ENT>2,612,000</ENT>
                        <ENT>3,136,000</ENT>
                        <ENT>1,405,000</ENT>
                        <ENT>7,837,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10-year PV at 7 percent</ENT>
                        <ENT>658,000</ENT>
                        <ENT>2,514,000</ENT>
                        <ENT>3,019,000</ENT>
                        <ENT>1,353,000</ENT>
                        <ENT>7,544,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annualized costs at 3 percent</ENT>
                        <ENT>80,000</ENT>
                        <ENT>306,000</ENT>
                        <ENT>368,000</ENT>
                        <ENT>165,000</ENT>
                        <ENT>919,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annualized costs at 7 percent</ENT>
                        <ENT>94,000</ENT>
                        <ENT>358,000</ENT>
                        <ENT>430,000</ENT>
                        <ENT>193,000</ENT>
                        <ENT>1,074,000</ENT>
                    </ROW>
                    <TNOTE>* Lamb contracts are structured differently and not counted here.</TNOTE>
                    <TNOTE>** Rows may not sum to Total Costs due to rounding.</TNOTE>
                </GPOTABLE>
                <P>AMS estimated the small business contract level costs by estimating small businesses' share (the market share) of all businesses contract level costs. The percent of poultry growing arrangements held by small businesses is 3.2 percent, the percent of production contracts held by small swine contractors is 8.9 percent, the portion of hog marketing agreements with small firms is 11.3 percent, and the percent of cattle feedlot agreements with small businesses is 17.4 percent. Contract level administrative costs are not estimated for lamb packers because these contracts are structured differently than for other species, and lamb packers are not expected to revise contracts under the proposed rule.</P>
                <P>
                    Contract level costs for small poultry dealers are $131,000,
                    <SU>181</SU>
                    <FTREF/>
                     $35,000 for small beef packers,
                    <SU>182</SU>
                    <FTREF/>
                     $40,000 for small pork packers,
                    <SU>183</SU>
                    <FTREF/>
                     and $127,000 for small swine contractors.
                    <SU>184</SU>
                    <FTREF/>
                     The total contract level costs for small firms from the proposed rule are $334,000.
                    <SU>185</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>181</SU>
                         Contract level cost for poultry growing arrangements with small firms = 3.2 percent × $4,113,544.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>182</SU>
                         Contract level cost for small beef packers = 17.4 percent × $196,098.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>183</SU>
                         Contract level cost for small pork packers = 11.3 percent × $349,833.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>184</SU>
                         Contract level cost for small swine contractors = 8.9 percent × $1,527,298.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>185</SU>
                         Total contract level costs across small firms in livestock and poultry industries, $334,001 = $131,186 (poultry dealers) + $34,180 (beef packer) + $39,531 (pork packers) + $135,929 (swine contractors).
                    </P>
                </FTNT>
                <P>The following table compares the average per entity first-year costs of proposed § 201.308 to the average revenue per establishment for all regulated small businesses. First-year costs are appropriate for a threshold analysis because all expected costs occur in the first year.</P>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,10,10,10,11,12">
                    <TTITLE>Table 6—Comparison of Average Costs per Entity to Average Revenues per Entity for Small Businesses</TTITLE>
                    <BOXHD>
                        <CHED H="1">Cost</CHED>
                        <CHED H="1">
                            Poultry
                            <LI>dealers</LI>
                        </CHED>
                        <CHED H="1">
                            Beef
                            <LI>packers</LI>
                        </CHED>
                        <CHED H="1">
                            Pork
                            <LI>packers</LI>
                        </CHED>
                        <CHED H="1">
                            Swine
                            <LI>contractors</LI>
                        </CHED>
                        <CHED H="1">
                            Lamb
                            <LI>packers</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">First year costs</ENT>
                        <ENT>$13,000</ENT>
                        <ENT>$11,000</ENT>
                        <ENT>$11,000</ENT>
                        <ENT>$13,000</ENT>
                        <ENT>$10,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10-year PV—3.00%</ENT>
                        <ENT>$12,000</ENT>
                        <ENT>$10,000</ENT>
                        <ENT>$11,000</ENT>
                        <ENT>$13,000</ENT>
                        <ENT>$10,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10-year PV—7.00%</ENT>
                        <ENT>$12,000</ENT>
                        <ENT>$10,000</ENT>
                        <ENT>$10,000</ENT>
                        <ENT>$12,000</ENT>
                        <ENT>$10,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annualized—3.00%</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>$1,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annualized—7.00%</ENT>
                        <ENT>$2,000</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>$2,000</ENT>
                        <ENT>$1,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Average net sales</ENT>
                        <ENT>52,888,000</ENT>
                        <ENT>80,173,000</ENT>
                        <ENT>36,781,000</ENT>
                        <ENT>486,000</ENT>
                        <ENT>23,623,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">First year cost as % of net sales</ENT>
                        <ENT>0.02%</ENT>
                        <ENT>0.01%</ENT>
                        <ENT>0.03%</ENT>
                        <ENT>2.66%</ENT>
                        <ENT>0.04%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annualized—7.00% as % of net sales</ENT>
                        <ENT>0.00%</ENT>
                        <ENT>0.00%</ENT>
                        <ENT>0.00%</ENT>
                        <ENT>0.35%</ENT>
                        <ENT>0.01%</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Average first-year costs as a percent of revenues are small, ranging from 0.01 percent for beef packers to 2.66 percent for swine contractors. Costs are highest for swine contractors because average revenues for swine contractors are considerably smaller than average revenues for packers and live poultry dealers.</P>
                <HD SOURCE="HD3">Alternative Regulation</HD>
                <P>
                    AMS considered an alternative to proposed § 201.308. The alternative would be the same as the preferred alternative, with the exception that the alternative would limit the scope of the rule to § 201.308(a) and (b). Section 201.308(c) and (d) from the proposed rule would not be part of the alternative. AMS expects that the direct costs associated with this limited scope alternative will be similar to the costs associated with the currently proposed 
                    <PRTPAGE P="53909"/>
                    § 201.308. AMS also expects that regulated packers, live poultry dealers, and swine contractors would need to review their business practices and their marketing and production contracts with livestock producers as well as their production contracts with live poultry dealers. They might be able to spend a little less time on this review because there would only be about half as much new regulation to learn and comprehend.
                </P>
                <P>AMS still expects that regulated packers, live poultry dealers, and swine contractors would need still need to spend about 90 percent of the time to review the alternative as they needed to review the proposed regulation. All of the direct administrative costs were due to the time required for regulation packers, live poultry dealers, and swine contractors to review the regulation. As a consequence, AMS's estimate of the administrative costs for the alternative are 90 percent of the costs for proposed rule. The table below is as summary of expected direct cost associated with this limited scope alternative.</P>
                <P>Direct costs associated with the limited scope alternative are not much different than the direct costs associated with proposed § 201.308. Similarly, to the proposed rule, all costs occur in the first year. Also like the proposed rule, costs are not likely significant for packers or live poultry dealers. However, for swine contractors, costs are expected to be more than 2 percent of net sales for the first year the alternative would be effective. For each of the remaining years, cost to swine contractors would not likely be significant.</P>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,10,10,10,11,12">
                    <TTITLE>Table 7—Comparison of Average Costs per Entity to Average Revenues per Entity for Small Businesses—Limited Scope Alternative</TTITLE>
                    <BOXHD>
                        <CHED H="1">Cost</CHED>
                        <CHED H="1">
                            Poultry
                            <LI>processor</LI>
                        </CHED>
                        <CHED H="1">
                            Beef
                            <LI>packer</LI>
                        </CHED>
                        <CHED H="1">
                            Pork
                            <LI>packer</LI>
                        </CHED>
                        <CHED H="1">
                            Swine
                            <LI>contractors</LI>
                        </CHED>
                        <CHED H="1">
                            Sheep, lamb,
                            <LI>and goat</LI>
                            <LI>packer</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">First year costs</ENT>
                        <ENT>$12,000</ENT>
                        <ENT>$9,000</ENT>
                        <ENT>$10,000</ENT>
                        <ENT>$12,000</ENT>
                        <ENT>$9,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10-year PV—3.00%</ENT>
                        <ENT>$11,000</ENT>
                        <ENT>$9,000</ENT>
                        <ENT>$9,000</ENT>
                        <ENT>$11,000</ENT>
                        <ENT>$9,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10-year PV—7.00%</ENT>
                        <ENT>$11,000</ENT>
                        <ENT>$9,000</ENT>
                        <ENT>$9,000</ENT>
                        <ENT>$11,000</ENT>
                        <ENT>$9,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annualized—3.00%</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>$1,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annualized—7.00%</ENT>
                        <ENT>$2,000</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>$1,000</ENT>
                        <ENT>$2,000</ENT>
                        <ENT>$1,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Average net sales</ENT>
                        <ENT>52,888,000</ENT>
                        <ENT>80,173,000</ENT>
                        <ENT>36,781,000</ENT>
                        <ENT>486,000</ENT>
                        <ENT>23,623,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">First year cost as % of net sales</ENT>
                        <ENT>0.02%</ENT>
                        <ENT>0.01%</ENT>
                        <ENT>0.03%</ENT>
                        <ENT>2.37%</ENT>
                        <ENT>0.04%</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annualized—7.00% as % of net sales</ENT>
                        <ENT>0.00%</ENT>
                        <ENT>0.00%</ENT>
                        <ENT>0.00%</ENT>
                        <ENT>0.31%</ENT>
                        <ENT>0.01%</ENT>
                    </ROW>
                </GPOTABLE>
                <P>AMS prefers to propose the alternative of § 201.308(a) through (d) because it offers more comprehensive protection to livestock producers and contract growers than the limited scope alternative. Direct costs to regulated entities would likely be smaller with the limited scope alternative, but they would not be much smaller.</P>
                <P>AMS was not able to quantify indirect costs or benefits associated with proposed § 201.308 or with the limited scope alternative. To the extent that either alternative would improve the competitive environment in livestock, meat, or poultry markets, the regulation would likely result in reduced welfare to meat packers, and live poultry dealers and increased welfare to livestock producers and contract growers. Even small improvements in the market could cause benefits that are much larger than the direct costs estimated for either proposed § 201.308 or the limited scope alternative.</P>
                <P>The proposed rule may have the effect of reducing deadweight losses. To the extent that packers, live poultry dealers, or swine contractors transfer surpluses to growers and producers due to improved competition caused by proposed § 201.308 or the alternative, AMS will consider the regulation a success.</P>
                <P>Small businesses are typically not associated with market power or practices that restrict competition, but in small markets the largest firms can be small businesses. In the lamb industry, for example, the largest packer is a small business.</P>
                <P>AMS expects that the direct costs associated with proposed § 201.308 would be significant for a substantial number of swine contractors. AMS was not able to quantify costs associated with changes to the level of competition in the regulated markets, but changes could result in significant costs to substantial numbers of packers, live poultry dealers, and swine contractors. However, these costs, which are actually transfers in surplus, are the intended purpose of the regulation. AMS acknowledges that individual businesses may have relevant data to supplement our analysis. AMS encourages small stakeholders to submit any relevant comments and data during the comment period.</P>
                <HD SOURCE="HD2">E. Executive Order 13175—Consultation and Coordination With Indian Tribal Governments</HD>
                <P>Executive Order 13175 requires Federal agencies to consult with Indian Tribes on a government-to-government basis on policies that have Tribal implications. This includes regulations, legislative comments or proposed legislation, and other policy statements or actions. Consultation is required when such policies have substantial direct effects on one or more Indian Tribes, on the relationship between the Federal Government and Indian Tribes, or the distribution of power and responsibilities between the Federal Government and Indian Tribes. The following is a summary of activity to date.</P>
                <P>AMS engaged in a Tribal Consultation in conjunction with a previous proposed rule also under the Act (“Inclusive Competition and Market Integrity Under the Packers and Stockyards Act,” 87 FR 60010) on January 19, 2023, in person in Tulsa, Oklahoma, and virtually. AMS received multiple Tribal comments from that Consultation, many of which were specific to and considered in that rulemaking. In that consultation, Tribes raised legal concerns with respect to the jurisdiction of the AMS enforcement of the P&amp;S Act. Tribes commented that the P&amp;S Act does not apply to Tribes and Tribal entities. Those comments raise a legal issue of statutory interpretation, but these concerns are not directly implicated by this proposed rule. Additionally, the proposed rule would provide a framework for AMS analysis of unfair practices and does not mandate specific changes to particularly identified practices. Therefore, other than the legal issue AMS does not find that this rulemaking carries substantial direct Tribal implications.</P>
                <P>
                    AMS recognizes and supports the Secretary's desire to incorporate Tribal 
                    <PRTPAGE P="53910"/>
                    and Indigenous perspectives, remove barriers, and encourage Tribal self-determination principles in USDA programs, including hearing and understanding Tribal views on legal authorities and cost implications as facts and circumstances develop. If a Tribe requests additional consultation, AMS will work with USDA's Office of Tribal Relations to ensure meaningful consultation is provided in accordance with Executive Order 13175.
                </P>
                <HD SOURCE="HD2">F. Executive Order 12988—Civil Justice Reform</HD>
                <P>This proposed rule has been reviewed under Executive Order 12988—Civil Justice Reform. This proposed rule is not intended to have a retroactive effect. If adopted, this proposed rule would not preempt any State or local laws, regulations, or policies unless they present an irreconcilable conflict with this rulemaking. There are no administrative procedures that must be exhausted prior to any judicial challenge to the provisions of this rulemaking.</P>
                <HD SOURCE="HD2">G. Civil Rights Impact Analysis</HD>
                <P>AMS has considered the potential civil rights implications of this proposed rule on members of protected groups to ensure that no person or group would be adversely or disproportionately at risk or discriminated against on the basis of race, color, national origin, gender, religion, age, disability, sexual orientation, marital or family status, or protected genetic information. This proposed rule does not contain any requirements related to eligibility, benefits, or services that would have the purpose or effect of excluding, limiting, or otherwise disadvantaging any individual, group, or class of persons on one or more prohibited bases.</P>
                <P>In its review, AMS conducted a Civil Rights Impact Analysis, which resulted in a finding that Asian, and Native Hawaiians or Other Pacific Islanders could be disproportionately impacted by this proposed rule, insofar as fewer farmers in those groups participate in livestock and poultry production than would be expected by their representation among U.S. farmers in general and, therefore, are less likely to benefit from the enhanced protections provided by this proposed rule. Other impacted farmers, including men, women, Hispanics, Whites, Black/African Americans, and American Indians would not be disproportionately impacted by this proposed rule.</P>
                <P>The effects of this proposed regulation would fall on slaughtering packers, swine contractors and live poultry dealers. The primary beneficiaries of proposed § 201.308 would include farmers, feedlot owners, swine production contract growers, and poultry growers. These producers and growers are those most likely harmed by unfair and deceptive practices resulting from the actions or conduct of firms subject to the P&amp;S Act.</P>
                <P>Protected groups would see minimal, if any, direct or indirect costs because of the implementation or enforcement of the new regulation. Although the required analysis indicates a disproportionate impact for Asian, and Native Hawaiians or Other Pacific Islanders, because the new regulation would impact all industry participants equally, no individual or group would likely be adversely impacted.</P>
                <HD SOURCE="HD2">H. E-Government Act</HD>
                <P>USDA is committed to complying with the E-Government Act by promoting the use of the internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes.</P>
                <HD SOURCE="HD2">I. Unfunded Mandates Reform Act</HD>
                <P>Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L. 104-4) requires Federal agencies to assess the effects of their regulatory actions of State, local, and Tribal governments, or the private sector. Agencies generally must prepare a written statement, including cost benefits analysis, for proposed and final rules with Federal mandates that may result in expenditures of $100 million or more (adjusted for inflation) in any 1 year for State, local or Tribal governments, in the aggregate, or to the private sector. UMRA generally requires agencies to consider alternatives and adopt the more cost effective or least burdensome alternative that achieves the objectives of the rulemaking. This proposed rule contains no Federal mandates, as defined in title II of UMRA, for State, local, and Tribal governments, or the private sector. Therefore, this proposed rule is not subject to the requirements of sections 202 and 205 of UMRA.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 9 CFR Part 201</HD>
                    <P>Confidential business information, Reporting and recordkeeping requirements, Stockyards, Surety bonds, Trade practices.</P>
                </LSTSUB>
                <P>For the reasons set forth in the preamble, AMS proposes to amend 9 CFR part 201 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 201—ADMINISTERING THE PACKERS AND STOCKYARDS ACT</HD>
                </PART>
                <AMDPAR>1. The authority citation for part 201 continues to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P> 7 U.S.C. 181-229c.</P>
                </AUTH>
                <AMDPAR>2. Add § 201.308 to read as follows:</AMDPAR>
                <SECTION>
                    <SECTNO>§ 201.308</SECTNO>
                    <SUBJECT> Unfair practices and devices.</SUBJECT>
                    <P>
                        (a) 
                        <E T="03">Unfair practices with respect to market participants.</E>
                         An act by a regulated entity with respect to one or more market participants is an unfair practice for the purposes of section 202(a) of the Packers and Stockyards Act, 1921 as amended and supplemented (7 U.S.C. 192(a)) if the act causes or is likely to cause substantial injury to one or more market participants, which the participant or participants cannot reasonably avoid, and which the regulated entity that has engaged in the act cannot justify by establishing countervailing benefits to the market participant or participants or to competition in the market that outweighs the substantial injury or likelihood of substantial injury.
                    </P>
                    <P>
                        (b) 
                        <E T="03">Standards with respect to market participants.</E>
                         When assessing whether a practice under paragraph (a) of this section causes or is likely to cause substantial injury, and therefore the Secretary must halt the practice, the Secretary may consider:
                    </P>
                    <P>(1) The extent to which the practice may impede or restrict the ability to participate in a market, interfere with the free exercise of decision-making by market participants, tend to subvert the operation of competitive market forces, deny a covered producer the full value of their products or services, or violates traditional doctrines of law or equity.</P>
                    <P>(2) The potential magnitude of the injury. An injury may be substantial if it causes significant harm to one market participant or if it imposes a small harm to many market participants.</P>
                    <P>(3) The extent to which the producer would have to take unreasonable steps to avoid injury. An injury is not reasonably avoidable solely because the practice has been disclosed. A market participant is not required to take unreasonable steps, such as exiting the market or making unreasonable additional investments or efforts, to avoid the harm.</P>
                    <P>
                        (c) 
                        <E T="03">Unfair practices with respect to markets.</E>
                         A practice is unfair for the purposes of section 202(a) of the Packers Stockyards Act, 1921, as amended and supplemented (7 U.S.C. 192(a)) if it is a collusive, coercive, predatory, restrictive, deceitful or exclusionary method of competition that may negatively affect competitive conditions.
                        <PRTPAGE P="53911"/>
                    </P>
                    <P>
                        (d) 
                        <E T="03">Standards with respect to markets.</E>
                         When assessing whether a practice poses or is likely to pose a threat to markets under paragraph (c) of this section, and therefore the Secretary must halt the practice, the Secretary may consider the following:
                    </P>
                    <P>(1) The extent to which the practice impedes or restricts the ability to participate in a market, tends to subvert the operation of competitive market forces, interferes with the free exercise of decision-making by market participants, violates traditional doctrines of law or equity, or has indicia of oppressiveness, such as evidence of anticompetitive intent or purpose, or absence of an independent legitimate business reason for the conduct.</P>
                    <P>(2) The extent to which the practice tends to foreclose or impair the opportunities of market participants, reduces competition between rivals, limits choice, distorts or impedes the process of competition, or denies a market participant the full value of their products or services.</P>
                </SECTION>
                <SIG>
                    <NAME>Melissa Bailey,</NAME>
                    <TITLE>Associate Administrator, Agricultural Marketing Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14042 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 39</CFR>
                <DEPDOC>[Docket No. FAA-2024-1695; Project Identifier AD-2023-00783-E]</DEPDOC>
                <RIN>RIN 2120-AA64</RIN>
                <SUBJECT>Airworthiness Directives; Lycoming Engines</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of proposed rulemaking (NPRM).</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The FAA proposes to adopt a new airworthiness directive (AD) for Lycoming Engines (Lycoming) model engines that have a certain connecting rod assemblies installed. This proposed AD was prompted by several reports of connecting rod failures, which resulted in uncontained engine failure and in-flight shutdowns (IFSDs). This proposed AD would require repetitive oil inspections for bronze metal particulates and, if found, additional inspections of the connecting rod bushings for damage, proper fit, movement, and wear, and replacement if necessary. As terminating action to the connecting rod bushing inspections, this proposed AD would require replacement of the connecting rod bushings with parts eligible for installation. The FAA is proposing this AD to address the unsafe condition on these products.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The FAA must receive comments on this proposed AD by August 12, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         (202) 493-2251.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery:</E>
                         Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        <E T="03">AD Docket:</E>
                         You may examine the AD docket at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2024-1695; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this NPRM, any comments received, and other information. The street address for Docket Operations is listed above.
                    </P>
                </ADD>
                <HD SOURCE="HD2">Material Incorporated by Reference</HD>
                <P>
                    • For service information, contact Lycoming Engines, 652 Oliver Street, Williamsport, PA 17701; phone: (800) 258-3279; website: 
                    <E T="03">lycoming.com/contact/knowledge-base/publications.</E>
                </P>
                <P>• You may view this service information at the FAA, Airworthiness Products Section, Operational Safety Branch, 1200 District Avenue, Burlington, MA 01803. For information on the availability of this material at the FAA, call (817) 222-5110.</P>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        James Delisio, Aviation Safety Engineer, FAA, 1701 Columbia Avenue, College Park, GA 30337; phone: (516) 228-7321; email: 
                        <E T="03">james.delisio@faa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Comments Invited</HD>
                <P>
                    The FAA invites you to send any written relevant data, views, or arguments about this proposal. Send your comments to an address listed under 
                    <E T="02">ADDRESSES</E>
                    . Include “Docket No. FAA-2024-1695; Project Identifier AD-2023-00783-E” at the beginning of your comments. The most helpful comments reference a specific portion of the proposal, explain the reason for any recommended change, and include supporting data. The FAA will consider all comments received by the closing date and may amend this proposal because of those comments.
                </P>
                <P>
                    Except for Confidential Business Information (CBI) as described in the following paragraph, and other information as described in 14 CFR 11.35, the FAA will post all comments received, without change, to 
                    <E T="03">regulations.gov,</E>
                     including any personal information you provide. The agency will also post a report summarizing each substantive verbal contact received about this NPRM.
                </P>
                <HD SOURCE="HD1">Confidential Business Information</HD>
                <P>CBI is commercial or financial information that is both customarily and actually treated as private by its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public disclosure. If your comments responsive to this NPRM contain commercial or financial information that is customarily treated as private, that you actually treat as private, and that is relevant or responsive to this NPRM, it is important that you clearly designate the submitted comments as CBI. Please mark each page of your submission containing CBI as “PROPIN.” The FAA will treat such marked submissions as confidential under the FOIA, and they will not be placed in the public docket of this NPRM. Submissions containing CBI should be sent to James Delisio, Aviation Safety Engineer, FAA, 1701 Columbia Avenue, College Park, GA 30337. Any commentary that the FAA receives which is not specifically designated as CBI will be placed in the public docket for this rulemaking.</P>
                <HD SOURCE="HD1">Background</HD>
                <P>The FAA received five reports of uncontained engine failures and IFSDs due to failed connecting rods on various models of Lycoming reciprocating engines that were overhauled or repaired using any replacement part listed in Table 2 of Lycoming Mandatory Service Bulletin (MSB) No. 632B, dated August 4, 2017 (MSB 632B), which was shipped from Lycoming during the dates listed in Table 2 of MSB 632B. As a result, the FAA issued AD 2017-16-11, Amendment 39-18988 (82 FR 37296, August 10, 2017) (AD 2017-16-11), which required an inspection of connecting rods and replacement of affected connecting rod small end bushings.</P>
                <P>
                    Since the FAA issued AD 2017-16-11, a manufacturer investigation determined that affected connecting rod small end bushings may be installed on 
                    <PRTPAGE P="53912"/>
                    additional populations of Lycoming engines. The manufacturer also determined that degradation of the connecting rod small end bushings is detectable during oil change inspections. This condition, if not corrected, could result in connecting rod failure with consequent uncontained engine failure, total engine power loss, IFSD, and possible loss of the airplane.
                </P>
                <HD SOURCE="HD1">FAA's Determination</HD>
                <P>The FAA is issuing this NPRM after determining that the unsafe condition described previously is likely to exist or develop on other products of the same type design.</P>
                <HD SOURCE="HD1">Related Service Information Under 1 CFR Part 51</HD>
                <P>
                    The FAA reviewed Lycoming MSB No. 630A, dated June 13, 2017, which specifies procedures for inspection of the connecting rod bushings for damage, proper fit, movement, and wear. This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in 
                    <E T="02">ADDRESSES</E>
                    .
                </P>
                <HD SOURCE="HD1">Proposed AD Requirements in This NPRM</HD>
                <P>
                    This proposed AD would require repetitive oil inspections for bronze metal particulates and, if found, additional inspections of the connecting rod bushings for damage (
                    <E T="03">e.g.</E>
                     deterioration, missing metal), proper fit, movement, and wear, and replacement if necessary. As terminating action to the connecting rod bushing inspections, this proposed AD would require replacement of the connecting rod bushings with parts eligible for installation.
                </P>
                <HD SOURCE="HD1">Costs of Compliance</HD>
                <P>The FAA estimates that this AD, if adopted as proposed, would affect 16,000 engines installed on airplanes of U.S. registry.</P>
                <P>The FAA estimates the following costs to comply with this proposed AD:</P>
                <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,r50,12,12,12">
                    <TTITLE>Estimated Costs</TTITLE>
                    <BOXHD>
                        <CHED H="1">Action</CHED>
                        <CHED H="1">Labor cost</CHED>
                        <CHED H="1">Parts cost</CHED>
                        <CHED H="1">
                            Cost per
                            <LI>product</LI>
                        </CHED>
                        <CHED H="1">Cost on U.S. operators</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Inspect oil</ENT>
                        <ENT>2 work-hours × $85 per hour = $170</ENT>
                        <ENT>$65</ENT>
                        <ENT>$235</ENT>
                        <ENT>$3,760,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Inspect connecting rod bushings</ENT>
                        <ENT>1 work-hour × $85 per hour = $85</ENT>
                        <ENT>0</ENT>
                        <ENT>85</ENT>
                        <ENT>1,360,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Replace connecting rod bushings (per bushing)</ENT>
                        <ENT>4.5 work-hours × $85 per hour = $382</ENT>
                        <ENT>380</ENT>
                        <ENT>762</ENT>
                        <ENT>12,192,000</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII: Aviation Programs, describes in more detail the scope of the Agency's authority.</P>
                <P>The FAA is issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701: General requirements. Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
                <HD SOURCE="HD1">Regulatory Findings</HD>
                <P>The FAA determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
                <P>For the reasons discussed above, I certify this proposed regulation:</P>
                <P>(1) Is not a “significant regulatory action” under Executive Order 12866,</P>
                <P>(2) Would not affect intrastate aviation in Alaska, and</P>
                <P>(3) Would not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
                    <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Proposed Amendment</HD>
                <P>Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
                </PART>
                <AMDPAR>1. The authority citation for part 39 continues to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P>49 U.S.C. 106(g), 40113, 44701.</P>
                </AUTH>
                <SECTION>
                    <SECTNO>§ 39.13</SECTNO>
                    <SUBJECT> [Amended]</SUBJECT>
                </SECTION>
                <AMDPAR>2. The FAA amends § 39.13 by adding the following new airworthiness directive:</AMDPAR>
                <EXTRACT>
                    <FP SOURCE="FP-2">
                        <E T="04">Lycoming Engines:</E>
                         Docket No. FAA-2024-1695; Project Identifier AD-2023-00783-E.
                    </FP>
                    <HD SOURCE="HD1">(a) Comments Due Date</HD>
                    <P>The FAA must receive comments on this airworthiness directive (AD) by August 12, 2024.</P>
                    <HD SOURCE="HD1">(b) Affected ADs</HD>
                    <P>None.</P>
                    <HD SOURCE="HD1">(c) Applicability</HD>
                    <P>This AD applies to Lycoming Engines (Lycoming) model engines that have an affected part and part number (P/N) installed and are assembled within the ship date range, as specified in Table 1 to paragraph (c) of this AD.</P>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s50,r50,10">
                        <TTITLE>
                            Table 1 to Paragraph (
                            <E T="01">c</E>
                            )—Affected P/Ns
                        </TTITLE>
                        <BOXHD>
                            <CHED H="1">P/N</CHED>
                            <CHED H="1">Affected part</CHED>
                            <CHED H="1">Ship date range</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">LW-13923</ENT>
                            <ENT>Connecting Rod Bushing</ENT>
                            <ENT>01/30/2009-11/17/2015</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">LW-11750</ENT>
                            <ENT>Connecting Rod Assembly</ENT>
                            <ENT>01/30/2009-11/19/2015</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">78030</ENT>
                            <ENT>Connecting Rod Assembly</ENT>
                            <ENT>01/30/2009-03/31/2016</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">LW-19332</ENT>
                            <ENT>Connecting Rod Assembly</ENT>
                            <ENT>01/30/2009-01/03/2016</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">LW-13865</ENT>
                            <ENT>Connecting Rod Assembly</ENT>
                            <ENT>01/30/2009-02/14/2017</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">77450</ENT>
                            <ENT>Connecting Rod Assembly</ENT>
                            <ENT>01/30/2009-02/14/2017</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">LW-13422</ENT>
                            <ENT>Connecting Rod Assembly</ENT>
                            <ENT>01/30/2009-02/14/2017</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">LW-13937</ENT>
                            <ENT>Connecting Rod Assembly</ENT>
                            <ENT>01/30/2009-02/14/2017</ENT>
                        </ROW>
                        <ROW>
                            <PRTPAGE P="53913"/>
                            <ENT I="01">LW-15288</ENT>
                            <ENT>Connecting Rod Assembly</ENT>
                            <ENT>01/30/2009-02/14/2017</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>
                        <E T="03">Note 1 to paragraph (c):</E>
                         The affected parts are known to be installed on Lycoming Model AEIO-320 series, AEIO-360 series, AEIO-390 series, AEIO-540 series, AEIO-580-B1A, AIO-320 series, AIO-360 series, HIO-360 series, HIO-390-A1A, HIO-540-A1A, HO-360 series, IO-320 series, IO-360 series, IO-390 series, IO-540 series, IVO-360-A1A, IVO-540-A1A, LHIO-360 series, LIO-320 series, LIO-360 series, LO-360 series, LTIO-540 series, LTO-360 series, O-233-A1, O-235 series, O-320 series, O-340 series, O-360 series, O-435 series, O-540 series, SO-580 series, TEO-540 series, TIGO-541 series, TIO-360 series, TIO-540 series, TIO-541 series, TIVO-540-A2A, TO-360 series, TVO-435 series, TVO-540-A1A, VO-360 series, VO-435 series, VO-540 series, and VSO-580-A1A engines.
                    </P>
                    <HD SOURCE="HD1">(d) Subject</HD>
                    <P>Joint Aircraft System Component (JASC) Code 8500, Engine (Reciprocating).</P>
                    <HD SOURCE="HD1">(e) Unsafe Condition</HD>
                    <P>This AD was prompted by several reports of connecting rod failures resulting in uncontained engine failure and in-flight shutdowns (IFSDs). The FAA is issuing this AD to prevent connecting rod failure. The unsafe condition, if not addressed, could result in engine failure, an IFSD, and loss of control of the aircraft.</P>
                    <HD SOURCE="HD1">(f) Compliance</HD>
                    <P>Comply with this AD within the compliance times specified, unless already done.</P>
                    <HD SOURCE="HD1">(g) Required Actions</HD>
                    <P>(1) At the next oil change or within 4 months after the effective date of this AD, whichever occurs first, and thereafter at every oil change until the bushing replacement required by either paragraph (g)(3) or (4) of this AD is done, perform a visual inspection of the engine oil filter, oil pressure screen, and oil suction screen (depending on the engine configuration) for bronze metal particulates. The actions required by this paragraph may be performed by the owner/operator (pilot) holding at least a private pilot certificate and must be entered into the aircraft records showing compliance with this AD in accordance with 14 CFR 43.9(a) and 91.417(a)(2)(v). The record must be maintained as required by 14 CFR 91.417, 121.380, or 135.439.</P>
                    <P>
                        <E T="03">Note 2 to paragraph (g)(1):</E>
                         Guidance for engine oil filter, oil pressure screen, and oil suction screen inspection instructions and identification of metallic solids may be found in Lycoming Mandatory Service Bulletin (MSB) No. 480F, dated May 25, 2017 (MSB 480F).
                    </P>
                    <P>
                        (2) If, during any inspection required by paragraph (g)(1) of this AD, any bronze metal particulates are found and the source is identified as the connecting rod bushings, before further flight, inspect all affected connecting rod bushings for damage (
                        <E T="03">e.g.</E>
                         deterioration, missing metal), proper fit, movement, and wear in accordance with “Connecting Rod Bushing Inspection,” of Lycoming MSB 630A, dated June 13, 2017.
                    </P>
                    <P>
                        <E T="03">Note 3 to paragraph (g)(2):</E>
                         Guidance for identifying the source of metallic contamination may be found in Table 3 of MSB 480F.
                    </P>
                    <P>(3) If the connecting rod bushings fail any inspection required by paragraph (g)(2) of this AD, before further flight, replace the connecting rod bushings with parts eligible for installation. This terminates the repetitive inspection required by paragraph (g)(1) of this AD.</P>
                    <P>(4) At the next engine overhaul, replace the connecting rod bushings with parts eligible for installation. This terminates the repetitive inspection required by paragraph (g)(1) of this AD.</P>
                    <HD SOURCE="HD1"> (h) Definition</HD>
                    <P>For the purpose of this AD, a “part eligible for installation” is any connecting rod bushing having P/N 01K28983.</P>
                    <HD SOURCE="HD1"> (i) Credit for Previous Actions</HD>
                    <P>You may take credit for the actions required by paragraph (g)(1) of this AD if you performed those actions before the effective date of this AD using MSB 480F.</P>
                    <HD SOURCE="HD1"> (j) Alternative Methods of Compliance (AMOCs)</HD>
                    <P>
                        (1) The Manager, East Certification Branch, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the manager of the branch office, send it to the attention of the person identified in paragraph (k)(1) of this AD and email to: 
                        <E T="03">9-avs-nyaco-cos@faa.gov.</E>
                    </P>
                    <P>(2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office.</P>
                    <HD SOURCE="HD1"> (k) Additional Information</HD>
                    <P>
                        (1) For more information about this AD, contact James Delisio, Aviation Safety Engineer, FAA, 1701 Columbia Avenue, College Park, GA 30337; phone: (516) 228-7321; email: 
                        <E T="03">james.delisio@faa.gov.</E>
                    </P>
                    <P>(2) Service information identified in this AD that is not incorporated by reference is available at the address specified in paragraph (l)(3) of this AD.</P>
                    <HD SOURCE="HD1"> (l) Material Incorporated by Reference</HD>
                    <P>(1) The Director of the Federal Register approved the incorporation by reference (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.</P>
                    <P>(2) You must use this service information as applicable to do the actions required by this AD, unless the AD specifies otherwise.</P>
                    <P>(i) Lycoming Engines Mandatory Service Bulletin No. 630A, dated June 13, 2017.</P>
                    <P>(ii) [Reserved]</P>
                    <P>
                        (3) For service information identified in this AD, contact Lycoming Engines, 652 Oliver Street, Williamsport, PA 17701; phone: (800) 258-3279; website: 
                        <E T="03">lycoming.com/contact/knowledge-base/publications.</E>
                    </P>
                    <P>(4) You may view this service information at FAA, Airworthiness Products Section, Operational Safety Branch, 1200 District Avenue, Burlington, MA 01803. For information on the availability of this material at the FAA, call (817) 222-5110.</P>
                    <P>
                        (5) You may view this material at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, visit 
                        <E T="03">www.archives.gov/federal-register/cfr/ibr-locations</E>
                         or email 
                        <E T="03">fr.inspection@nara.gov.</E>
                    </P>
                </EXTRACT>
                <SIG>
                    <DATED>Issued on June 21, 2024.</DATED>
                    <NAME>Victor Wicklund,</NAME>
                    <TITLE>Deputy Director, Compliance &amp; Airworthiness Division, Aircraft Certification Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14100 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="N">POSTAL SERVICE</AGENCY>
                <CFR>39 CFR Part 111</CFR>
                <SUBJECT>OEL and Carrier Route Information Lines</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Proposed rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Postal Service is proposing to amend 
                        <E T="03">Mailing Standards of the United States Postal Service,</E>
                         Domestic Mail Manual (DMM®) to revise the requirements for using optional endorsement lines (OEL) or carrier route information lines on USPS Marketing Mail carrier route letters.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit comments on or before July 29, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Mail or deliver written comments to the Director, Product Classification, U.S. Postal Service, 475 L'Enfant Plaza SW, Room 4446, Washington, DC 20260-5015. If sending comments by email, include the name and address of the commenter and send to 
                        <E T="03">PCFederalRegister@usps.gov,</E>
                         with a subject line of “OEL and Carrier Route Information Lines”. Faxed comments are not accepted.
                    </P>
                    <P>You may inspect and photocopy all written comments, by appointment only, at USPS® Headquarters Library, 475 L'Enfant Plaza SW, 11th Floor North, Washington, DC, 20260. These records are available for review on Monday through Friday, 9 a.m.-4 p.m., by calling 202-268-2906.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Dale Kennedy at (202) 268-6592 or Doriane Harley at (202) 268-2537.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <PRTPAGE P="53914"/>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>All submitted comments and attachments are part of the public record and subject to disclosure. Do not enclose any material in your comments that you consider to be confidential or inappropriate for public disclosure.</P>
                <P>Currently, the standards in DMM section 203.4.8.1 do not require the use of optional endorsement lines or carrier route information lines on USPS Marketing Mail letters in full carrier route trays.</P>
                <P>The Postal Service is proposing to amend the standards in DMM section 203.8.1 to require optional endorsement lines or carrier route information lines on all USPS Marketing Mail carrier route letters.</P>
                <P>The Postal Service is proposing to implement this change effective August 25, 2024.</P>
                <P>We believe that the proposed revision will provide consistency and clarity for carrier route mail preparation.</P>
                <P>
                    Although exempt from the notice and comment requirements of the Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed rulemaking by 39 U.S.C. 410(a), the Postal Service invites public comment on the following proposed revisions to 
                    <E T="03">Mailing Standards of the United States Postal Service,</E>
                     Domestic Mail Manual (DMM), incorporated by reference in the Code of Federal Regulations.
                </P>
                <P>We will publish an appropriate amendment to 39 CFR part 111 to reflect these changes.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 39 CFR Part 111</HD>
                    <P>Administrative practice and procedure, Postal Service.</P>
                </LSTSUB>
                <P>Accordingly, the Postal Service proposes the following changes to Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM), incorporated by reference in the Code of Federal Regulations (see 39 CFR 111.1):</P>
                <PART>
                    <HD SOURCE="HED">PART 111—[AMENDED]</HD>
                </PART>
                <AMDPAR>1. The authority citation for 39 CFR part 111 continues to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P> 5 U.S.C. 552(a); 13 U.S.C. 301-307; 18 U.S.C. 1692-1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219, 3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001.</P>
                </AUTH>
                <AMDPAR>
                    2. Revise the 
                    <E T="03">Mailing Standards of the United States Postal Service,</E>
                     Domestic Mail Manual (DMM) as follows:
                </AMDPAR>
                <HD SOURCE="HD1">Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM)</HD>
                <STARS/>
                <HD SOURCE="HD1">200 Commercial Letters, Cards, Flats, and Parcels</HD>
                <STARS/>
                <HD SOURCE="HD1">203 Basic Postage Statement, Documentation, and Preparation Standards</HD>
                <STARS/>
                <HD SOURCE="HD1">8.0 Carrier Route Information Lines</HD>
                <HD SOURCE="HD1">8.1 Basic Information</HD>
                <P>
                    <E T="03">[Revise the last sentence of 8.1 to read as follows:]</E>
                </P>
                <P>* * * Mailers must use optional endorsement lines or carrier route information lines on all pieces in mailings of USPS Marketing Mail letters prepared under 245.6.7.</P>
                <STARS/>
                <SIG>
                    <NAME>Ruth Stevenson,</NAME>
                    <TITLE>Attorney, Ethics and Legal Compliance.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-13942 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <CFR>39 CFR Part 111</CFR>
                <SUBJECT>Parcel Processing Categories Simplification</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Proposed rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Postal Service is proposing to amend 
                        <E T="03">Mailing Standards of the United States Postal Service,</E>
                         Domestic Mail Manual (DMM®) in various sections to simplify the parcel processing categories.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit comments on or before July 29, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Mail or deliver written comments to the manager, Product Classification, U.S. Postal Service, 475 L'Enfant Plaza SW, Room 4446, Washington, DC 20260-5015. If sending comments by email, include the name and address of the commenter and send to 
                        <E T="03">PCFederalRegister@usps.gov,</E>
                         with a subject line of “Parcel Processing Categories”. Faxed comments are not accepted.
                    </P>
                    <P>You may inspect and photocopy all written comments, by appointment only, at USPS® Headquarters Library, 475 L'Enfant Plaza SW, 11th Floor North, Washington, DC, 20260. These records are available for review on Monday through Friday, 9 a.m.-4 p.m., by calling 202-268-2906.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Steven Jarboe at (202) 268-7690, or Garry Rodriguez at (202) 268-7281.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>All submitted comments and attachments are part of the public record and subject to disclosure. Do not enclose any material in your comments that you consider to be confidential or inappropriate for public disclosure.</P>
                <P>Currently, the Postal Service has three parcel processing categories: machinable, irregular, and nonmachinable. The Postal Service is proposing to simplify the parcel processing categories by making revisions to the physical standards of the machinable processing category and consolidating the irregular and nonmachinable processing categories and renaming it “Nonstandard Parcels”.</P>
                <P>
                    The Postal Service is proposing to revise the “machinable” processing category by removing the minimum size dimensions requirement and, except for USPS Marketing Mail parcels, the minimum weight requirement. Except for cylindrical tubes and rolls or similar shaped pieces, and for labeling requirements in Publication 52, 
                    <E T="03">Hazardous, Restricted, and Perishable Mail,</E>
                     the minimum size of a machinable parcel will be determined by if it is large enough to hold the required delivery address, return address, mailing labels, postage, barcode, endorsements, and other mail markings on a single optical plane without bending, folding, or overlapping. All labels and markings must meet the applicable specifications (
                    <E T="03">e.g.,</E>
                     DMM, Publication 199, Parcel Labeling Guide). A parcel that does not meet this requirement will be considered nonmailable. Except for USPS Marketing Mail parcels, which will continue to have the 3.5 ounce minimum to be a machinable parcel, the minimum weight requirement for other parcels will no longer be a factor in determining machinability.
                </P>
                <P>
                    The proposed “Nonstandard Parcels” processing category will continue to have a size and weight component that will consist of parcels that exceed the maximum dimensions of a machinable parcel, parcels that weigh less than the 3.5-ounce minimum weight for USPS Marketing Mail parcels only, and parcels that exceed the 25 pound maximum weight for a machinable parcel. The “Nonstandard Parcels” processing category will also have a “Characteristics” component that will define the criteria that will be used to determine if a parcel is nonstandard (
                    <E T="03">e.g.,</E>
                     cylindrical tubes and rolls, packaging). The “Characteristics” component of “Nonstandard Parcels” will be supported by DMM sections 601.3.0, 
                    <E T="03">Packaging,</E>
                     and 601.4.0, 
                    <E T="03">Acceptable Mailing Containers.</E>
                     The packaging criteria in DMM section 601.7.0, 
                    <E T="03">
                        Packaging Standards for Mail Processed at Network Distribution 
                        <PRTPAGE P="53915"/>
                        Centers,
                    </E>
                     will be consolidated into DMM section 601.3.0. The Postal Service is also proposing to revise the packaging standards under DMM section 601.3.0 to include that except for hazardous, restricted, and perishable items as provided in Publication 52, all other parcel priced pieces must be packaged in a box or other acceptable container that meets the applicable standards under DMM sections 601.3.0 and 601.4.0.
                </P>
                <P>The proposed revisions to parcel processing categories will not affect the Priority Mail Express®, Priority Mail®, USPS Ground Advantage®, or USPS Connect® Local, products. The proposed revisions will result in no minimum size dimensions requirement, except for USPS Marketing Mail no minimum weight requirements, and a nomenclature change, for parcel preparation under the Parcel Select® Destination Entry, Library Mail, Media Mail®, Bound Printed Matter, Periodicals, and USPS Marketing Mail parcels (regular and nonprofit) products.</P>
                <P>In addition, the Postal Service is also proposing to make minor revisions to the “Additional Physical Standards” subsections under DMM 101 and 201 to remove redundancy.</P>
                <P>
                    The Postal Service intends to notify the Postal Regulatory Commission (PRC) of these revisions for updates to the Mail Classification Schedule in a future filing. The Postal Service also intends to revise all collateral material (
                    <E T="03">e.g.,</E>
                     Notice 123, Price List) in a future update.
                </P>
                <HD SOURCE="HD1">Proposed Effective Date</HD>
                <P>The Postal Service is proposing to have November 1, 2024, as the effective date. However, sack, tray, and pallet, label compliance would not be in effect until January 19, 2025.</P>
                <P>We believe these proposed revisions will simplify the parcel processing categories providing mailers with a more efficient process for shipping.</P>
                <P>
                    Although exempt from the notice and comment requirements of the Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed rulemaking by 39 U.S.C. 410(a), the Postal Service invites public comment on the proposed revisions to 
                    <E T="03">Mailing Standards of the United States Postal Service,</E>
                     Domestic Mail Manual (DMM), incorporated by reference in the Code of Federal Regulations.
                </P>
                <P>We will publish an appropriate amendment to 39 CFR part 111 to reflect these changes.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 39 CFR Part 111</HD>
                    <P>Administrative practice and procedure, Postal Service.</P>
                </LSTSUB>
                <P>Accordingly, the Postal Service proposes the following changes to Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM), incorporated by reference in the Code of Federal Regulations (see 39 CFR 111.1):</P>
                <PART>
                    <HD SOURCE="HED">PART 111—[AMENDED]</HD>
                </PART>
                <AMDPAR>1. The authority citation for 39 CFR part 111 continues to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P> 5 U.S.C. 552(a); 13 U.S.C. 301-307; 18 U.S.C. 1692-1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219, 3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001.</P>
                </AUTH>
                <AMDPAR>
                    2. Revise the 
                    <E T="03">Mailing Standards of the United States Postal Service,</E>
                     Domestic Mail Manual (DMM) as follows:
                </AMDPAR>
                <HD SOURCE="HD1">Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM)</HD>
                <STARS/>
                <HD SOURCE="HD1">100 Retail Mail Letters, Cards, Flats, and Parcels</HD>
                <HD SOURCE="HD1">101 Physical Standards</HD>
                <STARS/>
                <HD SOURCE="HD1">3.0 Physical Standards for Parcels</HD>
                <HD SOURCE="HD1">3.1 Processing Categories</HD>
                <P>[Revise the text of 3.1 to read as follows:]</P>
                <P>USPS categorizes parcels into one of two mail processing categories: machinable or nonstandard parcel. These categories are based on the physical dimensions of the parcel, and the placement of the delivery address and all required labels on the parcel (see 601.1.1.5 for mailabilty). For additional information on the machinable and nonstandard processing categories see 201.7.0.</P>
                <P>[Revise the heading and text of 3.2 to read as follows:]</P>
                <HD SOURCE="HD1">3.2 Size and Weight</HD>
                <HD SOURCE="HD1">3.2.1 Size</HD>
                <P>Parcel sizes are as follows:</P>
                <P>
                    a. 
                    <E T="03">Minimum size:</E>
                     Except for cylindrical tubes and rolls or similar shaped pieces and labeling exceptions in Publication 52, all parcels must be large enough to hold the required delivery address, return address, mailing labels, postage, barcode, endorsements, and other mail markings on a single optical plane without bending, folding, or overlapping (see 601.1.1.5). All labels and markings must meet the applicable specifications (
                    <E T="03">e.g.,</E>
                     DMM, Publication 199, Parcel Labeling Guide).
                </P>
                <P>
                    b. 
                    <E T="03">Maximum size:</E>
                     Except for USPS Ground Advantage—Retail, which may not measure more than 130 inches in length and girth combined, no mailpiece may measure more than 108 inches in length and girth combined. For parcels, length is the distance of the longest dimension and girth is the distance around the thickest part.
                </P>
                <HD SOURCE="HD1">3.2.2 Weight</HD>
                <P>Except as provided under 4.0 through 7.0, no mailpiece may weigh more than 70 pounds.</P>
                <STARS/>
                <HD SOURCE="HD1">4.0 Additional Physical Standards for Priority Mail Express</HD>
                <P>[Revise the text of 4.0 to read as follows:]</P>
                <P>Lower size and weight standards than provided under 3.2 may apply to Priority Mail Express addressed to certain APO/FPO and DPO mail subject to 703.2.0, and 703.4.0, and for Department of State mail subject to 703.3.0.</P>
                <HD SOURCE="HD1">5.0 Additional Physical Standards for Priority Mail</HD>
                <P>[Revise the text of 5.0 to read as follows:]</P>
                <P>Lower size and weight standards than provided under 3.2 may apply to Priority Mail addressed to certain APO/FPO and DPO mail subject to 703.2.0, and 703.4.0, and for Department of State mail subject to 703.3.0.</P>
                <HD SOURCE="HD1">6.0 Additional Physical Standards for First-Class Mail and USPS Ground Advantage—Retail</HD>
                <HD SOURCE="HD1">6.1 Maximum Weight</HD>
                <P>[Delete the heading 6.1.1 and move revised text under 6.1 to read as follows:]</P>
                <P>First-Class Mail (letters and flats} must not exceed 13 ounces.</P>
                <P>[Delete 6.1.2, USPS Ground Advantage—Retail, in its entirety.]</P>
                <STARS/>
                <HD SOURCE="HD1">6.4 Parcels</HD>
                <P>[Revise the introductory text of 6.4 to read as follows:]</P>
                <P>A USPS Ground Advantage—Retail parcel is the following:</P>
                <STARS/>
                <P>[Delete item d in its entirety.]</P>
                <HD SOURCE="HD1">7.0 Additional Physical Standards for Media Mail and Library Mail</HD>
                <P>[Delete the introductory text and items a and b. Move the text of item c under 7.0 and revise as follows:]</P>
                <P>
                    Lower size and weight standards than provided under 3.2 may apply to Library Mail and Media Mail addressed to certain APOs and FPOs, subject to 
                    <PRTPAGE P="53916"/>
                    703.2.0 and 703.4.0 and for Department of State mail, subject to 703.3.0.
                </P>
                <STARS/>
                <HD SOURCE="HD1">120 Retail Mail Priority Mail</HD>
                <HD SOURCE="HD1">123 Prices and Eligibility</HD>
                <STARS/>
                <HD SOURCE="HD1">2.0 Basic Eligibility Standards for Priority Mail</HD>
                <HD SOURCE="HD1">2.1 Description of Service</HD>
                <P>[Revise the last sentence of 2.1 to read as follows:]</P>
                <P>
                    * * * Certain Priority Mail mailpieces, such as pieces containing hazardous material or considered nonstandard (
                    <E T="03">e.g.,</E>
                     oversized priced pieces and nonstandard fee-priced pieces), may receive deferred handling.
                </P>
                <STARS/>
                <HD SOURCE="HD1">130 Retail Mail First-Class Mail and USPS Ground Advantage—Retail</HD>
                <HD SOURCE="HD1">133 Prices and Eligibility</HD>
                <STARS/>
                <HD SOURCE="HD1">2.0 Basic Eligibility Standards for First-Class Mail and USPS Ground Advantage—Retail</HD>
                <HD SOURCE="HD1">2.1 Description of Service</HD>
                <P>
                    <E T="03">[Revise the last sentence of 2.1 to read as follows:]</E>
                </P>
                <P>
                    * * * Certain USPS Ground Advantage—Retail mailpieces, such as pieces containing hazardous material or considered nonstandard (
                    <E T="03">e.g.,</E>
                     oversized priced pieces and nonstandard fee-priced pieces), may receive deferred handling.
                </P>
                <STARS/>
                <HD SOURCE="HD1">200 Commercial Letters, Cards, Flats, and Parcels</HD>
                <HD SOURCE="HD1">201 Physical Standards</HD>
                <STARS/>
                <HD SOURCE="HD1">7.0 Physical Standards for Parcels</HD>
                <HD SOURCE="HD1">7.1 Processing Categories</HD>
                <P>
                    <E T="03">[Revise the text of 7.1 to read as follows:]</E>
                </P>
                <P>USPS categorizes parcels into one of two mail processing categories: machinable or nonstandard. These categories are based on the physical dimensions of the piece, and the placement of the delivery address and other required labels on the piece (see 601.1.1.5 for mailability).</P>
                <HD SOURCE="HD1">7.2 Minimum Size</HD>
                <P>
                    <E T="03">[Revise the text of 7.2 to read as follows:]</E>
                </P>
                <P>
                    Pieces are subject to the minimum standards in 7.5, and may be subject to other minimum dimensions, based on the standards for specific prices. Except for cylindrical tubes and rolls or similar shaped pieces and labeling exceptions in Publication 52, generally the minimum size of a parcel is any piece that is not a letter or a flat and must be large enough to hold the required delivery address, return address, mailing labels, postage, barcode, endorsements, and other mail markings on a single optical plane without bending, folding, or overlapping (see 601.1.1.5). All labels and markings must meet the applicable specifications (
                    <E T="03">e.g.,</E>
                     DMM, Publication 199, Parcel Labeling Guide).
                </P>
                <HD SOURCE="HD1">7.3 Maximum Weight and Size</HD>
                <HD SOURCE="HD1">7.3.1 Maximum Weight</HD>
                <P>
                    <E T="03">[Revise the text of 7.3.1 to read as follows:]</E>
                </P>
                <P>Except as provided under 8.0, no mailpiece may weigh more than 70 pounds.</P>
                <STARS/>
                <HD SOURCE="HD1">7.5 Machinable Parcels</HD>
                <HD SOURCE="HD1">7.5.1 Criteria</HD>
                <P>
                    <E T="03">[Delete the heading 7.5.1, Criteria, and move the text under 7.5. Revise the text of renumbered 7.5 to read as follows:]</E>
                </P>
                <P>A machinable parcel is any piece that is not a letter or a flat and that meets the size and weight standards as follows:</P>
                <P>
                    a. 
                    <E T="03">Minimum size:</E>
                     Except for cylindrical tubes and rolls or similar shaped pieces and labeling exceptions in Publication 52, a piece must be large enough to hold the required delivery address, return address, mailing labels, postage, barcode, endorsements, and other mail markings on a single optical plane without bending, folding, or overlapping (see 601.1.1.5). All labels and markings must meet the applicable specifications.
                </P>
                <P>
                    b. 
                    <E T="03">Maximum size:</E>
                     Not more than, 22 inches long, or 18 inches wide, or 15 inches high (see Exhibit 7.5.1b).
                </P>
                <P>
                    c. 
                    <E T="03">Minimum weight:</E>
                     USPS Marketing Mail parcels must weigh 3.5 ounces, all other parcel products no minimum weight.
                </P>
                <P>
                    d. 
                    <E T="03">Maximum weight:</E>
                     Not more than 25 pounds.
                </P>
                <P>[Revise Exhibit 7.5.1b reference number to read as follows:]</P>
                <HD SOURCE="HD1">Exhibit 7.5 Machinable Parcel Dimensions</HD>
                <P>
                    <E T="03">[Revise the graphic in renumbered Exhibit 7.5 by removing the image of the minimum size parcel.]</E>
                </P>
                <P>
                    <E T="03">[Delete 7.5.2, Criteria for Lightweight Machinable Parcels, 7.5.3, Soft Goods and Enveloped Printed Matter, and 7.5.4, Exception, in their entirety.]</E>
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading and text of 7.6 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">7.6 Nonstandard Parcels</HD>
                <HD SOURCE="HD1">7.6.1 Dimensions and Weight</HD>
                <P>A parcel is considered nonstandard by dimensions or weight as follows:</P>
                <P>
                    a. 
                    <E T="03">Dimensions:</E>
                     A parcel that measures more than 22 inches in length or 18 inches in width or 15 inches in height.
                </P>
                <P>
                    b. 
                    <E T="03">Weight:</E>
                     A USPS Marketing Mail parcel that weighs less than 3.5 ounces or any parcel that weighs more than 25 pounds.
                </P>
                <HD SOURCE="HD1">7.6.2 Characteristics</HD>
                <P>A parcel is considered nonstandard by the following characteristics:</P>
                <P>a. Cylindrical tubes or rolls.</P>
                <P>b. A can, or wooden or metal box.</P>
                <P>c. A parcel containing more than 24 ounces of liquid in glass containers, or 1 gallon or more of liquid in metal or plastic containers (see 601.3.4).</P>
                <P>d. An insecurely wrapped or inadequately prepared parcel as provided under 601.3.0 and 601.4.0.</P>
                <P>
                    <E T="03">[Delete 7.7, Nonmachinable Parcel, in its entirety.]</E>
                </P>
                <STARS/>
                <HD SOURCE="HD1">8.0 Additional Physical Standards by Class of Mail</HD>
                <P>
                    <E T="03">Revise the text of 8.1 and 8.2 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">8.1 Priority Mail Express</HD>
                <P>Lower size and weight standards than provided under 7.3 may apply to Priority Mail Express addressed to certain APO/FPO and DPO mail subject to 703.2.0 and 703.4.0, and for Department of State mail subject to 703.3.0.</P>
                <HD SOURCE="HD1">8.2 Priority Mail</HD>
                <P>
                    <E T="03">[Revise the text of 8.2 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">8.2.1 Weight and Size</HD>
                <P>Lower weight and size standards than provided under 7.3 may apply to Priority Mail addressed to certain APO/FPO and DPO mail subject to 703.2.0 and 703.4.0, and for Department of State mail subject to 703.3.0.</P>
                <HD SOURCE="HD1">8.2.2 Priority Mail Cubic</HD>
                <P>Priority Mail Cubic must not weigh more than 20 pounds. See 223.1.3 for additional information on size and characteristics.</P>
                <HD SOURCE="HD1">8.3 USPS Ground Advantage—Commercial Parcels</HD>
                <P>
                    <E T="03">[Delete 8.3.1, Weight, in its entirety and renumber 8.3.2 as 8.3.1.]</E>
                    <PRTPAGE P="53917"/>
                </P>
                <HD SOURCE="HD1">8.3.1 Size</HD>
                <P>[Revise the text of renumbered 8.3.1 to read as follows:]</P>
                <P>A USPS Ground Advantage—Commercial parcel is:</P>
                <STARS/>
                <P>
                    <E T="03">[Delete item d in its entirety.]</E>
                </P>
                <P>
                    <E T="03">[Add new 8.3.2 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">8.3.2 USPS Ground Advantage Commercial Cubic</HD>
                <P>USPS Ground Advantage Commercial Cubic must not weigh more than 20 pounds. See 285.1.3 for additional information on size and characteristics.</P>
                <HD SOURCE="HD1">8.4 USPS Marketing Mail Parcels</HD>
                <STARS/>
                <HD SOURCE="HD1">8.4.2 Size</HD>
                <P>
                    <E T="03">[Revise the text of 8.4.2 to read as follows:]</E>
                </P>
                <P>USPS Marketing Mail parcel dimensions are as follows:</P>
                <P>a. Regular Marketing parcels and Nonprofit Marketing parcels do not meet flat-size physical standards and must have the following characteristics:</P>
                <P>
                    1. 
                    <E T="03">Length:</E>
                     Not more than 12 inches. Minimum length must be 5 inches if the parcel is 
                    <FR>1/4</FR>
                     inch thick or less.
                </P>
                <P>
                    2. 
                    <E T="03">Height:</E>
                     Not more than 9 inches. Minimum height must be 3
                    <FR>1/2</FR>
                     inches if the parcel is 
                    <FR>1/4</FR>
                     inch thick or less.
                </P>
                <P>
                    3. 
                    <E T="03">Thickness:</E>
                     At least 0.009 inches and not more than 2 inches.
                </P>
                <P>4. An alternative addressing format, according to 602.3.0.</P>
                <P>b. Nonprofit Machinable Parcels and Nonprofit Nonstandard Parcels dimensions are as follows:</P>
                <P>1. Large enough to hold the required delivery address, return address, mailing labels, postage, barcode, endorsements, and other mail markings on the address side of the parcel.</P>
                <P>2. Not exceed 108 inches in length and girth.</P>
                <P>3. A Nonprofit Nonstandard Parcel is a parcel not meeting the criteria for machinable parcels as provided under 7.6.</P>
                <HD SOURCE="HD1">8.5 Parcel Select</HD>
                <P>
                    <E T="03">[Delete 8.5.1 and 8.5.2 and renumber 8.5.3 as 8.5.1.]</E>
                </P>
                <HD SOURCE="HD1">8.5.1 USPS Connect Local</HD>
                <P>
                    <E T="03">[Revise the text of renumbered 8.5.1 to read as follows:]</E>
                </P>
                <P>Pieces mailed at USPS Connect Local prices may not weigh more than 25 pounds.</P>
                <STARS/>
                <HD SOURCE="HD1">203 Basic Postage Statement, Documentation, and Preparation Standards</HD>
                <STARS/>
                <HD SOURCE="HD1">3.0 Standardized Documentation for First-Class Mail, Periodicals, USPS Marketing Mail, and Flat-Size Bound Printed Matter</HD>
                <STARS/>
                <HD SOURCE="HD1">3.3 Price Level Column Headings</HD>
                <P>The actual name of the price level (or abbreviation) is used for column headings required by 3.2 and shown below:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the introductory text of item b to read as follows:]</E>
                </P>
                <P>b. Presorted First-Class Mail, barcoded and nonbarcoded Periodicals flats, nonbarcoded Periodicals letters, and machinable, nonmachinable, and nonstandard, USPS Marketing Mail:</P>
                <P>PRICE  ABBREVIATION</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “ADC” line item in the “Price” column under item b to read as follows:]</E>
                </P>
                <P>ADC/RP&amp;DC [USPS Marketing Mail nonmachinable letters, flats, and nonstandard parcels, and all Periodicals]</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Mixed ADC” line item in the “Price” column under item b to read as follows:]</E>
                </P>
                <P>Mixed ADC [USPS Marketing Mail nonmachinable letters, flats, nonstandard parcels; and all Periodicals]</P>
                <STARS/>
                <P>c. Carrier Route Periodicals and Enhanced Carrier Route USPS Marketing Mail:</P>
                <P>PRICE  ABBREVIATION</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Saturation” and “High Density” line items to read as follows:]</E>
                </P>
                <P>Saturation [letters, flats, and nonstandard parcels]</P>
                <P>High Density [letters, flats, and nonstandard parcels]</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Basic” line item to read as follows:]</E>
                </P>
                <P>Basic [letters, flats, and nonstandard parcels]</P>
                <STARS/>
                <HD SOURCE="HD1">3.4 Sortation Level</HD>
                <P>The actual sortation level (or corresponding abbreviation) is used for the bundle, tray, sack, or pallet levels required by 3.2 and shown below:</P>
                <P>PRICE  ABBREVIATION</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “5-Digit Scheme Carrier Routes” line item to read as follows:]</E>
                </P>
                <P>5-Digit Scheme Carrier Routes [sacks/flat trays and pallets (Periodicals and USPS Marketing Mail flats); sacks and pallets (nonstandard parcels)]</P>
                <STARS/>
                <P>[Revise the “5-Digit Scheme Carrier Routes” line item to read as follows:]</P>
                <P>5-Digit Scheme [pallets, Periodicals flats and nonstandard parcels, USPS Marketing Mail flats, Bound Printed Matter flats]</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Merged 5-Digit Scheme” line item to read as follows:]</E>
                </P>
                <P>Merged 5-Digit Scheme [flat trays and pallets (Periodicals and USPS Marketing Mail flats); sacks and pallets (nonstandard parcels)]</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Merged 3-Digit” line item to read as follows:]</E>
                </P>
                <P>Merged 3-Digit [flat trays (Periodicals flats); sacks (nonstandard parcels)]</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “SCF” line item to read as follows:]</E>
                </P>
                <P>SCF [flat trays and pallets (Periodicals flats and USPS Marketing Mail); sacks and pallets (Bound Printed Matter and nonstandard parcels)]</P>
                <STARS/>
                <HD SOURCE="HD1">4.0 Bundles</HD>
                <STARS/>
                <HD SOURCE="HD1">4.10 Additional Standards for Unsacked/Untrayed Bundles Entered at DDU or S&amp;DC Facilities</HD>
                <P>
                    <E T="03">[Revise the introductory text of 4.10 to read as follows:]</E>
                </P>
                <P>Mailers may enter unsacked, untrayed, or nonpalletized bundles of carrier route, Periodicals, or USPS Marketing Mail flats and unsacked Bound Printed Matter (BPM) flats or nonstandard parcels (BPM only) at destination delivery units (DDUs) or sorting and delivery centers (DS&amp;DC) if all the following conditions are met:</P>
                <STARS/>
                <HD SOURCE="HD1">5.0 Letter and Flat Trays</HD>
                <STARS/>
                <HD SOURCE="HD1">5.12 Line 2 (Content Line)</HD>
                <P>Line 2 (content line) must meet these standards:</P>
                <STARS/>
                <P>
                    b. 
                    <E T="03">Codes:</E>
                     The codes shown below must be used as appropriate on Line 2 of tray, sack, and pallet labels.
                </P>
                <P>CONTENT TYPE  CODE</P>
                <STARS/>
                <P>
                    <E T="03">[Delete the “Irregular Parcels” line item.]</E>
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Mixed Machinable and Irregular Parcels” line item to read as follows:]</E>
                    <PRTPAGE P="53918"/>
                </P>
                <P>Mixed Machinable and Nonstandard Parcels  MACH &amp; NONSTD</P>
                <P>
                    <E T="03">[Revise the “Nonmachinable” line item to read as follows:]</E>
                </P>
                <P>Nonstandard  NONSTD</P>
                <STARS/>
                <HD SOURCE="HD1">7.0 Optional Endorsement Lines (OELs)</HD>
                <STARS/>
                <HD SOURCE="HD1">7.2.5 ZIP Code Information</HD>
                <STARS/>
                <HD SOURCE="HD1">Exhibit 7.2.5 OEL Labeling Lists</HD>
                <P>PROCESSING CATEGORY AND PRESORT TYPE</P>
                <STARS/>
                <HD SOURCE="HD1">
                    Periodicals 
                    <E T="51">1</E>
                </HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Irregular parcels” line item under “Periodicals” in the “Processing Category and Presort Type” column to read as follows:]</E>
                </P>
                <P>Nonstandard parcels</P>
                <STARS/>
                <HD SOURCE="HD1">
                    Bound Printed Matter 
                    <E T="51">1</E>
                </HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Irregular parcels” line item under “Bound Printed Matter” in the “Processing Category and Presort Type” column to read as follows:]</E>
                </P>
                <P>Nonstandard parcels</P>
                <HD SOURCE="HD1">Media Mail</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Irregular parcels” line item in the “Processing Category and Presort Type” column under “Media Mail” to read as follows:]</E>
                </P>
                <P>Nonstandard parcels</P>
                <HD SOURCE="HD1">Library Mail</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Irregular parcels” line item in the “Processing Category and Presort Type” column under “Media Mail” to read as follows:]</E>
                </P>
                <P>Nonstandard parcels</P>
                <STARS/>
                <HD SOURCE="HD1">204 Barcode Standards</HD>
                <STARS/>
                <HD SOURCE="HD1">3.2.4 3-Digit Content Identifier Numbers</HD>
                <STARS/>
                <HD SOURCE="HD1">Exhibit 3.2.4 [1-21-24] 3-Digit Content Identifier Numbers</HD>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">CLASS AND MAILING</ENT>
                        <ENT>CIN</ENT>
                        <ENT>HUMAN-READABLE CONTENT LINE</ENT>
                    </ROW>
                </GPOTABLE>
                <STARS/>
                <HD SOURCE="HD1">Priority Mail Open and Distribute</HD>
                <STARS/>
                <HD SOURCE="HD1">All Other Classes, Parcels</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “ASF/NDC/RPDC irregular parcels” line item under “All other Classes, Parcels, to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ASF/NDC nonstandard parcels</ENT>
                        <ENT>034</ENT>
                        <ENT>PMOD NONSTD NDC</ENT>
                    </ROW>
                </GPOTABLE>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of “PER Irregular Parcels . . .” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">PER Nonstandard Parcels—Merged Carrier Route and Presorted</HD>
                <P>
                    <E T="03">[Revise the text in the “Human-Readable Content Line” column to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">merged 5-digit sacks</ENT>
                        <ENT>340</ENT>
                        <ENT>PER NONSTD CR/5D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">merged 3-digit sacks</ENT>
                        <ENT>354</ENT>
                        <ENT>PER NONSTD CR/5D/3D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">merged 5-digit scheme sacks</ENT>
                        <ENT>365</ENT>
                        <ENT>PER NONSTD CR/5D SCH</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">[Revise the heading of “PER Irregular Parcels—Carrier Route” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">PER Nonstandard Parcels—Carrier Route</HD>
                <P>
                    <E T="03">[Revise the text in the “Human-Readable Content Line” column to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">saturation price sacks</ENT>
                        <ENT>397</ENT>
                        <ENT>
                            PER NONSTD WSS 
                            <SU>1</SU>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">high density price sacks</ENT>
                        <ENT>398</ENT>
                        <ENT>
                            PER NONSTD WSH 
                            <SU>1</SU>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">basic price sacks</ENT>
                        <ENT>395</ENT>
                        <ENT>
                            PER NONSTD CR 
                            <SU>1</SU>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5-digit carrier routes sacks</ENT>
                        <ENT>396</ENT>
                        <ENT>PER NONSTD 5D CR-RTS</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5-digit scheme car. rts. sacks</ENT>
                        <ENT>399</ENT>
                        <ENT>PER NONSTD CR-RTS SCH</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3-digit carrier routes sacks</ENT>
                        <ENT>355</ENT>
                        <ENT>PER NONSTD 3D CR-RTS</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">[Revise the heading of “PER Irregular Parcels—Presorted” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">PER Nonstandard Parcels—Presorted</HD>
                <P>
                    <E T="03">[Revise the text in the “Human-Readable Content Line” column to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">5-digit sacks</ENT>
                        <ENT>389</ENT>
                        <ENT>PER NONSTD 5D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3-digit sacks</ENT>
                        <ENT>390</ENT>
                        <ENT>PER NONSTD 3D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">SCF sacks</ENT>
                        <ENT>394</ENT>
                        <ENT>PER NONSTD SCF</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADC sacks or trays</ENT>
                        <ENT>391</ENT>
                        <ENT>PER NONSTD ADC</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">mixed ADC sacks or trays</ENT>
                        <ENT>392</ENT>
                        <ENT>PER NONSTD WKG</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">origin mixed ADC sacks or trays</ENT>
                        <ENT>363</ENT>
                        <ENT>PER NONSTD WKG W FCM</ENT>
                    </ROW>
                </GPOTABLE>
                <PRTPAGE P="53919"/>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of “NEWS Irregular Parcels . . .” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">NEWS Nonstandard Parcels—Merged Carrier Route and Presorted</HD>
                <P>
                    <E T="03">[Revise the text in the “Human-Readable Content Line” column to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">merged 5-digit</ENT>
                        <ENT>440</ENT>
                        <ENT>NEWS NONSTD CR/5D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">merged 5-digit scheme</ENT>
                        <ENT>465</ENT>
                        <ENT>NEWS NONSTD CR/5D SCH</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">merged 3-digit sacks</ENT>
                        <ENT>454</ENT>
                        <ENT>NEWS NONSTD CR/5D/3D</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">[Revise the heading of “NEWS Irregular Parcels—Carrier Route” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">NEWS Nonstandard Parcels—Carrier Route</HD>
                <P>
                    <E T="03">[Revise the text in the “Human-Readable Content Line” column to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">saturation price sacks</ENT>
                        <ENT>497</ENT>
                        <ENT>
                            NEWS NONSTD WSS 
                            <SU>1</SU>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">high density price sacks</ENT>
                        <ENT>498</ENT>
                        <ENT>
                            NEWS NONSTD WSH 
                            <SU>1</SU>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">basic price sacks</ENT>
                        <ENT>495</ENT>
                        <ENT>
                            NEWS NONSTD CR 
                            <SU>1</SU>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5-digit carrier routes sacks</ENT>
                        <ENT>496</ENT>
                        <ENT>NEWS NONSTD 5D CR-RTS</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5-digit scheme car. rts. sacks</ENT>
                        <ENT>499</ENT>
                        <ENT>NEWS NONSTD CR-RTS SCH</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3-digit carrier routes sacks</ENT>
                        <ENT>455</ENT>
                        <ENT>NEWS NONSTD 3D CR-RTS</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">[Revise the heading of “NEWS Irregular Parcels—Carrier Route” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">NEWS Nonstandard Parcels—Presorted</HD>
                <P>
                    <E T="03">[Revise the text in the “Human-Readable Content Line” column to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">5-digit sacks</ENT>
                        <ENT>489</ENT>
                        <ENT>NEWS NONSTD 5D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3-digit sacks</ENT>
                        <ENT>490</ENT>
                        <ENT>NEWS NONSTD 3D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">SCF sacks</ENT>
                        <ENT>494</ENT>
                        <ENT>NEWS NONSTD SCF</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADC sacks or trays</ENT>
                        <ENT>491</ENT>
                        <ENT>NEWS NONSTD ADC</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">mixed ADC sacks or trays</ENT>
                        <ENT>492</ENT>
                        <ENT>NEWS NONSTD WKG</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">origin mixed ADC sacks or trays</ENT>
                        <ENT>463</ENT>
                        <ENT>NEWS NONSTD WKG W FCM</ENT>
                    </ROW>
                </GPOTABLE>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of “MKT Marketing Parcels less than 6 oz. and Irregular Parcels” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">MKT Marketing Parcels (Nonstandard) and Nonprofit Nonstandard Priced Parcels</HD>
                <P>
                    <E T="03">[Revise the text in the “Human-Readable Content Line” column to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">5-digit scheme sacks</ENT>
                        <ENT>590</ENT>
                        <ENT>MKT NONSTD 5D SCH</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5-digit sacks</ENT>
                        <ENT>590</ENT>
                        <ENT>MKT NONSTD 5D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">SCF sacks</ENT>
                        <ENT>596</ENT>
                        <ENT>MKT NONSTD SCF</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ASF sacks</ENT>
                        <ENT>571</ENT>
                        <ENT>MKT NONSTD ASF</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">NDC sacks</ENT>
                        <ENT>570</ENT>
                        <ENT>MKT NONSTD NDC</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01" O="xl">mixed NDC sacks</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">[Revise the heading of “MKT Marketing Parcels 6 oz. or more and “Machinable Parcels” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">MKT Marketing Parcels (Machinable) and Nonprofit Machinable Priced Parcels</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of “MKT Machinable and Irregular Parcels—Presorted” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">MKT Machinable and Nonstandard Parcels—Presorted</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of “Carrier Route BPM—Irregular Parcels” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">Carrier Route BPM—Nonstandard Parcels</HD>
                <P>
                    <E T="03">[Revise the text in the “Human-Readable Content Line” column to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">carrier route sacks</ENT>
                        <ENT>697</ENT>
                        <ENT>
                            PSVC NONSTD CR 
                            <SU>1</SU>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5-digit carrier routes sacks</ENT>
                        <ENT>698</ENT>
                        <ENT>PSVC NONSTD CR-RTS</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5-digit scheme car. rt. sacks</ENT>
                        <ENT>698</ENT>
                        <ENT>PSVC NONSTD CR-RTS SCH</ENT>
                    </ROW>
                </GPOTABLE>
                <PRTPAGE P="53920"/>
                <P>
                    <E T="03">[Revise the heading of “Presorted BPM—Irregular Parcels” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">Presorted BPM—Nonstandard Parcels</HD>
                <P>
                    <E T="03">[Revise the text in the “Human-Readable Content Line” column to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">5-digit sacks</ENT>
                        <ENT>690</ENT>
                        <ENT>PSVC NONSTD 5D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5-digit scheme sacks</ENT>
                        <ENT>690</ENT>
                        <ENT>PSVC NONSTD 5D SCH</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3-digit sacks</ENT>
                        <ENT>691</ENT>
                        <ENT>PSVC NONSTD 3D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">SCF sacks</ENT>
                        <ENT>696</ENT>
                        <ENT>PSVC NONSTD SCF</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADC sacks</ENT>
                        <ENT>692</ENT>
                        <ENT>PSVC NONSTD ADC</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">mixed ADC sacks</ENT>
                        <ENT>694</ENT>
                        <ENT>PSVC NONSTD WKG</ENT>
                    </ROW>
                </GPOTABLE>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of “Media Mail and Library Mail Irregular Parcels—Presorted” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">Media Mail and Library Mail Nonstandard Parcels—Presorted</HD>
                <P>
                    <E T="03">[Revise the text in the “Human-Readable Content Line” column to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">5-digit scheme sacks</ENT>
                        <ENT>690</ENT>
                        <ENT>PSVC NONSTD 5D SCH</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5-digit sacks</ENT>
                        <ENT>690</ENT>
                        <ENT>PSVC NONSTD 5D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3-digit sacks</ENT>
                        <ENT>691</ENT>
                        <ENT>PSVC NONSTD 3D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADC sacks</ENT>
                        <ENT>692</ENT>
                        <ENT>PSVC NONSTD ADC</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">mixed ADC sacks</ENT>
                        <ENT>694</ENT>
                        <ENT>PSVC NONSTD WKG</ENT>
                    </ROW>
                </GPOTABLE>
                <STARS/>
                <HD SOURCE="HD1">Parcel Select</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of “Parcel Select Irregular (Nonmachinable) Parcels—Presorted” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">Parcel Select—Nonstandard Parcels</HD>
                <P>
                    <E T="03">[Revise the text in the “Human-Readable Content Line” column to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">3-digit sacks</ENT>
                        <ENT>691</ENT>
                        <ENT>PSVC NONSTD 3D</ENT>
                    </ROW>
                </GPOTABLE>
                <STARS/>
                <P>
                    <E T="03">[Delete the Combined Package Services, Parcel Select, and USPS Marketing—Irregular Parcels 2 up to 6 oz (APPS—machinable) line item in its entirety.]</E>
                </P>
                <P>
                    <E T="03">[Revise the of Combined PSVC &amp; MKT—Irregular Parcels less than 2 oz, and tubes and rolls (not APPS—machinable) to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">Combined PSVC &amp; MKT—Nonstandard Parcels Cylindrical Tubes and Rolls</HD>
                <P>
                    <E T="03">[Revise the text in the “Human-Readable Content Line” column to read as follows:]</E>
                </P>
                <GPOTABLE COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s100,12,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">3-digit sacks</ENT>
                        <ENT>591</ENT>
                        <ENT>MKT/PSVC NONSTD 3D</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADC sacks</ENT>
                        <ENT>592</ENT>
                        <ENT>MKT/PSVC NONSTD ADC</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Mixed ADC sacks</ENT>
                        <ENT>594</ENT>
                        <ENT>MKT/PSVC NONSTD WKG</ENT>
                    </ROW>
                </GPOTABLE>
                <STARS/>
                <HD SOURCE="HD1">207 Periodicals</HD>
                <STARS/>
                <HD SOURCE="HD1">22.0 Preparing Nonbarcoded (Presorted) Periodicals</HD>
                <STARS/>
                <HD SOURCE="HD1">22.6 Sack Preparation</HD>
                <P>* * * For other mailing jobs, preparation sequence, sack size, and labeling:</P>
                <P>
                    a. 
                    <E T="03">5-digit,</E>
                     required at 72 pieces, optional at 24 pieces minimum.
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item a2 to read as follows:]</E>
                </P>
                <P>2. Line 2: use “PER” or NEWS” as applicable; followed by “FLTS” or “NONSTD” as applicable; followed by “5D”.</P>
                <P>
                    b. 
                    <E T="03">3-digit,</E>
                     required at 72 pieces, optional at 24 pieces minimum.
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b2 to read as follows:]</E>
                </P>
                <P>2. Line 2: use “PER” or “NEWS” as applicable; followed by “FLTS” or “NONSTD” as applicable; followed by “3D”; followed by “NON BC” for flats.</P>
                <P>
                    c. 
                    <E T="03">SCF,</E>
                     required at 72 pieces, optional at 24 pieces minimum.
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item c2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PER” or “NEWS” as applicable; followed by “FLTS” or “NONSTD” as applicable; followed by “SCF”; followed by “NON BC” for flats.</P>
                <P>
                    d. 
                    <E T="03">Origin/entry SCF,</E>
                     required for the SCF of the origin (verification) office, optional for the SCF of an entry office other than the origin office, (no minimum).
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item d2 to read as follows:]</E>
                </P>
                <P>2. Line 2: usen “PER” or “NEWS” as applicable; followed by “FLTS” or “NONSTD” as applicable; followed by “SCF”; followed by “NON BC” for flats..</P>
                <P>
                    e. 
                    <E T="03">ADC,</E>
                     required at 72 pieces, optional at 24 pieces minimum.
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item e2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PER” or “NEWS” as applicable; followed by “NONSTD” as applicable; followed by “ADC”.</P>
                <P>
                    f. 
                    <E T="03">Origin mixed ADC,</E>
                     required; no minimum; for any remaining bundles for destinations in L201, Column B, corresponding to the origin ZIP Code in Column A.
                </P>
                <STARS/>
                <PRTPAGE P="53921"/>
                <P>
                    <E T="03">[Revise the text of item f2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PER” or “NEWS” as applicable, followed by “NONSTD” as applicable, followed by “WKG W FCM.”</P>
                <P>
                    g. 
                    <E T="03">Mixed ADC,</E>
                     required (no minimum).
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item g2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PER” or “NEWS” as applicable; followed by “NONSTD” as applicable; followed by “WKG” for nonstandard parcels.</P>
                <STARS/>
                <HD SOURCE="HD1">23.0 Preparing Carrier Route Periodicals</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 23.4 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">23.4 Preparation—Flat-Size Pieces and Nonstandard Parcels</HD>
                <HD SOURCE="HD1">23.4.1 Flat Tray and Sacking Preparation and Labeling</HD>
                <P>* * * Preparation sequence, sack/tray size, and labeling:</P>
                <P>
                    <E T="03">a. Carrier route,</E>
                     required at 72 pieces, optional at 24 pieces, fewer pieces not permitted.
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item a2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PER” or “NEWS” as applicable; followed by “FLTS” or “NONSTD” as applicable; followed by “WSS” for saturation price mail, or “WSH” for high density price mail, or “CR” for basic price mail; followed by the route type and number.</P>
                <P>
                    b. 
                    <E T="03">5-digit scheme carrier routes,</E>
                     required at 72 pieces, optional at 24 pieces, fewer pieces not permitted.
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PER” or “NEWS” as applicable; followed by “FLTS” or “NONSTD” as applicable; followed by “CR-RTS SCH.”</P>
                <P>
                    c. 
                    <E T="03">5-digit carrier routes,</E>
                     required at 72 pieces, optional at 24 pieces, fewer pieces not permitted.
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item c2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PER” or “NEWS” as applicable; followed by “FLTS” or “NONSTD” as applicable; followed by “CR-RTS.”</P>
                <P>
                    d. 
                    <E T="03">3-digit carrier routes,</E>
                     required with one 6-piece bundle. Flat-sized pieces must be prepared in flat trays (see 203.5.6).
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item d2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PER” or “NEWS” as applicable, followed by “FLTS 3D” or “NONSTD 3D” as applicable, followed by “CR-RTS.”</P>
                <STARS/>
                <HD SOURCE="HD1">240 Commercial Mail USPS Marketing Mail</HD>
                <HD SOURCE="HD1">243 Prices and Eligibility</HD>
                <HD SOURCE="HD1">1.0 Prices and Fees</HD>
                <STARS/>
                <HD SOURCE="HD1">1.2 USPS Marketing Mail Prices</HD>
                <P>USPS Marketing Mail prices are applied as follows:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b to read as follows:]</E>
                </P>
                <P>b. A price determined by adding the per piece charge and the corresponding per pound charge applies to any USPS Marketing Mail piece that weighs more than the following: Nonmachinable letters and flats that weigh more than 4.0 ounces, presorted Marketing Parcels, Nonprofit Machinable and Nonprofit Nonstandard parcels that weigh more than 3.3 ounces and machinable parcels 3.5 ounces or more.</P>
                <STARS/>
                <HD SOURCE="HD1">3.0 Basic Eligibility Standards for USPS Marketing Mail</HD>
                <STARS/>
                <HD SOURCE="HD1">3.2 Defining Characteristics</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading and text of 3.2.3 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">3.2.3 Nonprofit USPS Marketing Mail Machinable and Nonstandard Parcels</HD>
                <P>Nonprofit USPS Marketing Mail parcels that do not qualify as Marketing parcels may be prepared and mailed as machinable or nonstandard parcels.</P>
                <STARS/>
                <HD SOURCE="HD1">3.3 Additional Basic Standards for USPS Marketing Mail</HD>
                <P>Each USPS Marketing Mail mailing is subject to these general standards:</P>
                <P>
                    <E T="03">[Revise the text of item a to read as follows:]</E>
                </P>
                <P>a. All pieces in a mailing must be of the same processing category, except that nonstandard and machinable parcels may be combined in 5-digit scheme and 5-digit sacks or on 5-digit scheme and 5-digit pallets.</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the last sentence of item f to read as follows:]</E>
                </P>
                <P>f. * * * Nonprofit USPS Marketing Mail machinable or nonstandard parcels must bear the addressee`s name and complete delivery address, or may use an alternative addressing format. DALS or DMLs may be used subject to 602.4.0.</P>
                <STARS/>
                <HD SOURCE="HD1">4.0 Price Eligibility for USPS Marketing Mail</HD>
                <STARS/>
                <HD SOURCE="HD1">4.2 Minimum Per Piece Prices</HD>
                <P>The minimum per piece prices (the minimum postage that must be paid for each piece) apply as follows:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the fifth sentence of item c to read as follows:]</E>
                </P>
                <P>c. Individual prices. * * * There are also separate prices for Marketing Parcels, Nonprofit Machinable priced parcels, and Nonprofit Nonstandard priced parcels. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">5.0 Additional Eligibility Standards for Nonautomation USPS Marketing Mail Letters, Flats, and Presorted USPS Marketing Mail Parcels</HD>
                <STARS/>
                <HD SOURCE="HD1">5.3 Price Application</HD>
                <P>
                    <E T="03">[Revise the second sentence of 5.3 to read as follows:]</E>
                </P>
                <P>* * * Prices for Nonprofit parcels not qualifying as Marketing Parcels apply separately to Nonprofit Machinable parcels and Nonprofit Nonstandard parcels. * * *</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 5.8 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">5.8 Prices for Nonstandard Parcels and Marketing Parcels</HD>
                <HD SOURCE="HD1">5.8.1 5-Digit Price</HD>
                <P>
                    <E T="03">[Revise the introductory text of 5.8.1 to read as follows:]</E>
                </P>
                <P>5-digit prices apply to nonstandard parcels and to Marketing parcels that are dropshipped to a DNDC/RPDC (or ASF/RPDC when claiming DNDC prices), DSCF/DRPDC, or DDU or DS&amp;DC and presented:</P>
                <STARS/>
                <HD SOURCE="HD1">5.8.2 SCF Price</HD>
                <P>
                    <E T="03">[Revise the introductory text of 5.8.2 to read as follows:]</E>
                </P>
                <P>SCF prices apply to nonstandard parcels and to Marketing parcels that are dropshipped and presented to a DSCF/DRPDC or DNDC/DRPDC:</P>
                <STARS/>
                <HD SOURCE="HD1">5.8.3 NDC Price</HD>
                <P>
                    <E T="03">[Revise the introductory text of 5.8.3 to read as follows:]</E>
                </P>
                <P>
                    NDC prices apply to nonstandard parcels and to Marketing parcels as 
                    <PRTPAGE P="53922"/>
                    follows under either of the following conditions:
                </P>
                <STARS/>
                <HD SOURCE="HD1">5.8.4 Mixed NDC Price</HD>
                <P>
                    <E T="03">[Revise the first sentence of 5.8.4 to read as follows:]</E>
                </P>
                <P>Mixed NDC prices apply to nonstandard parcels and to Marketing parcels in origin NDC/RPDC or mixed NDC/RPDC containers that are not eligible for 5-digit, SCF, or NDC prices. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">245 Mail Preparation</HD>
                <HD SOURCE="HD1">1.0 General Information for Mail Preparation</HD>
                <STARS/>
                <HD SOURCE="HD1">1.2 Definition of Mailings</HD>
                <P>Mailings are defined as:</P>
                <STARS/>
                <P>b. USPS Marketing Mail. Except as provided in 243.3.6, the types of USPS Marketing Mail listed below may not be part of the same mailing.</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b6 to read as follows:]</E>
                </P>
                <P>6. Machinable and nonmachinable or nonstandard pieces.</P>
                <STARS/>
                <HD SOURCE="HD1">1.4 Preparation Definitions and Instructions</HD>
                <P>For purposes of preparing mail:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the fifth sentence of item j to read as follows:]</E>
                </P>
                <P>j. * * * The 5-digit scheme sort may not be used for other mail prepared on pallets, except for 5-digit bundles of USPS Marketing Mail nonstandard parcels that are part of a mailing job that is prepared in part as palletized flats at automation prices. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">11.0 Preparing Presorted Parcels</HD>
                <HD SOURCE="HD1">11.1 Basic Standards</HD>
                <P>All mailings and all pieces in each mailing at USPS Marketing Mail and Nonprofit USPS Marketing Mail parcel prices are subject to preparation standards in 11.3 or 11.4, and to these general standards:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b to read as follows:]</E>
                </P>
                <P>b. Marketing Parcels, Nonprofit Machinable priced parcels, and Nonprofit Nonstandard priced parcels must each be prepared as separate mailings, except under 11.3.1.</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 11.3 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">11.3 Preparing Marketing Parcels (6 Ounces or More) and Nonprofit Machinable Parcels</HD>
                <HD SOURCE="HD1">11.3.1 Sacking</HD>
                <P>
                    <E T="03">[Revise the text of 11.3.1 to read as follows:]</E>
                </P>
                <P>Prepare mailings of machinable Marketing Parcels weighing 6 ounces or more and mailings of Nonprofit Machinable priced parcels under 11.3. Prepare 5-digit sacks only for parcels dropshipped to a DNDC/RPDC (or ASF/RPDC when claiming DNDC prices), DSCF/DSCF, or DDU or DS&amp;DC. Prepare ASF/RPDC or NDC/RPDC sacks only for parcels dropshipped to a DNDC/RPDC (or ASF/RPDC when claiming DNDC prices). There is no minimum for parcels in 5-digit/scheme sacks entered at a DDU or DS&amp;DC. Mailers combining nonstandard parcels with machinable parcels placed in 5-digit/scheme sacks must prepare those sacks under 11.3.2a. Mailers combining machinable Marketing Parcels weighing 6 ounces or more with Nonprofit Machinable priced parcels placed in ASF/RPDC, NDC/RPDC, or mixed NDC/RPDC sacks must prepare the sacks under 11.3.2.</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 11.4 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">11.4 Preparing Marketing Parcels (Less Than 6 Ounces) and Nonprofit Nonstandard Parcels</HD>
                <STARS/>
                <HD SOURCE="HD1">11.4.2 Sacking</HD>
                <P>
                    <E T="03">[Revise the text of 11.4.2 to read as follows:]</E>
                </P>
                <P>Prepare mailings of nonstandard Marketing Parcels weighing less than 6 ounces and mailings of Nonprofit Nonstandard priced parcels under 11.4. Prepare 5-digit sacks only for parcels dropshipped to a DNDC/RP&amp;DC (or ASF/RP&amp;DC when claiming DNDC prices), DSCF/RP&amp;DC, or DDU or S&amp;DC. See 11.4.3 for restrictions on SCF/RP&amp;DC, ASF/RP&amp;DC, and NDC/RP&amp;DC sacks. Mailers must prepare a sack when the mail for a required presort destination reaches 10 pounds of pieces. There is no minimum for parcels prepared in 5-digit/scheme sacks entered at a DDU or S&amp;DC. Mailers combining Nonprofit Nonstandard priced parcels with Nonprofit Machinable priced parcels and machinable Marketing Parcels weighing 6 ounces or more in 5-digit/scheme sacks must prepare those sacks under 11.3.2. Mailers may not prepare sacks containing nonstandard and machinable parcels to other presort levels. Mailers may combine Nonprofit Nonstandard priced parcels with nonstandard Marketing Parcels in sacks under 11.4.3.</P>
                <HD SOURCE="HD1">11.4.3 Sacking and Labeling</HD>
                <P>Preparation sequence, sack size, and labeling:</P>
                <P>a. * * * Sacks must contain a 10-pound minimum except at DDU or S&amp;DC entry which has no minimum; labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item a2 to read as follows:]</E>
                </P>
                <P>2. Line 2: For 5-digit scheme sacks, “STD NONSTD 5D SCH.” For 5-digit sacks, “STD NONSTD 5D.”</P>
                <P>b. SCF/RP&amp;DC, allowed only for mail deposited at a DSCF/RP&amp;DC or a DNDC/RP&amp;DC to claim SCF price; 10-pound minimum; labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b2 to read as follows:]</E>
                </P>
                <P>2. For Line 2, “STD NONSTD SCF.”</P>
                <P>c. ASF/RP&amp;DC (optional), allowed only for mail deposited at an ASF/RP&amp;DC to claim DNDC price; 10-pound minimum; labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item c2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “STD NONSTD ASF.”</P>
                <P>d. NDC/RP&amp;DC, allowed only for mail deposited at a DNDC/RP&amp;DC to claim the NDC price; 10-pound minimum; labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item d2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “STD NONSTD NDC.”</P>
                <P>e. Origin NDC/RPDC (required); no minimum; labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item e2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “STD NONSTD NDC.”</P>
                <P>f. Mixed NDC/RP&amp;DC (required); no minimum; labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item f2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “STD NONSTD WKG.”</P>
                <STARS/>
                <HD SOURCE="HD1">250 Commercial Mail Parcel Select</HD>
                <STARS/>
                <HD SOURCE="HD1">255 Mail Preparation</HD>
                <STARS/>
                <HD SOURCE="HD1">4.0 Preparing Destination Entry Parcel Select</HD>
                <HD SOURCE="HD1">4.1 Preparing Destination Delivery Unit (DDU) or Sorting and Delivery Center (S&amp;DC) Parcel Select</HD>
                <STARS/>
                <PRTPAGE P="53923"/>
                <HD SOURCE="HD1">4.1.3 Sacking and Labeling</HD>
                <P>
                    <E T="03">[Revise the last sentence of 4.1.3 to read as follows:]</E>
                </P>
                <P>* * * Machinable and nonstandard pieces may be combined in the same sack or on the same pallet (including pallet boxes on pallets).</P>
                <STARS/>
                <HD SOURCE="HD1">4.2 Preparing Destination Hub (DHub) Parcel Select</HD>
                <STARS/>
                <HD SOURCE="HD1">4.2.3 Sacking and Labeling</HD>
                <P>Sacking requirements for DHub entry include the following:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the second sentence of item b to read as follows:]</E>
                </P>
                <P>b. * * * Machinable and nonstandard pieces may be combined in the same sack to meet this requirement. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">4.3 Preparing Destination SCF (DSCF)/RP&amp;DC (DRP&amp;DC) Parcel Select</HD>
                <STARS/>
                <HD SOURCE="HD1">4.3.2 Basic Standards</HD>
                <P>Pieces must meet the applicable standards in 4.0 and the following criteria:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the first sentence of item d to read as follows:]</E>
                </P>
                <P>d. Any remaining nonstandard parcels (as defined in 201.7.6) sorted to 3-digit ZIP Code prefixes in L002, Column C. * * *</P>
                <HD SOURCE="HD1">4.3.3 Sacking and Labeling</HD>
                <P>Sacking requirements for DSCF/DRP&amp;DC entry:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the second sentence of item b to read as follows:]</E>
                </P>
                <P>b. * * * Machinable and nonstandard pieces may be combined in the same sack to meet this requirement. * * *</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of items g and h to read as follows:]</E>
                </P>
                <P>g. 3-digit nonstandard sack labeling: Line 1, use L051; for Line 2, “PSVC NONSTD 3D.”</P>
                <P>h. See 705.8.0 for option to place 5-digit scheme and 5-digit DSCF/DRP&amp;DC sacks, SCF/RP&amp;DC sacks, and 3-digit nonstandard sacks on an SCF/RP&amp;DC pallet.</P>
                <HD SOURCE="HD1">4.4 Preparing Destination NDC (DNDC)/RP&amp;DC (DRP&amp;DC) Parcel Select</HD>
                <STARS/>
                <HD SOURCE="HD1">4.4.3 Sacking and Labeling</HD>
                <P>DNDC/DRP&amp;DC mailing (if not bedloaded), must be prepared as follows:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b to read as follows:]</E>
                </P>
                <P>b. DNDC/DRP&amp;DC nonstandard parcels that each weigh 25 pounds or less must be sacked under 5.0 if the parcels do not contain perishables and the size of the parcels allows a sack to hold at least two pieces. DNDC/DRP&amp;DC nonstandard parcels that cannot be sacked in this manner or that weigh more than 25 pounds must be transported as outside (unsacked) pieces. If authorized in advance by the USPS, DNDC/DRP&amp;DC nonstandard parcels may be palletized.</P>
                <STARS/>
                <HD SOURCE="HD1">256 Enter and Deposit</HD>
                <STARS/>
                <HD SOURCE="HD1">2.0 Deposit</HD>
                <STARS/>
                <HD SOURCE="HD1">2.2 Containers</HD>
                <P>DNDC/DRP&amp;DC mailings (if not bedloaded), DDU or S&amp;DC mailings (if not bedloaded), and all DHub, and DSCF/DRP&amp;DC mailings must be prepared as follows:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b to read as follows:]</E>
                </P>
                <P>b. For DNDC price, nonstandard parcels that each weigh 25 pounds or less must be sacked under 255.4.0 if the parcels do not contain perishables and the size of the parcels allows a sack to hold at least two pieces. DNDC/DRPDC nonstandard parcels that cannot be sacked in this manner or that weigh more than 25 pounds must be transported as outside (unsacked) pieces. If authorized in advance by the USPS, DNDC/DRPDC nonstandard parcels may be palletized.</P>
                <P>
                    <E T="03">[Revise the last sentence of item c to read as follows:]</E>
                </P>
                <P>c. * * * Machinable and nonstandard pieces may be included in the same sack.</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item e to read as follows:]</E>
                </P>
                <P>e. For DSCF/DRP&amp;DC and DDU or DS&amp;DC, nonstandard parcels may be palletized (including pallet boxes on pallets). Nonstandard parcels may be combined with machinable parcels on 5-digit scheme, 5-digit, and 3-digit pallets (including pallet boxes on pallets) claimed at DSCF or DDU prices under 705.8.0.</P>
                <P>
                    <E T="03">[Revise the last sentence of item f to read as follows:]</E>
                </P>
                <P>f. * * * Machinable and nonstandard pieces may be combined in 5-digit scheme and 5-digit sacks or on 5-digit scheme and 5-digit pallets (including pallet boxes).</P>
                <STARS/>
                <HD SOURCE="HD1">2.17 DNDC/DRP&amp;DC Parcel Select—Acceptance at Designated SCF/RP&amp;DC-USPS Benefit</HD>
                <P>A mailing that is otherwise eligible for DNDC prices may be deposited, and accepted, at an SCF/RP&amp;DC designated by the USPS when it benefits the USPS and:</P>
                <P>
                    <E T="03">[Revise the text of item a to read as follows:]</E>
                </P>
                <P>a. The mailing contains only machinable parcels prepared in 5-digit scheme and 5-digit sacks, pallets, or containers and nonstandard parcels prepared under 2.2.</P>
                <STARS/>
                <HD SOURCE="HD1">260 Commercial Mail Bound Printed Matter</HD>
                <STARS/>
                <HD SOURCE="HD1">265 Mail Preparation</HD>
                <STARS/>
                <HD SOURCE="HD1">2.0 Bundles</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading and text of 2.4 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">2.4 Bundle Sizes for Nonstandard Parcels</HD>
                <P>Mailers must prepare unsacked, nonpalletized bundles of nonstandard parcels for DDU or DS&amp;DC entry according to 203.4.10, and as follows:</P>
                <P>a. For Presorted nonstandard parcels, under 8.2 for parcels weighing less than 10 pounds and 8.3 for parcels weighing 10 pounds or more.</P>
                <P>b. For carrier route nonstandard parcels, under 9.2 for parcels weighing less than 10 pounds and 9.3 for parcels weighing 10 pounds or more.</P>
                <STARS/>
                <HD SOURCE="HD1">8.0 Preparing Presorted Parcels</HD>
                <HD SOURCE="HD1">8.1 Basic Standards</HD>
                <P>All mailings of Presorted Bound Printed Matter (BPM) are subject to the standards in 5.2, and 5.3, and to these general standards:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the second sentence of item b to read as follows:]</E>
                </P>
                <P>b. * * * See 201.7.0 for definitions of machinable and nonstandard parcels.</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 8.2 to read as follows:]</E>
                    <PRTPAGE P="53924"/>
                </P>
                <HD SOURCE="HD1">8.2 Preparing Nonstandard Parcels Weighing Less than 10 Pounds</HD>
                <STARS/>
                <HD SOURCE="HD1">8.2.4 Sacking and Labeling</HD>
                <P>Preparation sequence and labeling:</P>
                <P>a. 5-digit/scheme (required); labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item a2 to read as follows:]</E>
                </P>
                <P>2. Line 2: For 5-digit scheme sacks, “PSVC NONSTD 5D SCH.” For 5-digit sacks, “PSVC NONSTD 5D.”</P>
                <P>b. 3-digit (required); labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD 3D.”</P>
                <P>c. SCF/RPDC (optional); labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item c2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD SCF.”</P>
                <P>d. ADC/RPDC (required); labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item d2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD ADC.”</P>
                <P>e. Mixed ADC/RPDC (required); labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item d2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD WKG.”</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 8.3 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">8.3 Preparing Nonstandard Parcels Weighing 10 Pounds or More</HD>
                <STARS/>
                <HD SOURCE="HD1">8.3.3 Sacking and Labeling</HD>
                <P>Preparation sequence and labeling:</P>
                <P>a. 5-digit/scheme (required); labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item a2 to read as follows:]</E>
                </P>
                <P>2. Line 2: For 5-digit scheme sacks, “PSVC NONSTD 5D SCH.” For 5-digit sacks, “PSVC NONSTD 5D.”</P>
                <P>b. 3-digit (required); labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD 3D.”</P>
                <P>c. SCF/RPDC (optional); labeling:</P>
                <P>
                    <E T="03">[Revise the text of item c2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD SCF.”</P>
                <P>d. ADC (required); labeling:</P>
                <P>
                    <E T="03">[Revise the text of item d2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD ADC.”</P>
                <P>e. Mixed ADC/RPDC (required); labeling:</P>
                <P>
                    <E T="03">[Revise the text of item e2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD WKG.”</P>
                <STARS/>
                <HD SOURCE="HD1">9.0 Preparing Carrier Route Parcels</HD>
                <HD SOURCE="HD1">9.1 Basic Standards</HD>
                <HD SOURCE="HD1">9.1.1 General Standards for Carrier Route Preparation</HD>
                <P>All mailings of Carrier Route Bound Printed Matter (BPM) are subject to the standards in 9.2 through 9.4 and to these general standards:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the second and last sentence of item b to read as follows:]</E>
                </P>
                <P>b. * * * A BPM nonstandard parcel is a piece that is not a machinable parcel as defined in 201.7.5.1. Nonstandard parcels also are pieces that meet the size and weight standards for a machinable parcel but are not individually boxed or packaged to withstand processing on parcel sorters under 601.3.0 and 601.4.0.</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 9.2 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">9.2 Preparing Nonstandard Parcels Weighing Less Than 10 Pounds</HD>
                <STARS/>
                <HD SOURCE="HD1">9.2.2 Required Sacking</HD>
                <P>
                    <E T="03">[Revise the first sentence in the introductory text of 9.2.2 to read as follows:]</E>
                </P>
                <P>Mailers may prepare nonstandard parcels as unsacked bundles under 203.4.10 or in bundles on pallets. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">9.2.4 Sack Label Line 2</HD>
                <P>Line 2 information:</P>
                <P>
                    <E T="03">[Revise the text of items a through c to read as follows:]</E>
                </P>
                <P>a. Carrier route: “PSVC NONSTD CR,” followed by the route type and number.</P>
                <P>b. 5-digit scheme carrier routes: “PSVC NONSTD CR-RTS SCH.”</P>
                <P>c. 5-digit carrier routes: “PSVC NONSTD CR-RTS.”</P>
                <P>
                    <E T="03">[Revise the heading of 9.3 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">9.3 Preparing Nonstandard Parcels Weighing 10 Pounds or More</HD>
                <P>
                    <E T="03">[Revise the first and second sentence in the introductory text of 9.2.2 to read as follows:]</E>
                </P>
                <P>Mailers may prepare nonstandard parcels as unsacked bundles under 2.2 or in bundles on pallets. When preparing nonstandard parcels in sacks, place parcels only in direct carrier route sacks. * * * * * * Required preparation:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b to read as follows:]</E>
                </P>
                <P>b. Line 2: “PSVC NONSTD CR,” followed by the route type and number.</P>
                <STARS/>
                <HD SOURCE="HD1">266 Enter and Deposit</HD>
                <STARS/>
                <HD SOURCE="HD1">3.0 Destination Entry</HD>
                <STARS/>
                <HD SOURCE="HD1">3.6 Mailings of Unsacked Bundles</HD>
                <P>
                    <E T="03">[Revise the first sentence of 3.6 to read as follows:]</E>
                </P>
                <P>Mailers may present unsacked, nonpalletized bundles of BPM flats or nonstandard parcels that are properly prepared for and entered at DDU prices and unloaded according to standards in 3.8.9. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">4.0 Destination Network Distribution Center (DNDC)/Regional Processing and Distribution Center (DRP&amp;DC) Entry</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 4.5 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">4.5 Presorted Nonstandard Parcels</HD>
                <P>
                    <E T="03">[Revise the first sentence of 4.5 to read as follows:]</E>
                </P>
                <P>Presorted nonstandard parcels in sacks or on pallets at all sort levels may claim DNDC prices. * * *</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 4.7 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">4.7 Carrier Route Nonstandard Parcels</HD>
                <P>
                    <E T="03">[Revise the first sentence of 4.7 to read as follows:]</E>
                </P>
                <P>Carrier Route nonstandard parcels in sacks at all sort levels or on pallets at all sort levels may claim DNDC prices. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">6.0 Destination Delivery Unit (DDU) or Sorting and Delivery Center (DS&amp;DC) Entry</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 6,5 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">6.5 Presorted Nonstandard Parcels</HD>
                <P>
                    <E T="03">[Revise the first sentence of 6.5 to read as follows:]</E>
                </P>
                <P>Presorted nonstandard parcels in 5-digit scheme sacks and 5-digit sacks, on 5-digit scheme or 5-digit pallets, or prepared as unsacked 5-digit bundles may claim DDU prices. * * *</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 6.7 to read as follows:]</E>
                    <PRTPAGE P="53925"/>
                </P>
                <HD SOURCE="HD1">6.7 Carrier Route Nonstandard Parcels</HD>
                <P>
                    <E T="03">[Revise the first sentence of 6.7 to read as follows:]</E>
                </P>
                <P>Carrier Route nonstandard parcels in sacks, on 5-digit scheme and 5-digit pallets, or prepared as unsacked carrier route bundles may claim DDU prices. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">270 Commercial Mail Media Mail and Library Mail</HD>
                <HD SOURCE="HD1">273 Prices and Eligibility</HD>
                <STARS/>
                <HD SOURCE="HD1">7.0 Price Eligibility for Media Mail and Library Mail</HD>
                <STARS/>
                <HD SOURCE="HD1">7.3 Price Categories for Media Mail and Library Mail</HD>
                <STARS/>
                <HD SOURCE="HD1">7.3.2 Parcels</HD>
                <P>The price categories for parcels are as follows:</P>
                <P>
                    <E T="03">[Revise the last sentence of item a to read as follows:]</E>
                </P>
                <P>a. * * * Nonstandard parcels may qualify for the 5-digit price if prepared to preserve sortation by 5-digit ZIP Code as prescribed by the postmaster of the mailing office.</P>
                <P>
                    <E T="03">[Revise the last sentence of item b to read as follows:]</E>
                </P>
                <P>b. * * * Nonstandard parcels may qualify for the basic price if prepared to preserve sortation by NDC/RP&amp;DC as prescribed by the postmaster of the mailing office.</P>
                <STARS/>
                <HD SOURCE="HD1">275 Mail Preparation</HD>
                <STARS/>
                <HD SOURCE="HD1">4.0 Basic Standards for Preparing Media Mail and Library Mail</HD>
                <P>All mailings of Presorted Media Mail and Presorted Library Mail are subject to these general requirements:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the last sentence of item d to read as follows:]</E>
                </P>
                <P>d. * * * See 201.7.0 for definitions of machinable and nonstandard parcels.</P>
                <STARS/>
                <HD SOURCE="HD1">6.0 Preparing Media Mail and Library Mail Parcels</HD>
                <HD SOURCE="HD1">6.1 Basic Standards</HD>
                <P>All mailings of Presorted Media Mail and Presorted Library Mail parcels are subject to these general requirements:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b to read as follows:]</E>
                </P>
                <P>b. All parcels in a mailing must be within the same processing category. See 201.7.0 for definitions of machinable and nonstandard parcels.</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 6.3 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">6.3 Preparing Nonstandard Parcels</HD>
                <STARS/>
                <HD SOURCE="HD1">6.3.4 Sacking and Labeling</HD>
                <P>Preparation sequence and labeling:</P>
                <P>a. 5-digit/scheme (optional, but required for 5-digit price); labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item a2 to read as follows:]</E>
                </P>
                <P>2. Line 2: For 5-digit scheme sacks, “PSVC NONSTD 5D SCH.” For 5-digit sacks, “PSVC NONSTD 5D.”</P>
                <P>b. 3-digit: required.</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD 3D.”</P>
                <P>c. ADC/RPDC: required.</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item c2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD ADC.”</P>
                <P>d. Mixed ADC/RPDC: required (no minimum).</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item d2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD WKG.”</P>
                <STARS/>
                <HD SOURCE="HD1">500 Additional Mailing Services</HD>
                <HD SOURCE="HD1">503 Extra Services</HD>
                <HD SOURCE="HD1">1.0 Basic Standards for All Extra Services</HD>
                <STARS/>
                <HD SOURCE="HD1">1.4.1 Eligibility—Domestic Mail</HD>
                <STARS/>
                <HD SOURCE="HD1">Exhibit 1.4.1 Eligibility—Domestic Mail</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise footnote 7 to read as follows:]</E>
                </P>
                <P>7. USPS Marketing Mail, Nonprofit Machinable and Nonprofit Nonstandard priced parcels only.</P>
                <STARS/>
                <HD SOURCE="HD1">600 Basic Standards for All Mailing Services</HD>
                <HD SOURCE="HD1">601 Mailability</HD>
                <HD SOURCE="HD1">1.0 General Standards</HD>
                <HD SOURCE="HD1">1.1 Determining Mail Processing Categories</HD>
                <HD SOURCE="HD1">1.1.1 Processing Categories</HD>
                <P>
                    <E T="03">[Revise the first sentence of 1.1.1 to read as follows:]</E>
                </P>
                <P>There are four mail processing categories for mailpieces: letter, flat, machinable parcel, and nonstandard parcel. * * *</P>
                <STARS/>
                <P>
                    <E T="03">[Add new 1.1.5 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">1.1.5 Nonmailable Placement of Address on Parcel-Size Pieces</HD>
                <P>The placement of the address on a parcel-size mailpiece may render a piece nonmailable. Except for cylindrical tubes or similar shaped pieces and labeling exceptions in Publication 52, if the address, return address, mailing labels, postage, barcode, endorsements, and other mail markings are not all placed on a single optical plane without bending, folding, or overlapping, it is nonmailable.</P>
                <STARS/>
                <HD SOURCE="HD1">3.0 Packaging</HD>
                <P>
                    <E T="03">[Renumber 3.1 as 3.1.1 and revise the title of new 3.1.1 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">3.1.1 Basic Standards</HD>
                <STARS/>
                <P>
                    <E T="03">[Add new 3.1.2 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">3.1.2 Parcels</HD>
                <P>In addition to 3.1.1, except for hazardous, restricted, and perishable items as provided in Publication 52, all other parcel priced pieces must be packaged in a box or other acceptable container that meet the applicable standards under 3.0 and 4.0.</P>
                <STARS/>
                <HD SOURCE="HD1">3.7 High-Density Items</HD>
                <P>
                    <E T="03">[Revise the text of 3.7 to read as follows:]</E>
                </P>
                <P>
                    High-density items (such as tools, hardware, and machine and auto parts) weighing from 20 to 45 pounds must be packaged in fiberboard boxes constructed of a minimum 200-pound test board or equivalent wood, metal, or plastic containers. Plastic, metal, and similar hard containers must be packaged, treated, or otherwise prepared so that their coefficient of friction or ability to slide on a smooth, hard surface is similar to that of a domestic-class fiberboard box of the same approximate size and weight. Closure must be done by staples, heat-shrinking, adhesives, or tape. Boxes without inner packing or containing loose material must be reinforced or banded with reinforced paper or plastic tape, pressure-sensitive filament tape, or firmly applied nonmetallic banding. Internal blocking and bracing, including the use of interior containers, cut forms, partitions, dunnage, and liners, must be used as required so that packages can maintain their integrity without damage 
                    <PRTPAGE P="53926"/>
                    to the contents if dropped once on one of their smallest sides on a solid surface from a height of 3 feet. These items from 45 to 70 pounds must be similarly packaged, closed, and reinforced, except that exterior containers must be a minimum of 275-pound test fiberboard or equivalent.
                </P>
                <P>
                    <E T="03">[Revise the heading and text of 3.8 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">3.8 Books</HD>
                <P>Books and similarly produced printed matter (such as catalogs) fastened together along one edge between hardback, paperback, or self-covers, that are more than one inch thick or one pound must not be accepted in letter-style non-reinforced flat envelopes or without packaging. Envelopes or other appropriate packaging must meet the standards in 3.0. Void spaces within containers must be filled with dunnage, or otherwise stabilized to prevent shifting or damage to the contents or container. Shipments are packaged according to the following weight categories:</P>
                <P>a. Up to five pounds, sealing must be by multiple friction closures, completely clinched staples, heat-sealing, adhesives, tape, or nonmetallic banding. Although shrinkwrap is not acceptable as the only packaging for hardback books and similarly produced printed matter exceeding one pound or one inch thick, it may be used on the exterior of otherwise acceptable containers. Shrinkwrap (under 3.6) may be used as the only method of packaging for paperback books and similarly produced printed matter up to three pounds.</P>
                <P>b. From 5 to 10 pounds, closure must be by tape, nonmetallic banding, or adhesives. Reinforced tape or nonmetallic banding is adequate for both closure and reinforcement. Nonmetallic banding must be firmly applied to the point that the straps must be tightened until they depress the carton at the edges.</P>
                <P>c. From 10 to 25 pounds, reinforced tape or nonmetallic banding is adequate for closure and reinforcement. Nonmetallic banding must be firmly applied to the point that the straps tighten until they depress the carton at the edges.</P>
                <P>d. From 25 to 50 pounds, hardbound books and similarly produced printed matter must be packaged in 275-pound test fiberboard boxes and paperback books and similarly produced printed matter must be packaged in 200-pound test fiberboard boxes.</P>
                <P>e. From 50 to 70 pounds, hardbound books and similarly produced printed matter must be packaged in 350-pound test fiberboard boxes and paperback books and similarly produced printed matter must be packaged in 275-pound test fiberboard boxes.</P>
                <P>
                    <E T="03">[Renumber 3.9 through 3.13 as 3.13 through 3.17 and add new 3.9 through 3.12 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">3.9 Soft Goods</HD>
                <P>
                    Boxes containing soft goods (
                    <E T="03">e.g.,</E>
                     textiles, clothing, linens, or draperies) weighing up to 5 pounds must be filled to capacity. Soft goods between the weight range of 5 to 20 pounds must be packaged in material with a minimum 70-pound outer ply basis weight. Closure of bags must be by completely clinched staples, heat-sealing, adhesives, sewing, or tape. Improperly clinched staples must be removed. Shrinkwrapping is not acceptable as the only packaging. Fiberboard containers must be made of at least 200-pound test board for soft goods weighing from 20 to 45 pounds and at least 275-pound test board for soft goods weighing from 45 to 70 pounds.
                </P>
                <HD SOURCE="HD1">3.10 Sound Recordings</HD>
                <P>
                    Shipments of recordings (
                    <E T="03">e.g.,</E>
                     records and CDs in paper sleeves, paperboard, or chipboard shells) weighing up to 10 pounds must be packed in 70-pound basis weight envelopes for weights up to 3 pounds, or outer corrugated, fiberboard containers for weights up to 10 pounds. When shipments weigh from 20 to 40 pounds, multiple shell containers must be packaged in 175-pound test fiberboard containers or equivalent and closed and reinforced by adhesives, kraft paper tape, equivalent plastic tape, or staples. When shipments weigh from 40 to 65 pounds, multiple shell containers up to 65 pounds must be packaged in 200-pound test fiberboard containers or equivalent and closed and reinforced as described for 20- to 40-pound containers, except that containers must be reinforced about every 8 inches around the package. Shipments weighing more than 65 pounds must be packaged in 275-pound test fiberboard containers or equivalent.
                </P>
                <HD SOURCE="HD1">3.11 Film Cases</HD>
                <P>A film case weighing more than 5 pounds or with strap-type closures, except any film case the USPS authorizes to be entered as a machinable parcel under 201.7.0 and to be identified by the words “Machinable in United States Postal Service Equipment” permanently attached as a nontransferable decal in the lower right corner of the case.</P>
                <HD SOURCE="HD1">3.12 Coefficient of Friction</HD>
                <P>All parcels must have the coefficient of friction or ability to slide on a smooth, hard surface, similar to that of a domestic-class fiberboard box of the same approximate size and weight.</P>
                <STARS/>
                <HD SOURCE="HD1">4.0 Acceptable Mailing Containers</HD>
                <STARS/>
                <HD SOURCE="HD1">4.2 Boxes</HD>
                <P>Boxes are acceptable, subject to these standards:</P>
                <P>
                    <E T="03">[Revise the text of items a through c to read as follows:]</E>
                </P>
                <P>a. Paperboard boxes may be used for loads to 10 pounds.</P>
                <P>b. Metal-stayed paperboard boxes may be used for loads to 20 pounds.</P>
                <P>c. Solid and corrugated fiberboard boxes may be used for loads to 70 pounds or according to the limits in 3.0.</P>
                <P>
                    <E T="03">[Delete the table under item c in its entirety.]</E>
                </P>
                <STARS/>
                <P>
                    <E T="03">[Delete item g in its entirety.]</E>
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of 4.4 and 4.5 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">4.4 Paper Bags and Wraps</HD>
                <P>For loads of up to 5 pounds, paper bags and wraps are acceptable when at least of a 50-pound basis weight (the strength of an average large grocery bag) and the items are immune from impact or pressure damage. A combination of plies adding up to or exceeding 50-pound basis weight is not acceptable. For loads of up to 20 pounds, reinforced bags or bags with a minimum of 70-pound basis weight are acceptable. Nonreinforced loose-fill padded bags are not acceptable as exterior containers, unless the exterior ply is at least 60-pound basis weight.</P>
                <HD SOURCE="HD1">4.5 Plastic Bags</HD>
                <P>Plastic bags must be at least 2 mil thick polyethylene or equivalent for loads up to 5 pounds; 4 mil thick for loads up to 10 pounds.</P>
                <HD SOURCE="HD1">4.6 Plastic Film</HD>
                <P>Heat-shrinkable plastic film—either irradiated polyethylene, linear low-density polyolefin, or copolymer—may be used as packaging for mailpieces under the following conditions only:</P>
                <P>
                    <E T="03">[Delete item a and renumber items b and c as items a and b. Revise the text of renumbered items a and b to read as follows:]</E>
                </P>
                <P>
                    a. Film must be at least 1
                    <FR>1/4</FR>
                     (1.25) mil thick for a load up to 5 pounds.
                </P>
                <P>
                    b. Film must be at least 1
                    <FR>1/2</FR>
                     (1.5) mil thick for a load up to 10 pounds, only 
                    <PRTPAGE P="53927"/>
                    when mailers prepare the parcels on 5-digit/scheme, merged 5-digit/scheme, or finer level pallets.
                </P>
                <STARS/>
                <P>
                    [
                    <E T="03">Revise the heading of 7.0 and delete the text in its entirety to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">7.0 Reserved</HD>
                <STARS/>
                <HD SOURCE="HD1">602 Addressing</HD>
                <STARS/>
                <HD SOURCE="HD1">3.0 Use of Alternative Addressing</HD>
                <STARS/>
                <HD SOURCE="HD1">3.2 Simplified Address</HD>
                <HD SOURCE="HD1">3.2.1 Conditions for General Use</HD>
                <P>The following conditions must be met when using a simplified address on commercial mailpieces:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the introductory text of item b to read as follows:]</E>
                </P>
                <P>b. USPS Marketing Mail, Periodicals, and Bound Printed Matter flat-size mailpieces (including USPS Marketing Mail pieces allowed as flats under 3.2.1c), USPS Marketing Mail Product Samples mailed at saturation (Every Door) prices, and Periodicals nonstandard parcels for distribution to a city route or to Post Office boxes in offices with city carrier service may bear a simplified address, but only when complete distribution is made under the following conditions:</P>
                <STARS/>
                <HD SOURCE="HD1">3.2.3 Mail Preparation</HD>
                <P>
                    <E T="03">[Revise the third sentence in the introductory text of 3.2.3 to read as follows:]</E>
                </P>
                <P>* * * Mailers must prepare nonstandard parcels in carrier route bundles in sacks or directly on pallets. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">604 Postage Payment Methods and Refunds</HD>
                <STARS/>
                <HD SOURCE="HD1">5.0 Permit Imprint (Indicia)</HD>
                <STARS/>
                <HD SOURCE="HD1">5.3 Indicia Design, Placement, and Content</HD>
                <STARS/>
                <HD SOURCE="HD1">5.3.9 Use of a Company Permit Imprint</HD>
                <P>* * * The following standards apply:</P>
                <P>
                    <E T="03">[Revise the last sentence of item a to read as follows:]</E>
                </P>
                <P>
                    a. * * * Sample pieces are not required for nonidentical-piece USPS Marketing Mail and Package Services machinable or nonstandard parcel mailings (
                    <E T="03">e.g.,</E>
                     merchandise and other fulfillment mailings).
                </P>
                <STARS/>
                <HD SOURCE="HD1">700 Special Standards</HD>
                <STARS/>
                <HD SOURCE="HD1">705 Advanced Preparation and Special Postage Payment Systems</HD>
                <STARS/>
                <HD SOURCE="HD1">6.0 Combining Mailings of USPS Marketing Mail, Package Services, and Parcel Select Parcels</HD>
                <STARS/>
                <HD SOURCE="HD1">6.4 Combining Package Services, Parcel Select, and USPS Marketing Mail—Optional 3-Digit SCF Entry</HD>
                <STARS/>
                <HD SOURCE="HD1">6.4.2 Qualification and Preparation</HD>
                <P>Parcel Select and Bound Printed Matter machinable parcels, and USPS Marketing Mail parcels may be prepared for entry at designated SCFs under these standards:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item d to read as follows:]</E>
                </P>
                <P>d. USPS Marketing Mail, machinable Marketing Parcels (regular and nonprofit) and Nonprofit Machinable priced parcels are eligible for the NDC/RPDC presort-level DNDC price. USPS Marketing Mail, nonstandard Marketing Parcels (regular and nonprofit) and Nonprofit Nonstandard priced parcels are eligible for the 3-digit presort-level DSCF price.</P>
                <STARS/>
                <HD SOURCE="HD1">7.0 Combining Package Services and Parcel Select Parcels for Destination Entry</HD>
                <HD SOURCE="HD1">7.1 Combining Parcels—DSCF/RP&amp;DC and DDU or S&amp;DC Entry</HD>
                <STARS/>
                <HD SOURCE="HD1">7.1.2 Basic Standards</HD>
                <P>
                    <E T="03">[Revise the introductory text of 7.1.2 to read as follows:]</E>
                </P>
                <P>Package Services and Parcel Select parcels that qualify as machinable and nonstandard under 201 and meet the following conditions may be combined in 5-digit scheme and 5-digit sacks or 5-digit scheme and 5-digit pallets under these conditions:</P>
                <STARS/>
                <HD SOURCE="HD1">8.0 Preparing Pallets</HD>
                <STARS/>
                <HD SOURCE="HD1">8.5 General Preparation</HD>
                <HD SOURCE="HD1">8.5.1 Presort</HD>
                <P>
                    <E T="03">[Revise the seventh sentence of 8.5.1 to read as follows:]</E>
                </P>
                <P>* * * These standards may result in some bundles of Periodicals flats and nonstandard parcels and USPS Marketing Mail flats that are part of a mailing job prepared in part as palletized flats at automation prices not being placed on the finest level of pallet possible. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">8.5.2 Required Preparation</HD>
                <P>The following standards apply to Periodicals, USPS Marketing Mail, Parcel Select, and Package Services, except Parcel Select mailed at DSCF and DDU prices:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the first sentence of item b to read as follows:]</E>
                </P>
                <P>b. For bundles of flat-size mailpieces or bundles of nonstandard parcels on pallets, after preparing all possible pallets under 8.5.2a, when 250 or more pounds of bundles remain for an ADC/RPDC (Periodicals) or for a NDC/ASF/RPDC (USPS Marketing Mail, Parcel Select, and Package Services), mailers must prepare the ADC/RPDC or NDC/ASF/RPDC pallet, as applicable for the class of mail. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">8.5.4 Minimum Height of Mail</HD>
                <P>The definitions of the minimum height of mail used to qualify for DSCF/DRPDC Parcel Select prices are as follows:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the first sentence of item b to read as follows:]</E>
                </P>
                <P>
                    b. 
                    <E T="03">Nonstandard parcels.</E>
                     * * *
                </P>
                <STARS/>
                <HD SOURCE="HD1">8.5.6 Mail on Pallets</HD>
                <P>These standards apply to mail on pallets:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of items a and b to read as follows:]</E>
                </P>
                <P>a. For Bound Printed Matter nonstandard parcels, Presorted and Carrier Route price mail may be combined on all levels of pallet. For Bound Printed Matter flats, Presorted and Carrier Route price mail may be combined on all levels of pallet except as provided in 8.5.6g.</P>
                <P>
                    b. For sacks or flat trays of Periodicals, USPS Marketing Mail, and Bound Printed Matter flats or nonstandard parcels, carrier route price mail must be prepared on separate 5-
                    <PRTPAGE P="53928"/>
                    digit pallets from automation price and/or presorted price mail.
                </P>
                <STARS/>
                <HD SOURCE="HD1">8.6.5 Line 2 (Content Line)</HD>
                <P>Line 2 (content line) must meet these standards:</P>
                <STARS/>
                <P>
                    b. 
                    <E T="03">Codes.</E>
                     The codes shown below must be used as appropriate on Line 2 of sack, tray, and pallet labels.
                </P>
                <P>CONTENT TYPE  CODE</P>
                <STARS/>
                <P>
                    <E T="03">[Delete the “Irregular Parcels” line item in its entirety.]</E>
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Content Type” text of the “Mixed Machinable and Irregular” line item to read as follows:]</E>
                </P>
                <P>Mixed Machinable and Nonstandard Parcels  MACH &amp; NONSTD (USPS Marketing Mail only)</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Content Type” text of the “Nonmachinable Parcels” line item to read as follows:]</E>
                </P>
                <P>Nonstandard Parcels  NONSTD</P>
                <STARS/>
                <HD SOURCE="HD1">8.8 Basic Uses</HD>
                <P>These types of mail may be palletized:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item d to read as follows:]</E>
                </P>
                <P>d. Machinable or nonstandard parcels.</P>
                <STARS/>
                <HD SOURCE="HD1">8.9 Bundles on Pallets</HD>
                <HD SOURCE="HD1">8.9.1 Applicability</HD>
                <P>
                    <E T="03">[Revise the first sentence of 8.9.1 to read as follows:]</E>
                </P>
                <P>Presort destination bundles of Periodicals, USPS Marketing Mail, and Package Services flats and nonstandard parcels may be placed directly on pallets under 8.9.2 through 8.9.5 and 8.10. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">8.9.5 Bound Printed Matter</HD>
                <P>Bound Printed Matter on pallets must be bundled as follows:</P>
                <STARS/>
                <P>b. Presorted and Carrier Route Bound Printed Matter:</P>
                <P>
                    <E T="03">[Revise the first sentence of item b1 to read as follows:]</E>
                </P>
                <P>1. Only individual pieces of flats or nonstandard parcels that weigh less than 10 pounds each may be prepared as bundles on pallets. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">8.10.2 Periodicals—Bundles, Sacks, Letter or Flat Trays</HD>
                <P>
                    <E T="03">[Revise the seventh sentence in the introductory text of 8.10.2 to read as follows:]</E>
                </P>
                <P>* * * Bundles of Periodicals flats and nonstandard parcels may also be palletized under 10.0, 12.0, or 13.0. * * *</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the third sentence in the introductory text of item b to read as follows:]</E>
                </P>
                <P>b. * * * Required for bundles containing all other flats or nonstandard parcels. * * *</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the third sentence in the introductory text of item c to read as follows:]</E>
                </P>
                <P>c. * * * Pallet must contain only 5-digit bundles of automation price and/or Presorted price mail for the same 5-digit scheme under L001. * * *</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the third sentence in the introductory text of item e to read as follows:]</E>
                </P>
                <P>e. * * * Required for bundles containing all other flats or nonstandard parcels. * * *</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the first sentence in the introductory text of item f to read as follows:]</E>
                </P>
                <P>
                    f. 
                    <E T="03">5-digit,</E>
                     required, except for letter trays; permitted for bundles, trays, and sacks (nonstandard parcels only). * * *
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the introductory text of item h to read as follows:]</E>
                </P>
                <P>
                    h. 
                    <E T="03">SCF,</E>
                     required, permitted for bundles, trays, and sacks (nonstandard parcels only). The pallet may contain carrier route, automation price, and/or Presorted price mail for the 3-digit ZIP Code groups in L005. Mailers may place origin mixed ADC (OMX) sacks (nonstandard parcels only) or flat trays on origin SCF pallets. Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the first sentence in the introductory text of item i to read as follows:]</E>
                </P>
                <P>
                    <E T="03">i. ADC,</E>
                     required, permitted for bundles, trays, and sacks (nonstandard parcels only). * * *
                </P>
                <STARS/>
                <HD SOURCE="HD1">8.10.3 USPS Marketing Mail—Bundles, Sacks, or Trays</HD>
                <P>
                    <E T="03">[Revise the fifth and sixth sentence of the introductory text of 8.10.3 to read as follows:]</E>
                </P>
                <P>* * * For parcels, use this preparation only for nonstandard parcels in sacks. Palletize unbundled or unsacked nonstandard parcels under 8.10.8. * * *</P>
                <STARS/>
                <P>
                    <E T="03">d. 5-digit, required except for trays,</E>
                     permitted for bundles, trays, and sacks (when applicable). * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the first sentence of item d2 to read as follows:]</E>
                </P>
                <P>2. Line 2: For flats and nonstandard parcels, use “STD” followed by “FLTS” or “NONSTD,” as applicable; followed by “5D” followed by “BARCODED” (or “BC”) if the pallet contains automation-price mail; followed by “NONBARCODED” (or “NBC”) if the pallet contains Presorted-price mail. * * *</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the first sentence in the introductory text of item f to read as follows:]</E>
                </P>
                <P>
                    f. 
                    <E T="03">SCF,</E>
                     required, permitted for bundles, trays, and sacks (nonstandard parcels only). * * *
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the first sentence in the text of item f2 to read as follows:]</E>
                </P>
                <P>2. Line 2: For flats and nonstandard parcels, “STD” followed by “FLTS” or “NONSTD,” as applicable; followed by “SCF”; followed by “BARCODED” (or “BC”) if pallet contains automation price mail; followed by “NONBARCODED” (or “NBC”) if pallet contains carrier route and/or Presorted price mail. * * *</P>
                <P>
                    g. 
                    <E T="03">ASF,</E>
                     required unless bundle reallocation is used under 8.13, permitted for bundles, trays, and sacks (nonstandard parcels only). * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the first sentence in the text of item g2 to read as follows:]</E>
                </P>
                <P>2. Line 2: For flats and nonstandard parcels, “STD” followed by “FLTS” or “NONSTD,” as applicable; followed by “ASF”; followed by “BARCODED” (or “BC”) if pallet contains automation price mail; followed by “NONBARCODED” (or “NBC”) if pallet contains carrier route and/or Presorted price mail. * * *</P>
                <P>
                    <E T="03">[Revise the first sentence in the introductory text of item h to read as follows:]</E>
                </P>
                <P>
                    h. 
                    <E T="03">NDC,</E>
                     required, permitted for bundles, trays, and sacks (nonstandard parcels only). * * *
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the first sentence in the text of item h2 to read as follows:]</E>
                </P>
                <P>
                    2. Line 2: For flats and nonstandard parcels, “STD” followed by “FLTS” or “NONSTD,” as applicable; followed by “NDC”; followed by “BARCODED” (or “BC”) if pallet contains automation price mail; followed by “NONBARCODED” (or “NBC”) if pallet contains carrier route and/or Presorted price mail. * * *
                    <PRTPAGE P="53929"/>
                </P>
                <P>
                    <E T="03">[Revise the introductory text of item i to read as follows:]</E>
                </P>
                <P>i. Mixed NDC, optional, permitted for bundles, trays, and sacks (nonstandard parcels only); allowed with no minimum and required at 100 pounds of mail for bundles of flats. Bundles of flats totaling less than 100 pounds in weight must be trayed if not palletized. The pallet may contain carrier route, automation, and/or Presorted mail. Mailers must place trays and sacks (nonstandard parcels only) containing pieces paid at the single-piece price on the mixed NDC pallet (unless required to be presented separately by special postage payment authorization). Labeling:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the first sentence in the text of item i2 to read as follows:]</E>
                </P>
                <P>2. Line 2: For flats and nonstandard parcels, “STD” followed by “FLTS” or “NONSTD,” as applicable; followed by “BARCODED” (or “BC”) if pallet contains automation price mail; followed by “NONBARCODED” (or “NBC”) if pallet contains carrier route and/or Presorted price mail; followed by “WKG.” * * *</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 8.10.5 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">8.10.5 Package Services Nonstandard Parcels—Bundles and Sacks</HD>
                <P>
                    <E T="03">[Revise the fifth sentence of 8.10.5 to read as follows:]</E>
                </P>
                <P>* * * At the mailer's option, all Package Services nonstandard parcels also may be prepared for destination entry (see 7.0). * * *</P>
                <P>
                    a. 
                    <E T="03">Merged 5-digit scheme,</E>
                     required, permitted for bundles only. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item a2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD CR/5D”; followed by “SCHEME” (or “SCH”).</P>
                <P>
                    b. 
                    <E T="03">5-digit scheme carrier routes,</E>
                     required, permitted for bundles only. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD”; followed by “CARRIER ROUTES” (or “CR-RTS”); followed by “SCHEME” (or “SCH”).</P>
                <P>
                    c. 
                    <E T="03">5-digit scheme,</E>
                     required, permitted for bundles only. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item c2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD 5D”; followed by “SCHEME” (or “SCH”).</P>
                <P>
                    d. 
                    <E T="03">Merged 5-digit,</E>
                     required, permitted for bundles only. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item d2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD CR/5D.”</P>
                <P>
                    e. 
                    <E T="03">5-digit carrier routes,</E>
                     required, permitted for bundles and sacks. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item e2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD”; followed by “CARRIER ROUTES” (or “CR-RTS”).</P>
                <P>
                    f. 
                    <E T="03">5-digit,</E>
                     required, permitted for bundles and sacks. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item f2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD 5D.”</P>
                <P>
                    g. 
                    <E T="03">3-digit,</E>
                     optional, option not available for bundles for 3-digit ZIP Code prefixes marked “N” in L002. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item g2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD 3D.”</P>
                <P>
                    h. 
                    <E T="03">SCF,</E>
                     required, permitted for bundles and sacks. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item h2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD SCF.”</P>
                <P>
                    i. 
                    <E T="03">ASF,</E>
                     required, permitted for bundles and sacks. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item i2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD ASF.”</P>
                <P>
                    j. 
                    <E T="03">NDC,</E>
                     required, permitted for bundles and sacks. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item j2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD NDC.”</P>
                <P>
                    k. 
                    <E T="03">Mixed NDC,</E>
                     optional, permitted for sacks only. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item k2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “PSVC NONSTD WKG.”</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading and introductory text of 8.10.8 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">8.10.8 Nonstandard Parcels Weighing 2 Ounces or More—USPS Marketing Mail, Including Marketing Parcels</HD>
                <P>Mailers who palletize unbundled or unsacked nonstandard parcels must make pallets or pallet boxes when there are 250 pounds or more for the destination levels below for DNDC, DSCF, or DDU prices. When prepared at origin, a 200-pound minimum is required for the NDC price. Prepare pallets or pallet boxes of nonstandard parcels (except tubes, rolls, and similar pieces) weighing 2 ounces or more under 8.0 and in the sequence listed below. Label pallets or pallet boxes according to the Line 1 and Line 2 information listed below and under 8.6. Mailers may not prepare tubes, rolls, and similar pieces or pieces that weigh less than 2 ounces on pallets or in pallet boxes, except for pieces in carrier route bundles or in sacks under 8.10.3. Preparation sequence and labeling:</P>
                <P>
                    a. 
                    <E T="03">5-digit scheme,</E>
                     required. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item a2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “STD NONSTD 5D”; followed by “SCHEME” (or “SCH”).</P>
                <P>
                    <E T="03">b. 5-digit,</E>
                     required. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item b2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “STD NONSTD 5D.”</P>
                <P>
                    c. 
                    <E T="03">SCF,</E>
                     required. Allowed only for mail deposited at a DSCF to claim SCF price; labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item c2 to read as follows:]</E>
                </P>
                <P>2. Line 2: Use “STD NONSTD SCF.”</P>
                <P>
                    d. 
                    <E T="03">ASF,</E>
                     optional, but required for DNDC prices. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item d2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “STD NONSTD ASF.”</P>
                <P>
                    e. 
                    <E T="03">NDC,</E>
                     required. * * * * * * Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item e2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “STD NONSTD NDC.”</P>
                <P>
                    f. 
                    <E T="03">Origin NDC</E>
                     (required); no minimum; labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item f2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “STD NONSTD NDC.”</P>
                <P>
                    g. 
                    <E T="03">Mixed NDC,</E>
                     optional. Labeling:
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item g2 to read as follows:]</E>
                </P>
                <P>2. Line 2: “STD NONSTD WKG.”</P>
                <P>
                    <E T="03">[Revise the heading of 8.11 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">8.11 Bundle Reallocation To Protect SCF Pallet for Periodicals Flats and Nonstandard Parcels and USPS Marketing Mail Flats on Pallets</HD>
                <STARS/>
                <PRTPAGE P="53930"/>
                <HD SOURCE="HD1">8.11.3 Reallocation of Bundles if Optional 3-Digit Pallets Are Prepared</HD>
                <P>Reallocation rules are as follows:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the last sentence of item d to read as follows:]</E>
                </P>
                <P>d. * * * Mail that falls beyond the SCF/RPDC pallet level must be placed on the next appropriate pallet (ADC/RPDC, ASF/RPDC, NDC/RPDC or MNDC/MRPDC) or in the next appropriate sack (nonstandard parcels) or flat tray.</P>
                <HD SOURCE="HD1">8.11.4 Reallocation of Bundles if Optional 3-Digit Pallets Are Not Prepared</HD>
                <P>Reallocation rules are as follows:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the last sentence of item b to read as follows:]</E>
                </P>
                <P>b. * * * Mail that falls beyond the SCF/RPDC pallet level must be placed on the next appropriate pallet (ADC/RPDC, ASF/RPDC, NDC/RPDC, or MNDC/MRPDC) or in the next appropriate sack (nonstandard parcels) or flat tray.</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the heading of 8.12 to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">8.12 Bundle Reallocation To Protect ADC Pallet for Periodicals Flats and Nonstandard Parcels on Pallets</HD>
                <STARS/>
                <HD SOURCE="HD1">8.14 Pallets of Bundles, Sacks, and Trays</HD>
                <STARS/>
                <HD SOURCE="HD1">8.14.2* * *USPS Marketing Mail</HD>
                <P>Additional pallet preparation:</P>
                <P>
                    <E T="03">[Revise the last sentence of item a to read as follows:]</E>
                </P>
                <P>
                    a. 
                    <E T="03">Combined mailings.</E>
                     * * * * * * Mailers may include machinable parcels and nonstandard parcels on 5-digit pallets.
                </P>
                <STARS/>
                <HD SOURCE="HD1">8.18 Parcel Select DSCF Prices—Parcels on Pallets</HD>
                <HD SOURCE="HD1">8.18.1 Basic Preparation, Parcels on Pallets</HD>
                <P>Unless prepared under 8.18.2, or in sacks, mail must be prepared for the DSCF price as follows:</P>
                <P>
                    <E T="03">[Revise the third sentence of item a to read as follows:]</E>
                </P>
                <P>
                    a. 
                    <E T="03">General.</E>
                     * * * Nonstandard pieces under 201.7.6 may be combined on the same pallet or in the same overflow sack when sorted to 5-digit scheme or 5-digit destinations. * * *
                </P>
                <STARS/>
                <HD SOURCE="HD1">8.18.2 Alternate Preparation, Parcels on Pallets</HD>
                <P>DSCF price mailings not prepared under 8.18.1 may be prepared as follows:</P>
                <P>
                    <E T="03">[Revise the third sentence of item a to read as follows:]</E>
                </P>
                <P>
                    a. 
                    <E T="03">General.</E>
                     * * * Nonstandard pieces under 201.7.6 may be combined on the same pallet. * * *
                </P>
                <STARS/>
                <HD SOURCE="HD1">8.20 Parcel Select and Bound Printed Matter DDU Prices</HD>
                <P>
                    <E T="03">[Revise the fourth sentence in the introductory text of 8.20 to read as follows:]</E>
                </P>
                <P>* * * Nonstandard pieces under 201.7.6 may be combined. * * *</P>
                <STARS/>
                <HD SOURCE="HD1">9.0 Combining Bundles of Automation and Nonautomation Flats in Flat Trays and Sacks</HD>
                <STARS/>
                <HD SOURCE="HD1">9.2 Periodicals</HD>
                <STARS/>
                <HD SOURCE="HD1">9.2.4 Optional Sack Preparation and Labeling</HD>
                <P>
                    <E T="03">[Revise the fifth sentence in the introductory text of 9.2.4 to read as follows:]</E>
                </P>
                <P>* * * If, due to the physical size of the mailpieces, the machinable barcoded price pieces are considered flat-size under 201.6.0 and the machinable nonbarcoded price pieces are considered nonstandard parcels under 201.7.6, the processing category shown on the sack label must show “FLTS.” * * *</P>
                <STARS/>
                <HD SOURCE="HD1">10.0 Merging Bundles of Flats Using the City State Product</HD>
                <STARS/>
                <HD SOURCE="HD1">10.1.4 Sack and Flat-Tray Preparation and Labeling</HD>
                <P>
                    <E T="03">[Revise the introductory text of 10.1.4 to read as follows:]</E>
                </P>
                <P>All carrier route bundles must be placed in sacks/flat trays under 10.1.4a through 10.1.4e and 10.1.4h as described below. When sorting is performed under this section, mailers must prepare merged 5-digit scheme sacks (nonstandard parcels) or flat trays, 5-digit scheme carrier routes sacks/flat trays, and merged 5-digit sacks (nonstandard parcels) or flat trays for all possible 5-digit schemes or 5-digit ZIP Codes as applicable, using L001 (merged 5-digit scheme and 5-digit scheme carrier routes sort only) and the Carrier Route Indicators field in the City State Product when there is enough volume for the 5-digit scheme or 5-digit ZIP Code to prepare such sacks (nonstandard parcels) or flat trays under 10.1.4. Mailers must label sacks/flat trays according to the Line 1 and Line 2 information listed below and under 207.20.1. If, due to the physical size of the mailpieces, the barcoded pieces are considered flat-size under 207.26.0, and the carrier route pieces and nonbarcoded pieces are considered nonstandard parcels under 201.7.6, “FLTS” must be shown as the processing category on the sack/tray label. If a mailing job does not contain barcoded price pieces and the carrier route pieces and the nonbarcoded pieces are nonstandard parcel shaped, use “NONSTD” for the processing category on the contents line of the label. Mailers must prepare sacks containing carrier route and 5-digit bundles from the carrier route, barcoded, and nonbarcoded mailings in the mailing job in the following manner and sequence:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of item h to read as follows:]</E>
                </P>
                <P>
                    h. 
                    <E T="03">Merged 3-digit.</E>
                     Required for carrier route, 5-digit, and 5-digit scheme bundles remaining after preparing sacks (nonstandard parcels only) or flat trays under 10.1.4a through 10.1.4g, and any 3-digit and 3-digit scheme bundles with a minimum of 24 pieces for a 3-digit area. Labeling:
                </P>
                <STARS/>
                <HD SOURCE="HD1">12.0 Merging Bundles of Flats on Pallets Using a 5 Percent Threshold</HD>
                <STARS/>
                <HD SOURCE="HD1">12.1.5 Pallet Preparation and Labeling</HD>
                <P>
                    <E T="03">[Revise the text in the fourth and last sentence of 12.1.5 to read as follows:]</E>
                </P>
                <P>* * * If, due to the physical size of the mailpieces, the barcoded price pieces are considered flat size under 201.6.0 and the carrier route sorted pieces and nonbarcoded price pieces are considered nonstandard parcels under 201.7.6, “FLTS” must be shown as the processing category on the pallet label. If a mailing contains no barcoded price pieces and the carrier route pieces and the nonbarcoded pieces are nonstandard parcels, use “NONSTD for the processing category on the contents line of the pallet label. Prepare and label pallets as follows:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the second sentence of item c to read as follows:]</E>
                </P>
                <P>c. * * * Required for all other flats and nonstandard parcels. * * *</P>
                <STARS/>
                <PRTPAGE P="53931"/>
                <HD SOURCE="HD1">13.0 Merging Bundles of Flats on Pallets Using the City State Product and a 5 Percent Threshold</HD>
                <STARS/>
                <HD SOURCE="HD1">13.1.5 Pallet Preparation and Labeling</HD>
                <P>
                    <E T="03">[Revise the fourth and last sentence of 13.1.5 to read as follows:]</E>
                </P>
                <P>* * * If, due to the physical size of the mailpieces, the barcoded price pieces are considered flat-size under 201.6.0 and the carrier route sorted pieces and nonbarcoded price pieces are considered nonstandard parcels under 201.7.6, “FLTS” must be shown as the processing category on the pallet label. If a mailing contains no barcoded price pieces and the carrier route pieces and the nonbarcoded of pieces are nonstandard parcels, use “NONSTD” for the processing category on the contents line of the pallet label. Prepare and label pallets as follows:</P>
                <STARS/>
                <HD SOURCE="HD1">21.0 Optional Combined Parcel Mailings</HD>
                <STARS/>
                <HD SOURCE="HD1">21.3 Mail Preparation</HD>
                <HD SOURCE="HD1">21.3.1 Basic Standards</HD>
                <P>Prepare combined mailings as follows:</P>
                <P>a. Different parcel types must be prepared separately for combined parcel mailings as indicated below:</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the text of items a2 and a3 to read as follows:]</E>
                </P>
                <P>2. USPS Marketing Mail, Parcel Select, and Package Services nonstandard parcels, except for tubes, rolls, triangles, and other similarly nonstandard-shaped pieces: Use “STD/PSVC” for line 2 content labeling.</P>
                <P>3. USPS Marketing Mail, Parcel Select, and Package Services tubes, rolls, triangles, and similarly nonstandard-shaped parcels: Use “STD/PSVC NONSTD” for line 2 content labeling.</P>
                <STARS/>
                <HD SOURCE="HD1">21.3.3 Combining USPS Marketing Mail, Parcel Select, and Package Services APPS-Machinable Parcels</HD>
                <P>
                    <E T="03">[Revise the text of 21.3.3 to read as follows:]</E>
                </P>
                <P>Prepare and enter USPS Marketing Mail, Parcel Select, and Package Services nonstandard parcels, that are not tubes, rolls, triangles, or similarly nonstandard-shaped parcels) as combined APPS-machinable parcels as shown in the table below.</P>
                <STARS/>
                <HD SOURCE="HD1">Index</HD>
                <STARS/>
                <HD SOURCE="HD1">B</HD>
                <STARS/>
                <HD SOURCE="HD1">Bound Printed Matter, Commercial Parcels</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “carrier route irregular parcels” line item under “Bound Printed Matter, Commercial Parcels” to read as follows:]</E>
                </P>
                <P>carrier route nonstandard parcels, 265.9.2, 265.9.3</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “presorted irregular parcels” line item under “Bound Printed Matter, Commercial Parcels” to read as follows:]</E>
                </P>
                <P>presorted nonstandard parcels, 265.8.2, 265.8.3</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “nonmachinable parcels” line item under “Bound Printed Matter, Commercial Parcels” to read as follows:]</E>
                </P>
                <P>nonstandard parcels, 201.7.6</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “bundles of irregular parcels on pallets” line item under “Bound Printed Matter, Commercial Parcels” to read as follows:]</E>
                </P>
                <P>bundles of nonstandard parcels on pallets, 705.8.10.5</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “carrier route irregular parcels” line item under “Bound Printed Matter, Commercial Parcels” to read as follows:]</E>
                </P>
                <P>carrier route nonstandard parcels, 265.9.2, 265.9.3</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “presorted irregular parcels” line item under “Bound Printed Matter, Commercial Parcels” to read as follows:]</E>
                </P>
                <P>presorted nonstandard parcels, 265.8.2, 265.8.3</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “sacks of irregular parcels on pallets” line item under “Bound Printed Matter, Commercial Parcels” to read as follows:]</E>
                </P>
                <P>sacks of nonstandard parcels on pallets, 705.8.10.5</P>
                <STARS/>
                <HD SOURCE="HD1">I</HD>
                <STARS/>
                <P>
                    <E T="03">[Delete the “Irregular parcels” line item under “I”.]</E>
                </P>
                <STARS/>
                <HD SOURCE="HD1">L</HD>
                <STARS/>
                <HD SOURCE="HD1">Library Mail, Commercial Parcels</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “irregular parcels” and “irregular parcels on pallets” line items under “Library Mail, Commercial Parcels” to read as follows:]</E>
                </P>
                <P>nonstandard parcels, 275.6.3</P>
                <P>nonstandard parcels on pallets, 705.8.10.5</P>
                <STARS/>
                <P>
                    <E T="03">[Delete the second duplicated line item “irregular parcels” after the “bundles” line item.]</E>
                </P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “nonmachinable parcels” line item under “Library Mail, Commercial Parcels” to read as follows:]</E>
                </P>
                <P>nonstandard parcels, 201.7.6</P>
                <STARS/>
                <HD SOURCE="HD1">M</HD>
                <STARS/>
                <HD SOURCE="HD1">Media Mail, Commercial Parcels</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “irregular parcels” and “irregular parcels on pallets” line items under “Media Mail, Commercial Parcels” to read as follows:]</E>
                </P>
                <P>nonstandard parcels, 275.6.3</P>
                <P>nonstandard parcels on pallets, 705.8.10.5</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “nonmachinable parcels” line item under “Media Mail, Commercial Parcels” to read as follows:]</E>
                </P>
                <P>nonstandard parcels, 201.7.6</P>
                <STARS/>
                <HD SOURCE="HD1">N</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “nonmachinable” line item under “N” to read as follows:]</E>
                </P>
                <HD SOURCE="HD1">Nonstandard</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “Parcel Select” line item under the renamed “nonstandard” to read as follows:]</E>
                </P>
                <P>Parcel Select, 201.7.6</P>
                <STARS/>
                <HD SOURCE="HD1">P</HD>
                <STARS/>
                <HD SOURCE="HD1">Parcel Select</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “irregular parcels on pallets” line item under “Parcel Select” to read as follows:]</E>
                </P>
                <P>nonstandard parcels on pallets, 705.8.10.5</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “nonmachinable parcels on pallets” line item under “Parcel Select” to read as follows:]</E>
                </P>
                <P>nonstandard parcels on pallets, 705.8.18.2</P>
                <STARS/>
                <PRTPAGE P="53932"/>
                <P>
                    <E T="03">[Revise the “nonmachinable parcels” line item under “Parcel Select” to read as follows:]</E>
                </P>
                <P>nonstandard parcels, 201.7.6</P>
                <STARS/>
                <HD SOURCE="HD1">Parcels</HD>
                <P>
                    <E T="03">[Revise the “nonmachinable criteria” heading under “parcels” to read as follows:]</E>
                </P>
                <P>nonstandard criteria</P>
                <P>
                    <E T="03">[Revise the “commercial mail” line item under renamed “nonstandard criteria” to read as follows:]</E>
                </P>
                <P>commercial mail, 201.7.6</P>
                <STARS/>
                <HD SOURCE="HD1">Periodicals</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “carrier route irregular parcels in sacks” line item under “Periodicals” to read as follows:]</E>
                </P>
                <P>carrier route nonstandard parcels in sacks, 207.23.4</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “irregular parcels in sacks” line item under “Periodicals” to read as follows:]</E>
                </P>
                <P>nonstandard parcels in sacks, 207.22.6</P>
                <STARS/>
                <HD SOURCE="HD1">S</HD>
                <STARS/>
                <HD SOURCE="HD1">Size</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “nonmachinable parcels” line item under “Size” to read as follows:]</E>
                </P>
                <P>nonstandard parcels, 101.3.0, 201.7.0</P>
                <STARS/>
                <HD SOURCE="HD1">U</HD>
                <STARS/>
                <HD SOURCE="HD1">USPS Marketing Mail, Parcels</HD>
                <STARS/>
                <P>
                    <E T="03">[Revise the “bundling for irregular parcels” line item under “USPS Marketing Mail, parcels” to read as follows:]</E>
                </P>
                <P>bundling for nonstandard parcels, 245.11.4, 245.12.5</P>
                <STARS/>
                <P>
                    <E T="03">[Revise the “presorted irregular parcels” line item under “USPS Marketing Mail, parcels” to read as follows:]</E>
                </P>
                <P>presorted nonstandard parcels, 245.11.4</P>
                <STARS/>
                <SIG>
                    <NAME>Ruth Stevenson,</NAME>
                    <TITLE>Attorney, Ethics and Legal Compliance.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-13924 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="N">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <CFR>40 CFR Part 52</CFR>
                <DEPDOC>[EPA-R03-OAR-2023-0300; FRL-11403-01-R3]</DEPDOC>
                <SUBJECT>Air Plan Approval; Pennsylvania; Oil and Natural Gas Control Measures for 2008 and 2015 Ozone National Ambient Air Quality Standards</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Proposed rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Environmental Protection Agency (EPA) is proposing to approve State implementation plan (SIP) revisions submitted by the Commonwealth of Pennsylvania. The revisions establish and require reasonably available control technology (RACT) requirements for the 2008 and 2015 ozone national ambient air quality standards (NAAQS) for each category of volatile organic compound (VOC) sources in Pennsylvania covered by the EPA's 2016 control techniques guidelines (CTG) for the oil and gas industry. EPA is also proposing to approve Allegheny County, Pennsylvania's incorporation of the Pennsylvania regulations into the Allegheny County SIP with minor changes to reference Allegheny County's existing regulations. This action is being taken under the Clean Air Act (CAA).</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written comments must be received on or before July 29, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit your comments, identified by Docket ID No. EPA-R03-OAR-2023-0300 at 
                        <E T="03">www.regulations.gov,</E>
                         or via email to 
                        <E T="03">Goold.Megan@epa.gov</E>
                        . For comments submitted at 
                        <E T="03">Regulations.gov,</E>
                         follow the online instructions for submitting comments. Once submitted, comments cannot be edited or removed from 
                        <E T="03">Regulations.gov</E>
                        . For either manner of submission, EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be confidential business information (CBI) or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. EPA will generally not consider comments or comment contents located outside of the primary submission (
                        <E T="03">i.e.,</E>
                         on the web, cloud, or other file sharing system). For additional submission methods, please contact the person identified in the 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                         section. For the full EPA public comment policy, information about CBI or multimedia submissions, and general guidance on making effective comments, please visit 
                        <E T="03">www.epa.gov/dockets/commenting-epa-dockets</E>
                        .
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Michael O'Shea, Planning &amp; Implementation Branch (3AD30), Air &amp; Radiation Division, U.S. Environmental Protection Agency, Region III, 1600 John F. Kennedy Boulevard, Philadelphia, Pennsylvania 19103. The telephone number is (215) 814-2064. Dr. O'Shea can also be reached via electronic mail at 
                        <E T="03">oshea.michael@epa.gov</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>On December 12, 2022, the Pennsylvania Department of Environmental Protection (PADEP) submitted a revision to its SIP establishing RACT requirements for the 2008 and 2015 ozone NAAQS to control VOC emissions from sources covered by EPA's 2016 CTG for the oil and gas industry. On September 8, 2023, the Allegheny County Health Department (ACHD) submitted a revision to the Allegheny County SIP incorporating by reference (IBR) the aforementioned Pennsylvania regulations with minor modifications to Pennsylvania's regulations in order to refer to offices, officers, and make proper cross references to the existing Allegheny County regulations and EPA-approved SIP.</P>
                <HD SOURCE="HD1">I. Background</HD>
                <HD SOURCE="HD2">A. Final Control Techniques Guidelines for the Oil and Natural Gas Industry</HD>
                <P>
                    On October 27, 2016, EPA published in the 
                    <E T="04">Federal Register</E>
                     the “Final Control Techniques Guidelines for the Oil and Natural Gas Industry” (EPA's 2016 Oil and Gas CTG) (81 FR 74798).
                    <SU>1</SU>
                    <FTREF/>
                     EPA's 2016 Oil and Gas CTG provided information to state, local, and Tribal air agencies to assist them in determining RACT for VOC emissions from select oil and natural gas industry emission sources. CAA section 182(b)(2)(A) and (B) requires that for ozone nonattainment areas classified as Moderate or above, states must revise their SIPs to include provisions to implement RACT for each category of VOC sources covered by a CTG document. CAA section 184(b)(1)(B) extends this RACT obligation to all areas of states within the Ozone Transport Region (OTR). EPA classifies nonattainment areas based on the severity of their ozone problem. Nonattainment areas fall into five 
                    <PRTPAGE P="53933"/>
                    categories: Marginal, Moderate, Serious, Severe, and Extreme. The Pennsylvania portion of the Philadelphia-Wilmington-Atlantic City, PA-NJ-MD-DE area is classified as Marginal nonattainment for the 2008 ozone standard, and as Moderate nonattainment for the 2015 ozone standard. The Allentown-Bethlehem-Easton, Lancaster, Pittsburgh-Beaver Valley,
                    <SU>2</SU>
                    <FTREF/>
                     and Reading areas are classified as Marginal nonattainment for the 2008 ozone standard, and attainment for the 2015 ozone standard.
                    <SU>3</SU>
                    <FTREF/>
                     Pennsylvania, which includes Allegheny County, is a State within the OTR. See CAA section 184. States subject to RACT requirements are required to adopt controls that represent reasonably available control technology for sources covered by CTGs either via the adoption of regulations, or by issuance of single source orders or permits that specify what the source is required to do to meet RACT. See CAA section 184(b)(1). PADEP, on behalf of the City of Philadelphia, Department of Public Health, Air Management Services (AMS), previously submitted a negative declaration, which EPA approved, stating that Philadelphia County contained no source categories covered by the 1983 Oil and Gas CTG as part of its SIP revision to address the RACT requirements for the 2008 Ozone national ambient air quality standard.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">www.epa.gov/sites/default/files/2016-10/documents/2016-ctg-oil-and-gas.pdf</E>
                        .
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">www.epa.gov/green-book/green-book-8-hour-ozone-2008-area-information</E>
                        .
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">www.epa.gov/green-book/green-book-8-hour-ozone-2015-area-information</E>
                        .
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         The final rule action satisfying Philadelphia's VOC RACT requirements for source categories covered by CTGs for the 2008 Ozone NAAQS was published on October 24, 2019, effective November 25, 2019 (84 FR 56946).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Findings of Failure To Submit</HD>
                <P>
                    On November 16, 2020, and December 16, 2021,
                    <SU>5</SU>
                    <FTREF/>
                     EPA issued Findings of Failure to Submit (FFS) which found that certain states, including Pennsylvania, failed to submit SIP revisions in a timely manner to satisfy the CAA's RACT requirement for either, or both of, the 2008 and 2015 Ozone NAAQS, to implement RACT for categories of sources addressed by the EPA's 2016 Oil and Gas CTG. These findings of failure to submit each established a 24-month deadline for EPA to either approve SIP revisions or finalize Federal implementation plans (FIPs) to implement RACT level controls for the categories of sources addressed in the CTG. These actions also established timelines for the implementation of two mandatory sanctions that would begin if the named states did not submit complete SIP revisions to address the CTG: (1) eighteen months after the effective date of these findings, a 2-to-1 offset ratio for the nonattainment new source review (NSR) permitting program would go into effect, such that for every unit of VOC or Nitrogen Oxides (NO
                    <E T="52">X</E>
                    ) emissions a new or modified source will contribute to the nonattainment area or OTR state, two units must be reduced; and (2) six months after the date of offset sanctions, Federal highway funding would be withheld in nonattainment areas. See 85 FR 72963 at 72965, November 16, 2020.
                    <SU>6</SU>
                    <FTREF/>
                     Pennsylvania did not submit a SIP revision to EPA prior to June 16, 2022, so the offset sanctions identified in CAA section 179(b)(2) began June 16, 2022.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         The finding of failure to submit for the EPA 2016 Oil and Gas CTG for the 2008 NAAQS was issued and published on November 16, 2020 (85 FR 72963), with an effective date of December 16, 2020, and for the 2015 NAAQS on December 16, 2021 (86 FR 71385), with an effective date of January 18, 2022.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Findings of Failure To Submit State Implementation Plan Revisions in Response to the EPA 2016 Oil and Natural Gas Industry Control Techniques Guidelines for the 2008 Ozone National Ambient Air Quality Standards (NAAQS) and for States in the Ozone Transport Region, 85 FR 72963 (November 16, 2020).
                    </P>
                </FTNT>
                <P>
                    On December 12, 2022, PADEP submitted a SIP revision to implement RACT-level controls on categories of sources addressed by the EPA's 2016 Oil and Gas CTG to fulfill obligations associated with the 2008 and 2015 ozone NAAQS.
                    <SU>7</SU>
                    <FTREF/>
                     On September 8, 2023, PADEP submitted a SIP revision on behalf of the ACHD 
                    <SU>8</SU>
                    <FTREF/>
                     which incorporated by reference, with minor changes, Pennsylvania's regulations implementing RACT controls for sources covered by EPA's 2016 Oil and Gas CTG for both the 2008 and 2015 ozone NAAQS. ACHD submitted this revision so that regulations at the county level could be consistent with regulations at the State level and in Pennsylvania's approved SIP. Except for minor modifications, Allegheny County's regulation is identical to the Pennsylvania regulations addressing EPA's 2016 Oil and Gas CTG. Therefore, EPA's analysis of Pennsylvania's Oil and Gas regulation is applicable to ACHD's regulation. ACHD's minor revisions to the Pennsylvania regulations change cross references from Pennsylvania's regulations to ACHD's regulations and substitute Allegheny County offices and officials for state-level offices and officials referenced in the Pennsylvania regulation. As such, ACHD relied upon PADEP's RACT analysis and determinations to support its regulations. Therefore, references to PADEP's analysis below also apply to ACHD's SIP revision.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         PADEP's SIP submission is located in the docket for this proposed rulemaking and can be found under Docket ID Number EPA-R03-OAR-2023-0300 at 
                        <E T="03">www.regulations.gov</E>
                        .
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Article XXI Air Pollution Control, ACHD rules and regulations, 
                        <E T="03">www.alleghenycounty.us/files/assets/county/v/1/services/health/documents/air-quality/enforcement/regulations/article-21-air-pollution-control.pdf</E>
                        . ACHD's SIP submission is located in the docket for this proposed rulemaking and can be found under Docket ID Number EPA-R03-OAR-2023-0300 at 
                        <E T="03">www.regulations.gov</E>
                        .
                    </P>
                </FTNT>
                <P>EPA evaluated Pennsylvania's December 12, 2022 SIP submittal and determined via a December 14, 2022 letter to PADEP that it was administratively complete. This completeness determination rescinded the offset sanctions that took effect on June 16, 2022 as a result of EPA's November 16, 2020 FFS and prevented the imposition of Federal highway sanctions that would have otherwise taken effect on December 16, 2022 as a result of EPA's 2020 FFS. The same completeness determination also stopped the imposition of sanctions that could have resulted from EPA's December 16, 2021 FFS for Pennsylvania's failure to submit a SIP revision for the 2015 ozone NAAQS addressing the EPA's 2016 Oil and Gas CTG.</P>
                <P>
                    Finally, EPA's long-standing definition of RACT is “the lowest emission limit that a particular source is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility.” 
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         See Memorandum, dated December 9, 1976, from Roger Strelow, EPA, entitled “Guidance for determining Acceptability of SIP Regulations in Non-attainment Areas,” available at 
                        <E T="03">www3.epa.gov/ttn/naaqs/aqmguide/collection/cp2/19761209_strelow_ract.pdf</E>
                        .
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Summary of Pennsylvania and Allegheny County's SIP Revision and EPA's Analysis</HD>
                <P>
                    Pennsylvania's and Allegheny County's SIP submissions included two separate sets of nearly identical regulations for two types of oil and natural gas sources as defined by Pennsylvania and Allegheny County: “conventional” oil and gas sources, and “unconventional” oil and gas sources. EPA's 2016 Oil and Gas CTG does not distinguish between the two types of sources. As defined by Pennsylvania, a conventional gas well is located both above and below the Elk Sandstone and yields gas or oil from a conventional formation in age. Pennsylvania defines an unconventional well as a well that is drilled into an unconventional formation, which is a geological shale formation located beneath the Elk Sandstone or its geologic equivalent and in which natural gas production is typically limited to horizontal or 
                    <PRTPAGE P="53934"/>
                    vertical well bores that have been stimulated by hydraulic fracturing.
                </P>
                <P>
                    Despite being separate, both regulations (Regulation #7-544, entitled “Control of VOC Emissions from Conventional Oil and Natural Gas Sources,” and Regulation #7-580, entitled “Control of VOC Emissions from Unconventional Oil and Natural Gas Sources,”) 
                    <SU>10</SU>
                    <FTREF/>
                     are nearly identical and have no technical differences. ACHD is incorporating by reference the requirements of regulations 7-544 and 7-580 into Allegheny County's regulations.
                    <SU>11</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Both proposed regulations can be found in the Pennsylvania Bulletin at 52 Pa. B 7635, and 52 Pa. B. 7587 (December 10, 2022), at 
                        <E T="03">www.pacodeandbulletin.gov/Display/pabull?file=/secure/pabulletin/data/vol52/52-50/1925.html&amp;d=reduce (conventional)</E>
                         and 
                        <E T="03">www.pacodeandbulletin.gov/Display/pabull?file=/secure/pabulletin/data/vol52/52-50/1924.html&amp;d=reduce (unconventional)</E>
                        .
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The ACHD Rules and Regulations in Article XXI, Air Pollution Controls, are amended. The SIP revision adds § 2105.87, “Control of VOC Emissions from Unconventional and Conventional Oil and Natural Gas Industry Sources,” to Article XXI. Section 2105.87 IBRs PADEP's final regulations, which are found at 25 Pa. Code 129.121-129.130 (unconventional sources) and 25 Pa. Code 129.131-129.140 (conventional sources).
                    </P>
                </FTNT>
                <P>Regulation #7-544 amends 25 Pennsylvania Code (Pa. Code) chapter 129 by adding provisions (sections 129.131-129.140) imposing RACT-level controls for VOC emissions from certain sources within “conventional” oil and natural gas operations, including recordkeeping and reporting requirements. Regulation #7-580 amends 25 Pa. Code Chapters 121 and 129 by adding provisions (sections 129.121-129.130) imposing RACT-level VOC emissions controls for certain sources in “unconventional” oil and natural gas operations, including recordkeeping and reporting requirements. Both sets of regulations apply to similar sources of VOC emissions, including pneumatic controllers, diaphragm pumps, compressors, fugitive emission components, and storage vessels within certain areas.</P>
                <P>EPA has reviewed Pennsylvania's and Allegheny County's SIP submissions containing regulations establishing RACT requirements for categories of sources identified in EPA's 2016 Oil and Gas CTG for both the 2008 and 2015 Ozone NAAQS. EPA's technical support document (TSD), which is in the docket for this action, provides more detail concerning EPA's review of Pennsylvania's regulations. Table 1 in the TSD lists the sources covered by EPA's 2016 Oil and Gas CTG and Pennsylvania's regulations, compares the RACT recommendations for sources in EPA's CTG to Pennsylvania's (and Allegheny County's) SIP requirements for each source category, and sets forth Pennsylvania's consideration of all available information as to whether these requirements constitute RACT. The following paragraphs summarize Pennsylvania's (and ACHD's) RACT regulations, analysis, and determinations.</P>
                <P>Pennsylvania's Oil and Gas regulations address all of the sources covered by EPA's 2016 Oil and Gas CTG, as required by section 182(b)(2)(A) and (B) and section 184(b)(1)(B) of the CAA. These include storage vessels, pneumatic controllers, pneumatic pumps, compressors (reciprocating and centrifugal), equipment leaks, and fugitive emissions. Pennsylvania has also chosen to regulate certain individual reciprocating compressors at well sites, which is not a source covered by the 2016 Oil and Gas CTG, and has included these controls as part of the SIP revision. EPA is therefore proposing to approve these controls for individual reciprocating compressors at well sites as SIP strengthening measures.</P>
                <P>
                    For the sources covered by both the CTG and Pennsylvania's regulations, PADEP largely determined that the control techniques or methods and levels of emission control required by the 2016 Oil and Gas CTG were technologically feasible for Pennsylvania's sources, and EPA is proposing to agree. See Table 1 in EPA's TSD. In summary, Pennsylvania's regulations establish VOC emission limitations and other requirements for natural gas-driven continuous bleed pneumatic controllers, natural gas-driven diaphragm pumps, and centrifugal compressors that are similar to the RACT recommendations in the 2016 Oil and Gas CTG. For storage vessels and fugitive emissions components, Pennsylvania's regulations go beyond the CTG recommendations in certain ways. For storage vessels, Pennsylvania requires vessels with a potential to emit (PTE) 2.7 tons per year (tpy) of VOCs to be controlled to a 95% or greater by weight degree, while the CTG recommends 95% control for storage vessels with a PTE equal to or greater than six tpy or no control for those maintaining actual emissions below four tpy. See Table 1 in EPA's TSD. PADEP determined that a 2.7 tpy VOC emission threshold for storage vessels is RACT, as it is both technologically and economically feasible for both potential to emit and actual emissions from all covered storage vessels. For fugitive emissions, Pennsylvania's regulations address the same “affected sources” as EPA's CTG, 
                    <E T="03">i.e.,</E>
                     leaks from components in VOC service at natural gas processing plants, fugitive emissions from oil and gas well sites meeting certain production criteria, and fugitive emissions from individual gathering and boosting stations located between the wellhead and transfer to the natural gas transmission or storage segment or oil pipeline. For natural gas processing plants, Pennsylvania requires following the same leak detection and repair (LDAR) requirements in 40 Code of Federal Regulations (CFR) part 60, subpart VVa that the CTG recommends, resulting in quarterly instrument LDAR inspections and monthly auditory, visual and olfactory (AVO) inspections. In addition, for individual well sites having wells with a gas-to-oil ratio (GOR) ≥300 that produce, on average, &gt;15 barrel of oil equivalents (BOE) per well per day, the 2016 Oil and Gas CTG requires semi-annual Optical Gas Imaging (OGI) or Method 21 monitoring for fugitive emissions (leaks). Pennsylvania's regulations allow the same methods of leak detection (Method 21 or OGI) and other methods approved by PADEP. For well sites with a GOR equal to or greater than 300, Pennsylvania requires that one well produce 15 BOE per day and one other well produce 5 BOE per day to trigger annual instrument LDAR monitoring and monthly AVO monitoring. In addition, for well sites with a GOR equal to or greater than 300 with average production of 15 BOE or more per day and one well producing 15 BOE or more per day, the owner must conduct quarterly instrument LDAR monitoring and monthly AVO inspections. Thus, it appears that Pennsylvania is requiring some type of monitoring both more frequently and at more well sites than recommended by the 2016 Oil and Gas CTG in many cases.
                </P>
                <P>
                    PADEP also performed economic feasibility analyses for each individual source covered by the CTG recommendations. Pennsylvania's Regulatory Review Act (RRA) 
                    <SU>12</SU>
                    <FTREF/>
                     requires that every regulation be reviewed by the Independent Regulatory Review Commission (IRRC), and that the State agency submit to the IRRC a regulatory analysis form (RAF) answering certain questions, which include identifying the financial, economic and social impact of the regulation on, among other entities, individuals, small businesses, and private and public organizations. 71 Pennsylvania Statutes (P.S.) § 745.5(a)(10). PADEP's RAFs analyze the cost and savings of implementing 
                    <PRTPAGE P="53935"/>
                    their oil and gas regulations for each source covered by the regulations. In general, to determine whether a specific air pollution control technology was economically feasible as RACT, PADEP set a cost-effectiveness benchmark in terms of the annualized costs of each control per ton of VOC emissions removed by that control. PADEP adjusted the cost benchmarks it used in previous RACT rulemakings of $5,500 per ton of VOC emissions removed, by multiplying by the Consumer Price Index differential between 2014 and 2021, to arrive at a 2021 cost effective benchmark of $6,600 per ton of VOC emissions removed.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         The Regulatory Review Act is found at 71 P.S. sections 745.1-745.15.
                    </P>
                </FTNT>
                <P>
                    EPA's TSD summarizes, in Table 4, PADEP's cost analysis in the RAFs for each regulated source controlled by Pennsylvania's regulations.
                    <SU>13</SU>
                    <FTREF/>
                     PADEP performed a separate cost analysis for each regulated source, and a separate cost analysis for these sources in the conventional and unconventional oil and gas industry. PADEP's analyses showed that the cost per ton of VOC reduced for most sources would not exceed the $6,600 per ton economically feasible benchmark. However, for some sources, such as fugitive emissions from well sites without existing LDAR programs and well sites that would have to implement quarterly LDAR programs, the cost per ton of VOC reduced would exceed $6,600. PADEP still found these to be cost effective. PADEP also identified one gathering or boosting station in the conventional industry with an annual LDAR program which would have to implement a quarterly program, at a cost exceeding $6,600 per ton of VOC, but also found this to be cost effective. PADEP did not find that any that new controls or requirements were economically infeasible, and in some cases required controls notwithstanding the cost per ton exceeding the $6,600 cost per ton benchmark. PADEP can select differing economic feasibility benchmarks for different source categories if it elects to do so. EPA believes that PADEP has performed a thorough economic feasibility analysis and has justified the controls required by its regulations as economically feasible for RACT.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         Given the short period of time between Pennsylvania's consideration of the economic and technological feasibility of their regulations (November 2022) and Allegheny County's incorporation by reference of those regulations (September 2023), it is unlikely that the economic or technological considerations changed significantly enough to require a new analysis of those elements of RACT.
                    </P>
                </FTNT>
                <P>PADEP's oil and gas regulations also contain requirements for testing, recordkeeping, and reporting of information to PADEP so that compliance with the regulatory requirements can be tracked. Table 2 of EPA's TSD outlines these requirements.</P>
                <P>
                    PADEP also compared their regulations to oil and gas regulations adopted by the California Air Resources Board (CARB), South Coast Air Quality Management District (SCAQMD), San Joaquin Valley Air Pollution Control District (SJVAPCD), Colorado Department Of Public Health And Environment (CDPHE), Montana Department Of Environmental Quality (MDEQ), New Mexico Environment Department (NMED), and the New York State Department Of Environmental Conservation (NYDEC).
                    <SU>14</SU>
                    <FTREF/>
                     Pennsylvania determined its controls were in some cases both more stringent and less stringent than these other states' and air pollution control agencies' requirements, but Pennsylvania's oil and gas regulations are not an outlier among other jurisdictions' regulations for the same sources. Ultimately Pennsylvania did not change any of its required controls based on this comparison because the State determined its requirements comprised what was economically and technologically feasible in Pennsylvania. Table 3 in EPA's TSD describes PADEP's findings regarding its review of these other states' and air pollution control districts' control requirements and section V in EPAs' TSD documents PADEP's approach and reasoning for comparisons. EPA has reviewed this analysis as part of the Agency's proposed determination that PADEP's submitted SIP revision comprises RACT for sources covered by the 2016 Oil and Gas CTG.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         See [15-28] of the conventional RAF and [13-25] of the unconventional RAF for PADEP's analysis.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">III. Proposed Action</HD>
                <P>EPA is proposing to approve Pennsylvania's December 12, 2022 SIP submittal and Allegheny County's September 8, 2023 SIP submittal as satisfying the CAA requirement to implement RACT for each category of VOC sources covered by EPA's 2016 Oil and Gas CTG, as required by CAA section 182(b)(1)(B) for Moderate ozone nonattainment areas, and also for any VOC sources covered by the EPA 2016 Oil and Gas CTG for states in the Ozone Transport Region, as required by CAA section 184(b)(1)(B), for both the 2008 and 2015 ozone NAAQS.</P>
                <HD SOURCE="HD1">IV. Incorporation by Reference</HD>
                <P>
                    In this document, EPA is proposing to include in a final EPA rule regulatory text that includes incorporation by reference. In accordance with requirements of 1 CFR 51.5, EPA is proposing to incorporate by reference Pennsylvania's amendments made to 25 Pa. Code Chapter 121 and 129 (relating to general provisions; and standards for sources), and article XXI as described in section II of this preamble. EPA has made, and will continue to make, these materials generally available through 
                    <E T="03">www.regulations.gov</E>
                     and at the EPA Region III Office (please contact the person identified in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section of this preamble for more information).
                </P>
                <HD SOURCE="HD1">V. Statutory and Executive Order Reviews</HD>
                <P>Under the CAA, the Administrator is required to approve a SIP submission that complies with the provisions of the CAA and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve State choices, provided that they meet the criteria of the CAA. Accordingly, this action merely approves State law as meeting Federal requirements and does not impose additional requirements beyond those imposed by State law. For that reason, this proposed action:</P>
                <P>• Is not a “significant regulatory action” subject to review by the Office of Management and Budget under Executive Orders 12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);</P>
                <P>
                    • Does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    );
                </P>
                <P>
                    • Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 
                    <E T="03">et seq.</E>
                    );
                </P>
                <P>• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);</P>
                <P>• Does not have federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);</P>
                <P>• Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);</P>
                <P>• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001); and,</P>
                <P>
                    • Is not subject to requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because 
                    <PRTPAGE P="53936"/>
                    application of those requirements would be inconsistent with the CAA.
                </P>
                <P>In addition, this proposed rulemaking, pertaining to Pennsylvania and Allegheny County's Oil and Natural Gas Control Measures for the 2008 and 2015 Ozone NAAQS, does not have Tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian country located in the State, and EPA notes that it will not impose substantial direct costs on Tribal governments or preempt Tribal law.</P>
                <P>Executive Order 12898 (Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, 59 FR 7629, February 16, 1994) directs Federal agencies to identify and address “disproportionately high and adverse human health or environmental effects” of their actions on minority populations and low-income populations to the greatest extent practicable and permitted by law. EPA defines environmental justice (EJ) as “the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.” EPA further defines the term fair treatment to mean that “no group of people should bear a disproportionate burden of environmental harms and risks, including those resulting from the negative environmental consequences of industrial, governmental, and commercial operations or programs and policies.”</P>
                <P>PADEP and Allegheny County did not evaluate environmental justice considerations as part of its SIP submittals; the CAA and applicable implementing regulations neither prohibit nor require such an evaluation. EPA did not perform an EJ analysis and did not consider EJ in this action. Consideration of EJ is not required as part of this action, and there is no information in the record inconsistent with the stated goal of E.O. 12898 of achieving environmental justice for people of color, low-income populations, and Indigenous peoples.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
                    <P>Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping requirements, Volatile organic compounds.</P>
                </LSTSUB>
                <SIG>
                    <NAME>Adam Ortiz,</NAME>
                    <TITLE>Regional Administrator, Region III.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-13972 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Parts 223 and 224</CFR>
                <DEPDOC>[Docket No. 240520-0140; RTID 0648-XR135]</DEPDOC>
                <SUBJECT>Endangered and Threatened Wildlife; 90-Day Finding on a Petition To List Gulf of Alaska Chinook Salmon as Threatened or Endangered Under the Endangered Species Act; Extension of Public Comment Period</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Extension of public comment period.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        We, NMFS, announce the extension of the public comment period on our May 24, 2024, 90-day finding on a petition to list Gulf of Alaska (GOA) Chinook salmon (
                        <E T="03">Oncorhynchus tshawytscha</E>
                        ), or any evolutionarily significant unit (ESU) that may exist in the petitioned area, as a threatened or endangered species under the Endangered Species Act (ESA). As part of that finding, we solicited scientific and commercial information about the status of this population and announced a 60-day public comment period to end on July 23, 2024. Today, we extend the public comment period by 45 days until September 6, 2024.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The comment period for the 90-day finding published May 24, 2024, at 89 FR 45815, is extended. Comments should be received on or before September 6, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit data and information relevant to our review of the status of GOA Chinook salmon, identified by “Gulf of Alaska Chinook salmon Petition” or by the docket number, NOAA-NMFS-2024-0042, by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Electronic Submissions:</E>
                         Submit all electronic public comments via the Federal eRulemaking Portal. Go to 
                        <E T="03">https://www.regulations.gov</E>
                         and enter NOAA-NMFS-2024-0042 in the Search box. Click on the “Comment” icon, complete the required fields, and enter or attach your comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Submit written comments to Anne Marie Eich, Assistant Regional Administrator, Protected Resources Division, Alaska Region NMFS, Attn. Susan Meyer. Mail comments to P.O. Box 21668, Juneau, AK 99802.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         Comments sent by any other method, to any other address or individual, or received after the end of the comment period, may not be considered by NMFS. All comments received are a part of the public record and will generally be posted for public viewing on 
                        <E T="03">https://www.regulations.gov</E>
                         without change. All personal identifying information (
                        <E T="03">e.g.,</E>
                         name, address), confidential business information, or otherwise sensitive information submitted voluntarily by the sender will be publicly accessible. NMFS will accept anonymous comments (enter “N/A” in the required fields if you wish to remain anonymous).
                    </P>
                    <P>
                        The petition and 90-day finding are available on the NMFS website at: 
                        <E T="03">https://www.fisheries.noaa.gov/action/petition-list-gulf-alaska-chinook-salmon-threatened-or-endangered-under-endangered-species</E>
                        .
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Julie Scheurer, NMFS Alaska Region, 
                        <E T="03">julie.scheurer@noaa.gov,</E>
                         (907) 586-7111; or Heather Austin, NMFS Office of Protected Resources, 
                        <E T="03">heather.austin@noaa.gov,</E>
                         (301) 427-8422.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>On January 11, 2024, we received a petition from the Wild Fish Conservancy to delineate and list one or more ESUs of Chinook salmon in the GOA as threatened or endangered under the ESA, and to designate critical habitat concurrently with the listing. On May 24, 2024, NMFS announced a positive 90-day finding on a petition to list one or more ESUs of GOA Chinook salmon as threatened or endangered under the ESA, and commenced a status review of the species to determine whether one or more ESU warrants listing (89 FR 45815). To ensure that the status review is based on the best available scientific and commercial data, we solicited such information regarding this species and announced a 60-day public comment period through July 23, 2024.</P>
                <P>
                    On June 3, 2024, we received a request from the Alaska Department of Fish and Game (ADF&amp;G) to extend the deadline for the public to provide comments until at least September 6, 2024. ADF&amp;G noted that the comment period coincides and conflicts with the summer fishing and field season and may not allow sufficient time for interested parties to submit information for the broad geographic area under review. At the June 2024 meeting of the 
                    <PRTPAGE P="53937"/>
                    North Pacific Fishery Management Council, representatives from several fishing organizations also requested through public testimony an extension of the public comment period for this action, and we subsequently received a written request from the Council. In response, we are extending the close of the public comment period until September 6, 2024. Although we have extended the comment period by 45 days, we are unable to extend the statutory deadline for completing the status review and publishing a 12-month finding under the ESA. As such, we urge interested parties to submit their comments and data as soon as possible to allow us more time to review and incorporate the information where appropriate.
                </P>
                <P>
                    <E T="03">Authority:</E>
                     16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Samuel D. Rauch, III,</NAME>
                    <TITLE>Deputy Assistant Administrator for Regulatory Programs, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14169 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </PRORULE>
    </PRORULES>
    <VOL>89</VOL>
    <NO>125</NO>
    <DATE>Friday, June 28, 2024</DATE>
    <UNITNAME>Notices</UNITNAME>
    <NOTICES>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="53938"/>
                <AGENCY TYPE="F">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>Forest Service</SUBAGY>
                <SUBJECT>Chippewa National Forest; Minnesota; Transfer of Administrative Jurisdiction to Lands To Be Held in Trust by the United States for the Benefit of the Leech Lake Band of the Minnesota Chippewa Tribe Pursuant to the Leech Lake Band of Ojibwe Reservation Restoration Act</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Forest Service, USDA.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of transfer of administrative jurisdiction to land.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Pursuant to the Leech Lake Band of Ojibwe Reservation Restoration Act (Act), the Secretary of Agriculture (Secretary), with the publication of this Notice, transfers administrative jurisdiction to approximately 11,760 acres of land (Federal land), located in the Chippewa National Forest in Cass County, Minnesota, to the Secretary of the Interior to be held in trust by the United States for the benefit of the Leech Lake Band of the Minnesota Chippewa Tribe, referred to in the Act as the Leech Lake Band of Ojibwe (LLBO or Tribe). A table containing the legal descriptions of the lands to which administrative jurisdiction is hereby transferred, along with accompanying Exhibit A, identifying existing public roads, and Exhibit B, identifying existing Forest roads and a Forest trail that the Forest Service will continue to operate pursuant to the terms of reserved easement rights approved by the Tribe, are provided at the end of this notice.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The transfer of administrative jurisdiction will be effective upon the publication of this Notice.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The boundaries of the Federal land are depicted on maps and in legal descriptions available for inspection at the Chippewa National Forest Supervisor's Office and at the Bureau of Indian Affairs (BIA) Minnesota Agency.</P>
                    <P>Chippewa National Forest Supervisor's Office: Chippewa National Forest, 200 Ash Avenue NW, Cass Lake, MN 56633.</P>
                    <P>BIA Minnesota Agency:</P>
                    <P>Mailing/Physical Address: Bureau of Indian Affairs, 2225 Cooperative Court NW, Room 300, Bemidji, MN 56601.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P/>
                    <P>
                        Michael Stansberry, Forest Supervisor, Chippewa National Forest, 200 Ash Avenue NW, Cass Lake, MN 56633, 218-335-8600 (ph), 218-335-8637 (fax), or email at 
                        <E T="03">SM.FS.ChipNFpublic@usda.gov.</E>
                    </P>
                    <P>
                        Heidi Gordon, Superintendent, BIA Minnesota Agency, 2225 Cooperative Court NW, Room 300 Bemidji, MN 56601, 218-751-2011 Ext. 1401 (ph), 218-751-4367 (fax), or email at 
                        <E T="03">Minnesota_Agency@bia.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Transfer of Administrative Jurisdiction:</E>
                     The right, title, and interest of the United States to the approximately 11,760 acres of Federal land described below in this notice, including improvements and appurtenances, subject to valid existing rights, is transferred as provided in the Act (Pub. L. 116-255, 134 Stat. 1139) from the Secretary of Agriculture to the Secretary of the Interior upon the publication of this Notice. After transfer, the land will be held in trust by the United States for the benefit of the LLBO. The Act provides that the LLBO will respect existing utility easements, rights of way for roads, and flowage and reservoir rights. Existing public roads, and the Forest roads and Forest trail that the Forest Service will continue to operate, are further discussed later in this Notice at Exhibit A and Exhibit B, respectively. This Notice does not undertake to specifically list currently existing public utility easements, flowage or reservoir rights, or other valid existing rights to which the transfer of jurisdiction is subject.
                </P>
                <P>
                    <E T="03">National Environmental Policy Act Analysis:</E>
                     The Forest Service, Chippewa National Forest, has undertaken environmental review of this transfer pursuant to the National Environmental Policy Act (NEPA) and found that the transfer of administrative jurisdiction falls under the Categorical Exclusion (CE) in 36 CFR 220.6(7), “Sale or exchange of land or interest in land where resulting land uses remain essentially the same.” Although not required for actions under this CE, the Chippewa National Forest elected to document its decision in a Decision Memo, available at 
                    <E T="03">https://www.fs.usda.gov/project/?project=64623</E>
                     or by contacting the Chippewa Forest Supervisor as listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section above.
                </P>
                <P>
                    <E T="03">Legal Description &amp; Ongoing Surveys:</E>
                     The legal description of the Federal land to which administrative jurisdiction is hereby transferred is provided in the Table below, under the heading “Legal Descriptions of Federal Land Transferred.” A small percentage of the Federal land (approximately 4 percent) is currently being surveyed by the Department of Interior, Bureau of Land Management (BLM). The Federal lands still being surveyed are identified below by a notation of “Estimated Acreage” in the below Table. The transfer of administrative jurisdiction of all the Federal land in the Table is effective upon the date of publication of this Notice; however, to the extent any updates to the acreage of any parcels being surveyed are needed, they will be published by the Forest Service in a supplementary 
                    <E T="04">Federal Register</E>
                      
                    <E T="03">Notice</E>
                     upon approval and the official filing of the surveys with the BLM, Eastern States Office.
                </P>
                <P>
                    <E T="03">Existing Public Roads and Forest Easement Roads:</E>
                     Existing public roads and Forest Service roads will continue to be respected after transfer as provided in the Act. As to the existing public roads, Federal law defines a “public road” as “any road or street under the jurisdiction of and maintained by a public authority and open to public travel.” 23 U.S.C. 101(a)(23). A “public authority” is defined by Federal law as “Federal, State, county, town, or township, Indian tribe, municipal or other local government or instrumentality with authority to finance, build, operate, or maintain toll or toll-free facilities.” 23 U.S.C. 101(a)(22). Existing public roads that are the responsibility of public authorities other than the Forest Service, such as the BIA, the State of Minnesota, and Town, County, and municipal entities, are listed in Exhibit A. The list of existing public roads is not exhaustive.
                </P>
                <PRTPAGE P="53939"/>
                <P>As to Forest Service roads, after transfer of the Federal land, the Forest Service will continue to operate the Forest roads and Forest trail identified in Exhibit B pursuant to the terms of reserved easement rights enumerated below, as approved by the Tribe (Forest Easement Roads). Forest road or trail is defined by federal regulations as “[a] road or trail wholly or partly within or adjacent to and serving the National Forest System that the Forest Service determines is necessary for the protection, administration, and utilization of the National Forest System and the use and development of its resources.” 36 CFR 212.1. All Forest Easement Roads and the terms under which the Forest Service will operate them are identified in Exhibit B.</P>
                <GPOTABLE COLS="3" OPTS="L2,nj,i1" CDEF="s100,12,12">
                    <TTITLE>Legal Descriptions of Federal Land Transferred</TTITLE>
                    <BOXHD>
                        <CHED H="1">Fifth Principal Meridian, Minnesota</CHED>
                        <CHED H="1">Acres</CHED>
                        <CHED H="1">Twp. acres</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="22">T. 141 N., R 27 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 29, Lots 8 and 10</ENT>
                        <ENT>37.85</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>37.85</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 142 N., R 27 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 16, Lot 3</ENT>
                        <ENT>29.5</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 17, Lot 1, SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>112.34</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 28, Lot 6 and 13, the West 20 Acres of Lot 7, NE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>192.75</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">Sec. 30, Lot 13</ENT>
                        <ENT>23.65</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>358.24</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 144 N., R 27 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 5, Lots 13 thru 17</ENT>
                        <ENT>204.81</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 6, Lots 10 thru 12</ENT>
                        <ENT>94.57</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">Sec. 8, Lot 7</ENT>
                        <ENT>34.69</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>334.07</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 146 N., R 27 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 21, NE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                              
                            <E T="03">Submerged Lands Attached</E>
                        </ENT>
                        <ENT>38.80</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 29, Lots 4 and 5 
                            <E T="03">Partition Lands—Estimated Acreage</E>
                        </ENT>
                        <ENT>62.45</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 31, Lot 1</ENT>
                        <ENT>32.30</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">
                            Sec. 32, Lot 1, SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>79.60</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>213.15</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 141 N., R 28 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 4, Lot 1, E
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , W
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , E
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>149.53</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 8, Lots 1 and 2, NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>157.92</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 9, NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>41.77</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 10, NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>85.65</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 11, W
                            <FR>1/2</FR>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>64.56</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 14, Lots 8 and 9, S
                            <FR>1/2</FR>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>93.17</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 23, Lot 1</ENT>
                        <ENT>40.72</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 24, Lots 3 and 4, NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>184.24</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">
                            Sec. 27, Lot 3, N
                            <FR>1/2</FR>
                            NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>52.84</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>870.40</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 142 N., R 28 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 24, Lot 4</ENT>
                        <ENT>38.83</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 27, SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>42.33</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 34, Lot 2, NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , N
                            <FR>1/2</FR>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>95.79</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">
                            Sec. 35, Lots 1 and 2, NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>123.57</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>300.52</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 143 N., R 28 W.,</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">Sec. 32, Lot 2 Less the North 200 feet</ENT>
                        <ENT>11.60</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>11.60</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 145 N., R 28 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 18, SE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                              
                            <E T="03">Submerged Lands Attached</E>
                        </ENT>
                        <ENT>61.82</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 19, Lots 1 and 2, NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>440.24</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 20, NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                              
                            <E T="03">Submerged Lands Attached</E>
                        </ENT>
                        <ENT>113.79</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 21, SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>120</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 28, SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>200</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">
                            Sec. 34, NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>80</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>1,015.85</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 141 N., R 29 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 3, Lots 7 thru 9, N
                            <FR>1/2</FR>
                            NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>160.27</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 8, Lot 3</ENT>
                        <ENT>48.32</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 10, Lots 1 and 3</ENT>
                        <ENT>33.31</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 17, N
                            <FR>1/2</FR>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>19.28</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">Sec. 23, Lot 3</ENT>
                        <ENT>34.4</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="53940"/>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>295.58</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 142 N., R 29 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 2, Lots 8, 11, and 14, SE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , W
                            <FR>1/2</FR>
                            NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>61.75</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 11, Lot 3, SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>53.53</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">Sec. 14, Lot 8</ENT>
                        <ENT>31.54</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>146.82</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 144 N., R 29 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 1, SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>280</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 12, Lots 2 and 6</ENT>
                        <ENT>42.05</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 27, Lots 1 thru 5, including the attached lands to Lots 1, 2, and 4 between the original meander line and the actual shoreline of Leech Lake.</ENT>
                        <ENT>429.15</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 28, Lot 1, including the attached lands to Lot 1 between the original meander line and the actual shoreline of Leech Lake.</ENT>
                        <ENT>92.94</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 30, South 962 feet of Lot 3, Lot 4, SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>80.41</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 31, Lot 2, except that part of Lot 14 of Ottertail Homesite as portrayed on Certificate of Survey No. 7704, recorded in Cass County on August 6, 2001, Lot 3, and the NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                             of Lot 4
                        </ENT>
                        <ENT>71.71</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">Sec. 33, Lots 1 thru 4, including the attached lands to Lots 1 thru 4 between original meander line and the actual meander shoreline of Leech Lake.</ENT>
                        <ENT>333.63</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>1,329.89</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 145 N., R 29 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 2, SE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                              
                            <E T="03">Submerged Lands Attached</E>
                        </ENT>
                        <ENT>12.99</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 11, NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                              
                            <E T="03">Submerged Lands Attached</E>
                        </ENT>
                        <ENT>38.13</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 12, Lot 2, Lot 5, NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                              
                            <E T="03">Partition Lands—Estimated Acreage</E>
                        </ENT>
                        <ENT>132.06</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 23, Lot 2, SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>70.75</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 24, SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>80</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 25, NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>40.88</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">
                            Sec. 26, Lots 1 thru 3, NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>125.20</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>500.01</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 146 N., R 29 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 29, Lots 17 and 18</ENT>
                        <ENT>49.43</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 31, Lot 5</ENT>
                        <ENT>35.42</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 32, Lots 2, 3, and 7, SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>215.32</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 33, Lots 5 thru 7, SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>151.03</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">
                            Sec. 34, Lots 5, 7, and 13, NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                              
                            <E T="03">Partition Lands—Estimated Acreage</E>
                        </ENT>
                        <ENT>139.16</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>590.36</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 141 N., R 30 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 1, SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>38.99</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 4, Lot 4, N
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>138.27</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 5, SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>119.7</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 6, Lots 4 thru 6</ENT>
                        <ENT>120.46</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 8, NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>121.94</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">
                            Sec. 12, S
                            <FR>1/2</FR>
                            NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>20.57</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>559.93</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 142 N., R 30 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 17, NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , N
                            <FR>1/2</FR>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , S
                            <FR>1/2</FR>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , N
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>137.2</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 19, Lot 5</ENT>
                        <ENT>1.74</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 20, Lot 1 and 5, N
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>36.97</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 29, SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>80.47</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 31, Lots 3 and 4, NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , S
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , N
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , E
                            <FR>1/2</FR>
                            NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , W
                            <FR>1/2</FR>
                            NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , S
                            <FR>1/2</FR>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>301.73</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 32, SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                             EXCEPT the South 208.71 feet of the West 208.71 feet thereof, NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>77.64</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 35, Lots 4 and 14</ENT>
                        <ENT>70.01</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">
                            Sec. 36, S
                            <FR>1/2</FR>
                            NE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , S
                            <FR>1/2</FR>
                            NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , S
                            <FR>1/2</FR>
                            S
                            <FR>1/2</FR>
                            N
                            <FR>1/2</FR>
                            NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>44.86</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>750.62</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 143 N., R 30 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 1, Lot 5, SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>61.9</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 7, Lots 9 and 10</ENT>
                        <ENT>78.17</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 12, Lots 3 and 4, NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>94.61</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">
                            Sec. 18, Lots 2 thru 5 and 7 thru 9, SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>365.01</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>599.69</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 144 N., R 30 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 1, Lots 2 and 3</ENT>
                        <ENT>58.33</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <PRTPAGE P="53941"/>
                        <ENT I="03">Sec. 36, Lot 1, EXCEPT the lands of the Plat of Hedin Habor on Leech Lake recorded Cass County in Vol. H of Plats, Page 51 on May 13, 1960 and also the lands of Hedin Harbor on Leech Lake First Addition recorded in Cass County in Vol. J of Plats, Page 41 on December 31, 1970. Including, however, those portions of said Lot 1 described as Lots 2, 3, and 4 in the Plat of Hedin Harbor on Leech Lake First Addition.</ENT>
                        <ENT>18.19</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>76.52</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 145 N., R 30 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 1, Lots 5 and 6</ENT>
                        <ENT>64.92</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 8, Lot 2</ENT>
                        <ENT>39.65</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 12, Lots 1 and 2, SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>129.98</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 19, Lots 1 thru 3</ENT>
                        <ENT>104.61</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">Sec. 36, Lot 8</ENT>
                        <ENT>5.63</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>344.79</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 141 N., R 31 W.,</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">Sec. 13, Lots 1 and 2</ENT>
                        <ENT>75.58</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>75.58</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 142 N., R 31 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 1, SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>39.46</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 3, Lot 1</ENT>
                        <ENT>6.37</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 4, Lots 3 thru Lot 4, Lot 5 EXCEPT the right of way of the Great Northern Railway Company</ENT>
                        <ENT>77.34</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 5, SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , EXCEPT the right of way of the Great Northern Railway Company
                        </ENT>
                        <ENT>78.67</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 6, Lot 8</ENT>
                        <ENT>39.75</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 10, Lot 1</ENT>
                        <ENT>22.22</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 11, Lot 1, EXCEPT that part depicted in the Plat of Survey by R.F. Schneider, amended June 7, 1984, recorded in the offices of the U.S. Forest Service, more particularly described as: Commencing at the southeast corner of said Government Lot 1, said corner being a U.S. G. L. O. brass cap monument; thence on an assumed bearing of North 88 degrees 30 minutes 16 seconds West, 445.46 feet along the south line of said Government Lot 1 to the point of beginning of the tract to be described; thence North 35 degrees 02 minutes 33 seconds West, 73.43 feet; thence North 88 degrees 30 minutes 16 seconds West, 315 feet more or less to the water's edge of Leech Lake; thence Southerly 60 feet more or less along said water's edge to the intersection with the south line of said Government Lot 1; thence South 88 degrees 30 minutes 16 seconds East, 339 feet more or less, along the south line of said Government Lot 1 to the point of beginning. NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , E
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , S
                            <FR>1/2</FR>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>421.38</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 12, Lots 2 and 4 and 9 thru 11, SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , N
                            <FR>1/2</FR>
                            NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , W
                            <FR>1/2</FR>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>236.53</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 14, Lots 4 thru 5 and 8 thru 9, NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                              
                            <E T="03">Partition Lands—Estimated Acreage</E>
                        </ENT>
                        <ENT>194.80</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 23, Lot 1</ENT>
                        <ENT>0.27</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">Sec. 24, Lot 2</ENT>
                        <ENT>31.57</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>1,148.36</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 143 N., R 31 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 11, Lots 3 and 4, NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>146.01</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 12, SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>78.91</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 14, Lot 1, NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                             Except the S
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>210.35</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 23, NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>439.73</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 25, Lot 2, NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>103</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">
                            Sec. 26, Lot 6 and 9, NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                              
                            <E T="03">Partition Lands—Estimated Acreage</E>
                        </ENT>
                        <ENT>279.76</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>1,257.76</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 144 N., R 31 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 12, Lots 6 and 7</ENT>
                        <ENT>78.26</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 13, Lots 1 thru 3, NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>152.53</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">
                            Sec. 36, Lot 1, NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                            , NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>116.31</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>347.1</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T. 145 N., R 31 W.,</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 2, Lots 3 and 4</ENT>
                        <ENT>75.63</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">Sec. 12, Lot 1</ENT>
                        <ENT>8</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 13, Lots 1 thru 5, and 7 
                            <E T="03">Partition Lands—Estimated Acreage</E>
                        </ENT>
                        <ENT>209.25</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 14, Lot 6, NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>60.5</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Sec. 22, Lots 2 and 5, SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                            , SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                            , NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                              
                            <E T="03">Partition Lands—Estimated Acreage</E>
                        </ENT>
                        <ENT>202.1</ENT>
                        <ENT/>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="03">
                            Sec. 36, Lot 2 
                            <E T="03">Partition Lands—Estimated Acreage</E>
                        </ENT>
                        <ENT>57.96</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="05">Total Twp. Acres</ENT>
                        <ENT/>
                        <ENT>613.44</ENT>
                    </ROW>
                </GPOTABLE>
                <PRTPAGE P="53942"/>
                <P>Legal descriptions of the Federal land are based on the Land Description Review Certificate prepared for the purposes of implementing this transfer by the U.S. Department of Interior, Bureau of Land Management, Eastern States for the Bureau of Indian Affairs, Midwest Region, relying in part on research provided by the U.S. Forest Service, Eastern Region, said Certificate to be retained in the official case file by each agency.</P>
                <HD SOURCE="HD1">Exhibit A</HD>
                <HD SOURCE="HD1">Existing Public Roads Operated by Public Authorities Other Than the Forest Service</HD>
                <P>Certain existing public roads are identified in the following table.</P>
                <GPOTABLE COLS="5" OPTS="L2,tp0,i1" CDEF="s50,12,r50,r50,r75">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Township range</CHED>
                        <CHED H="1">Section</CHED>
                        <CHED H="1">
                            Legal 
                            <LI>sub-division</LI>
                        </CHED>
                        <CHED H="1">Road ID</CHED>
                        <CHED H="1">Road name</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">T146N R27W</ENT>
                        <ENT>29</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>FR-2163</ENT>
                        <ENT>Tamarack Point Drive Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T141N R28W</ENT>
                        <ENT>4</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>CAS-127</ENT>
                        <ENT>72nd St NE.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            E
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            E
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            W
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>FR-2311</ENT>
                        <ENT>Cass Co. 125—Three Island.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2311</ENT>
                        <ENT>Cass Co. 125—Three Island.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>11</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>CAS-126</ENT>
                        <ENT>County 126 NE.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>11</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>Gov't Lot 9</ENT>
                        <ENT>CAS-126</ENT>
                        <ENT>County 126 NE.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>
                            S
                            <FR>1/2</FR>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2894</ENT>
                        <ENT>Haskell Road Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>24</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>FR-2894</ENT>
                        <ENT>Fahrenholz Road Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>24</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2894</ENT>
                        <ENT>Fahrenholz Road Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>24</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2894</ENT>
                        <ENT>Fahrenholz Road Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>24</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2894</ENT>
                        <ENT>Fahrenholz Road Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T142N R28W</ENT>
                        <ENT>27</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>CAS-8</ENT>
                        <ENT>Cass County 8</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>34</ENT>
                        <ENT>
                            N
                            <FR>1/2</FR>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>CAS-8</ENT>
                        <ENT>Cass County 8.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>34</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>CAS-8</ENT>
                        <ENT>Cass County 8</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T145N R28W</ENT>
                        <ENT>19</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>19</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>19</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>19</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>19</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>28</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>US-2</ENT>
                        <ENT>US Highway 2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>28</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>US-2</ENT>
                        <ENT>US Highway 2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>28</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>US-2</ENT>
                        <ENT>US Highway 2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>34</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>CAS-8</ENT>
                        <ENT>Cass County 8</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T141N R29W</ENT>
                        <ENT>3</ENT>
                        <ENT>Gov't Lot 7</ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>3</ENT>
                        <ENT>Gov't Lot 8</ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>3</ENT>
                        <ENT>Gov't Lot 9</ENT>
                        <ENT>TWP-Pine Lake FR-2485</ENT>
                        <ENT>Fairbanks Drive Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>3</ENT>
                        <ENT>Gov't Lot 9</ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>3</ENT>
                        <ENT>
                            N
                            <FR>1/2</FR>
                            NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>TWP-Pine Lake FR-2485</ENT>
                        <ENT>Fairbanks Drive Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>TWP-Pine Lake Unk3</ENT>
                        <ENT>Whipholt Beach Rd</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T144N R29W</ENT>
                        <ENT>1</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2131</ENT>
                        <ENT>Sunset Beach Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>30</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2132F</ENT>
                        <ENT>Bay Shore</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>30</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2132G</ENT>
                        <ENT>Senecs Road</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>31</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>FR-2917</ENT>
                        <ENT>West Shores Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>31</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>FR-2917</ENT>
                        <ENT>West Shores Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>31</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                             of Gov't Lot 4
                        </ENT>
                        <ENT>FR-2917</ENT>
                        <ENT>West Shores Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T145N R29W</ENT>
                        <ENT>12</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>23</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>US-2</ENT>
                        <ENT>US Highway 2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T146N R29W</ENT>
                        <ENT>32</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>32</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>33</ENT>
                        <ENT>Gov't Lot 6</ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>33</ENT>
                        <ENT>Gov't Lot 7</ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>33</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>34</ENT>
                        <ENT>Gov't Lot 7</ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>34</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2167</ENT>
                        <ENT>Cass Co. 91 Beltrami Co. 54</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">T141N R30W</ENT>
                        <ENT>1</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-3782</ENT>
                        <ENT>39Th Avenue Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-3782A</ENT>
                        <ENT>Fr 3782 Spur A</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            N
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3782</ENT>
                        <ENT>39Th Avenue Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            N
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            N
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>TWP-Turtle Lake 50</ENT>
                        <ENT>Township Rd 50</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3782</ENT>
                        <ENT>39Th Avenue Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3782</ENT>
                        <ENT>39Th Avenue Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>CAS-13</ENT>
                        <ENT>Onigum Road—Cass County 13</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>6</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>TWP-Shingobee 37</ENT>
                        <ENT>Breezy Point Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="53943"/>
                        <ENT I="22"> </ENT>
                        <ENT>6</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>TWP-Shingobee 37</ENT>
                        <ENT>Breezy Point Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>6</ENT>
                        <ENT>Gov't Lot 6</ENT>
                        <ENT>TWP-Shingobee 37</ENT>
                        <ENT>Breezy Point Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T142N R30W</ENT>
                        <ENT>17</ENT>
                        <ENT>
                            N
                            <FR>1/2</FR>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>BIA-1002</ENT>
                        <ENT>Traders Bay Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>17</ENT>
                        <ENT>
                            N
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>BIA-1002</ENT>
                        <ENT>Traders Bay Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>17</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>BIA-1002</ENT>
                        <ENT>Traders Bay Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>20</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>CAS-13</ENT>
                        <ENT>Onigum Road—Cass County 13</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>20</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>CAS-13</ENT>
                        <ENT>Onigum Road—Cass County 13</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>29</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>CAS-13</ENT>
                        <ENT>Onigum Road—Cass County 13</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>32</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2461</ENT>
                        <ENT>North Turtle Lake-Twp #24 East</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>35</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-2657C</ENT>
                        <ENT>Rocky Point Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>35</ENT>
                        <ENT>Gov't Lot 14</ENT>
                        <ENT>FR-2657C</ENT>
                        <ENT>Rocky Point Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>36</ENT>
                        <ENT>
                            S
                            <FR>1/2</FR>
                            NE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2657B</ENT>
                        <ENT>Bluewater Beach Road NW</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T143N R30W</ENT>
                        <ENT>1</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>FR-2917</ENT>
                        <ENT>West Shores Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>FR-2132</ENT>
                        <ENT>Sucker Bay Road</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-2132</ENT>
                        <ENT>Sucker Bay Road</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2132</ENT>
                        <ENT>Sucker Bay Road</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>18</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>FR-3743</ENT>
                        <ENT>Camper Landing Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>18</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>18</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>FR-3743</ENT>
                        <ENT>Camper Landing Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>18</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>18</ENT>
                        <ENT>Gov't Lot 9</ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>18</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3743</ENT>
                        <ENT>Camper Landing Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T144N R30W</ENT>
                        <ENT>1</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>FR-2135</ENT>
                        <ENT>Ketchum Road</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>1</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>FR-2135</ENT>
                        <ENT>Ketchum Road</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>36</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>FR-2917</ENT>
                        <ENT>West Shores Road Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T141N R31W</ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>FR-3764</ENT>
                        <ENT>64Th Street Northwest</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>MN-371</ENT>
                        <ENT>Minnesota State Highway 371</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T142N R31W</ENT>
                        <ENT>4</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>MN-371</ENT>
                        <ENT>Minnesota State Highway 371</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>MN-371</ENT>
                        <ENT>Minnesota State Highway 371</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>TWP-Shingobee Unk7</ENT>
                        <ENT>N Kabekona Dr NW</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>6</ENT>
                        <ENT>Gov't Lot 8</ENT>
                        <ENT>MN-200</ENT>
                        <ENT>Minnesota State Highway 200</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>CAS-72</ENT>
                        <ENT>Pine Point Drive NW</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>Gov't Lot 9</ENT>
                        <ENT>CAS-72</ENT>
                        <ENT>Pine Point Drive NW</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>Gov't Lot 11</ENT>
                        <ENT>CAS-72</ENT>
                        <ENT>Pine Point Drive NW</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>24</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>BIA-22</ENT>
                        <ENT>Onigum Marina Dr NW</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>24</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>CAS-13</ENT>
                        <ENT>Onigum Road—Cass County 13</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T143N R31W</ENT>
                        <ENT>12</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>23</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>23</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>23</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>23</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>25</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>25</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>26</ENT>
                        <ENT>Gov't Lot 6</ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>26</ENT>
                        <ENT>Gov't Lot 9</ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>26</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>26</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T144N R31W</ENT>
                        <ENT>36</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3136</ENT>
                        <ENT>Oak Point Road IRR 4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T145N R31W</ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>US-2</ENT>
                        <ENT>US Highway 2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>US-2</ENT>
                        <ENT>US Highway 2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>US-2</ENT>
                        <ENT>US Highway 2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 6</ENT>
                        <ENT>US-2</ENT>
                        <ENT>US Highway 2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>Gov't Lot 6</ENT>
                        <ENT>FR-2073</ENT>
                        <ENT>IRR 1014—Stony Point Cass Lk</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>Gov't Lot 6</ENT>
                        <ENT>US-2</ENT>
                        <ENT>US Highway 2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2073</ENT>
                        <ENT>IRR 1014—Stony Point Cass Lk</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>US-2</ENT>
                        <ENT>US Highway 2</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">Exhibit B</HD>
                <HD SOURCE="HD1">Reserved Easement Rights for Forest Easement Roads</HD>
                <P>The Forest Service and the Tribe have executed an agreement that the below reserved easement rights would be published in this Notice and govern ongoing Forest Service access to and maintenance of the Forest Easement Roads after the transfer of administrative jurisdiction of the Federal land containing those road and trail segments.</P>
                <HD SOURCE="HD2">Reserved Forest Service Easement Rights Approved by Tribe</HD>
                <P>
                    Pursuant to the Leech Lake Band of Ojibwe Reservation Restoration Act (Pub. L. 116-255, 134 Stat. 1139) (“the Act”), the Secretary of Agriculture, acting by and through the Forest Service (“Forest Service”), is publishing this Notice of Transfer (“Notice”) transferring administrative jurisdiction to the Federal land, as defined by the Act, to the Secretary of Interior, Bureau of Indian Affairs to hold in Trust for the benefit of the Leech Lake Band of the Minnesota Chippewa Tribe, also known as the Leech Lake Band of Ojibwe (“LLBO” or “Tribe”).
                    <PRTPAGE P="53944"/>
                </P>
                <P>This Easement is reserved by the Forest Service, with agreement by the Tribe, for the below-indicated Forest road and Forest trail sections pursuant to federal authorities under the Act. Upon publication of the Notice affecting the Federal land containing the below-identified roads and trail (“Forest Easement Roads”), the Forest Service will continue to operate such roads and trail pursuant to the terms herein. The Forest Service or the Tribe may record this Easement in the Office of the County Recorder for Cass County. The Tribe shall ensure this Easement is recorded or processed as necessary to establish its effectiveness in the land records maintained by the Department of Interior, Bureau of Indian Affairs.</P>
                <P>The locations of the Forest Easement Roads are listed in the table below and shown approximately on the maps available for inspection at the Chippewa National Forest Supervisor's Office. If a conflict arises between the table below and the maps available for inspection, the table below shall control.</P>
                <P>Unless agreed to by the Forest Service and the Tribe in writing for a particular road, the Easement shall be 33 feet on each side of the centerline with such additional width as required for accommodation and protection of cuts and fills. The centerline of the roads and trail as present on the ground shall be considered the true centerline of the Easement reserved. This Easement includes the following terms and conditions to be held by the Forest Service:</P>
                <P>A. Except as hereinafter limited, the Forest Service reserves the right to utilize, reconstruct, and maintain the Forest Easement Roads within the easement without further consideration for all purposes deemed necessary or desirable by the Forest Service.</P>
                <P>The Forest Service reserves the right to extend rights and privileges for use of the Forest Easement Roads to other Federal, State, and local authorities, as well as other users including contractors, purchasers of forest products, and others including the public. The Forest Service shall manage, control and maintain the Forest Easement Roads subject to applicable law and regulation including but not limited to the Forest Roads and Trails Act of 1964 (16 U.S.C. 532-538), 23 U.S.C. 204-205, the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1715), and applicable federal regulations, including 36 CFR part 212, all as amended, which management shall include required consultation with the Tribe. Such maintenance shall be to the specifications of the Forest Easement Roads at the time of the publication of the Notice of Transfer for the Federal lands containing the below Forest Easement Roads, or to such changed specifications later set by Forest Service management decisions pursuant to applicable law, including increasing or decreasing maintenance schedules or levels.</P>
                <P>Pursuant to such management decisions under applicable law, the Forest Service may, following consultation with the Tribe, reconstruct or maintain the Forest Easement Roads to higher specifications. Notwithstanding anything herein to the contrary, all maintenance or reconstruction shall be performed consistent with Forest Service needs and funding, and nothing herein shall be construed to constitute a promise of payment in advance of or in excess of appropriations in violation of the Anti-Deficiency Act, 31 U.S.C. 1341.</P>
                <P>Public access to the Forest Easement Roads listed in this Exhibit B shall be determined by the Forest Service in accordance with its regulations, including consultation with the LLBO, unless and until the Regional Forester determines in writing that the easement or any segment thereof are no longer needed as provided below. After such termination, access to the affected easement segments shall be determined solely by the LLBO.</P>
                <P>B. The Forest Service may cut timber and remove obstructions within the easement to the extent the Forest Service deems necessary for utilizing, reconstructing, and maintaining the roads and trail. Timber so cut shall, unless otherwise agreed to, be decked along the road or trail for disposal by the Tribe.</P>
                <P>This easement is reserved subject to the following rights of the Leech Lake Band of Ojibwe:</P>
                <P>1. The right to use the Forest Easement Roads for all purposes deemed necessary or desirable by the LLBO. LLBO use shall be subject to construction, reconstruction, and maintenance costs commensurate with such use to the extent changes in its use of the below road and trail segments after the date of this Notice contribute to increased maintenance needs.</P>
                <P>2. The right to access and cross the easement at any place by any means and manner that complies with the traffic-control regulations of the Forest Service and does not interfere unreasonably with the Forest Service use of the Forest Easement Roads.</P>
                <P>3. The right to all timber now or hereafter growing on the easement subject to the Forest Service's right to cut such timber as hereinbefore provided.</P>
                <P>This easement shall continue for the duration of time the below road segments remain Forest roads or, for the purposes of the Forest trail, a Forest trail, as defined under 36 CFR part 212, as amended. If the Regional Forester determines in writing that the easement or any segment thereof is no longer needed, the easement traversed thereby shall immediately terminate by operation of law, but shall be evidenced by a statement in recordable form furnished by the Regional Forester to the LLBO and the BIA.</P>
                <GPOTABLE COLS="5" OPTS="L2,tp0,i1" CDEF="xs60,12,r50,xs60,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Township range</CHED>
                        <CHED H="1">Section</CHED>
                        <CHED H="1">Legal Sub-division</CHED>
                        <CHED H="1">Road ID</CHED>
                        <CHED H="1">Road name</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">T144N R27W</ENT>
                        <ENT>5</ENT>
                        <ENT>Gov't Lot 14</ENT>
                        <ENT>FR-2102</ENT>
                        <ENT>Old Six Mile Lake Road NE.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>Gov't Lot 14</ENT>
                        <ENT>FR-2127</ENT>
                        <ENT>Six Mile Lake Road Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>Gov't Lot 15</ENT>
                        <ENT>FR-2102</ENT>
                        <ENT>Old Six Mile Lake Road NE.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>Gov't Lot 16</ENT>
                        <ENT>FR-2127</ENT>
                        <ENT>Six Mile Lake Road Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>Gov't Lot 17</ENT>
                        <ENT>FR-2127</ENT>
                        <ENT>Six Mile Lake Road Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>Gov't Lot 17</ENT>
                        <ENT>FR-3013</ENT>
                        <ENT>Mud Lake Spur 3013.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>6</ENT>
                        <ENT>Gov't Lot 10</ENT>
                        <ENT>FR-2102</ENT>
                        <ENT>Old Six Mile Lake Road NE.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>6</ENT>
                        <ENT>Gov't Lot 11</ENT>
                        <ENT>FR-2102</ENT>
                        <ENT>Old Six Mile Lake Road NE.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>6</ENT>
                        <ENT>Gov't Lot 12</ENT>
                        <ENT>FR-2102</ENT>
                        <ENT>Old Six Mile Lake Road NE.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>Gov't Lot 7</ENT>
                        <ENT>FR-2127</ENT>
                        <ENT>Six Mile Lake Road Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T146N R27W</ENT>
                        <ENT>21</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2163</ENT>
                        <ENT>Tamarack Point Drive Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>21</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2163</ENT>
                        <ENT>Tamarack Point Drive Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>29</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-3001</ENT>
                        <ENT>South Highbanks Road Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>29</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>FR-2163</ENT>
                        <ENT>Tamarack Point Drive Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>29</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>FR-2219</ENT>
                        <ENT>North Highbanks Road NE.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>31</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>FR-3001</ENT>
                        <ENT>South Highbanks Road Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="53945"/>
                        <ENT I="22"> </ENT>
                        <ENT>32</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>FR-3001</ENT>
                        <ENT>South Highbanks Road Northeast</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>32</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3001A</ENT>
                        <ENT>South Highbanks Spur A.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T141N R28W</ENT>
                        <ENT>4</ENT>
                        <ENT>
                            E
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2868</ENT>
                        <ENT>MN 200 Spur 2868.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2868</ENT>
                        <ENT>MN 200 Spur 2868.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            E
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2872</ENT>
                        <ENT>Grazing Study Road.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2868A</ENT>
                        <ENT>FR 2868 Spur A.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>
                            W
                            <FR>1/2</FR>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2868A</ENT>
                        <ENT>FR 2868 Spur A.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>FR-2876</ENT>
                        <ENT>Erwin Hills Drive Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>FR-2876A</ENT>
                        <ENT>Erwin Hills Drive Spur A.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>FR-2876</ENT>
                        <ENT>Erwin Hills Drive Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>4</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>FR-2876A</ENT>
                        <ENT>Erwin Hills Drive Spur A.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>9</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2872</ENT>
                        <ENT>Grazing Study Road.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>10</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2599</ENT>
                        <ENT>West Football Lake Road.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>
                            S
                            <FR>1/2</FR>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2875C</ENT>
                        <ENT>64Th Street Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>24</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2884B</ENT>
                        <ENT>Fahrenholz Road Spur B.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T142N R28W</ENT>
                        <ENT>27</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3099</ENT>
                        <ENT>Cass Co. 8 Spur 3099.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>34</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3098</ENT>
                        <ENT>Cass Co. 8 Spur 3098.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>34</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3100</ENT>
                        <ENT>Cass Co. 8 Spur 3100.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>35</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>FR-3102</ENT>
                        <ENT>Grouse Pines Lane Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>35</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3102</ENT>
                        <ENT>Grouse Pines Lane Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T145N R28W</ENT>
                        <ENT>19</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>FR-3025</ENT>
                        <ENT>West Winnie Spur 3025.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>19</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2074</ENT>
                        <ENT>Richards Drive Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>19</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3025</ENT>
                        <ENT>West Winnie Spur 3025.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>20</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2074</ENT>
                        <ENT>Richards Drive Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>20</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2074</ENT>
                        <ENT>Richards Drive Northeast.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>28</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2129</ENT>
                        <ENT>Boulder Hill.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>28</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3033</ENT>
                        <ENT>Bena Old Dump.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>34</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3032</ENT>
                        <ENT>Canadien John.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>34</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3032</ENT>
                        <ENT>Canadien John.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T141N R29W</ENT>
                        <ENT>10</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>FR-2834</ENT>
                        <ENT>Lauer Road Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>17</ENT>
                        <ENT>
                            N
                            <FR>1/2</FR>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2108</ENT>
                        <ENT>Whipholt Tower Road NW.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>23</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>FR-2835</ENT>
                        <ENT>West Mud Lake Road.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T144N R29W</ENT>
                        <ENT>1</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2941</ENT>
                        <ENT>Rabbits Cemetery.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>1</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2941</ENT>
                        <ENT>Rabbits Cemetery.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>1</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2941</ENT>
                        <ENT>Rabbits Cemetery.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T145N R29W</ENT>
                        <ENT>12</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2010</ENT>
                        <ENT>Snapping Turtle Lane Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>23</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>FR-2175A</ENT>
                        <ENT>Portage Lake Drive Spur A</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>23</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2175A</ENT>
                        <ENT>Portage Lake Drive Spur A.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>24</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2972</ENT>
                        <ENT>Converse Road.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>24</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2972</ENT>
                        <ENT>Converse Road.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>24</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3024A</ENT>
                        <ENT>Alimi Road Spur A.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T146N R29W</ENT>
                        <ENT>33</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2348</ENT>
                        <ENT>Finn.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T141N R30W</ENT>
                        <ENT>1</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2657F</ENT>
                        <ENT>Smokey Point Road Spur F.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3780</ENT>
                        <ENT>MN 200 Spur 3780.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3781</ENT>
                        <ENT>MN 200 Spur 3781.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>5</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3992</ENT>
                        <ENT>Onigum Gravel Pit.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>6</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-2658C</ENT>
                        <ENT>Breezy Point Road Spur C.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>6</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-2658D</ENT>
                        <ENT>Breezy Point Road Spur D.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>6</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>FR-2658B</ENT>
                        <ENT>Breezy Point Road Spur B.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>6</ENT>
                        <ENT>Gov't Lot 6</ENT>
                        <ENT>FR-2658A</ENT>
                        <ENT>Breezy Point Road Spur A.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3780</ENT>
                        <ENT>MN 200 Spur 3780.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3780</ENT>
                        <ENT>MN 200 Spur 3780.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>8</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3781</ENT>
                        <ENT>MN 200 Spur 3781.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T142N R30W</ENT>
                        <ENT>31</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-2658D</ENT>
                        <ENT>Breezy Point Road Spur D.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>32</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2461A</ENT>
                        <ENT>North Turtle Lake Spur A.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T143N R30W</ENT>
                        <ENT>18</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-3136O</ENT>
                        <ENT>East Oak Point Road Spur O.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T144N R30W</ENT>
                        <ENT>1</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>FR-2135Z</ENT>
                        <ENT>Elmers Trail.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>1</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>FR-2135Z</ENT>
                        <ENT>Elmers Trail.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T145N R30W</ENT>
                        <ENT>1</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>FR-2958</ENT>
                        <ENT>Lydick Road.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>1</ENT>
                        <ENT>Gov't Lot 6</ENT>
                        <ENT>FR-2958</ENT>
                        <ENT>Lydick Road.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>FR-2958</ENT>
                        <ENT>Lydick Road.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2352</ENT>
                        <ENT>Norich.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2958</ENT>
                        <ENT>Lydick Road.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>19</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>FR-2137</ENT>
                        <ENT>Pike Bay Loop Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>19</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>FR-2137</ENT>
                        <ENT>Pike Bay Loop Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>19</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>FR-2137</ENT>
                        <ENT>Pike Bay Loop Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T142N R31W</ENT>
                        <ENT>1</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2639</ENT>
                        <ENT>Pine Point.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>11</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2644</ENT>
                        <ENT>Cedar Point/IRR 1715.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>11</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2644</ENT>
                        <ENT>Cedar Point/IRR 1715.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>11</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2644</ENT>
                        <ENT>Cedar Point/IRR 1715.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>11</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2644</ENT>
                        <ENT>Cedar Point/IRR 1715.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>11</ENT>
                        <ENT>
                            SE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2644</ENT>
                        <ENT>Cedar Point/IRR 1715.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-2639</ENT>
                        <ENT>Pine Point.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>Gov't Lot 10</ENT>
                        <ENT>FR-2639</ENT>
                        <ENT>Pine Point.</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="53946"/>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>Gov't Lot 11</ENT>
                        <ENT>FR-2639</ENT>
                        <ENT>Pine Point.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>
                            N
                            <FR>1/2</FR>
                            NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2639</ENT>
                        <ENT>Pine Point.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2639</ENT>
                        <ENT>Pine Point.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>
                            W
                            <FR>1/2</FR>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2639</ENT>
                        <ENT>Pine Point.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>
                            N
                            <FR>1/2</FR>
                            NW
                            <FR>1/4</FR>
                            SW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2644</ENT>
                        <ENT>Cedar Point/IRR 1715.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>12</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2644</ENT>
                        <ENT>Cedar Point/IRR 1715.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-2123</ENT>
                        <ENT>Cedar Point Road Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>FR-2123</ENT>
                        <ENT>Cedar Point Road Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>Gov't Lot 8</ENT>
                        <ENT>FR-2123</ENT>
                        <ENT>Cedar Point Road Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>Gov't Lot 9</ENT>
                        <ENT>FR-2123</ENT>
                        <ENT>Cedar Point Road Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>24</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>FR-2123</ENT>
                        <ENT>Cedar Point Road Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T143N R31W</ENT>
                        <ENT>14</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            SE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3600</ENT>
                        <ENT>Beartrap.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>23</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3600</ENT>
                        <ENT>Beartrap.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>25</ENT>
                        <ENT>
                            NE
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3136C</ENT>
                        <ENT>Oak Point Road Spur C.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>25</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3136C</ENT>
                        <ENT>Oak Point Road Spur C.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T144N R31W</ENT>
                        <ENT>36</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NE
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-3734</ENT>
                        <ENT>Crooked Lake Road Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T145N R31W</ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>FR-2174</ENT>
                        <ENT>Strawberry Point Road NW.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>FR-2174</ENT>
                        <ENT>Strawberry Point Road NW.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 6</ENT>
                        <ENT>FR-2174</ENT>
                        <ENT>Strawberry Point Road NW.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>22</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>FR-2138</ENT>
                        <ENT>Bayview Loop Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>22</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>FR-2138</ENT>
                        <ENT>Bayview Loop Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>22</ENT>
                        <ENT>
                            NW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2138</ENT>
                        <ENT>Bayview Loop Northwest.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>22</ENT>
                        <ENT>
                            SW
                            <FR>1/4</FR>
                            NW
                            <FR>1/4</FR>
                        </ENT>
                        <ENT>FR-2138</ENT>
                        <ENT>Bayview Loop Northwest.</ENT>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="5" OPTS="L2,tp0,i1" CDEF="xs60,12,r50,xs60,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Township range</CHED>
                        <CHED H="1">Section</CHED>
                        <CHED H="1">Legal sub-division</CHED>
                        <CHED H="1">Trail ID</CHED>
                        <CHED H="1">Trail name</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">T145N R30W</ENT>
                        <ENT>19</ENT>
                        <ENT>Gov't Lot 1</ENT>
                        <ENT>34674A</ENT>
                        <ENT>Migizi Bike—Spur A.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>19</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>34674A</ENT>
                        <ENT>Migizi Bike—Spur A.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>19</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>34674A</ENT>
                        <ENT>Migizi Bike—Spur A.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">T145N R31W</ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 3</ENT>
                        <ENT>34674</ENT>
                        <ENT>Migizi Bike Trail.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 4</ENT>
                        <ENT>34674</ENT>
                        <ENT>Migizi Bike Trail.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 5</ENT>
                        <ENT>34674</ENT>
                        <ENT>Migizi Bike Trail.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>13</ENT>
                        <ENT>Gov't Lot 7</ENT>
                        <ENT>34674</ENT>
                        <ENT>Migizi Bike Trail.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>14</ENT>
                        <ENT>Gov't Lot 6</ENT>
                        <ENT>34674</ENT>
                        <ENT>Migizi Bike Trail.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>36</ENT>
                        <ENT>Gov't Lot 2</ENT>
                        <ENT>34674A</ENT>
                        <ENT>Migizi Bike—Spur A.</ENT>
                    </ROW>
                </GPOTABLE>
                <SIG>
                    <DATED>Dated: June 21, 2024.</DATED>
                    <NAME>Antoine L. Dixon,</NAME>
                    <TITLE>Regional Forester.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14086 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3411-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>Rural Utilities Service</SUBAGY>
                <DEPDOC>[Docket No.: RUS-24-WATER-0016]</DEPDOC>
                <SUBJECT>Notice of a Revision to a Currently Approved Information Collection</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Rural Utilities Service, USDA.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Paperwork Reduction Act of 1995, this notice announces the Rural Utilities Service's (RUS or the Agency), an agency with the United States Department of Agriculture, Rural Development, intention to request a revision to a currently approved information collection package for the Rural Decentralized Water Systems program. The Agency invites comments on this information collection for which the Agency intends to request approval from the Office of Management and Budget (OMB).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments on this notice must be received by August 27, 2024 to be assured of consideration.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Pamela Bennett, Rural Development Innovation Center—Regulations Management Division, USDA, 1400 Independence Avenue SW, STOP 1522, South Building, Washington, DC 20250-1522. Telephone: (202) 720-9639. Email 
                        <E T="03">pamela.bennett@usda.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The OMB regulation (5 CFR part 1320) implementing provisions of the Paperwork Reduction Act of 1995 (Pub. L. 104-13) requires that interested members of the public and affected agencies have an opportunity to comment on information collection and recordkeeping activities (see 5 CFR 1320.8(d)). This notice identifies an information collection that the Agency is submitting to OMB for revision.</P>
                <P>Comments are invited on: (a) 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; (b) 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; (c) Ways to enhance the quality, utility and clarity of the information to be collected; and (d) Ways to 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.</P>
                <P>
                    Comments may be sent by the Federal eRulemaking Portal: Go to 
                    <E T="03">https://www.regulations.gov</E>
                     and, in the “Search” box, type in the Docket No. located at the beginning of this notice. A link to the Notice will appear. You may submit a comment here by selecting the “Comment” button or you can access the “Docket” tab, select the “Notice,” and go to the “Browse &amp; Comment on Documents” Tab. Here you may view comments that have been submitted as well as submit a comment. To submit a comment, select the “Comment” button, complete the required information, and select the “Submit Comment” button at the bottom. Information on using 
                    <PRTPAGE P="53947"/>
                    <E T="03">Regulations.gov,</E>
                     including instructions for accessing documents, submitting comments, and viewing the docket after the close of the comment period, is available through the site's “FAQ” link at the bottom.
                </P>
                <P>A Federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to comply with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a currently valid OMB Control Number. Data furnished by the applicants will be used to determine eligibility for program benefits. Furnishing the data is voluntary; however, failure to provide data could result in program benefits being withheld or denied.</P>
                <P>
                    <E T="03">Title:</E>
                     7 CFR part 1776, “Rural Decentralized Water Systems”.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     0572-0139.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Revision of a currently approved information collection.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     The Agency supports the sound development of rural communities and the growth of our economy without endangering the environment. RUS provides financial and technical assistance to help communities bring safe drinking water and sanitary, environmentally sound waste disposal facilities to rural Americans in greatest need. The Rural Decentralized Water Systems (DWS) program makes grants to qualified, private non-profit organizations which will help homeowners finance the cost of individually owned decentralized water and or wastewater systems. As the grant recipient, non-profit organizations will establish a revolving loan fund lending program to provide decentralized water and or wastewater loans and subgrants to individuals who own or will own private decentralized water and or wastewater systems in rural areas. The individual loan recipients may use the funds to construct, refurbish, and service their household decentralized water and or wastewater systems for an existing home. The collection of information consists of the materials to file a grant application with the agency, including forms, certifications and required documentation.
                </P>
                <P>
                    <E T="03">Estimate of Burden:</E>
                     Public reporting burden for this collection of information is estimated to average 4.466 hours per response.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     Non-profit institutions.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     7.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Responses:</E>
                     146.
                </P>
                <P>
                    <E T="03">Estimated Number of Responses per Respondent:</E>
                     20.86.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden on Respondents:</E>
                     652 hours.
                </P>
                <P>
                    Copies of this information collection can be obtained from Pamela Bennett, Rural Development Innovation Center—Regulations Management Division, USDA, 1400 Independence Avenue SW, South Building, Washington, DC 20250-1522. Email: 
                    <E T="03">pamela.bennett@usda.gov.</E>
                </P>
                <P>All responses to this notice will be summarized and included in the request for OMB approval. All comments will also become a matter of public record.</P>
                <SIG>
                    <NAME>Andrew Berke,</NAME>
                    <TITLE>Administrator, Rural Utilities Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14267 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3410-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget (OMB) for Review and Approval; Comment Request; Research Performance Progress Report (RPPR)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Secretary, Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection, request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of Commerce, in accordance with the Paperwork Reduction Act of 1995 (PRA), invites the general public and other Federal agencies to comment on proposed, and continuing information collections, which helps us assess the impact of our information collection requirements and minimize the public's reporting burden. The purpose of this notice is to allow for 60 days of public comment preceding submission of the collection to OMB.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>To ensure consideration, comments regarding this proposed information collection must be received on or before August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Interested persons are invited to submit written comments by email to Sheleen Dumas, the PRA Clearance Officer at 
                        <E T="03">PRAcomments@doc.gov.</E>
                         Please reference the OMB Control Number 0690-0032 in the subject line of your comments. Do not submit Confidential Business Information or otherwise sensitive or protected information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Requests for additional information or specific questions related to collection activities should be directed to Sheleen Dumas, Department PRA Clearance Officer, Office of the Under Secretary of Economic Affairs, U.S. Department of Commerce, 202-482-3306, or via email at 
                        <E T="03">PRAcomments@doc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Abstract</HD>
                <P>The Department of Commerce plans to request a three-year extension of the Research Performance Progress Report (RPPR). This Research Performance Progress Report (RPPR) directly benefits award recipients by making it easier for them to administer Federal grant and cooperative agreement programs through standardization of the types of information required in performance reports—thereby reducing their administrative effort and costs. The RPPR also makes it easier to compare the outputs, outcomes, etc. of research programs across the government.</P>
                <P>The RPPR resulted from an initiative of the Research Business Models (RBM) Subcommittee of the Committee on Science (CoS), a committee of the National Science and Technology Council (NSTC). One of the RBM Subcommittee's priority areas is to create greater consistency in the administration of Federal research awards. Given the increasing complexity of interdisciplinary and interagency research, it is important for Federal agencies to manage awards in a similar fashion. The RPPR is used by agencies that support research and research-related activities for use in submission of progress reports. It is intended to replace other performance reporting formats currently in use by agencies. The RPPR does not change the performance reporting requirements specified in 2 CFR part 215 (OMB Circular A-110) and the Common</P>
                <P>Rule implementing OMB Circular A-102. Each category in the RPPR is a separate reporting component. Agencies will direct recipients to report on the one mandatory component (“Accomplishments”), and may direct them to report on optional components, as appropriate. Within a particular component, agencies may direct recipients to complete only specific questions, as not all questions within a given component may be relevant to all agencies.</P>
                <P>
                    Agencies may develop an agency- or program-specific component, if necessary, to meet programmatic requirements, although agencies should minimize the degree to which they supplement the standard components. Such agency- or program-specific requirements will require review and clearance by OMB.
                    <PRTPAGE P="53948"/>
                </P>
                <HD SOURCE="HD1">II. Method of Collection</HD>
                <P>All reports will be submitted electronically.</P>
                <HD SOURCE="HD1">III. Data</HD>
                <P>
                    <E T="03">OMB Control Number:</E>
                     0690-0032.
                </P>
                <P>
                    <E T="03">Form Number(s):</E>
                     None.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Regular submission, Request for an Extension (without change of a currently approved collection).
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     State and Local governments.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     2,000
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     8 minutes for monthly respondents who report via internet, mail or faxing the form, 23 minutes for annual respondents who report via internet, mail or faxing the form and 3 minutes for monthly and annual respondents who report by telephone or send electronic files or printouts.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     4,667.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Cost to Public:</E>
                     $0. (This is not the cost of respondents' time, but the indirect costs respondents may incur for such things as purchases of specialized software or mhardware needed to report, or expenditures for accounting or records maintenance services required specifically by the collection.)
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">Legal Authority:</E>
                     Title 13 U.S.C. 131 and 182.
                </P>
                <HD SOURCE="HD1">IV. Request for Comments</HD>
                <P>We are soliciting public comments to permit the Department/Bureau to: (a) Evaluate whether the proposed information collection is necessary for the proper functions of the Department, including whether the information will have practical utility; (b) Evaluate the accuracy of our estimate of the time and cost burden for this proposed collection, including the validity of the methodology and assumptions used; (c) Evaluate ways to enhance the quality, utility, and clarity of the information to be collected; and (d) Minimize the reporting burden on those who are to respond, including the use of automated collection techniques or other forms of information technology.</P>
                <P>Comments that you submit in response to this notice are a matter of public record. We will include, or summarize, each comment in our request to OMB to approve this ICR. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you may ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.</P>
                <SIG>
                    <NAME>Sheleen Dumas,</NAME>
                    <TITLE>Department PRA Clearance Officer, Office of the Under Secretary of Economic Affairs, Commerce Department.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14166 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-17-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Bureau of Economic Analysis</SUBAGY>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget (OMB) for Review and Approval; Comment Request; Services Surveys: BE-30, Quarterly Survey of Ocean Freight Revenues and Foreign Expenses of U.S. Carriers, and the BE-37, Quarterly Survey of U.S. Airline Operators' Foreign Revenues and Expenses</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Economic Analysis, Department of Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection, request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of Commerce, in accordance with the Paperwork Reduction Act of 1995 (PRA), invites the general public and other Federal agencies to comment on proposed and continuing information collections, which helps us assess the impact of our information collection requirements and minimize the public's reporting burden. The purpose of this notice is to allow for 60 days of public comment preceding submission of the collection to OMB.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>To ensure consideration, comments regarding this proposed information collection must be received on or before August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Interested persons are invited to submit written comments to Christopher Stein, Chief, Services Surveys Branch, Bureau of Economic Analysis, by email to 
                        <E T="03">christopher.stein@bea.gov</E>
                         or 
                        <E T="03">PRAcomments@bea.gov.</E>
                         Please reference OMB Control Number 0608-0011 in the subject line of your comments. Do not submit Confidential Business Information or otherwise sensitive or protected information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Requests for additional information or specific questions related to collection activities should be directed to Christopher Stein, Chief, Services Surveys Branch, Bureau of Economic Analysis; 301-278-9189; or via email at 
                        <E T="03">christopher.stein@bea.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Abstract</HD>
                <P>The Quarterly Survey of Ocean Freight Revenues and Foreign Expenses of U.S. Carriers (BE-30) collects data from U.S. ocean freight carriers (owners and operators) that engaged in the international transportation of freight, cargo, and/or passengers between U.S. and foreign ports or between foreign ports, if total covered revenues or total covered expenses were $500,000 or more in the previous year or are expected to be $500,000 or more during the current year.</P>
                <P>The Quarterly Survey of U.S. Airline Operators' Foreign Revenues and Expenses (BE-37) collects data from U.S. airline operators engaged in the international transportation of passengers or of U.S. export freight, or the transportation of passengers or freight between two foreign points, if total covered revenues or total covered expenses were $500,000 or more in the previous year or are expected to be $500,000 or more during the current year.</P>
                <P>The data are needed to monitor U.S. trade in transport services, to analyze the impact of these cross-border services on the U.S. and foreign economies, to compile and improve the U.S. economic accounts, to support U.S. commercial policy on trade in transport services, to conduct trade promotion, and to improve the ability of U.S. businesses to identify and evaluate market opportunities. The data are used in estimating the trade in transport services component of the U.S. international transactions accounts (ITAs) and national income and product accounts (NIPAs).</P>
                <P>The Bureau of Economic Analysis (BEA) is not proposing any changes to the surveys reporting requirements or to the data items collected on the surveys.</P>
                <P>BEA does not plan to change the exemption levels used for the current quarterly surveys. BEA estimates there will be no change in the average number of burden hours per response. The language in the instructions and definitions will be reviewed and adjusted as necessary to clarify survey requirements.</P>
                <HD SOURCE="HD1">II. Method of Collection</HD>
                <P>
                    BEA contacts potential respondents by mail at the end of each quarter. Respondents would be required to file the completed BE-30 and BE-37 forms within 30 days after the end of each quarter of the year.
                    <PRTPAGE P="53949"/>
                </P>
                <P>BE-30 reports would be required from each U.S. ocean freight carrier (owners and operators) that engaged in the international transportation of freight, cargo, and/or passengers between U.S. and foreign ports or between foreign ports, whose total covered revenues or total covered expenses were $500,000 or more in the previous year or are expected to be $500,000 or more during the current year.</P>
                <P>BE-37 reports would be required from each from U.S. airline operator engaged in the international transportation of passengers or of U.S. export freight, or the transportation of freight or passengers between two foreign points, whose total covered revenues or total covered expenses were $500,000 or more in the previous year or are expected to be $500,000 or more during the current year.</P>
                <P>
                    BEA offers its electronic filing option, the eFile system, for use in reporting on Form BE-30 and BE-37 surveys. For more information about eFile, go to 
                    <E T="03">www.bea.gov/efile.</E>
                     In addition, BEA posts all its survey forms and reporting instructions on its website, 
                    <E T="03">www.bea.gov/ssb.</E>
                     These may be downloaded, completed, printed, and submitted via fax or mail.
                </P>
                <HD SOURCE="HD1">III. Data</HD>
                <P>
                    <E T="03">OMB Control Number:</E>
                     0608-0011.
                </P>
                <P>
                    <E T="03">Form Number(s):</E>
                     BE-30 and BE-37.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Regular submission.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Business or other for-profit organizations.
                </P>
                <P>
                    <E T="03">Estimated Number of BE-30 Respondents:</E>
                     200 annually (50 filed each quarter; 48 reporting mandatory data, and 2 that would file exemption claims or voluntary responses).
                </P>
                <P>
                    <E T="03">Estimated Number of BE-37 Respondents:</E>
                     120 annually (30 filed each quarter; 28 reporting mandatory data, and 2 that would file an exemption claim or voluntary response).
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     For the BE-30, 4 hours is the average for those reporting mandatory data and one hour is the average for those filing an exemption claim or voluntary responses. For the BE-37, 5 hours is the average for those reporting mandatory data and one hour is the average for those filing an exemption claim or voluntary responses. For the BE-30 and BE-37 surveys, hours may vary considerably among respondents because of differences in company size and complexity.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     1,344 (776 for the BE-30; 568 for the BE-37).
                </P>
                <P>
                    <E T="03">Estimated Total Annual Cost to Public:</E>
                     $0.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Mandatory.
                </P>
                <P>
                    <E T="03">Legal Authority:</E>
                     International Investment and Trade in Services Survey Act (Pub. L. 94-472, 22 U.S.C. 3101-3108, as amended).
                </P>
                <HD SOURCE="HD1">IV. Request for Comments</HD>
                <P>Comments are invited on: (a) 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; (b) the accuracy of the Agency's estimate of the burden (including hours and cost) of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.</P>
                <P>Comments that you submit in response to this notice are a matter of public record. We will include or summarize each comment in our request to OMB to approve this Information Collection Request (ICR). Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you may ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.</P>
                <SIG>
                    <NAME>Sheleen Dumas,</NAME>
                    <TITLE>Department PRA Clearance Officer, Office of the Under Secretary for Economic Affairs, Commerce Department.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14273 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-06-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[C-821-839]</DEPDOC>
                <SUBJECT>Ferrosilicon From the Russian Federation: Preliminary Affirmative Countervailing Duty Determination</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of ferrosilicon from the Russian Federation (Russia). The period of investigation is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable June 28, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Mark Hoadley AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-3148.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on April 24, 2024.
                    <SU>1</SU>
                    <FTREF/>
                     For a complete description of the events that followed the initiation of this investigation, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                    <SU>2</SU>
                    <FTREF/>
                     A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at 
                    <E T="03">https://access.trade.gov.</E>
                     In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at 
                    <E T="03">https://access.trade.gov/public/FRNoticesListLayout.aspx.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Ferrosilicon from Brazil, Kazakhstan, Malaysia, and the Russian Federation: Initiation of Countervailing Duty Investigations,</E>
                         89 FR 31133 (April 24, 2024) (
                        <E T="03">Initiation Notice</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Decision Memorandum for the Preliminary Determination in the Countervailing Duty Investigation of Ferrosilicon from the Russian Federation,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Investigation</HD>
                <P>
                    The product covered by this investigation is ferrosilicon from Russia. For a complete description of the scope of this investigation, 
                    <E T="03">see</E>
                     Appendix I.
                </P>
                <HD SOURCE="HD1">Scope Comments</HD>
                <P>
                    In accordance with the preamble to Commerce's regulations,
                    <SU>3</SU>
                    <FTREF/>
                     the 
                    <E T="03">Initiation Notice</E>
                     set aside a period of time for parties to raise issues regarding product coverage (
                    <E T="03">i.e.,</E>
                     scope).
                    <SU>4</SU>
                    <FTREF/>
                     No interested party commented on the scope of the investigation as it appeared in the 
                    <PRTPAGE P="53950"/>
                    <E T="03">Initiation Notice.</E>
                     Commerce is not preliminarily modifying the scope language as it appeared in the 
                    <E T="03">Initiation Notice.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See Antidumping Duties; Countervailing Duties, Final Rule,</E>
                         62 FR 27296, 27323 (May 19, 1997).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See Initiation Notice.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Methodology</HD>
                <P>
                    Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found to be countervailable, Commerce preliminarily determines that there is a subsidy, 
                    <E T="03">i.e.,</E>
                     a financial contribution by an “authority” that gives rise to a benefit to the recipient, and that the subsidy is specific.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.
                    </P>
                </FTNT>
                <P>
                    Commerce notes that, in making these findings, it relied on facts available and, because it finds that the interested parties did not act to the best of their ability to respond to Commerce's requests for information, it drew an adverse inference where appropriate in selecting from among the facts otherwise available.
                    <SU>6</SU>
                    <FTREF/>
                     For further information, 
                    <E T="03">see</E>
                     the “Use of Facts Otherwise Available and Adverse Inferences” section in the Preliminary Decision Memorandum.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         sections 776(a) and (b) of the Act.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">All-Others Rate</HD>
                <P>
                    Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the preliminary determination, Commerce shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any rates that are zero, 
                    <E T="03">de minimis,</E>
                     or based entirely under section 776 of the Act.
                </P>
                <P>
                    Pursuant to section 705(c)(5)(A)(ii) of the Act, if the individual estimated countervailable subsidy rates established for all exporters and producers individually examined are zero, 
                    <E T="03">de minimis,</E>
                     or determined based entirely on facts otherwise available, Commerce may use any reasonable method to establish the estimated subsidy rate for all other producers or exporters. Commerce has preliminarily determined the estimated subsidy rate for the individually examined respondent under section 776 of the Act. Consequently, as a reasonable method, Commerce is determining the all-others rate based on the rate determined for Russian Ferro Alloys Inc./RFA International LP, the mandatory respondent in this investigation, as determined under section 776 of the Act.
                    <SU>7</SU>
                    <FTREF/>
                     For a full description of the methodology underlying Commerce's analysis, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See, e.g., Notice of Preliminary Determination of Sales at Less Than Fair Value: Sodium Nitrite from the Federal Republic of Germany,</E>
                         73 FR 21909, 21912 (April 23, 2008), unchanged in 
                        <E T="03">Notice of Final Determination of Sales at Less Than Fair Value: Sodium Nitrite from the Federal Republic of Germany,</E>
                         73 FR 38986, 38987 (July 8, 2008), and accompanying Issues and Decision Memorandum at Comment 2; 
                        <E T="03">see also Notice of Final Determination of Sales at Less Than Fair Value: Raw Flexible Magnets from Taiwan,</E>
                         73 FR 39673, 39674 (July 10, 2008); and 
                        <E T="03">Steel Threaded Rod from Thailand: Preliminary Determination of Sales at Less Than Fair Value and Affirmative Preliminary Determination of Critical Circumstances,</E>
                         78 FR 79670, 79671 (December 31, 2013), unchanged in 
                        <E T="03">Steel Threaded Rod from Thailand: Final Determination of Sales at Less Than Fair Value and Affirmative Final Determination of Critical Circumstances,</E>
                         79 FR 14476, 14477 (March 14, 2014).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Preliminary Determination</HD>
                <P>Commerce preliminarily determines that the following estimated countervailable subsidy rates exist:</P>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s200,20">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Company</CHED>
                        <CHED H="1">
                            Subsidy rate
                            <LI>
                                (percent 
                                <E T="03">ad valorem</E>
                                )
                            </LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Russian Ferro Alloys Inc./RFA International LP</ENT>
                        <ENT>* 748.58</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">All Others</ENT>
                        <ENT>* 748.58</ENT>
                    </ROW>
                    <TNOTE>* Rate based on adverse facts available (AFA).</TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD1">Suspension of Liquidation</HD>
                <P>
                    In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                    . Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above.
                </P>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>
                    Normally, Commerce discloses to interested parties the calculations performed in connection with a preliminary determination within five days of its public announcement or, if there is no public announcement, within five days of the date of publication of the notice of preliminary determination in the 
                    <E T="04">Federal Register</E>
                    <E T="03">,</E>
                     in accordance with 19 CFR 351.224(b). However, because Commerce preliminarily applied total AFA to the individually examined company, Russian Ferro Alloys Inc./RFA International LP, in this investigation in accordance with section 776 of the Act, there are no calculations to disclose.
                </P>
                <HD SOURCE="HD1">Verification</HD>
                <P>Because the mandatory respondents in this investigation did not provide information requested by Commerce and Commerce preliminarily determines each of the mandatory respondents to have been uncooperative, verification will not be conducted.</P>
                <HD SOURCE="HD1">Public Comment</HD>
                <P>
                    Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance no later than 30 days after the date of publication of the preliminary determination. Rebuttal briefs, limited to issues raised in the case briefs, may be filed not later than five days after the date for filing case briefs.
                    <SU>8</SU>
                    <FTREF/>
                     Interested parties who submit case or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.309(c)-(d); 
                        <E T="03">see also Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings,</E>
                         88 FR 67069, 67077 (September 29, 2023) (
                        <E T="03">APO and Service Final Rule</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.309(c)(2) and (d)(2).
                    </P>
                </FTNT>
                <P>
                    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior proceedings we have encouraged interested parties to provide an executive summary of their brief that should be limited to five pages total, including footnotes. In this investigation, we instead request that interested parties provide at the beginning of their briefs a public, executive summary for each issue raised in their briefs.
                    <SU>10</SU>
                    <FTREF/>
                     Further, we request that interested parties limit their executive summary of each issue to no more than 450 words, not including citations. We 
                    <PRTPAGE P="53951"/>
                    intend to use the executive summaries as the basis of the comment summaries included in the issues and decision memorandum that will accompany the final determination in this investigation. We request that interested parties include footnotes for relevant citations in the executive summary of each issue. Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f).
                    <SU>11</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         We use the term “issue” here to describe an argument that Commerce would normally address in a comment of the Issues and Decision Memorandum.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See APO and Service Final Rule.</E>
                    </P>
                </FTNT>
                <P>
                    Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce within 30 days after the date of publication of this notice. Requests should contain the party's name, address, and telephone number, the number of participants and whether any participant is a foreign national, and a list of the issues to be discussed. Oral presentations at the hearing will be limited to issues raised in the briefs. If a request for a hearing is made, parties will be notified of the time and date for the hearing.
                    <SU>12</SU>
                    <FTREF/>
                     Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.310(d).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Final Determination</HD>
                <P>Section 705(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that Commerce will issue the final determination within 75 days after the date of its preliminary determination.</P>
                <HD SOURCE="HD1">U.S. International Trade Commission Notification</HD>
                <P>In accordance with section 703(f) of the Act, Commerce will notify the U.S. International Trade Commission (ITC) of its preliminary determination. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether imports of ferrosilicon from Russia are materially injuring, or threaten material injury to, the U.S. industry.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This determination is issued and published in accordance with sections 703(f) and 777(i) of the Act, and 19 CFR 351.205(c).</P>
                <SIG>
                    <DATED>Dated: June 21, 2024.</DATED>
                    <NAME>Ryan Majerus,</NAME>
                    <TITLE>Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
                <HD SOURCE="HD1">Appendix I</HD>
                <EXTRACT>
                    <HD SOURCE="HD1">Scope of the Investigation</HD>
                    <P>The scope of this investigation covers all forms and sizes of ferrosilicon, regardless of grade, including ferrosilicon briquettes. Ferrosilicon is a ferroalloy containing by weight four percent or more iron, more than eight percent but not more than 96 percent silicon, three percent or less phosphorus, 30 percent or less manganese, less than three percent magnesium, and 10 percent or less any other element. The merchandise covered also includes product described as slag, if the product meets these specifications.</P>
                    <P>Subject merchandise includes material matching the above description that has been finished, packaged, or otherwise processed in a third country, including by performing any grinding or any other finishing, packaging, or processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the ferrosilicon.</P>
                    <P>Ferrosilicon is currently classifiable under subheadings 7202.21.1000, 7202.21.5000, 7202.21.7500, 7202.21.9000, 7202.29.0010, and 7202.29.0050 of the Harmonized Tariff Schedule of the United States (HTSUS). While the HTSUS numbers are provided for convenience and customs purposes, the written description of the scope remains dispositive.</P>
                </EXTRACT>
                <HD SOURCE="HD1">Appendix II</HD>
                <EXTRACT>
                    <HD SOURCE="HD1">List of Topics Discussed in the Preliminary Decision Memorandum</HD>
                    <FP SOURCE="FP-2">I. Summary</FP>
                    <FP SOURCE="FP-2">II. Background</FP>
                    <FP SOURCE="FP-2">III. Scope of the Investigation</FP>
                    <FP SOURCE="FP-2">IV. Respondent Identification</FP>
                    <FP SOURCE="FP-2">V. Use of Facts Otherwise Available and Adverse Inferences</FP>
                    <FP SOURCE="FP-2">VI. Analysis of Programs</FP>
                    <FP SOURCE="FP-2">VII. Recommendation</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14197 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[A-475-834]</DEPDOC>
                <SUBJECT>Certain Carbon and Alloy Steel Cut-To-Length Plate From Italy: Amended Final Results of Antidumping Duty Administrative Review; 2022-2023</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of Commerce (Commerce) is amending the final results of the administrative review of the antidumping duty (AD) order on certain carbon and alloy steel cut-to-length plate (CTL plate) from Italy to correct a ministerial error. The period of review (POR) is May 1, 2022, through April 30, 2023.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable June 28, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Grossnickle, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-3818.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On June 7, 2024, Commerce published in the 
                    <E T="04">Federal Register</E>
                     the 
                    <E T="03">Final Results</E>
                     of the 2022-2023 administrative review of the AD order on CTL plate from Italy.
                    <SU>1</SU>
                    <FTREF/>
                     On June 5, 2024, Commerce disclosed its calculations and provided interested parties with the opportunity to submit ministerial error comments.
                    <SU>2</SU>
                    <FTREF/>
                     On June 10, 2024, NLMK Verona S.p.A. (NVR), a mandatory respondent in this review, submitted a timely ministerial error allegation.
                    <SU>3</SU>
                    <FTREF/>
                     No other party submitted a ministerial error allegation or rebutted NVR's ministerial error allegation. We are amending the 
                    <E T="03">Final Results</E>
                     to correct the ministerial error alleged by NVR.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Certain Carbon and Alloy Steel Cut-To-Length Plate from Italy: Final Results of Antidumping Duty Administrative Review; 2022-2023,</E>
                         89 FR 48562 (June 7, 2024) (
                        <E T="03">Final Results</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Deadline for Ministerial Error Comments,” dated June 5, 2024.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         NVR's Letter, “Ministerial Error Comments,” dated Juene 10, 2024 (NVR's Ministerial Error Allegation).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Legal Framework</HD>
                <P>Section 751(h) of the Tariff Act of 1930, as amended (the Act), defines a “ministerial error” as including “errors in addition, subtraction, or other arithmetic function, clerical errors resulting from inaccurate copying, duplication, or the like, and any other unintentional error which the administering authority considers ministerial.” With respect to final results of administrative reviews, 19 CFR 351.224(e) provides that Commerce “will analyze any comments received and, if appropriate . . . correct any ministerial error by amending . . . the final results of review.”</P>
                <HD SOURCE="HD1">Ministerial Error</HD>
                <P>
                    In the 
                    <E T="03">Final Results,</E>
                     Commerce made an inadvertent error within the meaning of section 751(h) of the Act and 19 CFR 351.224(f) with respect to the treatment of home market sales made during the “window period,” of three months before the POR and two months after the 
                    <PRTPAGE P="53952"/>
                    POR. Accordingly, pursuant to 19 CFR 351.224(e), Commerce is amending the 
                    <E T="03">Final Results</E>
                     to correct for this ministerial error.
                    <SU>4</SU>
                    <FTREF/>
                     This correction results in a change to NVR's weighted-average dumping margin. For a complete description and analysis of the specific inadvertent error, and NVR's ministerial error allegation, 
                    <E T="03">see</E>
                     the accompanying Ministerial Error Allegation Memorandum.
                    <SU>5</SU>
                    <FTREF/>
                     The Ministerial Error Allegation Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at 
                    <E T="03">https://access.trade.gov.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Administrative Review of the Antidumping Duty Order on Certain Carbon and Alloy Steel Cut-To- Length Plate from Italy; 2022-2023: Allegation of Ministerial Error in the Final Results,” dated concurrently with this notice (Ministerial Error Allegation Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Amended Final Results of Review</HD>
                <P>As a result of correcting the ministerial error described above, we determine that the following estimated weighted-average dumping margin exists for the period May 1, 2022, through April 30, 2023:</P>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s50,10">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Exporter/producer</CHED>
                        <CHED H="1">
                            Weighted-
                            <LI>average</LI>
                            <LI>dumping</LI>
                            <LI>margin</LI>
                            <LI>(percent)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">NLMK Verona S.p.A</ENT>
                        <ENT>15.63</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>
                    Commerce intends to disclose the calculations performed in connection with these amended final results of review to interested parties within five days after public announcement of the amended final results or, if there is no public announcement, within five days of the date of publication of the notice of amended final results in the 
                    <E T="04">Federal Register</E>
                    , in accordance with 19 CFR 351.224(b).
                </P>
                <HD SOURCE="HD1">Assessment Rates</HD>
                <P>Pursuant to section 751(a)(2)(C) of the Act and 19 CFR 351.212(b)(1), Commerce has determined, and U.S. Customs and Border Protection (CBP) shall assess, antidumping duties on all appropriate entries of subject merchandise in accordance with these amended final results of review.</P>
                <P>
                    Pursuant to 19 CFR 351.212(b)(1), for NVR, we calculated importer-specific 
                    <E T="03">ad valorem</E>
                     AD assessment rates based on the ratio of the total amount of dumping calculated for the examined sales for each importer to the total entered value of the sales for each importer. Where an importer-specific AD assessment rate is zero or 
                    <E T="03">de minimis,</E>
                     within the meaning of 19 CFR 351.106(c)(1), Commerce will instruct CBP to liquidate the appropriate entries without regard to antidumping duties.
                </P>
                <P>
                    For entries of subject merchandise during the POR produced by NVR for which it did not know that its merchandise was destined for the United States, we will instruct CBP to liquidate such entries at the all-others rate established in the less-than-fair-value (LTFV) investigation of 6.08 percent 
                    <E T="03">ad valorem,</E>
                    <SU>6</SU>
                    <FTREF/>
                     if there is no rate for the intermediate company(ies) involved in the transaction.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See Certain Carbon and Alloy Steel Cut-To-Length Plate from Austria, Belgium, France, the Federal Republic of Germany, Italy, Japan, the Republic of Korea, and Taiwan: Amended Final Affirmative Antidumping Determinations for France, the Federal Republic of Germany, the Republic of Korea and Taiwan, and Antidumping Duty Orders,</E>
                         82 FR 24096, 24098 (May 25, 2017) (
                        <E T="03">Order</E>
                        ).
                    </P>
                </FTNT>
                <P>
                    Commerce intends to issue assessment instructions to CBP no earlier than 35 days after the date of publication of the amended final results of this review in the 
                    <E T="04">Federal Register</E>
                    . If a timely summons is filed at the U.S. Court of International Trade, the assessment instructions will direct CBP not to liquidate relevant entries until the time for parties to file a request for a statutory injunction has expired (
                    <E T="03">i.e.,</E>
                     within 90 days of publication).
                </P>
                <HD SOURCE="HD1">Cash Deposit Requirements</HD>
                <P>
                    The following amended cash deposit requirements will be effective retroactively upon publication of the amended final results of this administrative review in the 
                    <E T="04">Federal Register</E>
                    , for all shipments of the subject merchandise entered, or were withdrawn from warehouse, for consumption on or after June 7, 2024, the publication date of the 
                    <E T="03">Final Results,</E>
                     as provided by section 751(a)(2)(C) of the Act: (1) the amended cash deposit rate for NVR will be equal to the weighted-average dumping margin established in these amended final results of this review, except if the rate is less than 0.50 percent and, therefore, 
                    <E T="03">de minimis</E>
                     within the meaning of 19 CFR 351.106(c)(1), in which case the cash deposit rate will be zero; (2) for merchandise exported by companies not covered in this review but covered in a prior segment of this proceeding, the cash deposit rate will continue to be the company-specific rate published in the completed segment for the most recent period; (3) if the exporter is not a firm covered in this review, a prior review, or the original LTFV investigation, but the producer is, then the cash deposit rate will be the rate established in the completed segment for the most recent period for the producer of the merchandise; and (4) the cash deposit rate for all other producers or exporters will continue to be 6.08 percent, the all-others rate established in the LTFV investigation.
                    <SU>7</SU>
                    <FTREF/>
                     These cash deposit requirements, when imposed, shall remain in effect until further notice.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Notification to Importers</HD>
                <P>This notice also serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in Commerce's presumption that reimbursement of antidumping duties occurred and the subsequent assessment of doubled antidumping duties.</P>
                <HD SOURCE="HD1">Administrative Protective Order</HD>
                <P>This notice also serves as the only reminder to parties subject to an administrative protective order (APO) of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3), which continues to govern business proprietary information in this segment of the proceeding. Timely written notification of the return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and the terms of an APO is a violation which is subject to sanction.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>We are issuing and publishing these results in accordance with sections 751(h) and 777(i)(1) of the Act, and 19 CFR 351.224(e).</P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Ryan Majerus,</NAME>
                    <TITLE>Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14314 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="53953"/>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[A-821-838]</DEPDOC>
                <SUBJECT>Ferrosilicon From the Russian Federation: Preliminary Affirmative Determination of Sales at Less Than Fair Value</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of Commerce (Commerce) preliminarily determines that ferrosilicon from the Russian Federation (Russia) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is July 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable June 28, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Jacob Saude, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0981.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    This preliminary determination is made in accordance with section 733(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on April 24, 2024.
                    <SU>1</SU>
                    <FTREF/>
                     For a complete description of the events that followed the initiation of this investigation, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                    <SU>2</SU>
                    <FTREF/>
                     A list of topics included in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at 
                    <E T="03">https://access.trade.gov.</E>
                     In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at 
                    <E T="03">https://access.trade.gov/public/FRNoticesListLayout.aspx.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Ferrosilicon From Brazil, Kazakhstan, Malaysia, and the Russian Federation: Initiation of Less-Than-Fair-Value Investigations,</E>
                         89 FR 31137 (April 24, 2024) (
                        <E T="03">Initiation Notice</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Decision Memorandum for the Preliminary Determination in the Less-Than-Fair-Value Investigation of Ferrosilicon from the Russian Federation,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Investigation</HD>
                <P>
                    The product covered by this investigation is ferrosilicon from Russia. For a complete description of the scope of this investigation, 
                    <E T="03">see</E>
                     Appendix I.
                </P>
                <HD SOURCE="HD1">Scope Comments</HD>
                <P>
                    In accordance with the preamble to Commerce's regulations,
                    <SU>3</SU>
                    <FTREF/>
                     the 
                    <E T="03">Initiation Notice</E>
                     set aside a period of time for parties to raise issues regarding product coverage (
                    <E T="03">i.e.,</E>
                     scope).
                    <SU>4</SU>
                    <FTREF/>
                     No interested party commented on the scope of the investigation as it appeared in the 
                    <E T="03">Initiation Notice.</E>
                     Commerce is not preliminarily modifying the scope language as it appeared in the 
                    <E T="03">Initiation Notice.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See Antidumping Duties; Countervailing Duties, Final Rule,</E>
                         62 FR 27296, 27323 (May 19, 1997).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See Initiation Notic</E>
                        e, 89 FR at 31137-38.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Methodology</HD>
                <P>
                    Commerce is conducting this investigation in accordance with section 731 of the Act. Furthermore, pursuant to sections 776(a) and (b) of the Act, Commerce preliminarily has relied upon facts otherwise available, with adverse inferences, for the Russia-wide entity. For a full description of the methodology underlying Commerce's preliminary determination, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                </P>
                <HD SOURCE="HD1">Combination Rates</HD>
                <P>
                    In the 
                    <E T="03">Initiation Notice,</E>
                    <SU>5</SU>
                    <FTREF/>
                     Commerce stated that it would calculate producer/exporter combination rates for the respondents that are eligible for a separate rate in this investigation. Policy Bulletin 05.1 describes this practice.
                    <SU>6</SU>
                    <FTREF/>
                     In this case, because no respondent applied for a separate rate, producer/exporter combination rates were not calculated.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">Id.</E>
                         at 31141.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Enforcement and Compliance's Policy Bulletin No. 05.1, regarding, “Separate-Rates Practice and Application of Combination Rates in Antidumping Investigations involving Non-Market Economy Countries,” (April 5, 2005) (Policy Bulletin 05.1), available on Commerce's website at 
                        <E T="03">https://enforcement.trade.gov/policy/bull05-1.pdf.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Preliminary Determination</HD>
                <P>Commerce preliminarily determines that the following estimated weighted-average dumping margins exist:</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s100,22C,30C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Producer/exporter</CHED>
                        <CHED H="1">
                            Estimated weighted-
                            <LI>average dumping margin </LI>
                            <LI>(percent)</LI>
                        </CHED>
                        <CHED H="1">
                            Cash deposit rate 
                            <LI>(adjusted for subsidy offsets) </LI>
                            <LI>(percent)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Russia-wide Entity</ENT>
                        <ENT>283.27</ENT>
                        <ENT>283.27</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">Suspension of Liquidation</HD>
                <P>
                    In accordance with section 733(d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                    , as discussed below. Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the weighted average amount by which normal value exceeds U.S. price, as indicated in the chart above as follows: (1) for all combinations of Russian producers/exporters of merchandise under consideration that have not established eligibility for their own separate rates, the cash deposit rate will be equal to the estimated weighted-average dumping margin established for the Russia-wide entity; and (2) for all third-county exporters of merchandise under consideration not listed in the table above, the cash deposit rate is the cash deposit rate applicable to the Russia producer/exporter combination (or the Russia-wide entity) that supplied that third-country exporter.
                </P>
                <P>
                    To determine the cash deposit rate, Commerce normally adjusts the estimated weighted-average dumping margin by the amount of domestic subsidy pass-through and export subsidies determined in a companion countervailing duty (CVD) proceeding when CVD provisional measures are in effect. Accordingly, where Commerce has made a preliminary affirmative determination for domestic subsidy pass-through or export subsidies, Commerce has offset the calculated estimated weighted-average dumping 
                    <PRTPAGE P="53954"/>
                    margin by the appropriate rate(s). As discussed in the Preliminary Decision Memorandum, we have made no adjustment for domestic subsidy pass-through. As further explained in the Preliminary Decision Memorandum, as an extension of our adverse facts available (AFA) finding for the China-wide entity, the appropriate export subsidy adjustment is the lowest amount of export subsidies found for any respondent in the companion CVD investigation, which is zero.
                </P>
                <P>Should provisional measures in the companion CVD investigation expire prior to the expiration of provisional measures in this LTFV investigation, Commerce will direct CBP to begin collecting cash deposits at a rate equal to the estimated weighted-average dumping margins calculated in this preliminary determination unadjusted for the passed-through domestic subsidies or for export subsidies at the time the CVD provisional measures expire.</P>
                <P>These suspension of liquidation instructions will remain in effect until further notice.</P>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>
                    Normally, Commerce discloses to interested parties the calculations performed in connection with a preliminary determination within five days of its public announcement or, if there is no public announcement, within five days of the date of publication of the notice of preliminary determination in the 
                    <E T="04">Federal Register</E>
                    <E T="03">,</E>
                     in accordance with 19 CFR 351.224(b). However, because Commerce preliminarily applied total AFA to the Russia-wide entity in this investigation, in accordance with section 776 of the Act, and the applied AFA rate is based solely on the petition, there are no calculations to disclose.
                </P>
                <HD SOURCE="HD1">Verification</HD>
                <P>Because the mandatory respondents in this investigation did not provide information requested by Commerce and Commerce preliminarily determines each of the mandatory respondents to have been uncooperative, verification will not be conducted.</P>
                <HD SOURCE="HD1">Public Comment</HD>
                <P>
                    Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance no later than 30 days after the date of publication of the preliminary determination.
                    <SU>7</SU>
                    <FTREF/>
                     Rebuttal briefs, limited to issues raised in the case briefs, may be filed not later than five days after the date for filing case briefs.
                    <SU>8</SU>
                    <FTREF/>
                     Interested parties who submit case or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.309(c)(1)(i); 
                        <E T="03">see also</E>
                         19 CFR 351.303 for general filing requirements.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.309(d); 
                        <E T="03">see also Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings,</E>
                         88 FR 67069, 67077 (September 29, 2023) (
                        <E T="03">APO and Service Final Rule</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         19 351.309(c)(2) and (d)(2).
                    </P>
                </FTNT>
                <P>
                    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior proceedings we have encouraged interested parties to provide an executive summary of their brief that should be limited to five pages total, including footnotes. In this investigation, we instead request that interested parties provide at the beginning of their briefs a public, executive summary for each issue raised in their briefs.
                    <SU>10</SU>
                    <FTREF/>
                     Further, we request that interested parties limit their executive summary of each issue to no more than 450 words, not including citations. We intend to use the executive summaries as the basis of the comment summaries included in the issues and decision memorandum that will accompany the final determination in this investigation. We request that interested parties include footnotes for relevant citations in the executive summary of each issue. Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f).
                    <SU>11</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         We use the term “issue” here to describe an argument that Commerce would normally address in a comment of the Issues and Decision Memorandum.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See APO and Service Final Rule,</E>
                         88 FR at 67080.
                    </P>
                </FTNT>
                <P>
                    Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, within 30 days after the date of publication of this notice. Requests should contain the party's name, address, and telephone number, the number of participants and whether any participant is a foreign national, and a list of the issues to be discussed. Oral presentations at the hearing will be limited to issues raised in the briefs. If a request for a hearing is made, parties will be notified of the time and date for the hearing.
                    <SU>12</SU>
                    <FTREF/>
                     Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.310(d).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Final Determination</HD>
                <P>Section 735(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that Commerce will issue the final determination within 75 days after the date of its preliminary determination. Accordingly, Commerce will make its final determination no later than 75 days after the signature date of this preliminary determination.</P>
                <HD SOURCE="HD1">U.S. International Trade Commission Notification</HD>
                <P>In accordance with section 733(f) of the Act, Commerce will notify the U.S. International Trade Commission (ITC) of its preliminary determination of sales at LTFV. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether imports of the subject merchandise are materially injuring, or threaten material injury to, the U.S. industry.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This determination is issued and published in accordance with sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).</P>
                <SIG>
                    <DATED>Dated: June 21, 2024.</DATED>
                    <NAME>Ryan Majerus,</NAME>
                    <TITLE>Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
                <HD SOURCE="HD1">Appendix I</HD>
                <EXTRACT>
                    <HD SOURCE="HD1">Scope of the Investigation</HD>
                    <P>The scope of this investigation covers all forms and sizes of ferrosilicon, regardless of grade, including ferrosilicon briquettes. Ferrosilicon is a ferroalloy containing by weight four percent or more iron, more than eight percent but not more than 96 percent silicon, three percent or less phosphorus, 30 percent or less manganese, less than three percent magnesium, and 10 percent or less any other element. The merchandise covered also includes product described as slag, if the product meets these specifications.</P>
                    <P>Subject merchandise includes material matching the above description that has been finished, packaged, or otherwise processed in a third country, including by performing any grinding or any other finishing, packaging, or processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the ferrosilicon.</P>
                    <P>Ferrosilicon is currently classifiable under subheadings 7202.21.1000, 7202.21.5000, 7202.21.7500, 7202.21.9000, 7202.29.0010, and 7202.29.0050 of the Harmonized Tariff Schedule of the United States (HTSUS). While the HTSUS numbers are provided for convenience and customs purposes, the written description of the scope remains dispositive.</P>
                </EXTRACT>
                <PRTPAGE P="53955"/>
                <HD SOURCE="HD1">Appendix II</HD>
                <EXTRACT>
                    <HD SOURCE="HD1">List of Topics Discussed in the Preliminary Decision Memorandum</HD>
                    <FP SOURCE="FP-2">I. Summary</FP>
                    <FP SOURCE="FP-2">II. Background</FP>
                    <FP SOURCE="FP-2">III. Period of Investigation</FP>
                    <FP SOURCE="FP-2">IV. Scope of the Investigation</FP>
                    <FP SOURCE="FP-2">V. Discussion of the Methodology</FP>
                    <FP SOURCE="FP-2">VI. Recommendation</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14198 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[C-122-858]</DEPDOC>
                <SUBJECT>Certain Softwood Lumber From Canada: Notice of Initiation of Changed Circumstances Review</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Based on a request from the Committee Overseeing Action for Lumber International Trade Investigations or Negotiations (the petitioner), the U.S. Department of Commerce (Commerce) is initiating a changed circumstances review (CCR) of the countervailing duty (CVD) order on certain softwood lumber from Canada.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable June 28, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Elizabeth Talbot Russ, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-5516.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On January 3, 2018, Commerce published the CVD order on certain softwood lumber from Canada.
                    <SU>1</SU>
                    <FTREF/>
                     On May 10, 2024, the petitioner requested that Commerce initiate a CCR of the 
                    <E T="03">Order,</E>
                     pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended (the Act), 19 CFR 351.216, and 19 CFR 251.221(c)(3).
                    <SU>2</SU>
                    <FTREF/>
                     Specifically, the petitioner requests that Commerce determine that Interfor Sales &amp; Marketing Ltd. (ISM) is cross-owned with EACOM Timber Corporation (EACOM), Chaleur Forest Products Inc., and Chaleur Forest Products LP.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Certain Softwood Lumber Products from Canada: Amended Final Affirmative Countervailing Duty Determination and Countervailing Duty Order,</E>
                         83 FR 347 (January 3, 2018) (
                        <E T="03">Order</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Petitioner's Letter, “Certain Softwood Lumber Products from Canada: Request for Changed Circumstances Review,” dated May 10, 2024 (Petitioner's Request for CCR).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Order</HD>
                <P>
                    The merchandise covered by this 
                    <E T="03">Order</E>
                     is softwood lumber, siding, flooring and certain other coniferous wood (softwood lumber products). The scope includes:
                </P>
                <P>• Coniferous wood, sawn, or chipped lengthwise, sliced or peeled, whether or not planed, whether or not sanded, or whether or not finger-jointed, of an actual thickness exceeding six millimeters.</P>
                <P>• Coniferous wood siding, flooring, and other coniferous wood (other than moldings and dowel rods), including strips and friezes for parquet flooring, that is continuously shaped (including, but not limited to, tongued, grooved, rebated, chamfered, V-jointed, beaded, molded, rounded) along any of its edges, ends, or faces, whether or not planed, whether or not sanded, or whether or not end-jointed.</P>
                <P>• Coniferous drilled and notched lumber and angle cut lumber.</P>
                <P>• Coniferous lumber stacked on edge and fastened together with nails, whether or not with plywood sheathing.</P>
                <P>• Components or parts of semi-finished or unassembled finished products made from subject merchandise that would otherwise meet the definition of the scope above.</P>
                <P>
                    Finished products are not covered by the scope of this 
                    <E T="03">Order.</E>
                     For the purposes of this scope, finished products contain, or are comprised of, subject merchandise and have undergone sufficient processing such that they can no longer be considered intermediate products, and such products can be readily differentiated from merchandise subject to this 
                    <E T="03">Order</E>
                     at the time of importation. Such differentiation may, for example, be shown through marks of special adaptation as a particular product. The following products are illustrative of the type of merchandise that is considered “finished,” for the purpose of this scope: I-joists; assembled pallets; cutting boards; assembled picture frames; garage doors.
                </P>
                <P>
                    The following items are excluded from the scope of this 
                    <E T="03">Order</E>
                    :
                </P>
                <P>• Softwood lumber products certified by the Atlantic Lumber Board as being first produced in the Provinces of Newfoundland and Labrador, Nova Scotia, or Prince Edward Island from logs harvested in Newfoundland and Labrador, Nova Scotia, or Prince Edward Island.</P>
                <P>• U.S.-origin lumber shipped to Canada for processing and imported into the United States if the processing occurring in Canada is limited to one or more of the following: (1) Kiln drying; (2) planing to create smooth-to-size board; or (3) sanding.</P>
                <P>• Box-spring frame kits if they contain the following wooden pieces—two side rails, two end (or top) rails and varying numbers of slats. The side rails and the end rails must be radius-cut at both ends. The kits must be individually packaged and must contain the exact number of wooden components needed to make a particular box-spring frame, with no further processing required. None of the components exceeds 1″ in actual thickness or 83″ in length.</P>
                <P>• Radius-cut box-spring-frame components, not exceeding 1″ in actual thickness or 83″ in length, ready for assembly without further processing. The radius cuts must be present on both ends of the boards and must be substantially cut so as to completely round one corner.</P>
                <P>
                    Softwood lumber product imports are generally entered under Chapter 44 of the HTSUS. This chapter of the HTSUS covers “Wood and articles of wood.” Softwood lumber products that are subject to this 
                    <E T="03">Order</E>
                     are currently classifiable under the following ten-digit HTSUS subheadings in Chapter 44: 4406.11.00.00; 4406.91.00.00; 4407.10.01.01; 4407.10.01.02; 4407.10.01.15; 4407.10.01.16; 4407.10.01.17; 4407.10.01.18; 4407.10.01.19; 4407.10.01.20; 4407.10.01.42; 4407.10.01.43; 4407.10.01.44; 4407.10.01.45; 4407.10.01.46; 4407.10.01.47; 4407.10.01.48; 4407.10.01.49; 4407.10.01.52; 4407.10.01.53; 4407.10.01.54; 4407.10.01.55; 4407.10.01.56; 4407.10.01.57; 4407.10.01.58; 4407.10.01.59; 4407.10.01.64; 4407.10.01.65; 4407.10.01.66; 4407.10.01.67; 4407.10.01.68; 4407.10.01.69; 4407.10.01.74; 4407.10.01.75; 4407.10.01.76; 4407.10.01.77; 4407.10.01.82; 4407.10.01.83; 4407.10.01.92; 4407.10.01.93; 4407.11.00.01; 4407.11.00.02; 4407.11.00.42; 4407.11.00.43; 4407.11.00.44; 4407.11.00.45; 4407.11.00.46; 4407.11.00.47; 4407.11.00.48; 4407.11.00.49; 4407.11.00.52; 4407.11.00.53; 4407.12.00.01; 4407.12.00.02; 4407.12.00.17; 4407.12.00.18; 4407.12.00.19; 4407.12.00.20; 4407.12.00.58; 4407.12.00.59; 4407.13.00.00; 4407.14.00.00; 4407.19.00.01; 4407.19.00.02; 4407.19.00.54; 4407.19.00.55; 4407.19.00.56; 4407.19.00.57; 
                    <PRTPAGE P="53956"/>
                    4407.19.00.64; 4407.19.00.65; 4407.19.00.66; 4407.19.00.67; 4407.19.00.68; 4407.19.00.69; 4407.19.00.74; 4407.19.00.75; 4407.19.00.76; 4407.19.00.77; 4407.19.00.82; 4407.19.00.83; 4407.19.00.92; 4407.19.00.93; 4407.19.05.00; 4407.19.06.00; 4407.19.10.01; 4407.19.10.02; 4407.19.10.54; 4407.19.10.55; 4407.19.10.56; 4407.19.10.57; 4407.19.10.64; 4407.19.10.65; 4407.19.10.66; 4407.19.10.67; 4407.19.10.68; 4407.19.10.69; 4407.19.10.74; 4407.19.10.75; 4407.19.10.76; 4407.19.10.77; 4407.19.10.82; 4407.19.10.83; 4407.19.10.92; 4407.19.10.93; 4409.10.05.00; 4409.10.10.20; 4409.10.10.40; 4409.10.10.60; 4409.10.10.80; 4409.10.20.00; 4409.10.90.20; 4409.10.90.40; 4418.30.01.00; 4418.50.00.10; 4418.50.00.30; 4418.50.0050; and 4418.99.10.00; 4418.99.91.05; 4418.99.91.20; 4418.99.91.40; 4418.99.91.95; 4421.99.98.80.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         The following HTSUS numbers have been deleted, deactivated, replaced, or are invalid: 4407.10.0101, 4407.10.0102, 4407.10.0115, 4407.10.0116, 4407.10.0117, 4407.10.0118, 4407.10.0119, 4407.10.0120, 4407.10.0142, 4407.10.0143, 4407.10.0144, 4407.10.0145, 4407.10.0146, 4407.10.0147, 4407.10.0148, 4407.10.0149, 4407.10.0152, 4407.10.0153, 4407.10.0154, 4407.10.0155, 4407.10.0156, 4407.10.0157, 4407.10.0158, 4407.10.0159, 4407.10.0164, 4407.10.0165, 4407.10.0166, 4407.10.0167, 4407.10.0168, 4407.10.0169, 4407.10.0174, 4407.10.0175, 4407.10.0176, 4407.10.0177, 4407.10.0182, 4407.10.0183, 4407.10.0192, 4407.10.0193; and 4418.90.2500. These HTSUS numbers however have not been deactivated in CBP's ACE secure data portal, as they could be associated with entries of unliquidated subject merchandise.
                    </P>
                </FTNT>
                <P>Subject merchandise as described above might be identified on entry documentation as stringers, square cut box-spring-frame components, fence pickets, truss components, pallet components, flooring, and door and window frame parts. Items so identified might be entered under the following ten-digit HTSUS subheadings in Chapter 44: 4415.20.40.00; 4415.20.80.00; 4418.99.90.05; 4418.99.90.20; 4418.99.90.40; 4418.99.90.95; 4421.99.70.40; and 4421.99.97.80.</P>
                <P>
                    Although these HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this 
                    <E T="03">Order</E>
                     is dispositive.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See Order,</E>
                         83 FR at 349.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Initiation of Changed Circumstances Review</HD>
                <P>
                    Pursuant to section 751(b) of the Act, Commerce will conduct a CCR upon receipt of a request from an interested party 
                    <SU>6</SU>
                    <FTREF/>
                     that shows changed circumstances sufficient to warrant a review of an order. In accordance with 19 CFR 351.216(d), Commerce determines that the Petitioner's Request for CCR constitutes a sufficient basis to conduct a CCR of the 
                    <E T="03">Order</E>
                    . Therefore, in accordance with section 751(b)(1)(A) of the Act and 19 CFR 351.216(d), we are initiating a CCR based upon the information contained in the Petitioner's Request for CCR.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The petitioner is an 
                        <E T="03">ad hoc</E>
                         association and the majority the members of the association are composed of interested parties as described in section 771(9)(C), (D), and (E) of the Act, with respect to a domestic like product.
                    </P>
                </FTNT>
                <P>
                    Neither the Act, the Statement of Administrative Action Accompanying the Uruguay Round Agreements Act, nor Commerce's regulations offer a definition of the term “changed circumstances,” nor do they explain what aspects of a determination may be reconsidered in light of such changed circumstances. Commerce has in the past conducted CCRs regarding a variety of issues.
                    <SU>7</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See, e.g., Aluminum Extrusions from the People's Republic of China: Initiation and Preliminary Results of Expedited Changed Circumstances Review,</E>
                         83 FR 34548 (July 20, 2018) (finding sufficient information to initiate a CCR to recalculate certain cash deposit rates); 
                        <E T="03">see also Certain Steel Nails from Malaysia: Final Results of the Changed Circumstances Review,</E>
                         82 FR 34476 (July 25, 2017) (finding sufficient information and “good cause” to initiate a CCR to evaluate whether a company was properly utilizing the correct cash deposit rate).
                    </P>
                </FTNT>
                <P>
                    The petitioner has requested that Commerce initiate this CCR to investigate potential cross-ownership among four exporter/producers subject to the 
                    <E T="03">Order</E>
                     that have never been selected for individual examination: ISM, EACOM, Chaleur Forest Products Inc., and Chaleur Forest Products LP.
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         We note that the nature of this CCR request is distinct from that of a CVD “successor-in-interest” (SII) CCR request that Commerce more commonly receives, which clarifies the appropriate cash deposit rate for an entity and which is governed by the practice laid out in 
                        <E T="03">Certain Pasta from Turkey: Preliminary Results of Countervailing Duty Changed Circumstances Review,</E>
                         74 FR 47225 (September 15, 2009), unchanged in 
                        <E T="03">Certain Pasta from Turkey: Final Results of Countervailing Duty Changed Circumstances Review,</E>
                         74 FR 54022 (October 21, 2009).
                    </P>
                </FTNT>
                <P>
                    On March 12, 2024, Commerce issued the final results of a CCR in which it found that Interfor Corporation, EACOM, Chaleur Forest Products Inc., and Chaleur Forest Products LP are cross-owned entities in the context of the CVD 
                    <E T="03">Order</E>
                     on certain softwood lumber from Canada.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See Certain Softwood Lumber from Canada: Final Results of Countervailing Duty Changed Circumstances Review,</E>
                         March 12, 2024 (89 FR 17811) (
                        <E T="03">CCR—Interfor</E>
                        ).
                    </P>
                </FTNT>
                <P>
                    As we explained in the initiation notice of 
                    <E T="03">CCR—Interfor,</E>
                     while Commerce does not generally initiate CCR requests in proceedings simply because there may be some indication of cross-ownership between two or more exporters, we find the circumstances of the instant CCR to be relatively unique. Specifically, similar to the circumstances noted in 
                    <E T="03">CCR—Interfor,</E>
                     a potential affirmative finding of cross-ownership regarding ISM, EACOM, Chaleur Forest Products Inc., and Chaleur Forest Products LP could result in a cross-owned entity that is large enough to be selected as a respondent in a future administrative review.
                    <SU>10</SU>
                    <FTREF/>
                     Furthermore, this request arises in the context of a longstanding proceeding that is generally characterized by the relatively dominant position of a handful of large Canadian producers/exporters that routinely get selected as mandatory respondents within a broader field of dozens of much smaller producers/exporters. In addition, the petitioner has provided a sufficient factual basis to support initiation of this CCR.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See Certain Softwood Lumber from Canada: Notice of Initiation of Changed Circumstances Review,</E>
                         88 FR 48440 (July 27, 2023).
                    </P>
                </FTNT>
                <P>
                    For the reasons outlined above, Commerce determines that the issue raised by the petitioner of whether ISM, EACOM, Chaleur Forest Products Inc., and Chaleur Forest Products LP are cross-owned constitutes a sufficient basis to conduct a CCR of the 
                    <E T="03">Order</E>
                    . Accordingly, in accordance with section 751(b)(1)(A) of the Act and 19 CFR 351.216(d), we are initiating a CCR based upon the information contained in the petitioner's submission.
                </P>
                <P>In the event that Commerce determines an expedited action is warranted, 19 CFR 351.221(c)(3)(ii) permits Commerce to combine the notice of initiation of the review and the preliminary results of review into a single notice. However, we are not combining this notice of initiation with the preliminary results, pursuant to 19 CFR 351.221(c)(3)(ii), because Commerce has determined that it is necessary to issue a questionnaire to ISM and gather additional information regarding the company's corporate structure and ownership. After examining any properly filed comments and following up with any additional questionnaires as needed, we intend to issue the preliminary results of this CCR.</P>
                <HD SOURCE="HD1">Preliminary and Final Results of the CCR</HD>
                <P>
                    Commerce intends to publish in the 
                    <E T="04">Federal Register</E>
                     a notice of the preliminary results of this CCR in 
                    <PRTPAGE P="53957"/>
                    accordance with 19 CFR 351.221(b)(4) and (c)(3)(i). Commerce will set forth its preliminary factual and legal conclusions in that notice regarding the factual question of whether ISM, EACOM, Chaleur Forest Products Inc., and Chaleur Forest Products LP are cross-owned.
                    <SU>11</SU>
                    <FTREF/>
                     Unless extended, Commerce will issue the final results of this CCR in accordance with the time limits set forth in 19 CFR 351.216(e).
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         Commerce does not intend to identify in this CCR the appropriate cash deposit rate in the event these parties are determined to be cross-owned, as that is the purpose of a SII CCR review.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This initiation notice is published in accordance with section 751(b)(1) of the Act, 19 CFR 351.216(d), and 19 CFR 351.221(b)(1).</P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>James Maeder,</NAME>
                    <TITLE>Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14312 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[A-201-845]</DEPDOC>
                <SUBJECT>Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico: Final Results of the 2021-2022 Administrative Review</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of Commerce (Commerce) determines that the Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico, as amended (AD Agreement) met the statutory requirements during the period of review (POR) from December 1, 2021, through November 30, 2022. Commerce also determines that the respondents selected for individual examination, Compañía Industrial Azucarera S.A. de C.V. and its affiliates (collectively, Santos Group) and Ingenio Presidente Benito Juarez S.A. de C.V. (collectively, the respondents), were in compliance with the terms of the AD Agreement during the POR.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable June 28, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sally C. Gannon or Jill Buckles, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0162 or (202) 482-6230, respectively.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On December 27, 2023, Commerce published the preliminary results of this administrative review.
                    <SU>1</SU>
                    <FTREF/>
                     Immediately preceding the 
                    <E T="03">Preliminary Results,</E>
                     the Santos Group submitted its response to Commerce's second supplemental questionnaire on December 20, 2023. On May 13, 2024, Commerce issued post-preliminary results.
                    <SU>2</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Agreement Suspending the Antidumping Duty Investigation on Sugar From Mexico: Preliminary Results of the 2021-2022 Administrative Review and Postponement of Final Results,</E>
                         88 FR 89367 (December 27, 2023).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Decision Memorandum for the Post-Preliminary Results of the 2021-2022 Administrative Review: Sugar from Mexico,” dated May 13, 2024.
                    </P>
                </FTNT>
                <P>
                    On May 29, 2024, the American Sugar Coalition and its members (collectively, the petitioners) 
                    <SU>3</SU>
                    <FTREF/>
                     filed a case brief.
                    <SU>4</SU>
                    <FTREF/>
                     On June 3, 2024, Cámara Nacional de Las Industrias Azucarera y Alcoholera and the Santos Group filed a letter in lieu of rebuttal brief.
                    <SU>5</SU>
                    <FTREF/>
                     For a complete description of the events that occurred since the Preliminary Results, see the Issues and Decision Memorandum.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The members of the American Sugar Coalition are as follows: American Sugar Cane League; American Sugarbeet Growers Association; American Sugar Refining, Inc.; Florida Sugar Cane League; Rio Grande Valley Sugar Growers, Inc.; Sugar Cane Growers Cooperative of Florida; and the United States Beet Sugar Association.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Petitioners' Letter, “Case Brief on Behalf of the American Sugar Coalition,” dated May 29, 2024.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Respondents' Letter, “Letter in Lieu of Rebuttal Brief,” dated June 3, 2024.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Issues and Decision Memorandum for the Final Results of the 2021-2022 Administrative Review of the Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the AD Agreement</HD>
                <P>
                    The product covered by this AD Agreement is raw and refined sugar of all polarimeter readings derived from sugar cane or sugar beets. Merchandise covered by this AD Agreement is typically imported under the following headings of the HTSUS: 1701.12.1000, 1701.12.5000, 1701.13.1000, 1701.13.5000, 1701.14.1020, 1701.14.1040, 1701.14.5000, 1701.91.1000, 1701.91.3000, 1701.99.1015, 1701.99.1017, 1701.99.1025, 1701.99.1050, 1701.99.5015, 1701.99.5017, 1701.99.5025, 1701.99.5050, and 1702.90.4000.
                    <SU>7</SU>
                    <FTREF/>
                     The tariff classification is provided for convenience and customs purposes; however, the written description of the scope of this AD Agreement is dispositive.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Prior to July 1, 2016, merchandise covered by the AD Agreement was classified in the HTSUS under subheading 1701.99.1010. Prior to January 1, 2020, merchandise covered by the AD Agreement was classified in the HTSUS under subheadings 1701.14.1000 and 1701.99.5010.
                    </P>
                </FTNT>
                <P>A full description of the scope of the AD Agreement is contained in the Issues and Decision Memorandum.</P>
                <HD SOURCE="HD1">Analysis</HD>
                <P>Commerce continues to determine that, based on record evidence, respondents were in compliance with the terms of the AD Agreement during the POR. We also determine that the AD Agreement met the statutory requirements under sections 734(c) and (d) of the Tariff Act of 1930, as amended (the Act), during the POR.</P>
                <P>
                    The issues raised in the case and rebuttal briefs are addressed in the accompanying Issues and Decision Memorandum and business proprietary memorandum.
                    <SU>8</SU>
                    <FTREF/>
                     The issues are identified in the appendix to this notice. The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at 
                    <E T="03">http://access.trade.gov.</E>
                     In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at 
                    <E T="03">https://access.trade.gov/public/FRNoticesListLayout.aspx.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Issues and Decision Memorandum; 
                        <E T="03">see also</E>
                         Memorandum, “Proprietary Analysis Memorandum for the Final Results: Compañía Industrial Azucarera S.A. de C.V. and its Affiliates,” dated concurrently with, and hereby adopted by, this notice.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Administrative Protective Order</HD>
                <P>This notice also serves as a reminder to parties subject to administrative protective order (APO) of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return or destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a sanctionable violation.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>We are issuing and publishing these results of review in accordance with sections 751(a)(l) and 777(i)(l) of the Act and 19 CFR 351.213 and 19 CFR 351.221(b)(5).</P>
                <SIG>
                    <PRTPAGE P="53958"/>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Ryan M. Majerus,</NAME>
                    <TITLE>Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
                <HD SOURCE="HD1">Appendix</HD>
                <EXTRACT>
                    <HD SOURCE="HD1">List of Topics Discussed in the Issues and Decision Memorandum</HD>
                    <FP SOURCE="FP-2">I. Summary</FP>
                    <FP SOURCE="FP-2">II. Background</FP>
                    <FP SOURCE="FP-2">III. Scope of the Agreement</FP>
                    <FP SOURCE="FP-2">IV. Discussion of the Issue</FP>
                    <FP SOURCE="FP1-2">Comment: Whether Commerce Should Include Certain Sales in the Calculation of Normal Value</FP>
                    <FP SOURCE="FP-2">V. Recommendation</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14237 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[C-533-929]</DEPDOC>
                <SUBJECT>Ceramic Tile from India: Postponement of Preliminary Determination in the Countervailing Duty Investigation</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce</P>
                </AGY>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable June 28, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Natasia Harrison, AD/CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1240.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On May 9, 2024, the Department of Commerce (Commerce) initiated a countervailing duty (CVD) investigation of imports of ceramic tile from India.
                    <SU>1</SU>
                    <FTREF/>
                     Currently, the preliminary determination is due no later than July 15, 2024.
                    <SU>2</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Ceramic Tile from India: Initiation of Countervailing Duty Investigation,</E>
                         89 FR 42841 (May 16, 2024).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         Because the current deadline for these final results falls on a weekend (
                        <E T="03">i.e.,</E>
                         Saturday, July 13, 2024), the deadline became the next business day (
                        <E T="03">i.e.,</E>
                         Monday, July 15, 2024). 
                        <E T="03">See Notice of Clarification: Application of “Next Business Day” Rule for Administrative Determination Deadlines Pursuant to the Tariff Act of 1930, As Amended,</E>
                         70 FR 24533 (May 10, 2005).
                    </P>
                </FTNT>
                <P>Postponement of Preliminary Determinations</P>
                <P>
                    Section 703(b)(1) of the Tariff Act of 1930, as amended (the Act), requires Commerce to issue the preliminary determination in a CVD investigation within 65 days after the date on which Commerce initiated the investigation. However, section 703(c)(1) of the Act permits Commerce to postpone the preliminary determination until no later than 130 days after the date on which Commerce initiated the investigation if: (A) the petitioner 
                    <SU>3</SU>
                    <FTREF/>
                     makes a timely request for a postponement; or (B) Commerce concludes that the parties concerned are cooperating, that the investigation is extraordinarily complicated, and that additional time is necessary to make a preliminary determination. Under 19 CFR 351.205(e), the petitioner must submit a request for postponement 25 days or more before the scheduled date of the preliminary determination and must state the reasons for the request. Commerce will grant the request unless it finds compelling reasons to deny the request.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The petitioner is The Coalition for Fair Trade in Ceramic Tile.
                    </P>
                </FTNT>
                <P>
                    On June 17, 2024, the petitioner submitted a timely request that Commerce postpone this preliminary CVD determination.
                    <SU>4</SU>
                    <FTREF/>
                     The petitioner stated that it requests postponement to allow Commerce to properly conduct its investigation and address certain complicated issues.
                    <SU>5</SU>
                    <FTREF/>
                     In accordance with 19 CFR 351.205(e), the petitioner has stated the reasons for requesting a postponement of the preliminary determination, and Commerce finds no compelling reason to deny the request. Therefore, in accordance with section 703(c)(1)(A) of the Act, Commerce is postponing the deadline for the preliminary determination to no later than 130 days after the date on which this investigation was initiated, 
                    <E T="03">i.e.,</E>
                     September 16, 2024. Pursuant to section 705(a)(1) of the Act and 19 CFR 351.210(b)(1), the deadline for the final determination of this investigation will continue to be 75 days after the date of the preliminary determination.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Petitioner's Letter, “Petitioner's Request for Postponement of the Preliminary Determination,” dated June 17, 2024.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This notice is issued and published pursuant to section 703(c)(2) of the Act and 19 CFR 351.205(f)(1).</P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Ryan Majerus,</NAME>
                    <TITLE>Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14313 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget (OMB) for Review and Approval; Comment Request; Annual Report From Foreign-Trade Zones</SUBJECT>
                <P>
                    The Department of Commerce will submit the following information collection request to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995, on or after the date of publication of this notice. We invite the general public and other Federal agencies to comment on proposed and continuing information collections, which helps us assess the impact of our information collection requirements and minimize the public's reporting burden. Public comments were previously requested via the 
                    <E T="04">Federal Register</E>
                     on April 10, 2024, during a 60-day comment period. This notice allows for an additional 30 days for public comments.
                </P>
                <P>
                    <E T="03">Agency:</E>
                     International Trade Administration, Department of Commerce.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Annual Report from Foreign-Trade Zones.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     0625-0109.
                </P>
                <P>
                    <E T="03">Form Number(s):</E>
                     ITA 359P.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Regular submission. Extension of a current information collection without change.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     261.
                </P>
                <P>
                    <E T="03">Average Hours per Response:</E>
                     1 to 76 hours (depending on size and structure of FTZ).
                </P>
                <P>
                    <E T="03">Burden Hours:</E>
                     5,979.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The annual reports are used by Congress and the Department to determine the economic effect of the Foreign-Trade Zone program as well as by the Foreign-Trade Zones Board and other trade policy officials to determine whether zone activity is consistent with U.S. international trade policy.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     State, local, or tribal governments, or not-for-profit institutions that have been granted foreign-trade zone authority.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Annually.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Mandatory.
                </P>
                <P>
                    <E T="03">Legal Authority:</E>
                     19 U.S.C. 81(p).
                </P>
                <P>
                    This information collection request may be viewed at 
                    <E T="03">www.reginfo.gov.</E>
                     Follow the instructions to view the Department of Commerce collections currently under review by OMB.
                </P>
                <P>
                    Written comments and recommendations for the proposed information collection should be 
                    <PRTPAGE P="53959"/>
                    submitted within 30 days of the publication of this notice on the following website 
                    <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                     Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function and entering either the title of the collection or the OMB Control Number 0625-0109.
                </P>
                <SIG>
                    <NAME>Sheleen Dumas,</NAME>
                    <TITLE>Department PRA Clearance Officer, Office of the Under Secretary for Economic Affairs, Commerce Department.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14242 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XE070]</DEPDOC>
                <SUBJECT>New England Fishery Management Council; Public Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of public meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The New England Fishery Management Council (Council) is scheduling a public hybrid meeting of its On-Demand Gear Conflict Working Group to consider actions affecting New England fisheries in the exclusive economic zone (EEZ). Recommendations from this group will be brought to the full Council for formal consideration and action, if appropriate.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This hybrid meeting will be held on Wednesday, July 17, 2024, at 9:30 a.m.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>This meeting will be held at the Hilton Garden Inn, 100 Boardman Street, Boston, MA 02128; telephone: (617) 567-6789.</P>
                    <P>
                        <E T="03">Webinar registration URL information: https://nefmc.org.zoom.us/meeting/register/tJwsdeusqTovE9DdRPznC8qUKtH3UJlGcGyq.</E>
                    </P>
                    <P>
                        <E T="03">Council address:</E>
                         New England Fishery Management Council, 50 Water Street, Mill 2, Newburyport, MA 01950.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Cate O'Keefe, Executive Director, New England Fishery Management Council; telephone: (978) 465-0492.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Agenda</HD>
                <P>The On-Demand Fishing Gear Conflict Working Group (ODWG) will meet to receive an update from the Greater Atlantic Regional Fisheries Office (GARFO) on the status of Atlantic Large Whale Take Reduction Plan (ALWTRP) gillnet/other trap/pot (OTP) proposed rule as well as an update on on-demand gear activities funded by the Inflation Reduction Act. They will review and have a discussion of gear marking/gear interaction draft white paper. The group will review and have a discussion of Federal and state-by-state regulatory/legislative processes for adopting ropeless gear marking. They will receive a briefing from the Northeast Fisheries Science Center (NEFSC) gear team on on-demand experimental fishing projects as well as a briefing from the Maine Department of Marine Resources (MEDMR) gear team on-demand experimental fishing projects. They will also receive a briefing from NOAA Office of Law Enforcement on on-demand gear training workshops. Updates on other on-demand gear related activity will be discussed. Other business will be discussed as necessary.</P>
                <P>Although non-emergency issues not contained on the agenda may come before this Council for discussion, those issues may not be the subject of formal action during this meeting. Council action will be restricted to those issues specifically listed in this notice and any issues arising after publication of this notice that require emergency action under section 305(c) of the Magnuson-Stevens Act, provided the public has been notified of the Council's intent to take final action to address the emergency. The public also should be aware that the meeting will be recorded. Consistent with 16 U.S.C. 1852, a copy of the recording is available upon request.</P>
                <HD SOURCE="HD1">Special Accommodations</HD>
                <P>This meeting is physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should be directed to Cate O'Keefe, Executive Director, at (978) 465-0492, at least 5 days prior to the meeting date.</P>
                <P>
                    <E T="03">Authority:</E>
                     16 U.S.C. 1801 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Rey Israel Marquez,</NAME>
                    <TITLE>Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14343 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XE027]</DEPDOC>
                <SUBJECT>Fisheries of the South Atlantic; Southeast Data, Assessment, and Review (SEDAR); Public Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of SEDAR 92 Atlantic Blueline Tilefish Landings Stream Topical Working Group (LS-TWG) Webinar III.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The SEDAR 92 assessment of the Atlantic stock of blueline tilefish will consist of a series of assessment webinars. See 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                        .
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The SEDAR 92 Atlantic Blueline Tilefish LS-TWG Webinar III is scheduled for Wednesday, July 17, 2024, from 11 a.m. to 1 p.m., Eastern. The established times may be adjusted as necessary to accommodate the timely completion of discussion relevant to the assessment process. Such adjustments may result in the meeting being extended from or completed prior to the time established by this notice.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The meeting will be held via webinar. The webinar is open to members of the public. Registration for the webinar is available by contacting the SEDAR coordinator via email at 
                        <E T="03">Julie.Neer@safmc.net.</E>
                    </P>
                    <P>
                        <E T="03">SEDAR address:</E>
                         4055 Faber Place Drive, Suite 201, N Charleston, SC 29405; 
                        <E T="03">www.sedarweb.org.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Julie Neer, SEDAR Coordinator, 4055 Faber Place Drive, Suite 201, North Charleston, SC 29405; phone: (843) 571-4366; email: 
                        <E T="03">Julie.Neer@safmc.net.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The Gulf of Mexico, South Atlantic, and Caribbean Fishery Management Councils, in conjunction with NOAA Fisheries and the Atlantic and Gulf States Marine Fisheries Commissions, have implemented the Southeast Data, Assessment and Review (SEDAR) process, a multi-step method for determining the status of fish stocks in the Southeast Region. SEDAR is a three-step process including: (1) Data Workshop; (2) Assessment Process utilizing webinars; and (3) Review Workshop. The product of the Data Workshop is a data report which compiles and evaluates potential datasets and recommends which datasets are appropriate for assessment 
                    <PRTPAGE P="53960"/>
                    analyses. The product of the Assessment Process is a stock assessment report which describes the fisheries, evaluates the status of the stock, estimates biological benchmarks, projects future population conditions, and recommends research and monitoring needs. The assessment is independently peer reviewed at the Review Workshop. The product of the Review Workshop is a Summary documenting panel opinions regarding the strengths and weaknesses of the stock assessment and input data. Participants for SEDAR Workshops are appointed by the Gulf of Mexico, South Atlantic, and Caribbean Fishery Management Councils and NOAA Fisheries Southeast Regional Office, Highly Migratory Species Management Division, and Southeast Fisheries Science Center. Participants include: data collectors and database managers; stock assessment scientists, biologists, and researchers; constituency representatives including fishermen, environmentalists, and non-governmental organizations (NGOs); international experts; and staff of Councils, Commissions, and state and federal agencies.
                </P>
                <P>The items of discussion at the SEDAR 92 Atlantic Blueline Tilefish LS-TWG Webinar III are as follows:</P>
                <P>Discuss available data sources, review preliminary analysis, and provide guidance for next steps.</P>
                <P>Although non-emergency issues not contained in this agenda may come before this group for discussion, those issues may not be the subject of formal action during this meeting. Action will be restricted to those issues specifically identified in this notice and any issues arising after publication of this notice that require emergency action under section 305(c) of the Magnuson-Stevens Fishery Conservation and Management Act, provided the public has been notified of the intent to take final action to address the emergency.</P>
                <HD SOURCE="HD1">Special Accommodations</HD>
                <P>
                    This meeting is accessible to people with disabilities. Requests for auxiliary aids should be directed to the South Atlantic Fishery Management Council office (see 
                    <E T="02">ADDRESSES</E>
                    ) at least 10 business days prior to the meeting.
                </P>
                <NOTE>
                    <HD SOURCE="HED">Note:</HD>
                    <P>The times and sequence specified in this agenda are subject to change.</P>
                </NOTE>
                <P>
                    <E T="03">Authority:</E>
                     16 U.S.C. 1801 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Rey Israel Marquez,</NAME>
                    <TITLE>Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14339 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XE052]</DEPDOC>
                <SUBJECT>Taking and Importing of Marine Mammals</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; 2023 affirmative finding annual renewals for Colombia, Ecuador, Guatemala, Mexico, Peru, and Spain.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This provides notice that on June 5, 2023, the NMFS Assistant Administrator (Assistant Administrator) completed an affirmative finding annual renewal for the Governments of Colombia, Ecuador, Guatemala, Mexico, Peru and Spain (referred to hereafter as “The Nations”) under the portions of the Marine Mammal Protection Act (MMPA) related to the eastern tropical Pacific Ocean (ETP) tuna purse seine fishery and the importation of yellowfin tuna from nations participating in this fishery. These affirmative findings allowed for the importation into the United States of yellowfin tuna and yellowfin tuna products harvested in the ETP from April 1, 2023, through March 31, 2024, in compliance with the Agreement on the International Dolphin Conservation Program (AIDCP), by purse seine vessels operating under The Nations' jurisdiction or exported from The Nations. NMFS based the affirmative finding annual renewals on reviews of documentary evidence submitted by the Governments of The Nations and of information obtained from the Inter-American Tropical Tuna Commission (IATTC). NMFS typically publishes notice of affirmative finding annual renewals shortly after the Assistant Administrator makes those findings; however, due to an oversight, this notice was not published in 2023, and is therefore being published now to provide the public with notice of the findings.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>These affirmative finding annual renewals were effective for the 1-year period of April 1, 2023, through March 31, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Justin Greenman, West Coast Region, NMFS, by mail: 501 W Ocean Blvd., Suite 4200, Long Beach, CA 90802, email: 
                        <E T="03">justin.greenman@noaa.gov,</E>
                         or phone: (562) 980-3264.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The MMPA, 16 U.S.C. 1361 
                    <E T="03">et seq.,</E>
                     allows for importation into the United States of yellowfin tuna harvested by purse seine vessels in the ETP from a nation with jurisdiction over purse seine vessels with carrying capacity greater than 400 short tons that harvest tuna in the ETP only if the nation has an “affirmative finding” issued by the NMFS Assistant Administrator. See section 101(a)(2)(B) of the MMPA, 16 U.S.C. 1371(a)(2)(B); see also 50 CFR 216.24(f)(6)(i). If requested by the Government of such a nation, the Assistant Administrator will determine whether to make an affirmative finding based upon documentary evidence provided by the Government, the IATTC, or the Department of State.
                </P>
                <P>The affirmative finding process requires that the harvesting nation is meeting its obligations under the AIDCP and its obligations of membership in the IATTC. Every 5 years, the Government of the harvesting nation must request a new affirmative finding and submit the required documentary evidence directly to the Assistant Administrator. On an annual basis, NMFS must determine whether the harvesting nation continues to meet the requirements of their 5-year affirmative finding. NMFS does this by annually reviewing the documentary evidence from the previous year. A nation may provide information related to compliance with AIDCP and IATTC measures directly to NMFS on an annual basis or may authorize the IATTC to release the information to NMFS to annually renew an affirmative finding determination without an application from the harvesting nation.</P>
                <P>An affirmative finding will be terminated, in consultation with the Secretary of State, if the Assistant Administrator determines that the requirements of 50 CFR 216.24(f) are no longer being met or that a nation is consistently failing to take enforcement actions on violations, thereby diminishing the effectiveness of the AIDCP.</P>
                <P>As a part of the affirmative finding process set forth in 50 CFR 216.24(f)(8), for this annual renewal, the Assistant Administrator considered documentary evidence submitted by the Governments of The Nations and obtained from the IATTC and determined that The Nations met the MMPA's requirements to receive affirmative finding annual renewals.</P>
                <P>
                    After consultation with the Department of State, the Assistant Administrator issued affirmative finding annual renewals to The Nations, allowing the continued importation into the United States of yellowfin tuna and products derived from yellowfin tuna harvested in the ETP by purse seine vessels operating under The Nations' 
                    <PRTPAGE P="53961"/>
                    jurisdiction or exported from The Nations. Issuance of affirmative finding annual renewals for The Nations does not affect implementation of an intermediary nation embargo under 50 CFR 216.24(f)(9), which applies to exports from a nation that exports to the United States yellowfin tuna or yellowfin tuna products that was subject to a ban on importation into the United States under section 101(a)(2)(B) of the MMPA, 16 U.S.C. 1371(a)(2)(B).
                </P>
                <P>These affirmative finding annual renewals for The Nations were for the 1-year period of April 1, 2023, through March 31, 2024. The Nations' individual 5-year affirmative findings, which have varying start and end dates, remain valid, subject to subsequent annual reviews by NMFS. Peru's 5-year affirmative findings will remain valid through March 31, 2027. Ecuador, Guatemala, Mexico, and Spain's 5-year affirmative findings will remain valid through March 31, 2025. Colombia had a 5-year affirmative finding that was valid through March 31, 2024, and was renewed on May 22, 2024, for the period of April 1, 2024, through March 31, 2029.</P>
                <SIG>
                    <DATED>Dated: June 14, 2024.</DATED>
                    <NAME>Janet Coit,</NAME>
                    <TITLE>Assistant Administrator for Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14337 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XD932]</DEPDOC>
                <SUBJECT>Determination of Overfishing or an Overfished Condition</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This action serves as a notice that NMFS, on behalf of the Secretary of Commerce (Secretary), has found that California Quillback rockfish and the Queets spring/summer Chinook salmon stock are now overfished; Gulf of Mexico Lane snapper is now subject to overfishing; and Atlantic mackerel and the Klamath River fall-run Chinook salmon stock remain overfished. NMFS, on behalf of the Secretary, is required to provide this notice whenever it determines that a stock or stock complex is subject to overfishing, overfished, or approaching an overfished condition.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Diana Perry, (301)-427-7863.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Pursuant to section 304(e)(2) of the Magnuson-Stevens Fishery Conservation and Management Act, 16 U.S.C. 1854(e)(2), NMFS, on behalf of the Secretary, must notify councils, and publish a notice in the 
                    <E T="04">Federal Register</E>
                    , whenever it determines that a stock or stock complex is subject to overfishing, overfished, or approaching an overfished condition.
                </P>
                <P>NMFS has determined that the Klamath River fall-run Chinook salmon stock remains overfished and the Queets spring/summer Chinook salmon stock is now overfished. These determinations are based on assessments, completed in 2023, using data from 2020-2022 for the Klamath River fall-run Chinook salmon stock and data from 2019-2021 for the Queets spring/summer Chinook salmon stock. These assessments indicate that the 3-year geometric mean of the annual spawning escapement for each stock is less than each stock's minimum stock size threshold (MSST). NMFS continues to work with the Pacific Fishery Management Council (Pacific Council) to rebuild the Klamath River fall-run Chinook salmon stock and has notified the Pacific Council of the requirement to rebuild the Queets spring/summer Chinook salmon stock.</P>
                <P>NMFS has determined that California Quillback rockfish is now overfished. This determination is based on the most recent assessment, completed in 2021 and using data from 2020, which indicates that the spawning stock biomass is less than the MSST. NMFS has notified the Pacific Council of the requirement to rebuild this stock.</P>
                <P>NMFS has determined that Atlantic mackerel is still overfished. This determination is based on the most recent assessment, completed in 2023 and using data from 2022, which indicates that the spawning stock biomass is less than the MSST. NMFS continues to work with the Mid-Atlantic Fishery Management Council to rebuild this stock.</P>
                <P>NMFS has determined that Gulf of Mexico Lane snapper is now subject to overfishing. Gulf of Mexico Lane snapper was not assessed in 2023, so landings data from 2022 was compared to the overfishing limit to support the status determination of subject to overfishing. NMFS has notified the Gulf of Mexico Fishery Management Council of its requirement to end overfishing.</P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Lindsay Fullenkamp,</NAME>
                    <TITLE>Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14307 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration </SUBAGY>
                <DEPDOC>[RTID 0648-XE066]</DEPDOC>
                <SUBJECT>Takes of Marine Mammals Incidental to Specified Activities; Taking Marine Mammals Incidental to Furie Operating Alaska, LLC Oil and Gas Activities in Cook Inlet, Alaska; Correction</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; proposed incidental harassment authorizations; request for comments on proposed authorizations and possible renewals; correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        On June 14, 2024, a notice was published in the 
                        <E T="04">Federal Register</E>
                         announcing the proposed issuance of two incidental harassment authorizations (IHAs) for take of marine mammals incidental to oil and gas activities in Cook Inlet, Alaska. That document inadvertently contained errors in tables 7 and 10. This document only corrects those errors; all other information is unchanged.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>June 28, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Leah Davis, Office of Protected Resources, NMFS, (301) 427-8401.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    NMFS published a notice in the 
                    <E T="04">Federal Register</E>
                     on June 14, 2024 (89 FR 51102) announcing the proposed issuance of two IHAs for take of marine mammals incidental to oil and gas activities in Cook Inlet, Alaska. NMFS refers the reader to the June 14, 2024, 
                    <E T="04">Federal Register</E>
                     notice (89 FR 51102) for background information concerning the IHAs.
                </P>
                <HD SOURCE="HD1">Corrections</HD>
                <P>
                    On page 51118, table 7 is corrected to read as follows:
                    <PRTPAGE P="53962"/>
                </P>
                <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s100,r50,r50">
                    <TTITLE>Table 7—SSLs for Project Activities</TTITLE>
                    <BOXHD>
                        <CHED H="1">Sound source</CHED>
                        <CHED H="1">SSL</CHED>
                        <CHED H="2">SEL</CHED>
                        <CHED H="2">
                            SPL
                            <E T="0732">RMS</E>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">3 tugs at 50 percent power</ENT>
                        <ENT/>
                        <ENT>185 dB at 1 m.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4 tugs at 50 percent power</ENT>
                        <ENT/>
                        <ENT>186.2 dB at 1 m.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Conductor pipe pile (20 in, impact)</ENT>
                        <ENT>184 dB at 10 m</ENT>
                        <ENT>193 dB at 10 m.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>On page 51120, table 10 is corrected to read as follows:</P>
                <GPOTABLE COLS="7" OPTS="L2,i1" CDEF="s100,12,12,12,12,12,12">
                    <TTITLE>Table 10—Level A Harassment and Level B Harassment Isopleths From Tugging and Impact Pile Driving</TTITLE>
                    <BOXHD>
                        <CHED H="1">Sound source</CHED>
                        <CHED H="1">Level A Harassment Isopleths (m)</CHED>
                        <CHED H="2">LF</CHED>
                        <CHED H="2">MF</CHED>
                        <CHED H="2">HF</CHED>
                        <CHED H="2">PW</CHED>
                        <CHED H="2">OW</CHED>
                        <CHED H="1">
                            Level B 
                            <LI>Harassment </LI>
                            <LI>Isopleths </LI>
                            <LI>(m)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Conductor pipe pile, 70 percent installation</ENT>
                        <ENT>3,064</ENT>
                        <ENT>109</ENT>
                        <ENT>3,650</ENT>
                        <ENT>1,640</ENT>
                        <ENT>119</ENT>
                        <ENT>1,585</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Conductor pipe pile, 30 percent installation</ENT>
                        <ENT>1,742</ENT>
                        <ENT>62</ENT>
                        <ENT>2,075</ENT>
                        <ENT>932</ENT>
                        <ENT>68</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            Tugging/Positioning, 3 Tugs 
                            <SU>1</SU>
                        </ENT>
                        <ENT>95</ENT>
                        <ENT>78</ENT>
                        <ENT>679</ENT>
                        <ENT>69</ENT>
                        <ENT>0</ENT>
                        <ENT>3,850</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            Tugging/Positioning, 4 Tugs 
                            <SU>2</SU>
                        </ENT>
                        <ENT>108</ENT>
                        <ENT>89</ENT>
                        <ENT>773</ENT>
                        <ENT>79</ENT>
                        <ENT>1</ENT>
                        <ENT>4,483</ENT>
                    </ROW>
                    <TNOTE>
                        <SU>1</SU>
                         These zones are results from Hilcorp's modeling.
                    </TNOTE>
                    <TNOTE>
                        <SU>2</SU>
                         For otariids, Hilcorp's model estimated a Level A harassment zone of 0 during tugging/positioning with three tugs. Therefore, for four tugs, NMFS applied the Level A harassment zone calculating with the User Spreadsheet.
                    </TNOTE>
                </GPOTABLE>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Kimberly Damon-Randall,</NAME>
                    <TITLE>Director, Office of Protected Resources National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14302 Filed 6-25-24; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XE053]</DEPDOC>
                <SUBJECT>Taking and Importing of Marine Mammals</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; new 5-year affirmative finding for El Salvador from 2023.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This provides notice that on June 5, 2023, the NMFS Assistant Administrator (Assistant Administrator) issued a new 5-year affirmative finding for the Government of El Salvador under the portions of the Marine Mammal Protection Act (MMPA) related to the eastern tropical Pacific Ocean (ETP) tuna purse seine fishery and the importation of yellowfin tuna from nations participating in this fishery. This affirmative finding allows for the importation into the United States of yellowfin tuna and yellowfin tuna products harvested in the ETP, in compliance with the Agreement on the International Dolphin Conservation Program (AIDCP), by purse seine vessels operating under El Salvador's jurisdiction or exported from El Salvador. NMFS based the affirmative finding determination on reviews of documentary evidence submitted by the Government of El Salvador and of information obtained from the Inter-American Tropical Tuna Commission (IATTC). NMFS typically publishes notice of new affirmative findings shortly after the Assistant Administrator makes those findings; however, due to an oversight, this notice was not published in 2023, and is therefore being published now to provide the public with notice of the finding.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This new affirmative finding is effective for the 5-year period of April 1, 2023, through March 31, 2028.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Justin Greenman, West Coast Region, NMFS, by mail: 501 W Ocean Blvd., Suite 4200, Long Beach, CA 90802, email: 
                        <E T="03">justin.greenman@noaa.gov,</E>
                         or phone: (562) 980-3264.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The MMPA, 16 U.S.C. 1361 
                    <E T="03">et seq.,</E>
                     allows for importation into the United States of yellowfin tuna harvested by purse seine vessels in the ETP from a nation with jurisdiction over purse seine vessels with carrying capacity greater than 400 short tons that harvest tuna in the ETP only if the nation has an “affirmative finding” issued by the NMFS Assistant Administrator. See section 101(a)(2)(B) of the MMPA, 16 U.S.C. 1371(a)(2)(B); see also 50 CFR 216.24(f)(6)(i). If requested by the Government of such a nation, the Assistant Administrator will determine whether to make an affirmative finding based upon documentary evidence provided by the Government, the IATTC, or the Department of State.
                </P>
                <P>The affirmative finding process requires that the harvesting nation is meeting its obligations under the AIDCP and its obligations of membership in the IATTC. Every 5 years, the Government of the harvesting nation must request a new affirmative finding and submit the required documentary evidence directly to the Assistant Administrator. On an annual basis, NMFS must determine whether the harvesting nation continues to meet the requirements of their 5-year affirmative finding. NMFS does this by annually reviewing the documentary evidence from the previous year. A nation may provide information related to compliance with AIDCP and IATTC measures directly to NMFS on an annual basis or may authorize the IATTC to release the information to NMFS to annually renew an affirmative finding determination without an application from the harvesting nation.</P>
                <P>
                    An affirmative finding will be terminated, in consultation with the Secretary of State, if the Assistant Administrator determines that the requirements of 50 CFR 216.24(f) are no longer being met or that a nation is consistently failing to take enforcement actions on violations, thereby 
                    <PRTPAGE P="53963"/>
                    diminishing the effectiveness of the AIDCP.
                </P>
                <P>As a part of the affirmative finding process set forth in 50 CFR 216.24(f)(8), the Assistant Administrator considered documentary evidence submitted by the Government of El Salvador and obtained from the IATTC and determined that El Salvador met the MMPA's requirements to receive a new 5-year affirmative finding.</P>
                <P>After consultation with the Department of State, the Assistant Administrator issued a new 5-year affirmative finding to El Salvador, allowing the importation into the United States of yellowfin tuna and products derived from yellowfin tuna harvested in the ETP by purse seine vessels operating under El Salvador's jurisdiction or exported from El Salvador. Issuance of a new 5-year affirmative finding for El Salvador does not affect implementation of an intermediary nation embargo under 50 CFR 216.24(f)(9), which applies to exports from a nation that exports to the United States yellowfin tuna or yellowfin tuna products that was subject to a ban on importation into the United States under section 101(a)(2)(B) of the MMPA, 16 U.S.C. 1371(a)(2)(B).</P>
                <P>This new affirmative finding for El Salvador is for the 5-year period of April 1, 2023, through March 31, 2028, subject to subsequent annual reviews by NMFS.</P>
                <SIG>
                    <DATED>Dated: June 14, 2024.</DATED>
                    <NAME>Janet Coit,</NAME>
                    <TITLE>Assistant Administrator for Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14330 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Patent and Trademark Office</SUBAGY>
                <DEPDOC>[Docket No.: PTO-C-2024-0023]</DEPDOC>
                <SUBJECT>Experimental Use Exception Request for Comments</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>United States Patent and Trademark Office, Department of Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The United States Patent and Trademark Office (USPTO), Department of Commerce, is interested in collecting the public's views on the current state of the common law experimental use exception and whether legislative action should be considered to enact a statutory experimental use exception.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written comments must be received on or before September 26, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        For reasons of Government efficiency, comments should be submitted through the Federal eRulemaking Portal at 
                        <E T="03">https://www.regulations.gov.</E>
                         To submit comments via the portal, enter docket number PTO-C-2024-0023 on the homepage and click “Search.” The site will provide a search results page listing all documents associated with this docket. Find a reference to this request for information and click on the “Comment” icon, complete the required fields, and enter or attach your comments. Attachments to electronic comments will be accepted in Adobe® portable document format or Microsoft Word® format. Because comments will be made available for public inspection, information that the submitter does not desire to make public, such as an address or phone number, should not be included.
                    </P>
                    <P>
                        Visit the Federal eRulemaking Portal (
                        <E T="03">www.regulations.gov</E>
                        ) for additional instructions on providing comments via the portal. If electronic submission of comments is not feasible due to a lack of access to a computer and/or the internet, please submit comments by First-Class Mail or Priority Mail to: Christian Hannon, Senior Patent Attorney, Mail Stop OPIA, U.S. Patent and Trademark Office, P.O. Box 1450, Alexandria, VA 22313-1450.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Christian Hannon, Senior Patent Attorney, USPTO, Office of Policy and International Affairs (OPIA), at 571-272-7385.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The USPTO is interested in collecting the public's views on the current state of the common law experimental use exception and whether legislative action should be considered to enact a statutory experimental use exception.</P>
                <HD SOURCE="HD1">Historical Development of the Experimental Use Doctrine</HD>
                <P>
                    The experimental use defense to a claim of patent infringement was first introduced in the landmark case 
                    <E T="03">Whittemore</E>
                     v. 
                    <E T="03">Cutter.</E>
                    <SU>1</SU>
                    <FTREF/>
                     The 
                    <E T="03">Whittemore</E>
                     court approved the instruction to the jury that “the making of a machine fit for use, and with a design to use it for profit, was an infringement” of a patent right.
                    <SU>2</SU>
                    <FTREF/>
                     In assessing this instruction, the court reasoned that “it could never have been the intention of the legislature to punish a man, who constructed such a machine merely for philosophical experiments, or for the purpose of ascertaining the sufficiency of the machine to produce its described effects.” 
                    <SU>3</SU>
                    <FTREF/>
                     Thus, the court looked to the prospect of profit-making to determine infringement.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">Whittemore</E>
                         v. 
                        <E T="03">Cutter,</E>
                         29 F. Cas. 1120 (C.C.D. Mass. 1813) (Case No. 17,600).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         Prior to the enactment of the Patent Act of 1952, rights conferred by a patent grant gave a patentee the “sole and exclusive right and liberty of making, constructing, using, and vending” his or her invention. Without the written consent of the patent holder, the accused infringing party was required to forfeit and pay damages to the patentee. 
                        <E T="03">See</E>
                         Patent Act of 1790, Ch. 7, sec. 1, 1 Stat. 109-112 (April 10, 1970).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">Id.; see also Sawin</E>
                         v. 
                        <E T="03">Guild,</E>
                         21 F. Cas. 554, 554 (C.C.D. Mass. 1813 (No. 12,319)) (
                        <E T="03">stating</E>
                         that 
                        <E T="03">Whittemore</E>
                         held that making must be coupled with intent to use for profit).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Subsequent courts affirmed 
                    <E T="03">Whittemore's</E>
                     rationale, finding that experimentation is not a defense to infringement if it creates a benefit for the accused infringer.
                    <SU>5</SU>
                    <FTREF/>
                     Thus, in 
                    <E T="03">Bonsack Machine</E>
                     v. 
                    <E T="03">Underwood,</E>
                     the court found that experimentation on a patented cigarette machine was not experimental use when the purpose of the experiment was to show superior properties of the defendant's competing product.
                    <SU>6</SU>
                    <FTREF/>
                     In 
                    <E T="03">Roche Prod.</E>
                     v. 
                    <E T="03">Bolar Pharm. Co.,</E>
                     the court found that “Bolar's intended `experimental' use is solely for business reasons and not for amusement, to satisfy idle curiosity, or for strictly philosophical inquiry.” 
                    <SU>7</SU>
                    <FTREF/>
                     Notably, the 
                    <E T="03">Roche</E>
                     court stated that it “cannot construe the experimental use rule so broadly as to allow a violation of the patent laws in the guise of “scientific inquiry,” when that inquiry has definite, cognizable, and not insubstantial commercial purposes.” 
                    <SU>8</SU>
                    <FTREF/>
                     Subsequently, in 
                    <E T="03">Embrex</E>
                     v. 
                    <E T="03">Service Engineering Corp.,</E>
                     the court denied an experimental use defense because of the district court's determination that the defendant performed tests “expressly for commercial purposes.” 
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">Bonsack Mach. Co.</E>
                         v. 
                        <E T="03">Underwood,</E>
                         73 F. 206 (C.C.E.D.N.C. 1896) (
                        <E T="03">holding</E>
                         that “the making of an infringing machine merely as an experiment is not an actionable infringement, but if it is to be used for the purpose of selling the patent under which it is made, it is then to be regarded as use for profit, and a suit will lie for the infringement”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See Roche Prod.</E>
                         v. 
                        <E T="03">Bolar Pharm. Co.,</E>
                         733 F.2d 858, 862 (Fed. Cir. 1984) at 863.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">Id.</E>
                         This holding was effectively superseded by the Drug Price Competition and Patent Term Restoration Act of 1984 (commonly referred to as the Hatch-Waxman Act and codified at 35 U.S.C. 271(e)(1)).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">Embrex, Inc.</E>
                         v. 
                        <E T="03">Service Engineering Corp.,</E>
                         216 F.3d 1343 (Fed. Cir. 2000) at 1349.
                    </P>
                </FTNT>
                <P>
                    The U.S. Court of Appeals for the Federal Circuit revisited the experimental use exception in 
                    <E T="03">Madey</E>
                     v. 
                    <E T="03">Duke University,</E>
                     finding that the district court “erred in applying the experimental use defense.” 
                    <SU>10</SU>
                    <FTREF/>
                     The court explained that its precedent does not immunize “use that is in any way 
                    <PRTPAGE P="53964"/>
                    commercial in nature” or “any conduct that is in keeping with the alleged infringer's legitimate business, regardless of commercial implications.” 
                    <SU>11</SU>
                    <FTREF/>
                     The court concluded, “regardless of whether a particular institution or entity is engaged in an endeavor for commercial gain, so long as the act is in furtherance of the alleged infringer's legitimate business and is not solely for amusement, to satisfy idle curiosity, or for strictly philosophical inquiry, the act does not qualify for the very narrow and strictly limited experimental use defense.” 
                    <SU>12</SU>
                    <FTREF/>
                     This “very narrow and strictly limited experimental use defense” 
                    <SU>13</SU>
                    <FTREF/>
                     remains the current state of experimental use exception jurisprudence in the United States.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">Madey</E>
                         v. 
                        <E T="03">Duke University,</E>
                         307 F.3d 1361 (Fed. Cir. 2002) at 1352.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    A range of views on the propriety and scope of the experimental use exception arose following 
                    <E T="03">Madey.</E>
                    <SU>14</SU>
                    <FTREF/>
                     Some argued that a narrow exception enhances innovation by rewarding innovators with robust patent rights, while others noted that restricting researcher access to patented technologies would impede innovation.
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         John R. Thomas, 
                        <E T="03">Scientific Research and the Experimental Use Privilege in Patent Law,</E>
                         CRS Report No. RL32651 (2004). 
                        <E T="03">Available at: https://sgp.fas.org/crs/RL32651.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">Id.</E>
                         at 21.
                    </P>
                </FTNT>
                <P>
                    Previous attempts at codifying the common law experimental use exception have been unsuccessful. For example, section 402 of title IV of the Patent Competitiveness and Technological Innovation Act of 1990 (H.R. 5598) proposed a “research exemption from patent infringement.” 
                    <SU>16</SU>
                    <FTREF/>
                     Additionally, the Genomic Research and Diagnostic Accessibility Act of 2002 (H.R. 3967) proposed amending title 35 of the United States Code to “provide for noninfringing uses of patents on genetic sequence information for purposes of research and genetic diagnostic testing, and to require public disclosure of such information in certain patent applications.” 
                    <SU>17</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         Patent Competitiveness and Technological Innovation Act of 1990, H.R. 5598, 101st Cong. (1990).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         Genomic Research and Diagnostic Accessibility Act of 2002, H.R. 3967, 107th Cong. (2002).
                    </P>
                </FTNT>
                <P>
                    Article 30 of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) provides World Trade Organization members the possibility to enact exceptions to patent rights as long as they “do not unreasonably conflict with a normal exploitation of the patent and do not unreasonably prejudice the legitimate interest of the patent owner, taking account of the legitimate interests of third parties.” 
                    <SU>18</SU>
                    <FTREF/>
                     The United States has codified a safe harbor provision for certain infringing uses at 35 U.S.C. 271(e)(1). This “Bolar” exemption, as it is known, allows for the experimental use of a patented invention by parties to collect regulatory approval data for medical devices or drugs. Other jurisdictions have experimental use exceptions providing broader flexibility.
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         Agreement on Trade Related Aspects of Intellectual Property Rights, art. 30, Apr. 15, 1994, Marrakesh Agreement Establishing the World Trade Organization, Annex 1C, 1869 U.N.T.S. 401 [hereinafter TRIPS].
                    </P>
                </FTNT>
                <P>
                    It should be noted that the Plant Variety Protection Act,
                    <SU>19</SU>
                    <FTREF/>
                     which provides Federal intellectual property rights to developers of new plant varieties, contains exemptions that allow for others to use the protected variety in research and for the breeding of new varieties.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         Public Law 91-577, 84 Stat. 1542.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Experimental Use in Other Jurisdictions</HD>
                <HD SOURCE="HD2">Europe</HD>
                <P>
                    Many European nations, including Germany,
                    <SU>20</SU>
                    <FTREF/>
                     the UK,
                    <SU>21</SU>
                    <FTREF/>
                     France,
                    <SU>22</SU>
                    <FTREF/>
                     Spain,
                    <SU>23</SU>
                    <FTREF/>
                     Italy,
                    <SU>24</SU>
                    <FTREF/>
                     Switzerland,
                    <SU>25</SU>
                    <FTREF/>
                     and the Netherlands 
                    <SU>26</SU>
                    <FTREF/>
                     have implemented a statutory experimental use exception for otherwise infringing uses. Although the precise application of each of these national exceptions varies based on interpretation in national courts,
                    <SU>27</SU>
                    <FTREF/>
                     they are each broader than the U.S. common law exception as they apply to any experimental purpose.
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         Patentgesetz [Patent Act], Dec. 16, 1980, Bundesgesetzblatt, Teil I, [BGBl I] at 4074, as amended Aug. 30, 2021, section 11 No. 2 (Ger.).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         U.K. Patents Act 1977, (1977) art. 60(5)(b), 37 Current Law 1 (Eng.).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         French Code of Intellectual Property, L. 613-5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         Law 11/1986 of 20 March on Patents. Art. 52(1)(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         Industrial Property Code (Legislative Decree No. 30 of February 10, 2005, as amended up to Law No. 102 of July 24, 2023) Art. 68(1)(a) (Italy).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         Article 9(e) of the Federal Act on Patents for Inventions, adopted in 2008.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         Netherlands Patent Act (15 Dec 1994, as amended) Art. 53(3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Hans-Rainer Jaenichen and Johann Pitz, 
                        <E T="03">Research Exemption/Experimental Use in the European Union: Patents Do Not Block the Progress of Science,</E>
                         Cold Spring Harb. Perspect Med. 2015 Feb (explaining that each law has been interested with distinct variations). Available at: 
                        <E T="03">https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4315916/#FN4.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">Asia</HD>
                <P>
                    Many countries in Asia have statutory experimental use exceptions. Article 69.1 of Japan's Patent Law provides a statutory experimental use exception.
                    <SU>28</SU>
                    <FTREF/>
                     Japanese courts have interpreted this exception to include a Bolar exemption for certain acts related to submissions for regulatory approval.
                    <SU>29</SU>
                    <FTREF/>
                     The Japanese Bolar exemption applies to clinical testing not only for generic drugs, but brand-name drugs as well.
                    <SU>30</SU>
                    <FTREF/>
                     Similarly, China's Patent Law provides an exception for infringing uses for anyone that “uses the relevant patent specially for the purpose of scientific research and experimentation.” 
                    <SU>31</SU>
                    <FTREF/>
                     Korea's patent law provides that “[w]orking of [a] patented invention for the purpose of research or experiments” is not an infringement.
                    <SU>32</SU>
                    <FTREF/>
                     Likewise, India's Patent Act provides that a patented invention may be made or used by any person “for the purpose merely of experiment or research including the imparting of instructions to pupils.” 
                    <SU>33</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         Tokkyoho [Patent L.], Law No. 121 of Apr. 13, 1959 (Japan), amended by Act No. 33 of Jun. 9, 2018 (Japan), art. 69(1) (“A patent right shall not be effective against the working of the patented invention for experimental or research purposes.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">Ono Pharma. Co., Ltd.</E>
                         v. 
                        <E T="03">Kyoto Pharmaceutical Industries, Ltd.,</E>
                         Saikō-Saibansho [Supreme Court] Apr. 4, 1999, 1998(Ju) 153 (
                        <E T="03">holding</E>
                         that clinical trials conducted during the patent term for the regulatory submission of a generic drug should be considered as “working of a patented invention for testing or research” as described in Art. 69(1) of the Patent Law and therefore does not constitute patent infringement).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See X(individual)</E>
                         v. 
                        <E T="03">Amgen K.K.;</E>
                         Chiteki-zaisan kōtō-saiban-sho [Intellectual property high court, second division] Feb. 9, 2021, 2020 (Ne)10051.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         Patent Law of the People's Republic of China (Dec. 27, 2008), Article 69(4).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         Korea Patent Act (as amended Jan. 27, 2010), Art. 96(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         The Patents Act, 1970, Art. 47(3).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">Americas</HD>
                <P>
                    Canada and many jurisdictions in Latin America have codified experimental use exceptions. Canadian patent law provides that common law rights, 
                    <E T="03">inter alia,</E>
                     “in respect of any use, manufacture, construction or sale of the patented invention solely for the purpose of experiments that relate to the subject-matter of the patent” are unaffected by the statutory Canadian Bolar exception.
                    <SU>34</SU>
                    <FTREF/>
                     Brazil's patent law statutorily exempts “acts carried out by unauthorized third parties for experimental purposes, in connection with scientific or technological studies or researches” from patent infringement.
                    <SU>35</SU>
                    <FTREF/>
                     Mexico's industrial property law exempts from patent infringement liability “scientific or technological research activities for purely experimental, testing or teaching purposes.” 
                    <SU>36</SU>
                    <FTREF/>
                     Likewise, the industrial property law of the Andean Community 
                    <SU>37</SU>
                    <FTREF/>
                     grants an exception for “acts performed for exclusively experimental purposes on the subject 
                    <PRTPAGE P="53965"/>
                    matter of the patented invention” and “acts performed solely for the purposes of teaching or scientific or academic research.” 
                    <SU>38</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         Canadian Patent Act Art. 55.2(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         Brazil Patent Law No. 9,279 of May 14, 1996; Art. 43(2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         Mexico Industrial Property Law (as amended June 28, 2010), Art. 22(I).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         The Andean Community of Nations is made up of Bolivia, Colombia, Ecuador, and Peru.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         Andean Community Decision No. 486 of Sept. 14, 2000, Section 53(b) and (c).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of Interest</HD>
                <P>
                    The USPTO is interested in collecting the public's views on the impact of the experimental use exception in all technology areas. For example, one technology area for which greater clarity around the experimental use exception may be of interest is the agricultural industry. In March 2023, the U.S. Department of Agriculture (USDA) issued a report, prepared in consultation with the USPTO, on promoting fair competition and innovation in regards to seeds and other agricultural inputs.
                    <SU>39</SU>
                    <FTREF/>
                     In that report, the USDA and the USPTO both committed to evaluating “new proposals for incentivizing and protecting innovation in the seed and agricultural-related space, including the addition of research or breeders' exemptions for U.S. utility patents.” 
                    <SU>40</SU>
                    <FTREF/>
                     This work is consistent with the call in the President's 2021 Executive Order on Promoting Competition in the American Economy. The views submitted in response to this notice will help in conducting this evaluation, as well as evaluating the impact of the experimental use exception in other technology areas.
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         Agric. Mktg. Serv., U.S. Dep't Agric., 
                        <E T="03">More and Better Choices for Farmers: Promoting Fair Competition and Innovation in Seeds and Other Agricultural Inputs,</E>
                         at 6 (2023).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">Id.</E>
                         at 6 (2023).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Questions for Public Comment</HD>
                <P>When responding to the questions, please identify yourself and your interest in the U.S. patent system. If applicable, please indicate whether you fall within one or more of the following categories:</P>
                <P>
                    (1) Inventors, patent owners, or investors (
                    <E T="03">e.g.,</E>
                     venture capital, investment bank, fund, etc.);
                </P>
                <P>(2) licensees or users of patented technology;</P>
                <P>
                    (3) entities that represent inventors or patent owners (
                    <E T="03">e.g.,</E>
                     law firms);
                </P>
                <P>(4) recipients of demand letters concerning alleged patent infringement or accused infringers in a patent lawsuit;</P>
                <P>(5) entities that represent accused infringers;</P>
                <P>(6) government agencies or officials;</P>
                <P>(7) academic or research institutions;</P>
                <P>(8) intellectual property organizations or associations; and</P>
                <P>(9) nonprofit organizations or advocacy groups.</P>
                <P>Commenters need not respond to every question and may provide relevant information even if not responsive to a particular question. Unless otherwise specified, the questions are in reference to the U.S. and/or to U.S. laws and regulations. The questions should not be interpreted as an indication that the USPTO has taken a position on or is predisposed to any particular views. The USPTO welcomes comments from the public on any issues that are relevant to this topic, and is particularly interested in answers to the following questions:</P>
                <P>1. Please explain how the current state of U.S. experimental use exception jurisprudence impacts investment and/or research and development in any field of technology, including, but not limited to: (a) quantum computing; (b) artificial intelligence; (c) other computer-related inventions; (d) agriculture; (e) life sciences (including prescription drugs and medical devices); and (f) climate-mitigation technologies.</P>
                <P>2. Do you believe there are any technologies that are negatively affected by the current state of experimental use exception jurisprudence in the United States? If yes, please identify which technologies and explain how you believe they are affected.</P>
                <P>3. Please explain what impact, if any, a statutory experimental use exception would have on the innovation and commercialization of new technologies including with respect to: (a) research and development; (b) ability to obtain funding; (c) investment strategy; (d) licensing of patents and patent applications; (e) product development; (f) sales, including downstream and upstream sales; (g) competition; and (h) patent enforcement and litigation.</P>
                <P>4. Has the current state of experimental use exception jurisprudence impacted decisions you have made with respect to filing, purchasing, licensing, selling, or maintaining patent applications and patents in the United States? If yes, please explain how.</P>
                <P>5. Please explain whether you believe the United States should adopt a statutory experimental use exception. In doing so, please identify your reasons, including by providing evidence and data to support your views.</P>
                <P>6. Please explain how a statutory experimental use exception, if any, should be defined. Please include specific limitations and restrictions you believe would be needed to ensure that patent rights are preserved.</P>
                <P>7. Please identify public policy reasons in support of maintaining the status quo or changing the experimental use exception in the United States.</P>
                <P>8. Please provide any additional recommendations on how best to enhance and facilitate experimental research on patented inventions in the United States.</P>
                <SIG>
                    <NAME>Katherine K. Vidal,</NAME>
                    <TITLE>Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14164 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-16-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR SEVERELY DISABLED</AGENCY>
                <SUBJECT>Procurement List; Proposed Additions and Deletions</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Committee for Purchase From People Who Are Blind or Severely Disabled.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Proposed additions to and deletions from the Procurement List.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Committee is proposing to add service(s) to the Procurement List that will be furnished by nonprofit agencies employing persons who are blind or have other severe disabilities, and deletes product(s) previously furnished by such agencies.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before: July 28, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Committee for Purchase From People Who Are Blind or Severely Disabled, 355 E Street SW, Suite 325, Washington, DC 20024.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For further information or to submit comments contact: Michael R. Jurkowski, Telephone: (703) 785-6404, or email 
                        <E T="03">CMTEFedReg@AbilityOne.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This notice is published pursuant to 41 U.S.C. 8503(a)(2) and 41 CFR 51-2.3. Its purpose is to provide interested persons an opportunity to submit comments on the proposed actions.</P>
                <HD SOURCE="HD1">Additions</HD>
                <P>
                    In accordance with 41 CFR 51-5.3(b), the Committee intends to add this services requirement to the Procurement List as a mandatory purchase only for the Little Rock Air Force Base, AR with the proposed qualified nonprofit agency as the authorized source of supply. Prior to adding the service to the Procurement List, the Committee will consider other pertinent information, including information from Government personnel and relevant comments from interested parties regarding the Committee's intent 
                    <PRTPAGE P="53966"/>
                    to geographically limit this services requirement.
                </P>
                <P>The following service(s) are proposed for addition to the Procurement List for production by the nonprofit agencies listed:</P>
                <EXTRACT>
                    <HD SOURCE="HD2">Service(s)</HD>
                    <FP SOURCE="FP-2">
                        <E T="03">Service Type:</E>
                         Mail Service
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Mandatory for:</E>
                         Official Mail Center and Postal Service Center, USAF, Little Rock Air Force Base, AR
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Designated Source of Supply:</E>
                         VersAbility Resources, Inc. Hampton, VA, Account #0659
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Contracting Activity:</E>
                         FA4460 19 CON, Little Rock AFB AR 72099
                    </FP>
                </EXTRACT>
                <HD SOURCE="HD1">Deletions</HD>
                <P>The following product(s) are proposed for deletion from the Procurement List:</P>
                <EXTRACT>
                    <HD SOURCE="HD2">Product(s)</HD>
                    <FP SOURCE="FP-2">
                        <E T="03">NSN(s)—Product Name(s):</E>
                    </FP>
                    <FP SOURCE="FP1-2">
                        7510-01-682-8094—Monthly Planner, Recycled, Dated 2024, 14-month, 6
                        <FR>7/8</FR>
                        ″ x 8
                        <FR>3/4</FR>
                        ″
                    </FP>
                    <FP SOURCE="FP1-2">
                        7510-01-682-8104—Professional Planner, Dated 2024, Recycled, Weekly, Black, 8
                        <FR>1/2</FR>
                        ″ x 11″
                    </FP>
                    <FP SOURCE="FP1-2">7530-01-693-5571—Monthly Desk Planner, Dated 2024, Wire Bound, Non-refillable, Black Cover</FP>
                    <FP SOURCE="FP1-2">7530-01-693-5580—Weekly Desk Planner, Dated 2024, Wire Bound, Non-refillable, Black Cover</FP>
                    <FP SOURCE="FP1-2">7530-01-693-5589—Weekly Planner Book, Dated 2024, 5″ x 8″, Black</FP>
                    <FP SOURCE="FP1-2">7530-01-693-5597—Daily Desk Planner, Dated 2024, Wire bound, Non-refillable, Black Cover</FP>
                    <FP SOURCE="FP1-2">
                        7510-01-682-8099—Wall Calendar, Recycled, Dated 2024, Vertical, 3 Months, 12
                        <FR>1/4</FR>
                        ″ x 26″
                    </FP>
                    <FP SOURCE="FP1-2">
                        7510-01-693-5076—Monthly Wall Calendar, Dated 2024, Jan-Dec, 8
                        <FR>1/2</FR>
                        ″ x 11″
                    </FP>
                    <FP SOURCE="FP1-2">7510-01-693-5081—Wall Calendar, Dated 2024, Wire Bound w/hanger, 15.5″ x 22″</FP>
                    <FP SOURCE="FP1-2">7510-01-693-5097—Wall Calendar, Dated 2024, Wire Bound w/Hanger, 12″ x 17″</FP>
                    <FP SOURCE="FP1-2">7510-01-695-6112—Dated 12-Month 2-Sided Laminated Wall Planner, 24″ x 37″</FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Authorized Source of Supply:</E>
                         Chicago Lighthouse Industries, Chicago, IL
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Contracting Activity:</E>
                         GSA/FAS ADMIN SVCS ACQUISITION BR(2, NEW YORK, NY
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">NSN(s)—Product Name(s):</E>
                    </FP>
                    <FP SOURCE="FP1-2">7920-00-NIB-0508—WetTask Wiping System—Bucket</FP>
                    <FP SOURCE="FP1-2">7920-00-NIB-0510—WetTask Wiping System—Canister</FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Authorized Source of Supply:</E>
                         East Texas Lighthouse for the Blind, Tyler, TX
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Contracting Activity:</E>
                         STRATEGIC ACQUISITION CENTER, FREDERICKSBURG, VA
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">NSN(s)—Product Name(s):</E>
                    </FP>
                    <FP SOURCE="FP1-2">7045-01-599-5291—Privacy Filter, 16:9 Aspect Ratio Computer Monitor, 17.3 Widescreen</FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Authorized Source of Supply:</E>
                         Wiscraft, Inc., Milwaukee, WI
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Contracting Activity:</E>
                         STRATEGIC ACQUISITION CENTER, FREDERICKSBURG, VA
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">NSN(s)—Product Name(s):</E>
                    </FP>
                    <FP SOURCE="FP1-2">7045-01-599-5291—Privacy Filter, 16:9 Aspect Ratio Computer Monitor, 17.3 Widescreen</FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Authorized Source of Supply:</E>
                         Wiscraft, Inc., Milwaukee, WI
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Contracting Activity:</E>
                         GSA/FAS ADMIN SVCS ACQUISITION BR(2, NEW YORK, NY
                    </FP>
                </EXTRACT>
                <SIG>
                    <NAME>Michael R. Jurkowski,</NAME>
                    <TITLE>Director, Business Operations.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14231 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6353-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR SEVERELY DISABLED</AGENCY>
                <SUBJECT>Quarterly Public Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Committee for Purchase From People Who Are Blind or Severely Disabled.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of public meeting.</P>
                </ACT>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>July 25, 2024, from 1 p.m. to 4 p.m. ET.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The meeting will be held virtually only via Zoom webinar.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Angela Phifer, 355 E Street SW, Suite 325, Washington, DC 20024; (703) 798-5873; 
                        <E T="03">CMTEFedReg@AbilityOne.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    <E T="03">Background:</E>
                     The Committee for Purchase From People Who Are Blind or Severely Disabled is an independent government agency operating as the U.S. AbilityOne Commission. It oversees the AbilityOne Program, which provides employment opportunities through Federal contracts for people who are blind or have significant disabilities in the manufacture and delivery of products and services to the Federal Government. The Javits-Wagner-O'Day Act (41 U.S.C. chapter 85) authorizes the contracts.
                </P>
                <P>
                    <E T="03">Registration:</E>
                     Attendees 
                    <E T="03">not</E>
                     requesting speaking time should register not later than 11:59 p.m. ET on July 24, 2024. Attendees requesting speaking time must register not later than 11:59 p.m. ET on July 17, 2024, and use the comment fields in the registration form to specify the intended speaking topic/s. The registration link will be available on the Commission's home page, 
                    <E T="03">www.abilityone.gov,</E>
                     under News and Events.
                </P>
                <P>
                    <E T="03">Commission Statement:</E>
                     This regular quarterly meeting will include updates from the Commission Chairperson, Executive Director, and Inspector General.
                </P>
                <P>
                    <E T="03">Public Participation:</E>
                     The Commission invites the public to suggest and discuss approaches and activities for the Commission to consider in order to continue modernizing the AbilityOne Program within the current statutory and regulatory framework.
                </P>
                <P>During registration, you may choose to submit comments, or you may request speaking time at the meeting. The Commission may invite some attendees who submit advance comments to discuss their comments during the meeting. Comments submitted will be reviewed by staff and the Commission members before the meeting. Comments posted in the chat box during the meeting will be shared with the Commission members after the meeting. The Commission is not subject to the requirements of 5 U.S.C. 552(b); however, the Commission published this notice to encourage the broadest possible participation in its meeting.</P>
                <P>
                    <E T="03">Personal Information:</E>
                     Speakers should not include any information that they do not want publicly disclosed.
                </P>
                <SIG>
                    <NAME>Michael R. Jurkowski,</NAME>
                    <TITLE>Director, Business Operations.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14229 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6353-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR SEVERELY DISABLED</AGENCY>
                <SUBJECT>Procurement List; Additions</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Committee for Purchase From People Who Are Blind or Severely Disabled.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Additions to the Procurement List.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This action adds product(s) and service(s) to the Procurement List that will be furnished by nonprofit agencies employing persons who are blind or have other severe disabilities.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date added to and deleted from the Procurement List:</E>
                         July 28, 2024.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Committee for Purchase From People Who Are Blind or Severely Disabled, 355 E Street SW, Suite 325, Washington, DC 20024.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For further information or to submit comments contact: Michael R. Jurkowski, Telephone: (703) 785-6404, or email 
                        <E T="03">CMTEFedReg@AbilityOne.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Additions</HD>
                <P>
                    On 3/29/2024, the Committee for Purchase From People Who Are Blind or Severely Disabled (operating as the U.S. AbilityOne Commission) published 
                    <PRTPAGE P="53967"/>
                    an initial notice of proposed additions to the Procurement List. (89 FR 22131). This final notice is published pursuant to 41 U.S.C. 8503(a)(2) and 41 CFR 51-2.3. The Committee has determined that the Litter, Quad-Fold, Decontaminable listed below is suitable for procurement by the Federal Government and has added this product to the Procurement List. In accordance with 41 CFR 51-5.2, the Committee has authorized the qualified nonprofit agencies described with the Litter, Quad-Fold, Decontaminable as the mandatory source of supply. Additionally, in accordance with 41 CFR 51-2.4, the Committee considered relevant information from the contracting activity that this Litter, Quad-Fold, Decontaminable requirement is not applicable to other Federal entities and has granted the activity's requested preference for purchase or distribution. This product is not available through the Commission's Commercial Distribution Program, and other Federal entities wishing to purchase this product must contact the contracting activity listed directly for information on purchase availability.
                </P>
                <P>On 5/2/2024, the Committee for Purchase From People Who Are Blind or Severely Disabled (operating as the U.S. AbilityOne Commission) published an initial notice of proposed additions to the Procurement List. (89 FR 36771). The Committee determined that the Contractor Operated Civil Engineer Supply Store listed below is suitable for procurement by the Federal Government and has added this Contractor Operated Civil Engineer Supply Store to the Procurement List as a mandatory purchase for the US Air Force, Altus Air Force Base, Altus AFB, OK. In accordance with 41 CFR 51-5.3(b), the mandatory purchase requirement is limited to US Air Force at Altus Air Force Base, Altus AFB, OK, and in accordance with 41 CFR 51-5.2, the Committee has authorized South Texas Lighthouse for the Blind, Corpus Christi, TX as the mandatory source(s) of supply.</P>
                <P>After consideration of the material presented to it concerning capability of qualified nonprofit agencies to provide the product(s) and service(s) and impact of the additions on the current or most recent contractors, the Committee has determined that the product(s) and service(s) listed below are suitable for procurement by the Federal Government under 41 U.S.C. 8501-8506 and 41 CFR 51-2.4.</P>
                <HD SOURCE="HD1">Regulatory Flexibility Act Certification</HD>
                <P>I certify that the following action will not have a significant impact on a substantial number of small entities. The major factors considered for this certification were:</P>
                <P>1. The action will not result in any additional reporting, recordkeeping or other compliance requirements for small entities other than the small organizations that will furnish the product(s) and service(s) to the Government.</P>
                <P>2. The action will result in authorizing small entities to furnish the product(s) and service(s) to the Government.</P>
                <P>3. There are no known regulatory alternatives which would accomplish the objectives of the Javits-Wagner-O'Day Act (41 U.S.C. 8501-8506) in connection with the product(s) and service(s) proposed for addition to the Procurement List.</P>
                <HD SOURCE="HD1">End of Certification</HD>
                <P>Accordingly, the following product(s) and service(s) are added to the Procurement List:</P>
                <EXTRACT>
                    <HD SOURCE="HD2">Product(s)</HD>
                    <FP SOURCE="FP-2">
                        <E T="03">NSN(s)—Product Name(s):</E>
                    </FP>
                    <FP SOURCE="FP1-2">6530-01-686-1702—Litter, Quad-Fold, Decontaminable</FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Authorized Source of Supply:</E>
                         The Lighthouse for the Blind, Inc. (Seattle Lighthouse), Seattle, WA
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Mandatory For:</E>
                         DEFENSE LOGISTICS AGENCY, DLA TROOP SUPPORT
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Contracting Activity:</E>
                         DEFENSE LOGISTICS AGENCY, DLA TROOP SUPPORT
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Distribution:</E>
                         C-List
                    </FP>
                    <HD SOURCE="HD2">Service(s)</HD>
                    <FP SOURCE="FP-2">
                        <E T="03">Service Type:</E>
                         Contractor Operated Civil Engineer Supply Store
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Mandatory for:</E>
                         US Air Force, Altus Air Force Base, Altus AFB, OK
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Authorized Source of Supply:</E>
                         South Texas Lighthouse for the Blind, Corpus Christi, TX
                    </FP>
                    <FP SOURCE="FP-2">
                        <E T="03">Contracting Activity:</E>
                         DEPT OF THE AIR FORCE, FA4419 97 CONS CC
                    </FP>
                </EXTRACT>
                <SIG>
                    <NAME>Michael R. Jurkowski,</NAME>
                    <TITLE>Director, Business Operations.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14228 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6353-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">COMMODITY FUTURES TRADING COMMISSION</AGENCY>
                <SUBJECT>Agency Information Collection Activities Under OMB Review</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Commodity Futures Trading Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In compliance with the Paperwork Reduction Act of 1995 (PRA), this notice announces that the Information Collection Request (ICR) abstracted below has been forwarded to the Office of Information and Regulatory Affairs (OIRA), of the Office of Management and Budget (OMB), for review and comment. The ICR describes the nature of the information collection and its expected costs and burden.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be submitted on or before July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be submitted within 30 days of this notice's publication to OIRA, at 
                        <E T="03">https://www.reginfo.gov/public/do/PRAMain.</E>
                         Please find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the website's search function. Comments can be entered electronically by clicking on the “comment” button next to the information collection on the “OIRA Information Collections Under Review” page, or the “View ICR—Agency Submission” page. A copy of the supporting statement for the collection of information discussed herein may be obtained by visiting 
                        <E T="03">https://www.reginfo.gov/public/do/PRAMain.</E>
                    </P>
                    <P>
                        In addition to the submission of comments to 
                        <E T="03">https://Reginfo.gov</E>
                         as indicated above, a copy of all comments submitted to OIRA may also be submitted to the Commodity Futures Trading Commission (the “Commission” or “CFTC”) by clicking on the “Submit Comment” box next to the descriptive entry for OMB Control No. 3038-0095, at 
                        <E T="03">https://comments.cftc.gov/FederalRegister/PublicInfo.aspx.</E>
                    </P>
                    <P>Or by either of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Christopher Kirkpatrick, Secretary of the Commission, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery/Courier:</E>
                         Same as Mail above.
                    </P>
                    <P>
                        All comments must be submitted in English, or if not, accompanied by an English translation. Comments submitted to the Commission should include only information that you wish to make available publicly. If you wish the Commission to consider information that you believe is exempt from disclosure under the Freedom of Information Act, a petition for confidential treatment of the exempt information may be submitted according to the procedures established in § 145.9 of the Commission's regulations.
                        <SU>1</SU>
                        <FTREF/>
                         The Commission reserves the right, but shall have no obligation, to review, prescreen, 
                        <PRTPAGE P="53968"/>
                        filter, redact, refuse or remove any or all of your submission from 
                        <E T="03">https://www.cftc.gov</E>
                         that it may deem to be inappropriate for publication, such as obscene language. All submissions that have been redacted or removed that contain comments on the merits of the ICR will be retained in the public comment file and will be considered as required under the Administrative Procedure Act and other applicable laws, and may be accessible under the Freedom of Information Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             17 CFR 145.9.
                        </P>
                    </FTNT>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Jason Smith, Assistant Chief Counsel, Division of Market Oversight, Commodity Futures Trading Commission, (202) 418-5698; email: 
                        <E T="03">jsmith@cftc.gov,</E>
                         and refer to OMB Control No. 3038-0095.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title:</E>
                     Large Trader Reporting for Physical Commodity Swaps (OMB Control No. 3038-0095). This is a request for extension of a currently approved information collection.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     Part 20 of the Commission's regulations (“Reporting Rules”) requires clearing organizations and any persons that are “reporting entities” to file swaps position data with the Commission. The Reporting Rules require each clearing organization to submit clearing member reports to the Commission. The Reporting Rules also require each reporting entity to submit position reports to the Commission that indicate the reporting entity's principal and counterparty positions in cleared and uncleared physical commodity swaps. Reporting entities are persons that are either “clearing members” or “swap dealers” that are otherwise not clearing members. For purposes of part 20, reporting parties are required to submit data on positions on a futures equivalent basis so as to allow the Commission to assess a trader's market impact across differently structured but linked derivatives instruments and markets. This renewal updates the total requested burden based on available reported data.
                </P>
                <P>
                    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. On March 18, 2024, the Commission published in the 
                    <E T="04">Federal Register</E>
                     notice of the proposed extension of this information collection and provided 60 days for public comment on the proposed extension, 89 FR 19298 (“60-Day Notice”). The Commission received three relevant comment letters on the 60-Day Notice,
                    <SU>2</SU>
                    <FTREF/>
                     which are discussed below.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                          The following entities submitted a relevant comment letter: The Futures Industry Association, Inc. (“FIA”) collectively with the International Swaps and Derivatives Association, Inc. (“ISDA”) (collectively, “FIA-ISDA”), BP Energy Company (“BPEC”), and The Commercial Energy Working Group (the “Working Group”).
                    </P>
                </FTNT>
                <P>
                    First, the commenters argued that the Commission should sunset the Reporting Rules. BPEC and the Working Group asserted that swap data repositories (“SDRs”) collect and submit data to the Commission that duplicates data derived by the Reporting Rules.
                    <SU>3</SU>
                    <FTREF/>
                     FIA-ISDA stated that SDRs collect open commodity swap position data from reporting parties, and asserted that because SDRs submit open swaps data in the same format, the Commission should be able to aggregate the open swap positions of all swap market participants in a way that allows the Commission to surveil trading in the physical commodity swap and swaptions markets.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         BPEC at 2; Working Group at 1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         FIA-ISDA at 3.
                    </P>
                </FTNT>
                <P>
                    Under the Reporting Rules' sunset provision, the Commission may “sunset” the reporting rules upon the issuance of an order containing a Commission finding that SDRs are processing positional data in a way that enables effective surveillance of trading in paired swaps and swaptions and paired swap and swaption markets.
                    <SU>5</SU>
                    <FTREF/>
                     The Commission has not, however, issued an order with such a finding. At the time of adoption, the Commission determined that the Reporting Rules are necessary notwithstanding the possibility that SDRs could later be used to generate positional data.
                    <SU>6</SU>
                    <FTREF/>
                     The Commission has continued to recognize that large trader reporting is critical to the Commission's mission.
                    <SU>7</SU>
                    <FTREF/>
                     Moreover, the Commission notes that there are differences in data reported pursuant to the Reporting Rules and the SDR commodity open swaps reports, including, as one example, the reporting in futures contracts equivalents under the Reporting Rules. In addition, commodity products reporting is not currently standardized in all aspects across SDRs.
                    <SU>8</SU>
                    <FTREF/>
                     Nonetheless, the Commission will continue to evaluate the Reporting Rules and the Commission may address the sunset comments at a later date. If the Commission were to seek to sunset the Reporting Rules, such sunset would occur through Commission action by way of an order as contemplated by Commission regulation 20.9, and not through the present PRA renewal.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         17 CFR 20.9(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">Large Trader Reporting for Physical Commodity Swaps,</E>
                         76 FR 43851 at 43858.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See, e.g., In the Matter of Wells Fargo Bank, N.A.</E>
                         (Sept. 27, 2016) (noting that large trader reporting “is critical to the mission of the Commission for numerous reasons, including surveillance of the markets to detect disruptions to market integrity, enforcement and calculating statistics that the Commission publishes to enhance market transparency”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Swap Data Recordkeeping and Reporting Requirements, Final Rule, 85 FR 75503, 75540 (Nov. 2020).
                    </P>
                </FTNT>
                <P>
                    In addition, FIA-ISDA commented on the burden part 20 imposes on market participants and the Commission. FIA-ISDA asserted that the Commission's estimated average burden per respondent of 14.33 hours underestimates the burden because the Swaps LTR Guidebook “takes many hours” to understand and “[i]dentifying in-scope swaps, calculating futures equivalent quantities, programing IT systems, verifying the accuracy of data inputs and outputs, and submitting and correcting reports takes each reporting party hundreds of manhours.” 
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         FIA-ISDA at 3 n.13; 
                        <E T="03">see also</E>
                         BPEC at 4 (asserting that “LTR reporting is a significant burden on industry” without providing quantitative data on reporting burden).
                    </P>
                </FTNT>
                <P>
                    For the reasons described below, the Commission has determined to retain the burden hour estimates described in the 60-Day Notice. The Commission's burden estimates were calculated during the 2011 rulemaking that issued the Large Trader Reporting Rules and were subject to comment.
                    <SU>10</SU>
                    <FTREF/>
                     The estimate of 14.33 hours per respondent is an annual average, and these burden estimates (and the accompanying cost-benefit analysis during the original rulemaking) accounted for upfront costs.
                    <SU>11</SU>
                    <FTREF/>
                     Moreover, these burden estimates have been reviewed and updated through PRA renewals at various points since 2011. The commenters have not provided specific hours estimates regarding the burden associated with reporting under the rule. In the absence of specific data showing how the Commission's burden estimates should be changed, and in light of cost having been included in the Commission's prior upfront cost analyses, the Commission has determined to retain its existing burden hour estimates. Although the Commission is not revising it burden estimates here, it will continue to evaluate its burden estimates and may revise them in the future, as appropriate.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">Large Trader Reporting for Physical Commodity Swaps,</E>
                         76 FR 43851 at 43860 (Both FIA and the Working Group submitted comments during that rulemaking process).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">Id.</E>
                        at 43854, 43859-60.
                    </P>
                </FTNT>
                <P>
                    <E T="03">Burden Statement:</E>
                     The Commission is revising its estimate of the burden for this collection. The respondent burden 
                    <PRTPAGE P="53969"/>
                    for this collection is estimated to be as follows:
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     3,654.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Number of Responses (Reporting and Recordkeeping):</E>
                     33,325.
                </P>
                <P>
                    <E T="03">Estimated Average Burden Hours per Respondent:</E>
                     14.33.
                </P>
                <P>
                    <E T="03">Estimated Average Annual Burden Hours per Response:</E>
                     1.57.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     52,366.
                </P>
                <P>
                    <E T="03">Frequency of Collection:</E>
                     Daily; On Occasion.
                </P>
                <P>The Commission estimates that the annualized capital and start-up and operational and maintenance costs associated with this collection total is $33,895,705.</P>
                <P>
                    <E T="03">Authority:</E>
                     44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Robert Sidman,</NAME>
                    <TITLE>Deputy Secretary of the Commission.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14250 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6351-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Transmittal No. 20-0M]</DEPDOC>
                <SUBJECT>Arms Sales Notification</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Defense Security Cooperation Agency, Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Arms sales notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD is publishing the unclassified text of an arms sales notification.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Neil Hedlund at 
                        <E T="03">neil.g.hedlund.civ@mail.mil</E>
                         or (703) 697-9214.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This 36(b)(5)(C) arms sales notification is published to fulfill the requirements of section 155 of Public Law 104-164 dated July 21, 1996. The following is a copy of a letter to the Speaker of the House of Representatives with attached Transmittal 20-0M.</P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer.Department of Defense.</TITLE>
                </SIG>
                <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
                <GPH SPAN="3" DEEP="496">
                    <PRTPAGE P="53970"/>
                    <GID>EN28JN24.019</GID>
                </GPH>
                <BILCOD>BILLING CODE 6001-FR-C</BILCOD>
                <HD SOURCE="HD3">Transmittal No. 20-0M</HD>
                <HD SOURCE="HD2">REPORT OF ENHANCEMENT OR UPGRADE OF SENSITIVITY OF TECHNOLOGY OR CAPABILITY (SEC. 36(B)(5)(C), AECA)</HD>
                <P>
                    (i) 
                    <E T="03">Purchaser:</E>
                     Government of the United Arab Emirates
                </P>
                <P>
                    (ii) 
                    <E T="03">Sec. 36(b)(1), AECA Transmittal No.:</E>
                     15-51   Date: November 4, 2015  Military Department: Air Force
                </P>
                <P>
                    (iii) 
                    <E T="03">Description:</E>
                     On November 4, 2015, Congress was notified by Congressional certification transmittal number 15-51, of the possible sale under Section 36(b)(1) of the Arms Export Control Act of three thousand two hundred and fifty (3,250) GBU-31V1 (KMU-556 Joint Direct Attack Munitions (JDAM) kits); three thousand two hundred and fifty (3,250) MK-84/BLU-117 bombs; seven hundred and fifty (750) GBU-31V3 (KMU-557 JDAM kits); seven hundred and fifty (750) BLU-109 bombs; one thousand (1,000) GBU-12 Paveway II Laser Guided bomb kits; one thousand and two (1,002) MK-82/BLU-111 bombs; four thousand two hundred and fifty (4,250) FMU-152 fuzes; two hundred and sixteen (216) GBU-24 tail kits (BSU-84); non-MDE related munitions items (fuzes and bomb components), sustainment, and support. The estimated total cost was $380 million, including $365 million in Major Defense Equipment (MDE).
                </P>
                <P>
                    This transmittal reports the addition of eight hundred (800) GBU-56V1 Laser Joint Direct Attack Munitions (LJDAM) (consisting of eight hundred (800) KMU-556 tail kits (MDE); eight hundred (800) DSU-40 Laser Sensors (SME); and eight hundred (800) Mk-84 bombs (MDE)); two hundred (200) GBU-56V3 Laser JDAMs (consisting of two hundred (200) KMU-557 tail kits (MDE); two hundred (200) DSU-42 Laser Sensors 
                    <PRTPAGE P="53971"/>
                    (SME); and two hundred (200) BLU-109 bombs (MDE)); three thousand (3,000) FMU-139 fuzes (MDE); and associated munitions support items. The total cost of the new MDE articles is $69 million. Due to a reduction in other MDE items, the total MDE case value will remain $365 million. The total estimated case value remains $380 million.
                </P>
                <P>
                    (iv) 
                    <E T="03">Significance:</E>
                     This notification is being provided to report the inclusion of MDE items not previously notified. The UAE requested a reduction of Mk-84/BLU-117s and the addition of LJDAMs and fuzes so this proposed sale may include Mk-84/BLU-117s, LJDAMs, or a mix. The addition of the LJDAMs represents an increase in capability over what was previously notified. The proposed sale increases UAE's ability to achieve more exact targeting over a wide range of conditions and greater interoperability with the U.S. Air Force.
                </P>
                <P>
                    (v) 
                    <E T="03">Justification:</E>
                     The proposed sale will support the foreign policy and national security objectives of the United States by helping to improve the security of an important regional partner. The UAE continues to be a vital U.S. partner for political stability and economic progress in the Middle East.
                </P>
                <P>
                    (vi) 
                    <E T="03">Sensitivity of Technology:</E>
                     The GBU-56 Laser JDAM is a 2,000-pound JDAM with a DSU-40 or DSU-42 Laser Sensor. The LJDAM uses both Global Position System aided internal navigations and/or Laser guidance allowing rapid prosecution of fixed targets. The Laser Sensor also provides the additional capability to engage mobile targets. The DSU-40 Laser Sensor is attached to the MK-84 or BLU-117 bomb body, and the DSU-42 Laser Sensor is attached to the BLU-109 bomb body, which turns a standard GBU-31 JDAM into a GBU-56 Laser JDAM.
                </P>
                <P>The highest level of classification of defense articles, components, and services included in this potential sale is SECRET.</P>
                <P>
                    (vii) 
                    <E T="03">Date Report Delivered to Congress:</E>
                     August 25, 2022.
                </P>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14181 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <SUBJECT>Notice of Intent to Grant an Exclusive License; Kapalya, Inc.</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Security Agency, Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of intent.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The National Security Agency hereby gives notice of its intent to grant Kapalya, Inc. a revocable, non-assignable, exclusive, license to practice the following Government-Owned invention as described and claimed United States Patent Application Number, 17/937,216, Security System for Hardening a Digital System Against Malware and Method of Operation.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Anyone wishing to comment or object to the grant of this license has until July 15, 2024 to file in written form including evidence and argument that establish that the grant of the license would not be consistent with the requirements of 35 United States Code (U.S.C.) 209 and 37 Code of Federal Regulations (CFR) 404.7.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Written objections are to be filed with the National Security Agency Technology Transfer Program, 9800 Savage Road, Suite 6843, Fort George G. Meade, MD 20755-6843.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Linda L. Burger, Director, Technology Transfer Program, 9800 Savage Road, Suite 6843, Fort George G. Meade, MD 20755-6843, telephone (443) 634-3518.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The prospective exclusive license will comply with the terms and conditions of 35 U.S.C. 209 and 37 CFR 404.7. The patent rights in these inventions have been assigned to the United States Government as represented by the National Security Agency.</P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14333 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2024-OS-0072]</DEPDOC>
                <SUBJECT>Privacy Act of 1974; System of Records</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Pentagon Force Protection Agency, Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of a modified system of records.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Privacy Act of 1974, the DoD is modifying and reissuing a current system of records titled, “Pentagon Facilities Access Control System,” DPFPA 01. This system of records was originally established by the Pentagon Force Protection Agency (PFPA) to collect and maintain a listing of personnel who are authorized to access Pentagon Facilities and verify the identity of approved individuals with access to such facilities and offices. The system name is changing from “Pentagon Facilities Access Control System” to “Pentagon Facilities Access Control Records.” This system of records notice (SORN) is being updated to expand the purpose for which the system of records was established and incorporate the DoD standard routines uses (A through J). The DoD is also modifying various other sections within the SORN to improve clarity or update information that has changed.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This system of records is effective upon publication; however, comments on the Routine Uses will be accepted on or before July 29, 2024. The Routine Uses are effective at the close of the comment period.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number and title, by either of the following methods:</P>
                    <P>
                        * 
                        <E T="03">Federal Rulemaking Portal:</E>
                          
                        <E T="03">https://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        * 
                        <E T="03">Mail:</E>
                         Department of Defense, Office of the Assistant to the Secretary of Defense for Privacy, Civil Liberties, and Transparency, Regulatory Directorate, 4800 Mark Center Drive, Attn: Mailbox 24, Suite 08D09, Alexandria, VA 22350-1700.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name and docket number for this 
                        <E T="04">Federal Register</E>
                         document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                        <E T="03">https://www.regulations.gov</E>
                         as they are received without change, including any personal identifiers or contact information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Mr. Dajonte Holsey, Pentagon Force Protection Agency, Department of Defense, 9000 Defense Pentagon, Washington DC 20301-9000, (703) 571-2939.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Background</HD>
                <P>
                    The Pentagon Facilities Access Control Records are maintained by the Pentagon Facilities and used to maintain a listing of personnel who are authorized to access Pentagon Facilities and verify the identity of approved individuals with access to such facilities and offices. The system name is changing from “Pentagon Facilities Access Control System” to “Pentagon Facilities Access Control Records.” Subject to public comment, the DoD is updating this SORN to add the standard DoD routine uses (routine uses A through J). Additionally, the following 
                    <PRTPAGE P="53972"/>
                    sections of this SORN are being modified as follows: (1) to the Authority for Maintenance of the System section to update citation(s) and add additional authorities; (2) to the Categories of Individuals Covered by the System section to expand the individuals covered and Categories of Records to clarify how the records relate to the revised Category of Individuals; (3) to the Administrative, Technical, and Physical Safeguards to update the individual safeguards protecting the personal information; (4) to the Purpose of the System section to list the functions of the system with additional clarity; (5) to the Retention and Disposal section to reflect the approved disposition; (6) to the Record Access Procedures section to reflect the need for individuals to identify the appropriate DoD office or component to which their request should be directed; (7) to the Contesting Records and Notification Procedures sections to update the appropriate citation for contesting records; and (8) to the System Manager and System Location sections to update the addresses and office names. Furthermore, this notice includes non-substantive changes to simplify the formatting and text of the previously published notice.
                </P>
                <P>
                    DoD SORNs have been published in the 
                    <E T="04">Federal Register</E>
                     and are available from the address in 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     or at the Office of the Assistant to the Secretary for Defense for Privacy, Civil Liberties, and Transparency (OATSD(PCLT)) website at 
                    <E T="03">https://dpcld.defense.gov/privacy.</E>
                </P>
                <HD SOURCE="HD1">II. Privacy Act</HD>
                <P>Under the Privacy Act, a “system of records” is a group of records under the control of an agency from which information is retrieved by the name of an individual or by some identifying number, symbol, or other identifying particular assigned to the individual. In the Privacy Act, an individual is defined as a U.S. citizen or lawful permanent resident.</P>
                <P>In accordance with 5 U.S.C. 552a(r) and Office of Management and Budget (OMB) Circular No. A-108, OATSD(PCLT) has provided a report of this system of records to the OMB and to Congress.</P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
                <PRIACT>
                    <HD SOURCE="HD2">SYSTEM NAME AND NUMBER:</HD>
                    <P>Pentagon Facilities Access Control Records, DPFPA 01.</P>
                    <HD SOURCE="HD2">SECURITY CLASSIFICATION:</HD>
                    <P>Unclassified.</P>
                    <HD SOURCE="HD2">SYSTEM LOCATION(S):</HD>
                    <P>Department of Defense (Department or DoD), located at 1000 Defense Pentagon, Washington, DC 20301-1000, and other Department installations, offices, or mission locations. Information may also be stored within a government-certified cloud, implemented and overseen by the Department's Chief Information Officer (CIO), 6000 Defense Pentagon, Washington, DC 20301-6000.</P>
                    <HD SOURCE="HD2">SYSTEM MANAGER(S):</HD>
                    <P>
                        A. Chief, Credentialing Branch, Security Services Division, Pentagon Force Protection Agency, 9000 Defense Pentagon, Washington, DC 20301-9000. Email: 
                        <E T="03">pfpa.pentagon.rsrcmgmt.list.ssd-pacb-ncic-requests-mbx@mail.mil,</E>
                         Phone: 703-697-9327.
                    </P>
                    <P>B. Chief, Electronic Security Systems, Enterprise Physical Security Division, Pentagon Force Protection Agency, 9000 Defense Pentagon, Washington, DC 20301-9000.</P>
                    <HD SOURCE="HD2">AUTHORITY FOR MAINTENANCE OF THE SYSTEM:</HD>
                    <P>10 U.S.C. 113, Secretary of Defense; 10 U.S.C. 2674, Operation and Control of Pentagon Reservation and Defense Facilities in National Capital Region; 32 CFR 234, Conduct on the Pentagon Reservation, as amended; DoD Directive (DoDD) 5105.68, Pentagon Force Protection Agency (PFPA); DoDD 8521.01E, DoD Biometrics; DoD Instruction (DODI) 1000.25, DoD Personnel Identity Protection (PIP) Program; DoDI 5200.08, Security of DoD Installations and Resources and the DoD Physical Security Review Board (PSRB); DoDI 5525.19, DoD Identity Matching Engine for Security and Analysis (IMESA) Access to Criminal Justice Information (CJI) and Terrorist Screening Databases (TSDB); DoD 5200.08-R, Physical Security Program; OSD Administrative Instruction 30, Force Protection on the Pentagon Reservation; Directive-Type Memorandum (DTM) 09-12, Interim Policy Guidance for DoD Physical Access Control, and E.O. 9397, as amended.</P>
                    <HD SOURCE="HD2">PURPOSE(S) OF THE SYSTEM:</HD>
                    <P>To collect and maintain records related to Pentagon Facility access and perimeter control, including visitor security and management. Additionally, to provision individual facility/installation access to an approved credential, and to verify the identity of an individual. The records will be vetted initially through the use of National Crime Information Center (NCIC), while continuous vetting occurs via the DoD Identity Matching Engine for Security and Analysis (IMESA) which may be accessed by other physical access control systems for further verification at other sites. The system may also be used for law enforcement purposes for verification and validation of recent and current police records.</P>
                    <HD SOURCE="HD2">CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:</HD>
                    <P>Any Department of Defense military, civilian employee, or contractor sponsored by the Department of Defense, or other persons/visitors who have reason to enter Pentagon Facilities for official Department of Defense business. Other persons/visitors can include vendors, concessionaires, and domestic or foreign members of the press.</P>
                    <HD SOURCE="HD2">CATEGORIES OF RECORDS IN THE SYSTEM:</HD>
                    <P>
                        Name, Social Security Number (SSN), DoD ID number, Federal Personal Identity Verification (PIV) Card Holder Unique Identifier (CHUID), foreign passport numbers, visa numbers, document numbers from Department of Homeland Security, race, sex, date of birth, place of birth, rank/grade, citizenship, photograph, digital certificates, biometric images and templates (
                        <E T="03">e.g.,</E>
                         fingerprint and iris), personal and work email addresses and telephone numbers, employment information, name of DoD sponsoring office, background investigation type and completion date, date of issue and expiration of facility and installation access credentials, access level, previous facility pass issuances, authorizing official, and information that reflects time of entry and exit from a facility.
                    </P>
                    <HD SOURCE="HD2">RECORD SOURCE CATEGORIES:</HD>
                    <P>Records and information stored in this system of records are obtained from the individual, U.S. Citizenship and Immigration Services Form I-9, the Identity Matching Engine for Security and Analysis (IMESA) system, or the Washington Headquarter Services Parking Database.</P>
                    <HD SOURCE="HD2">ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND PURPOSES OF SUCH USES:</HD>
                    <P>
                        In addition to those disclosures generally permitted under 5 U.S.C. 552a(b) of the Privacy Act of 1974, as amended, all or a portion of the records or information contained herein may 
                        <PRTPAGE P="53973"/>
                        specifically be disclosed outside the DoD as a routine use pursuant to 5 U.S.C. 552a(b)(3) as follows:
                    </P>
                    <P>A. To contractors, grantees, experts, consultants, students, and others performing or working on a contract, service, grant, cooperative agreement, or other assignment for the federal government when necessary to accomplish an agency function related to this system of records.</P>
                    <P>B. To the appropriate Federal, State, local, territorial, tribal, foreign, or international law enforcement authority or other appropriate entity where a record, either alone or in conjunction with other information, indicates a violation or potential violation of law, whether criminal, civil, or regulatory in nature.</P>
                    <P>C. To any component of the Department of Justice for the purpose of representing the DoD, or its components, officers, employees, or members in pending or potential litigation to which the record is pertinent.</P>
                    <P>D. In an appropriate proceeding before a court, grand jury, or administrative or adjudicative body or official, when the DoD or other Agency representing the DoD determines that the records are relevant and necessary to the proceeding; or in an appropriate proceeding before an administrative or adjudicative body when the adjudicator determines the records to be relevant to the proceeding.</P>
                    <P>E. To the National Archives and Records Administration for the purpose of records management inspections conducted under the authority of 44 U.S.C. 2904 and 2906.</P>
                    <P>F. To a Member of Congress or staff acting upon the Member's behalf when the Member or staff requests the information on behalf of, and at the request of, the individual who is the subject of the record.</P>
                    <P>G. To appropriate agencies, entities, and persons when (1) the DoD suspects or confirms a breach of the system of records; (2) the DoD determines as a result of the suspected or confirmed breach there is a risk of harm to individuals, the DoD (including its information systems, programs, and operations), the Federal Government, or national security; and (3) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with the DoD's efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm.</P>
                    <P>H. To another Federal agency or Federal entity, when the DoD determines that information from this system of records is reasonably necessary to assist the recipient agency or entity in (1) responding to a suspected or confirmed breach or (2) preventing, minimizing, or remedying the risk of harm to individuals, the recipient agency or entity (including its information systems, programs and operations), the Federal Government, or national security, resulting from a suspected or confirmed breach.</P>
                    <P>I. To another Federal, State or local agency for the purpose of comparing to the agency's system of records or to non-Federal records, in coordination with an Office of Inspector General in conducting an audit, investigation, inspection, evaluation, or some other review as authorized by the Inspector General Act of 1987, amended.</P>
                    <P>J. To such recipients and under such circumstances and procedures as are mandated by Federal statue or treaty.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR STORAGE OF RECORDS:</HD>
                    <P>Records may be stored electronically or on paper in secure facilities in a locked drawer behind a locked door. The records may be stored on magnetic disc, tape, or digital media; in agency-owned cloud environments; or in vendor Cloud Service Offerings certified under the Federal Risk and Authorization Management Program (FedRAMP).</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:</HD>
                    <P>Records may be retrieved by name, SSN, DoD ID number, Federal PIV Card Holder Unique Identifier, or identification document that is compliant with the REAL ID Act (2005).</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:</HD>
                    <P>Federal employees and contractors: Records are retained temporarily. Cut off upon terminating an employee's or contractor's term of employment. Destroy 6 years after cutoff. Official Visitors: Temporary. Cut off annually after final entry or after date of document, as appropriate. Destroy 5 years after cutoff.</P>
                    <HD SOURCE="HD2">ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:</HD>
                    <P>The Pentagon Facilities Access Control Records is physically secured using law enforcement personnel, contract security, physical access control and intrusion detection systems (ACS and IDS), and closed circuit TV (CCTV). Technical controls include user identification, passwords, firewalls, logical intrusion detection systems (IDS), encryption, DoD Public Key Infrastructure certificates and Common Access Cards (CAC). Administrative Controls include periodic security audits, regular monitoring of users' security practices, methods to ensure only authorized personnel have access to PII and encryption of backups containing sensitive data.</P>
                    <HD SOURCE="HD2">RECORD ACCESS PROCEDURES:</HD>
                    <P>Individuals seeking access to records about themselves in this system should address written inquiries to the Office of the Secretary of Defense/Joint Staff Freedom of Information Act Requester Service Center, Office of the Freedom of Information, 1155 Defense Pentagon, Washington, DC 20301-1155. Signed, written requests should contain the full name, SSN, DoD ID number or Federal PIV Personal Identifier (PI), current address and telephone number of the individual, and the name and number of this system of records notice. In addition, the requester must provide either a notarized statement or an unsworn declaration made in accordance with 28 U.S.C. 1746, in the appropriate format:</P>
                    <P>If executed outside the United States: “I declare (or certify, verify, or state) under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on (date). (Signature).”</P>
                    <P>If executed within the United States, its territories, possessions, or commonwealths: “I declare (or certify, verify, or state) under penalty of perjury that the foregoing is true and correct. Executed on (date). (Signature).”</P>
                    <HD SOURCE="HD2">CONTESTING RECORD PROCEDURES:</HD>
                    <P>The DoD rules for accessing records, contesting contents, and appealing initial Component determinations are contained in 32 CFR part 310, or may be obtained from the system manager.</P>
                    <HD SOURCE="HD2">NOTIFICATION PROCEDURES:</HD>
                    <P>Individuals seeking to determine whether information about themselves is contained in this system of records should follow the instructions for Record Access Procedures above.</P>
                    <HD SOURCE="HD2">EXEMPTIONS PROMULGATED FOR THE SYSTEM:</HD>
                    <P>None.</P>
                    <HD SOURCE="HD2">HISTORY:</HD>
                    <P>May 9, 2011, 76 FR 26712.</P>
                </PRIACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14203 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="53974"/>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Transmittal No. 22-0O]</DEPDOC>
                <SUBJECT>Arms Sales Notification</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Defense Security Cooperation Agency, Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Arms sales notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD is publishing the unclassified text of an arms sales notification.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Neil Hedlund at 
                        <E T="03">neil.g.hedlund.civ@mail.mil</E>
                         or (703) 697-9214.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This 36(b)(5)(C) arms sales notification is published to fulfill the requirements of section 155 of Public Law 104-164 dated July 21, 1996. The following is a copy of a letter to the Speaker of the House of Representatives with attached Transmittal 22-0O.</P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
                <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
                <GPH SPAN="3" DEEP="430">
                    <GID>EN28JN24.015</GID>
                </GPH>
                <BILCOD>BILLING CODE 6001-FR-C</BILCOD>
                <HD SOURCE="HD3">Transmittal No. 22-0O</HD>
                <HD SOURCE="HD2">REPORT OF ENHANCEMENT OR UPGRADE OF SENSITIVITY OF TECHNOLOGY OR CAPABILITY (SEC. 36(B)(5)(C), AECA)</HD>
                <P>
                    (i) 
                    <E T="03">Purchaser:</E>
                     Government of Italy
                </P>
                <P>
                    (ii) 
                    <E T="03">Sec. 36(b)(1), AECA Transmittal No.:</E>
                     08-60
                </P>
                <P>Date: August 1, 2008</P>
                <P>Implementing Agency: Air Force</P>
                <P>
                    (iii) 
                    <E T="03">Description:</E>
                     On August 1, 2008, Congress was notified by Congressional certification transmittal number 08-60 of the possible sale, under Section 36(b)(1) of the Arms Export Control Act, of 4 MQ-9 Unmanned Aerial Vehicles (UAV), 3 Mobile Ground Control Stations, five years of maintenance support, engineering support, test equipment, ground support, operational flight test support, communications equipment, technical assistance, personnel training/equipment, spare and repair parts, and other related elements of logistics support. These UAVs included AN/DPY-1 Synthetic Aperture Radar/Ground Moving Target Indicator (SAR/GMTI) systems with 0.3 to 3 meter resolution. The estimated total cost was $330 million. Major 
                    <PRTPAGE P="53975"/>
                    Defense Equipment (MDE) constituted $50 million of this total.
                </P>
                <P>On November 18, 2009, Congress was notified by Congressional certification transmittal number 09-60 of the possible sale, under Section 36(b)(1) of the Arms Export Control Act, of two unarmed MQ-9 Unmanned Aerial Vehicles (UAVs), one (1) Mobile Ground Control Station, maintenance support, engineering support, test equipment, ground support, operational flight test support, communications equipment, technical assistance, personnel training/equipment, spare and repair parts, and other related elements of logistics support. These UAVs included AN/DPY-1 Synthetic Aperture Radar/Ground Moving Target Indicator (SAR/GMTI) systems with 0.1 to 3 meter resolution. The MDE value increased to $86 million. The total case value increased to $393 million.</P>
                <P>On December 17, 2009, Congress was notified by Congressional certification transmittal number 0C-09 of the possible sale, under Section 36(b)(5)(a) of the Arms Export Control Act, of a performance upgrade of the AN/DPY-1 SAR/GMTI systems aboard the four MQ-9s UAVs previously notified on transmittal 08-60 from 0.3 to 3 meter resolution to the same 0.1 to 3 meter resolution of the two MQ-9s notified on transmittal 09-60. There was no increase in cost of MDE for this upgrade. The total case value did not increase.</P>
                <P>On December 4, 2019, Congress was notified by Congressional certification transmittal number 20-0A of the possible sale, under Section 36(b)(5)(a) of the Arms Export Control Act, of the retrofit of five (5) existing MQ-9A Block 1 Unmanned Aerial Vehicles (UAV) to Block 5; retrofit of two (2) existing MGCS Block 30; three (3) MQ-9A Block 5; eight (8) Multi-Spectral Targeting Systems (MTS-B) AN/DAS-1A; eight (8) General Atomics AN/APY-8 Lynx (exportable) Synthetic Aperture Radar/Ground Moving Target Indicator (SAR/GMTI) Systems with Maritime Wide Area Search (MWAS) capability; two (2) Mobile Ground Control Station (MGCS) Block 30; and twenty-seven (27) Honeywell H-764 Adaptive Configurable Embedded Global Positioning System/Inertial Guidance Units (EGI) with Selective Availability Anti-Spoofing Module (SAASM) (24 installed, 3 spares). The retrofit, addition of aircraft, and inclusion of MDE not enumerated in the previous notifications resulted in a net increase in MDE costs of $180 million and non-MDE costs of $138 million. The MDE value increased to $266 million. The total case value increased to $711 million.</P>
                <P>This transmittal reports the addition of MDE that should have been included in the original notification: five (5) Multi-Spectral Targeting Systems (MTS-B) AN/DAS-1A. In addition, the original notification should have included an additional $6 million in total case value. This transmittal further reports the addition of the following MDE items: one (1) MQ-9A Block 5; eight (8) AN/DAS-4 Multi-Spectral Targeting Systems-D (MTS-D); and seven (7) Honeywell H-764 or equivalent Embedded Global Positioning Systems/Inertial Navigation Systems (GPS/INS) (EGI). The following non-MDE items will also be included: MQ-9 engines; ARC-210 radios; AN/APX-119 Identification Friend or Foe (IFF) transponders; KY-100M Narrowband/wideband cryptographic devices; Ku-band SATCOM GA-ASI Transportable Earth Stations (GATES); ROVER 6Si and VORTEX transceivers; KIV-77 Mode 4/5 IFF cryptographic appliques; Ruggedized Aircraft Maintenance Test Stations (RAMTS); C-band ground data terminals; and multi-spectral targeting system (MTS) turret and electronics units; as well as additional aircraft and munitions support and support equipment; secure communications equipment; spare and repair parts, consumables and accessories; maintenance and maintenance support; personnel training and training equipment; and U.S. Government and contractor engineering, technical and logistics support services. The MDE value will increase by $42 million to $308 million. The total case value will increase by $98 million to $809 million.</P>
                <P>
                    (iv) 
                    <E T="03">Significance:</E>
                     This notification is being provided as the additional MDE items were not enumerated in the original notification. The inclusion of this MDE represents an increase in capability over what was previously notified. The proposed articles and services will support Italy's efforts to build intelligence, surveillance, and reconnaissance (ISR) and strike capabilities.
                </P>
                <P>
                    (v) 
                    <E T="03">Justification:</E>
                     This proposed sale will support U.S. foreign policy and national security by helping to improve the security of a NATO ally, which is an important partner for political stability and economic progress in Europe. Italy requests these capabilities to provide for the defense of deployed troops, regional security, and interoperability with the United States.
                </P>
                <P>
                    (vi) 
                    <E T="03">Sensitivity of Technology:</E>
                </P>
                <P>The Raytheon Multi-Spectral Targeting System-D (MTS-D) AN/DAS-4 integrates electro-optical (E.O.), infrared (IR), laser designation and laser illumination capabilities to provide detection, ranging, and tracking capabilities specifically for high-altitude applications. This advanced E.O. and IR system provides long-range surveillance, high altitude target acquisition, tracking, range finding, and laser designation for the Hellfire missile and for all tri-service and NATO laser-guided munitions. The MTS-D provides greater target location accuracy than the MTS-B. This potential sale includes spare turret and electronics units.</P>
                <P>The Embedded GPS/INS (EGI) with Selective Availability Anti-Spoofing Module (SAASM)—or M-Code receiver when available—is a self-contained navigation system that provides the following: acceleration, velocity, position, attitude, platform azimuth, magnetic and true heading, altitude, body angular rates, time tags, and coordinated universal time (UTC) synchronized time. SAASM or M-Code enables the GPS receiver access to the encrypted P (Y or M) signal, providing protection against active spoofing attacks.</P>
                <P>The ARC-210 UHF/VHF secure radio is a voice communications radio system that can operate in either normal, secure, and/or jam-resistant modes.</P>
                <P>The AN/APX-119 is an Identification Friend or Foe (IFF) transponder that provides military aircraft with a secure combat identification capability to help reduce fratricide and enhance battlespace awareness, while providing safe access to civilian airspace.</P>
                <P>The KY-100M is a lightweight terminal for secure voice and data communications. The KY-100M provides wideband/narrowband half-duplex communication. Operating in tactical ground, marine and airborne applications, the KY-100M enables secure communication with a broad range of radio and satellite equipment.</P>
                <P>The C-Band Line-of-Sight (LOS) Ground Data Terminals and Ku-Band SATCOM GA-ASI Transportable Earth Station (GATES) provide command, control, and data acquisition for the MQ-9B.</P>
                <P>The L3Harris ROVER 6Si transceiver is a secure real-time, full-motion video (FMV) surveillance, voice, and data communications transceiver. It provides expanded frequencies and additional processing resources from previous ROVER versions, allowing increased levels of interoperability with numerous manned and unmanned airborne platforms.</P>
                <P>
                    The L3Harris VORTEX transceiver is a secure real-time, full-motion video (FMV) surveillance, voice, and data communications transceiver and is interoperable with ROVER, most UAVs, 
                    <PRTPAGE P="53976"/>
                    targeting pods, and other waveforms. The transceiver's band and channel diversity provides link redundancy, better reception, and resiliency to platform shading, multipath interference, line-of-sight blockages, and radio frequency interference.
                </P>
                <P>The KIV-77 Mode 5 crypto applique computer for IFF is Type 1 certified by the National Security Agency and provides information assurance for both legacy Mode 4 and new Mode 5 IFF equipment. The KIV-77 is used to store the classified keys.</P>
                <P>The Sensitivity of Technology Statement contained in the original notification applies to additional items reported here.</P>
                <P>The highest level of classification of defense articles, components, and services included in this potential sale is SECRET.</P>
                <P>
                    (vii) 
                    <E T="03">Date Report Delivered to Congress:</E>
                     September 1, 2022
                </P>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14184 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Transmittal No. 22-51]</DEPDOC>
                <SUBJECT>Arms Sales Notification</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Defense Security Cooperation Agency, Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Arms sales notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD is publishing the unclassified text of an arms sales notification.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Neil Hedlund at 
                        <E T="03">neil.g.hedlund.civ@mail.mil</E>
                         or (703) 697-9214.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This 36(b)(1) arms sales notification is published to fulfill the requirements of section 155 of Public Law 104-164 dated July 21, 1996. The following is a copy of a letter to the Speaker of the House of Representatives, Transmittal 22-51 with attached Policy Justification and Sensitivity of Technology.</P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
                <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
                <GPH SPAN="3" DEEP="490">
                    <PRTPAGE P="53977"/>
                    <GID>EN28JN24.017</GID>
                </GPH>
                <BILCOD>BILLING CODE 6001-FR-C</BILCOD>
                <HD SOURCE="HD3">Transmittal No. 22-51</HD>
                <HD SOURCE="HD3">Notice of Proposed Issuance of Letter of Offer Pursuant to Section 36(b)(1) of the Arms Export Control Act, as amended</HD>
                <P>
                    (i) 
                    <E T="03">Prospective Purchaser:</E>
                     Government of Australia
                </P>
                <P>
                    (ii) 
                    <E T="03">Total Estimated Value:</E>
                </P>
                <GPOTABLE COLS="2" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s30,xs56">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Major Defense Equipment *</ENT>
                        <ENT>$ .85 billion</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="01">Other</ENT>
                        <ENT>$1.10 billion</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">TOTAL</ENT>
                        <ENT>$1.95 billion</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    (iii) 
                    <E T="03">Description and Quantity or Quantities of Articles or Services under Consideration for Purchase:</E>
                </P>
                <FP SOURCE="FP-2">
                    <E T="03">Major Defense Equipment (MDE):</E>
                </FP>
                <FP SOURCE="FP1-2">Forty (40) UH-60M Black Hawk Helicopters</FP>
                <FP SOURCE="FP1-2">Eighty-eight (88) T700-GE 701D Engines (80 installed, 8 spares)</FP>
                <FP SOURCE="FP1-2">Forty-four (44) AN/AAR-57 Counter Missile Warning Systems (CMWS) (40 installed, 4 spares)</FP>
                <FP SOURCE="FP1-2">Ninety-six (96) H-764U Embedded Global Position Systems with Inertial Navigation (EGI) and Country Unique SAASM (or future replacement) (80 installed, 16 spares)</FP>
                <FP SOURCE="FP-2">
                    <E T="03">Non-MDE:</E>
                </FP>
                <FP SOURCE="FP1-2">
                    Also included are AN/ARC-231 RT-1808A (or future replacement) VHF/UHF/LOS SATCOM radios; APR-39C(V)1/4 Radar Warning Receivers; AVR-2B Laser Detecting Sets; APX-123A Identification Friend or Foe Transponder; ARC-220 High Frequency (HF) radio with KY-100M; VRC-100 Ground Stations; AN/PYQ-10 Simple Key Loader (SKL); KIV-77 Common Identification Friend or Foe (IFF) Applique Crypto Computers; KY-100M COMSEC Encryption devices; AN/ARN-147(V) Very High Frequency Omni-Directional Range 
                    <PRTPAGE P="53978"/>
                    (VOR)/Instrument Landing System (ILS) receiver radio; AN/ARN-149(V) Low Frequency (LF)/Automatic Direction Finder (ADF) radio receiver; AN/ARN-153 Tactical Air Navigation System (TACAN) receiver transmitter; AN/APN-209 radar altimeter; AN/ARC-210 radios; EBC-406HM Emergency Locator Transmitter (ELT); Encrypted Aircraft Wireless Intercommunications Systems (EAWIS); Improved Heads Up Display (IHUD); Signal Data Converters for IHUD; Blue Force Trackers (BFT-2); Improved Data Modems (IDM); Color Weather Radars; MX-10D EO/IR with Laser Designator; EO/IR Cabin Monitoring Systems; EO/IR Digital Video Recorder; AN/ARC-201D RT-1478D; Engine Inlet Barrier Filters (EIBF); Ballistic Armor Protection Systems (BAPS); Internal Auxiliary Fuel Tank Systems (IAFTS); Fast Rope Insertion Extraction System (FRIES); External Rescue Hoist (ERH); Rescue Hoist Equipment Sets; Dual Patient Litter System (DPLS) Sets; Martin Baker Palletized Crew Chief/Gunner Seats with crashworthy floor structural modifications; External Stores Support System (ESSS); Integrated Tow Plates Production Assets; Universal Software Loading Kits; 60kVA Generator Kits; Instrument Panel sets; External Gun Mount Systems; Black Hawk Aircrew Trainer (BAT); Black Hawk Maintenance Trainer (BHMT-M); Black Hawk Avionics Trainer; Maintenance Blended Reconfigurable Avionics Trainer (MBRAT); training devices; helmets; transportation; organizational equipment; spare and repair parts; support equipment; tools and test equipment; technical data and publications; personnel training and training equipment; U.S. government and contractor engineering, technical, and logistics support services; and other related elements of logistics support.
                </FP>
                <P>
                    (iv) 
                    <E T="03">Military Department:</E>
                     Army (AT-B-UMI)
                </P>
                <P>
                    (v) 
                    <E T="03">Prior Related Cases, if any:</E>
                     AT-B-UMH
                </P>
                <P>
                    (vi) 
                    <E T="03">Sales Commission, Fee, etc., Paid, Offered, or Agreed to be Paid:</E>
                     None
                </P>
                <P>
                    (vii) 
                    <E T="03">Sensitivity of Technology Contained in the Defense Article or Defense Services Proposed to be Sold:</E>
                     See Attached Annex
                </P>
                <P>
                    (viii) 
                    <E T="03">Date Report Delivered to Congress:</E>
                     August 25, 2022
                </P>
                <P>* As defined in Section 47(6) of the Arms Export Control Act.</P>
                <HD SOURCE="HD2">POLICY JUSTIFICATION</HD>
                <HD SOURCE="HD2">Australia—UH-60M Black Hawk Helicopters</HD>
                <P>The Government of Australia has requested to buy forty (40) UH-60M Black Hawk helicopters; eighty-eight (88) T700-GE 701D engines (80 installed, 8 spares); forty-four (44) AN/AAR-57 Counter Missile Warning Systems (CMWS) (40 installed, 4 spares); and ninety-six (96) H-764U Embedded Global Position Systems with Inertial Navigation (EGI) and Country Unique SAASM (or future replacement) (80 installed, 16 spares). Also included are AN/ARC-231 RT-1808A (or future replacement) VHF/UHF/LOS SATCOM radios; APR-39C(V)1/4 Radar Warning Receivers; AVR-2B Laser Detecting Sets; APX-123A Identification Friend or Foe Transponder; ARC-220 High Frequency (HF) radio with KY-100M; VRC-100 Ground Stations; AN/PYQ-10 Simple Key Loader (SKL); KIV-77 Common Identification Friend or Foe (IFF) Applique Crypto Computers; KY-100M COMSEC Encryption devices; AN/ARN-147(V) Very High Frequency Omni-Directional Range (VOR)/Instrument Landing System (ILS) receiver radio; AN/ARN-149(V) Low Frequency (LF)/Automatic Direction Finder (ADF) radio receiver; AN/ARN-153 Tactical Air Navigation System (TACAN) receiver transmitter; AN/APN-209 radar altimeter; AN/ARC-210 radios; EBC-406HM Emergency Locator Transmitter (ELT); Encrypted Aircraft Wireless Intercommunications Systems (EAWIS); Improved Heads Up Display (IHUD); Signal Data Converters for IHUD; Blue Force Trackers (BFT-2); Improved Data Modems (IDM); Color Weather Radars; MX-10D EO/IR with Laser Designator; EO/IR Cabin Monitoring Systems; EO/IR Digital Video Recorder; AN/ARC-201D RT-1478D; Engine Inlet Barrier Filters (EIBF); Ballistic Armor Protection Systems (BAPS); Internal Auxiliary Fuel Tank Systems (IAFTS); Fast Rope Insertion Extraction System (FRIES); External Rescue Hoist (ERH); Rescue Hoist Equipment Sets; Dual Patient Litter System (DPLS) Sets; Martin Baker Palletized Crew Chief/Gunner Seats with crashworthy floor structural modifications; External Stores Support System (ESSS); Integrated Tow Plates Production Assets; Universal Software Loading Kits; 60kVA Generator Kits; Instrument Panel sets; External Gun Mount Systems; Black Hawk Aircrew Trainer (BAT); Black Hawk Maintenance Trainer (BHMT-M); Black Hawk Avionics Trainer; Maintenance Blended Reconfigurable Avionics Trainer (MBRAT); training devices; helmets; transportation; organizational equipment; spare and repair parts; support equipment; tools and test equipment; technical data and publications; personnel training and training equipment; U.S. government and contractor engineering, technical, and logistics support services; and other related elements of logistics support. The estimated total cost is $1.95 billion.</P>
                <P>This proposed sale will support the foreign policy and national security objectives of the United States. Australia is one of our most important allies in the Western Pacific. The strategic location of this political and economic power contributes significantly to ensuring peace and economic stability in the region. It is vital to the U.S. national interest to assist our ally in developing and maintaining a strong and ready self-defense capability.</P>
                <P>The proposed sale will replace Australia's current multi-role helicopter fleet with a more reliable and proven system that will allow Australia to maintain the appropriate level of readiness to conduct combined operations. The UH-60M Black Hawk helicopter will improve the Australian Army's ability to deploy combat power to share Australia's strategic environment, deter actions against its interests, and, when required, respond with credible force. Australia will have no difficulty absorbing this equipment into its armed forces.</P>
                <P>The proposed sale of this equipment and support will not alter the basic military balance in the region.</P>
                <P>The principal contractor will be Lockheed Martin, Bethesda, MD. The purchaser typically requests offsets. There are no known offset agreements. Any future offset agreement would be defined in negotiations between the purchaser and the contractor(s).</P>
                <P>Implementation of this proposed sale will require the assignment of no U.S. Government and five (5) U.S. contractor representatives in Australia for a period of three years.</P>
                <P>There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.</P>
                <HD SOURCE="HD3">Transmittal No. 22-51</HD>
                <HD SOURCE="HD3">Notice of Proposed Issuance of Letter of Offer Pursuant to Section 36(b)(1) of the Arms Export Control Act</HD>
                <HD SOURCE="HD3">Annex</HD>
                <HD SOURCE="HD3">Item No. vii</HD>
                <P>
                    (vii) 
                    <E T="03">Sensitivity of Technology:</E>
                </P>
                <P>
                    1. The UH-60M Black Hawk aircraft is a medium lift four bladed aircraft which includes two (2) T-701D engines. 
                    <PRTPAGE P="53979"/>
                    The aircraft has four (4) Multifunction Displays (MFD), which provides aircraft system, flight, mission, and communication management systems. The instrumentation panel includes four (4) Multifunction Displays (MFDs), two (2) Pilot and Co-Pilot Flight Director Panels, and two (2) Data Concentrator Units (DCUs). The Navigation System will have Embedded GPS/INS (EGIs), and two (2) Advanced Flight Control Computer Systems (AFCC), which provide 4 axis aircraft control:
                </P>
                <P>a. The AN/ARC-201D Single Channel Ground to Air Radio System (SINCGARS) is a tactical airborne radio subsystem that provides secure, anti-jam voice and data communication. The integration of Communication Security (COMSEC) and the Data Rate Adapter (DRA) combines three Line Replaceable Units into one and reduces overall weight of the aircraft.</P>
                <P>b. AN/ARC-231 RT-1808A (or future replacement), Very High Frequency/Ultra High Frequency (VHF/UHF) Line of Sight (LOS) Radio with frequency agile modes, Electronic counter-countermeasures (ECCM), UHF Satellite Communications (SATCOM), Demand Assigned Multiple Access (DAMA), Integrated Waveform (IW), Air Traffic Control (ATC) channel spacing is operator selectable in 5, 8.33, 12.5 and 25khz steps.</P>
                <P>c. The AN/ARC-210 is a family of radios for military aircraft that provides two-way, multi-mode voice and data communications over a 30 to 512+MHz frequency range. It covers both Ultra High Frequency (UHF) and Very High Frequency (VHF) bands with AM, FM and SATCOM capabilities. The ARC-210 type radio also includes embedded anti-jam waveforms, including have-quick and SINCGARS and other data link and secure communications features, providing total battlefield interoperability and high-performance capabilities in the transfer of data, voice and imagery.</P>
                <P>d. The AN/ARC-220 High Frequency (HF) Airborne Communication System provides rotary-wing aircraft, with advanced voice and data capabilities for short-and long-distance communications. The system is software programmable with a frequency range of 2.0000-29.9999 MHz, in 100-Hz steps and provides for providing embedded automatic Link establishment (ALE), serial tone data modem, text messaging, GPS position reporting and anti-jam functions.</P>
                <P>e. The AN/APX-123A, Identification Friend or Foe (IFF) Transponder, is a space diversity transponder and is installed on various military platforms. When installed in conjunction with platform antennas and the Remote Control Unit (or other appropriate control unit), the transponder provides identification, altitude and surveillance reporting in response to interrogations from airborne, ground-based and/or surface interrogators.</P>
                <P>f. The VRC-100 High Frequency (HF) Communication System is the ground station version of the AN/ARC-220 for use in Aviation Operation Centers. It provides for advanced voice and data capabilities for short-and long-distance communications. The system is software programmable with a frequency range of 2.0000-29.9999 MHz, in 100-Hz steps and provides for providing embedded automatic Link establishment (ALE), serial tone data modem, text messaging, GPS position reporting and anti-jam (ECCM) functions. The system is provided along with all required mounts, amplifiers, antennas, power supplies, and accessories.</P>
                <P>g. The AN/PYQ-10 Simple Key Loader (SKL) is a ruggedized, portable, hand-held fill device, for securely receiving, storing, and transferring data between compatible cryptographic and communications equipment. The AN/PYQ-10(C) Simple Key Loader (SKL) will contain the KOV-21 COMSEC card, which is a Controlled Cryptographic Item (CCI).</P>
                <P>h. The KIV-77 Identification Friend or Foe (IFF) Crypto Appliqué provides cryptographic and time-of-day services for a Combined Interrogator/Transponder (CIT) or individual interrogator or transponder Mark XIIA (Mode 4 and Mode 5) IFF system deployed to identify cooperative, friendly systems.</P>
                <P>i. The KY-100M is a self-contained terminal including Communications Security (COMSEC) that provides for secure voice and data communications in tactical airborne/ground environments. It is an integral part of the U.S Joint Services and Federal Law Enforcement Agency networks, and provides half-duplex, narrowband and wideband communications. Flexible interfaces ensure compatibility with a wide range of voice, data, radio and satellite equipment.</P>
                <P>j. The AN/APR-39C(V)1/4 Radar Warning System detects radar based rangefinders, target designators and beam rider systems targeting an aircraft or vehicle. The APR-39 is a detection component of the suite of countermeasures designed to increase survivability of current generation combat aircraft and specialized special operations aircraft against the threat posed by laser designated or guided weapons.</P>
                <P>k. The AN/AVR-2B Laser Warning Receiver detects laser rangefinders, target designators and beam rider laser-aided systems targeting an aircraft or vehicle. The AVR-2B is a detection component of the suite of countermeasures designed to increase survivability of current generation combat aircraft and specialized special operations aircraft against the threat posed by laser designated or guided weapons.</P>
                <P>l. The AAR-57 Common Missile Warning System (CMWS) is an integrated infrared (IR) countermeasures suite utilizing ultraviolet (UV) sensors to display accurate threat location and dispense decoys/countermeasures either automatically or under pilot/crew control to defeat incoming missile threats.</P>
                <P>m. Embedded Global Positioning System (GPS)/Inertial Navigation System (INS) (EGI) provides GPS and INS capabilities to the aircraft. The EGI will include Selective Availability anti-spoofing Module (SAASM) security modules to be used for secure GPS PPS if required.</P>
                <P>2. The highest level of classification of defense articles, components, and services included in this potential sale is SECRET.</P>
                <P>3. If a technologically advanced adversary were to obtain knowledge of the specific hardware and software elements, the information could be used to develop countermeasures that might reduce weapon system effectiveness or be used in the development of a system with similar or advanced capabilities.</P>
                <P>4. A determination has been made that Australia can provide substantially the same degree of protection for the sensitive technology being released as the U.S. Government. This sale is necessary in furtherance of the U.S. foreign policy and national security objectives outlined in the Policy Justification.</P>
                <P>5. All defense articles and services listed in this transmittal are authorized for release and export to the Government of Australia.</P>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14186 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2024-OS-0026]</DEPDOC>
                <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Under Secretary of Defense for Personnel and Readiness, Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <PRTPAGE P="53980"/>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD has submitted to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Reginald Lucas, (571) 372-7574, 
                        <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Statement of Ecclesiastical Endorsement, DD Form 2088; OMB Control Number 0704-0190.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Extension.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     150.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     10.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     1500.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     45 minutes.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     1,125.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     This information collection is needed to ensure that Chaplain applicants are appropriately credentialed and qualified to represent their DoD-Listed Religious-Endorsing Organization for service as chaplains in the Military Services. It also certifies the number of years of professional ministry experience for each applicant. DD Form 2088, “Statement of Ecclesiastical Endorsement,” is used to endorse that a Religious Ministry Professional is professionally credentialed and qualified to be a chaplain. It requests information about name, address, professional ministry experience, and previous military experience to be used in determining grade, date of rank, and eligibility for promotion for appointees to the chaplaincies of the armed forces.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Not-for-profit Institutions.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">OMB Desk Officer:</E>
                     Ms. Jasmeet Seehra.
                </P>
                <P>You may also submit comments and recommendations, identified by Docket ID number and title, by the following method:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal:</E>
                      
                    <E T="03">http://www.regulations.gov.</E>
                     Follow the instructions for submitting comments.
                </P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the agency name, Docket ID number, and title for this 
                    <E T="04">Federal Register</E>
                     document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                    <E T="03">http://www.regulations.gov</E>
                     as they are received without change, including any personal identifiers or contact information.
                </P>
                <P>
                    <E T="03">DOD Clearance Officer:</E>
                     Mr. Reginald Lucas.
                </P>
                <P>
                    Requests for copies of the information collection proposal should be sent to Mr. Lucas at 
                    <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                </P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14331 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Transmittal No. 22-12]</DEPDOC>
                <SUBJECT>Arms Sales Notification</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Defense Security Cooperation Agency, Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Arms sales notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD is publishing the unclassified text of an arms sales notification.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Neil Hedlund at 
                        <E T="03">neil.g.hedlund.civ@mail.mil</E>
                         or (703) 697-9214.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This 36(b)(1) arms sales notification is published to fulfill the requirements of section 155 of Public Law 104-164 dated July 21, 1996. The following is a copy of a letter to the Speaker of the House of Representatives, Transmittal 22-12 with attached Policy Justification and Sensitivity of Technology.</P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
                <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
                <GPH SPAN="3" DEEP="480">
                    <PRTPAGE P="53981"/>
                    <GID>EN28JN24.018</GID>
                </GPH>
                <BILCOD>BILLING CODE 6001-FR-C</BILCOD>
                <HD SOURCE="HD3">Transmittal No. 22-12</HD>
                <HD SOURCE="HD3">Notice of Proposed Issuance of Letter of Offer Pursuant to Section 36(b)(1) of the Arms Export Control Act, as amended</HD>
                <P>
                    (i) 
                    <E T="03">Prospective Purchaser:</E>
                     Government of Morocco
                </P>
                <P>
                    (ii) 
                    <E T="03">Total Estimated Value:</E>
                </P>
                <GPOTABLE COLS="2" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s30,xs56">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Major Defense Equipment *</ENT>
                        <ENT>$  1.9 million</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="01">Other</ENT>
                        <ENT>$139.2 million</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">TOTAL</ENT>
                        <ENT>$141.1 million</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Funding Source: National Funds</P>
                <P>
                    (iii) 
                    <E T="03">Description and Quantity or Quantities of Articles or Services under Consideration for Purchase:</E>
                </P>
                <FP SOURCE="FP-2">
                    <E T="03">Major Defense Equipment (MDE):</E>
                </FP>
                <FP SOURCE="FP1-2">Six (6) Multifunctional Information Distribution System Joint Tactical Radio Systems (MIDS-JTRS)</FP>
                <FP SOURCE="FP-2">
                    <E T="03">Non-MDE:</E>
                </FP>
                <FP SOURCE="FP1-2">Also included are KY-100M Narrowband/Wideband Terminals; KIV-78 and KIV-77 Cryptographic Appliques; AN/PYQ-10 Simple Key Loader (SKL); additional secure communications, cryptographic devices, and precision navigation equipment; unclassified and classified software, software support and support equipment; spare and repair parts; support and test equipment; publications and technical documentation; personnel training and training equipment; U.S. Government and contractor engineering; technical and logistics support services; and other related elements of logistical and program support.</FP>
                <P>
                    (iv) 
                    <E T="03">Military Department:</E>
                     Air Force (MO-D-DAC)
                </P>
                <P>
                    (v) 
                    <E T="03">Prior Related Cases, if any:</E>
                     None
                </P>
                <P>
                    (vi) 
                    <E T="03">Sales Commission, Fee, etc., Paid, Offered, or Agreed to be Paid:</E>
                     None known at this time
                </P>
                <P>
                    (vii) 
                    <E T="03">Sensitivity of Technology Contained in the Defense Article or Defense Services Proposed to be Sold:</E>
                     See Attached Annex
                </P>
                <P>
                    (viii) 
                    <E T="03">Date Report Delivered to Congress:</E>
                     August 25, 2022
                </P>
                <PRTPAGE P="53982"/>
                <P>* As defined in Section 47(6) of the Arms Export Control Act.</P>
                <HD SOURCE="HD2">POLICY JUSTIFICATION</HD>
                <HD SOURCE="HD2">Morocco—Ground Command and Control</HD>
                <P>The Government of Morocco has requested to buy six (6) Multifunctional Information Distribution System Joint Tactical Radio Systems (MIDS-JTRS). Also included are: KY-100M Narrowband/Wideband Terminals; KIV-78 and KIV-77 Cryptographic Appliques; AN/PYQ-10 Simple Key Loader (SKL); additional secure communications, cryptographic devices, and precision navigation equipment; unclassified and classified software, software support and support equipment; spare and repair parts; support and test equipment; publications and technical documentation; personnel training and training equipment; U.S. Government and contractor engineering; technical and logistics support services; and other related elements of logistical and program support. The estimated total cost is $141.1 million.</P>
                <P>This proposed sale will support the foreign policy and national security of the United States by helping to improve the security of a Major Non-NATO Ally that continues to be an important force for political stability and economic progress in North Africa.</P>
                <P>The proposed sale will improve Morocco's capability to meet current and future threats by providing timely Intelligence, Surveillance, and Reconnaissance (ISR) and target acquisition for its security and defense. The capability is a deterrent to regional threats and to strengthen its self-defense. Morocco has demonstrated a commitment to modernizing its military and will have no difficulty absorbing these articles into its armed forces.</P>
                <P>The proposed sale of this equipment and support will not alter the basic military balance in the region.</P>
                <P>The principal contractors will be General Atomic Aeronautical Systems Inc., San Diego, CA; Lockheed Martin Inc., Bethesda, MD; Raytheon Inc., Waltham, MA; and Leonardo SpA, Rome, Italy. The purchaser typically requests offsets. Any offset agreement will be defined in negotiations between the purchaser and the contractor.</P>
                <P>Implementation of this proposed sale will not require the assignment of any additional U.S. Government or contractor representatives to Morocco.</P>
                <P>There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.</P>
                <HD SOURCE="HD3">Transmittal No. 22-12</HD>
                <HD SOURCE="HD3">Notice of Proposed Issuance of Letter of Offer Pursuant to Section 36(b)(1) of the Arms Export Control Act</HD>
                <HD SOURCE="HD3">Annex</HD>
                <HD SOURCE="HD3">Item No. vii</HD>
                <P>
                    (vii) 
                    <E T="03">Sensitivity of Technology:</E>
                </P>
                <P>1. Multifunctional Information Distribution System—Joint Tactical Radio System (MIDS—JTRS) is an advanced Link-16 command, control, communications, and intelligence (C3I) system incorporating high capacity, jam-resistant, digital communication links for exchange of near real-time tactical information, including both data and voice, among air, ground, and sea elements.</P>
                <P>2. The KY-100M is a lightweight terminal for secure voice and data communications. The KY-100M provides wideband/narrowband half-duplex communication. Operating in tactical ground, marine and airborne applications, the KY-100M enables secure communication with a broad range of radio and satellite equipment.</P>
                <P>3. The KIV-78 and KIV-77 are crypto appliques for Mode 5 Identification Friend or Foe equipment. It can be loaded with Mode 5 classified elements.</P>
                <P>4. The AN/APQ-10C Simple Key Loader is a handheld fill device for securely receiving, storing, and transferring data between cryptographic and communications equipment.</P>
                <P>5. The highest level of classification of defense articles, components, and services included in this potential sale is SECRET.</P>
                <P>6. If a technologically advanced adversary were to obtain knowledge of the specific hardware and software elements, the information could be used to develop countermeasures that might reduce weapon system effectiveness or be used in the development of a system with similar or advanced capabilities.</P>
                <P>7. A determination has been made that Morocco can provide substantially the same degree of protection for the sensitive technology being released as the U.S. Government. This sale is necessary in furtherance of the U.S. foreign policy and national security objectives outlined in the Policy Justification.</P>
                <P>8. All defense articles and services listed in this transmittal have been authorized for release and export to the Government of Morocco.</P>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14187 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2022-OS-0113]</DEPDOC>
                <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Under Secretary of Defense for Personnel and Readiness (OUSD(P&amp;R)), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD has submitted to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Reginald Lucas, (571) 372-7574, 
                        <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Prevention Workforce Evaluation; DoD-wide Data Collection and Analysis for the Department of Defense Qualitative and Quantitative Data Collection in Support of the Independent Review Commission on Sexual Assault Recommendations; OMB Control Number 0704-0644.
                </P>
                <P>
                    <E T="03">Type of request:</E>
                     Revision.
                </P>
                <P>
                    <E T="03">Number of respondents:</E>
                     12,324.
                </P>
                <P>
                    <E T="03">Responses per respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual responses:</E>
                     12,324.
                </P>
                <P>
                    <E T="03">Average burden per response:</E>
                     1 hour.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     12,324.
                </P>
                <P>
                    <E T="03">Needs and uses:</E>
                     The Independent Review Commission on Sexual Assault in the Military recommended that the Department establish a prevention workforce model (Recommendation 2.2a) and an integrated primary prevention workforce (IPPW, Recommendation 2.2c), and this recommendation was endorsed by Secretary of Defense as a priority for DoD. To that end, the DoD is planning to hire a new Integrated Primary Prevention Workforce (IPPW) of approximately 2,000 personnel. Following the approval of the model, 
                    <PRTPAGE P="53983"/>
                    the OUSD(P&amp;R) directed an evaluation of the new workforce to assess its implementation. The OUSD(P&amp;R) within the DoD is requesting OMB clearance to evaluate the how well the IPPW was established and the quality of the prevention activities they implement. This evaluation will collect a variety of information about the IPPW and their activities (Hiring numbers of the IPPW, online IPP Personnel Survey, Case Studies, Supervisor/Leader Interviews, and Integrated Primary Prevention Activity Tracker). This data will be used to improve the implementation of integrated primary prevention activities within DoD. Information collection efforts will align to the IRC Line of Effort 2—Prevention.
                </P>
                <P>
                    <E T="03">Affected public:</E>
                     DoD Service members, DoD civilians.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Annual.
                </P>
                <P>
                    <E T="03">Respondent's obligation</E>
                    : Voluntary.
                </P>
                <P>
                    <E T="03">OMB Desk Officer:</E>
                     Ms. Jasmeet Seehra.
                </P>
                <P>You may also submit comments and recommendations, identified by Docket ID number and title, by the following method:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal:</E>
                      
                    <E T="03">http://www.regulations.gov.</E>
                     Follow the instructions for submitting comments.
                </P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the agency name, Docket ID number, and title for this 
                    <E T="04">Federal Register</E>
                     document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                    <E T="03">http://www.regulations.gov</E>
                     as they are received without change, including any personal identifiers or contact information.
                </P>
                <P>
                    <E T="03">DOD Clearance Officer:</E>
                     Mr. Reginald Lucas.
                </P>
                <P>
                    Requests for copies of the information collection proposal should be sent to Mr. Lucas at 
                    <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                </P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14322 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Transmittal No. 22-44]</DEPDOC>
                <SUBJECT>Arms Sales Notification</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Defense Security Cooperation Agency, Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Arms sales notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD is publishing the unclassified text of an arms sales notification.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Neil Hedlund at 
                        <E T="03">neil.g.hedlund.civ@mail.mil</E>
                         or (703) 697-9214.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This 36(b)(1) arms sales notification is published to fulfill the requirements of section 155 of Public Law 104-164 dated July 21, 1996. The following is a copy of a letter to the Speaker of the House of Representatives, Transmittal 22-44 with attached Policy Justification.</P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
                <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
                <GPH SPAN="3" DEEP="480">
                    <PRTPAGE P="53984"/>
                    <GID>EN28JN24.016</GID>
                </GPH>
                <BILCOD>BILLING CODE 6001-FR-C</BILCOD>
                <HD SOURCE="HD3">Transmittal No. 22-44</HD>
                <HD SOURCE="HD3">Notice of Proposed Issuance of Letter of Offer Pursuant to Section 36(b)(1) of the Arms Export Control Act, as amended</HD>
                <P>
                    (i) 
                    <E T="03">Prospective Purchaser:</E>
                     Taipei Economic and Cultural Representative Office in the United States (TECRO)
                </P>
                <P>
                    (ii) 
                    <E T="03">Total Estimated Value:</E>
                </P>
                <GPOTABLE COLS="2" OPTS="L0,tp0,p0,8/9,g1,t1,i1" CDEF="s30,xs56">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Major Defense Equipment *</ENT>
                        <ENT>$  0.0 million</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="01">Other</ENT>
                        <ENT>$665.4 million</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">TOTAL</ENT>
                        <ENT>$665.4 million</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Funding Source: National Funds</P>
                <P>
                    (iii) 
                    <E T="03">Description and Quantity or Quantities of Articles or Services under Consideration for Purchase:</E>
                </P>
                <FP SOURCE="FP-2">
                    <E T="03">Major Defense Equipment (MDE):</E>
                </FP>
                <FP SOURCE="FP1-2">None</FP>
                <FP SOURCE="FP-2">
                    <E T="03">Non-MDE:</E>
                </FP>
                <FP SOURCE="FP1-2">Follow-on Contractor Logistics Support (CLS) for the Surveillance Radar Program (SRP); program management; minor modifications and upgrades; spares and repair/return parts; publications and technical documentation; and U.S. Government and contractor engineering, technical and logistics support services, studies and surveys, as well as other related elements of logistical and program support.</FP>
                <P>
                    (iv) 
                    <E T="03">Military Department:</E>
                     Air Force (TW-D-QBA)
                </P>
                <P>
                    (v) 
                    <E T="03">Prior Related Cases, if any:</E>
                     TW-D-QAQ, TW-D-QAI, TW-D-DAH
                </P>
                <P>
                    (vi) 
                    <E T="03">Sales Commission, Fee, etc., Paid, Offered, or Agreed to be Paid:</E>
                     None known at this time
                </P>
                <P>
                    (vii) 
                    <E T="03">Sensitivity of Technology Contained in the Defense Article or Defense Services Proposed to be Sold:</E>
                     None
                </P>
                <P>
                    (viii) 
                    <E T="03">Date Report Delivered to Congress:</E>
                     September 2, 2022
                </P>
                <P>
                    * As defined in Section 47(6) of the Arms Export Control Act.
                    <PRTPAGE P="53985"/>
                </P>
                <HD SOURCE="HD2">POLICY JUSTIFICATION</HD>
                <HD SOURCE="HD2">Taipei Economic and Cultural Representative Office in the United States—Contract Logistics Support for Surveillance Radar Program (SRP)</HD>
                <P>The Taipei Economic and Cultural Representative Office in the United States (TECRO) has requested to buy follow-on Contractor Logistics Support (CLS) for the Surveillance Radar Program (SRP); program management; minor modifications and upgrades; spares and repair/return parts; publications and technical documentation; and U.S. Government and contractor engineering, technical and logistics support services, studies and surveys, as well as other related elements of logistical and program support. The estimated total cost is $665.4 million.</P>
                <P>This proposed sale is consistent with U.S. law and policy as expressed in Public Law 96-8.</P>
                <P>This proposed sale serves U.S. national, economic, and security interests by supporting the recipient's continuing efforts to modernize its armed forces and to maintain a credible defensive capability. The proposed sale will help improve the security of the recipient and assist in maintaining political stability, military balance, and economic progress in the region.</P>
                <P>The proposed sale will improve the recipient's capability to meet current and future threats by ensuring continued operability of its Surveillance Radar Program (SRP), which provides improved situational awareness and threat warning capabilities critical to regional security. The recipient will have no difficulty absorbing these services into its armed forces.</P>
                <P>The proposed sale of this equipment and support will not alter the basic military balance in the region.</P>
                <P>The principal contractor will be Raytheon Technologies, Andover, MA. There are no known offset agreements proposed in connection with this potential sale.</P>
                <P>Implementation of this proposed sale may require assignment of U.S. contractors to recipient in support of the technical refresh actions during the sustainment contract. The number of contractors and duration of assignment will be determined during contract negotiations. It is anticipated that this sale will not require assignment of additional U.S. Government representatives.</P>
                <P>There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.</P>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14188 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Department of the Army, Corps of Engineers</SUBAGY>
                <DEPDOC>[Permit No. NAN-2022-00776]</DEPDOC>
                <SUBJECT>Notice of Final Federal Agency Action on the Authorization for the Sunrise Wind Energy Project Offshore New York</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of the Army, U.S. Army Corps of Engineers, DoD.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of limitation on claims for judicial review of actions by the U.S. Army Corps of Engineers (USACE).</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>USACE announces final agency action on the USACE authorization for the proposed construction and maintenance of the Sunrise Wind project offshore of Massachusetts, Rhode Island, and New York. USACE has issued a permit authorizing the construction and maintenance of the Sunrise Wind project under section 10 of the Rivers and Harbors Act of 1899 (RHA), section 404 of the Clean Water Act (CWA), and section 14 of the Rivers and Harbors Act of 1899. The Sunrise Wind project is a “covered project” under title 41 of the Fixing America's Surface Transportation Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>A claim seeking judicial review of the USACE authorization of construction and maintenance of the Sunrise Wind project will be barred unless the claim is filed not later than two years after this notice's publication date. If the Federal law that allows for judicial review of the USACE authorization specifies a shorter time period for filing such a claim, then that shorter time period will apply.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. Christopher Minck, Regulatory Project Manager, Regulatory Branch, USACE, New York District, 26 Federal Plaza, New York, New York 10278, (917) 790-8511 or 
                        <E T="03">cenan.publicnotice@usace.army.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Notice is hereby given that USACE has taken final agency action on its authorization for the proposed Sunrise Wind project by issuing a permit authorizing construction and maintenance of the project under section 10 of the RHA, section 404 of the CWA, and section 14 of the Rivers and Harbors Act of 1899. The majority of the authorized work will occur in the Atlantic Ocean within Bureau of Ocean Energy Management (BOEM) Renewable Energy Lease Area OCS-0487, which is approximately 18.9 miles south of Martha's Vineyard, Massachusetts, approximately 30.5 miles east of Montauk, New York, and approximately 16.7 miles from Block Island, Rhode Island.</P>
                <P>The work authorized under the USACE permit includes the following: (1) installation of up to eighty-four (84) wind turbine generators (WTGs) and one (1) offshore converter substation (OCS-DC) with associated scour protection, (2) installation of approximately 180 nautical miles of inter-array cables connecting the WTGs and the OCS-DC with associated secondary cable protection, (3) installation of up to 2 export transmission cables with associated secondary cable protection within an approximately 104.6 mile long offshore export cable corridor extending from the lease area to the cable landfall location at the Smith Point County Park on Fire Island in Town of Brookhaven, Suffolk County, New York, (4) an approximately 17.5 mile onshore export cable route from Smith Point County Park to the Holbrook Substation in the Town of Brookhaven, NY including two submarine cable crossings, and (5) construction of a temporary fixed pier on the Intracoastal Waterway.</P>
                <P>
                    The USACE's decision to issue a permit for the Sunrise Wind project, and the laws under which the action was taken, are described in the Sunrise Wind Final Environmental Impact Statement (FEIS) published by BOEM on December 15, 2023, in the BOEM Record of Decision (ROD) issued on March 26, 2024, and in other project records including USACE's ROD dated May 20, 2024. The BOEM FEIS, ROD, and other documents can be viewed and downloaded from the BOEM project website at 
                    <E T="03">https://www.boem.gov/renewable-energy/state-activities/sunrise-wind.</E>
                     The USACE permit and ROD can be viewed and downloaded from the USACE website at 
                    <E T="03">https://www.nan.usace.army.mil/Missions/Regulatory/Commonly-Requested-Issued-Permits-and-Nationwide-Permit-Verifications/.</E>
                     By this notice, USACE is advising the public of final agency action subject to 42 U.S.C. 4370m-6(a)(1)(A).
                </P>
                <P>
                    <E T="03">Authority:</E>
                     42 U.S.C. 4370m-6(a)(1)(A).
                </P>
                <SIG>
                    <NAME>John P. Lloyd,</NAME>
                    <TITLE>Brigadier General, USA, Commanding.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14236 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3720-58-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="53986"/>
                <AGENCY TYPE="N">DEPARTMENT OF EDUCATION</AGENCY>
                <SUBJECT>Financial Value Transparency and Gainful Employment: List of Approved Classification of Instructional Program (CIP) Codes for Qualifying Graduate Programs</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Postsecondary Education, Department of Education.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Secretary announces the list of applicable CIP codes for qualifying graduate programs that have an extended earnings measurement period under the Financial Value Transparency and Gainful Employment regulations.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        The list of CIP codes published in this notice apply to the first three award years that the Secretary calculates debt-to-earnings (D/E) rates and the earnings premium (EP) measure under subpart Q of 34 CFR part 668. This period is established under the regulatory definition of 
                        <E T="03">Qualifying graduate program</E>
                         at § 668.2(b) as the “initial period,” and includes the 2023-2024, 2024-2025, and 2025-2026 award years.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Joseph Massman, U.S. Department of Education. Email: 
                        <E T="03">joe.massman@ed.gov.</E>
                    </P>
                    <P>If you are deaf, hard of hearing, or have a speech disability and wish to access telecommunications relay services, please dial 7-1-1.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>On October 10, 2023, the U.S. Department of Education (Department) published final regulations on Financial Value Transparency (FVT) and Gainful Employment (GE), which become effective July 1, 2024 (88 FR 70004). These regulations, in part, (1) Establish a transparency framework to provide information about financial costs and benefits to students at nearly all academic programs at postsecondary institutions that are eligible to participate in the student assistance programs authorized under title IV of the Higher Education Act of 1965, as amended (HEA); and (2) Establish an eligibility framework for postsecondary educational programs designed to prepare students for gainful employment in a recognized occupation. Both the transparency and accountability frameworks rely upon D/E rates and an EP measure, as established under §§ 668.403 and 668.404 respectively, to assess debt and earnings outcomes for postsecondary program graduates.</P>
                <P>
                    The calculation of these metrics is based, in part, on the earnings of a cohort of graduates measured several years after program completion. The 
                    <E T="03">cohort period,</E>
                     as defined under § 668.2(b), is the set of award years used to identify a group of students who completed a program and whose debt and earnings outcomes are used to calculate the D/E rates and EP measure. The specific years included in the cohort period used in calculating D/E and EP metrics for a given program depend, in part, upon whether the program is a qualifying graduate program, as separately defined under § 668.2(b) 
                    <E T="03">Qualifying graduate program.</E>
                </P>
                <P>In developing the regulations, the Department recognized that certain graduate programs, mostly concentrated in medical and clinical fields, are associated with an initial period of depressed graduate earnings while graduates complete a required period of postgraduate clinical or residency work necessary to obtain a professional licensure, after which graduates realize significant earnings growth. For purposes of calculating the D/E rates and EP measure, the Department therefore extends the earnings measurement period for such qualifying graduate programs, when compared to other postsecondary programs. As an example, a two-year cohort period for most programs would be the third and fourth award years prior to the year of the most recent earnings data used in the calculation. In contrast, the two-year cohort period for a qualifying graduate program would be the sixth and seventh award years prior to the year of the earnings data, meaning that income is measured three years farther out after graduation for completers of such programs. These cohorts are used to measure earnings for both the standard and transitional reporting options under the FVT/GE regulations.</P>
                <P>To be treated as a qualifying graduate program, a program must meet three specific and rigorous criteria. First, the program must be identified under the CIP code list below as being potentially eligible to be considered a qualified graduate program. Second, the program must be one whose students must complete a ”required postgraduation training program” to obtain licensure, which is a supervised training program that (1) requires the student to hold a degree in one of the qualifying fields and (2) must be completed before the student may be licensed by a State and board certified for professional practice or service. Third, the institution must attest that at least half of the program's graduates obtain licensure in a State where the postgraduation training requirements apply, and that, if necessary for licensure, the graduate program is accredited by an accrediting agency that meets State requirements. For the first criterion, paragraph (1)(i)(A) of the regulatory definition of a qualifying graduate program at § 668.2(b) provides a generalized list of occupations for qualifying graduate programs, which will apply to the first three award years the Department calculates the D/E rates and EP measure. The qualifying fields for this initial period include medicine, osteopathy, dentistry, clinical psychology, marriage and family counseling, clinical social work, and clinical counseling.</P>
                <P>The National Center for Education Statistics provides a taxonomy of instructional program classifications and descriptions, most recently updated in 2020, known as CIP codes. For purposes of the FVT and GE regulations, specific programs offered by institutions are classified using a six-digit CIP code.</P>
                <P>Consistent with this regulatory definition, the Secretary identifies the following graduate programs under their respective CIP codes as being potentially eligible to be considered a qualified graduate program, conditional on meeting all other required criteria:</P>
                <HD SOURCE="HD1">Medicine, Osteopathy, Dentistry</HD>
                <FP SOURCE="FP-1">• 14.0501: Biomedical/Medical Engineering</FP>
                <FP SOURCE="FP-1">• 26.0101: Biology/Biological Services, General</FP>
                <FP SOURCE="FP-1">• 26.0102: Biomedical Sciences, General</FP>
                <FP SOURCE="FP-1">• 26.0202: Biochemistry</FP>
                <FP SOURCE="FP-1">• 26.0204: Molecular Biology</FP>
                <FP SOURCE="FP-1">• 26.0205: Molecular Biochemistry</FP>
                <FP SOURCE="FP-1">• 26.0207: Structural Biology</FP>
                <FP SOURCE="FP-1">• 26.0208: Photobiology</FP>
                <FP SOURCE="FP-1">• 26.0209: Radiation Biology/Radiobiology</FP>
                <FP SOURCE="FP-1">• 26.0210: Biochemistry/Biophysics and Molecular Biology</FP>
                <FP SOURCE="FP-1">• 26.0299: Biochemistry, Biophysics and Molecular Biology, Other</FP>
                <FP SOURCE="FP-1">• 26.0401: Cell/Cellular Biology and Histology</FP>
                <FP SOURCE="FP-1">• 26.0403: Anatomy</FP>
                <FP SOURCE="FP-1">• 26.0404: Developmental Biology and Embryology</FP>
                <FP SOURCE="FP-1">• 26.0406: Cell/Cellular and Molecular Biology</FP>
                <FP SOURCE="FP-1">• 26.0407: Cell Biology and Anatomy</FP>
                <FP SOURCE="FP-1">• 26.0499: Cell/Cellular Biology and Anatomical Sciences, Other</FP>
                <FP SOURCE="FP-1">• 26.0502: Microbiology, General</FP>
                <FP SOURCE="FP-1">• 26.0503: Medical Microbiology and Bacteriology</FP>
                <FP SOURCE="FP-1">• 26.0504: Virology</FP>
                <FP SOURCE="FP-1">• 26.0505: Parasitology</FP>
                <FP SOURCE="FP-1">• 26.0506: Mycology</FP>
                <FP SOURCE="FP-1">• 26.0507: Immunology</FP>
                <FP SOURCE="FP-1">• 26.0508: Microbiology and Immunology</FP>
                <FP SOURCE="FP-1">
                    • 26.0599: Microbiological Sciences and Immunology, Other
                    <PRTPAGE P="53987"/>
                </FP>
                <FP SOURCE="FP-1">• 26.0801: Genetics, General</FP>
                <FP SOURCE="FP-1">• 26.0802: Molecular Genetics</FP>
                <FP SOURCE="FP-1">• 26.0806: Human/Medical Genetics</FP>
                <FP SOURCE="FP-1">• 26.0807: Genome Sciences/Genomics</FP>
                <FP SOURCE="FP-1">• 26.0899: Genetics, Other</FP>
                <FP SOURCE="FP-1">• 26.0901: Physiology, General</FP>
                <FP SOURCE="FP-1">• 26.0902: Molecular Physiology</FP>
                <FP SOURCE="FP-1">• 26.0903: Cell Physiology</FP>
                <FP SOURCE="FP-1">• 26.0904: Endocrinology</FP>
                <FP SOURCE="FP-1">• 26.0905: Reproductive Biology</FP>
                <FP SOURCE="FP-1">• 26.0907: Cardiovascular Science</FP>
                <FP SOURCE="FP-1">• 26.0908: Exercise Physiology</FP>
                <FP SOURCE="FP-1">• 26.0909: Vision Science/Physiological Optics</FP>
                <FP SOURCE="FP-1">• 26.0910: Pathology/Experimental Pathology</FP>
                <FP SOURCE="FP-1">• 26.0911: Oncology and Cancer Biology</FP>
                <FP SOURCE="FP-1">• 26.0912: Aerospace Physiology and Medicine</FP>
                <FP SOURCE="FP-1">• 26.0999: Physiology, Pathology, and Related Sciences, Other</FP>
                <FP SOURCE="FP-1">• 26.1001: Pharmacology</FP>
                <FP SOURCE="FP-1">• 26.1002: Molecular Pharmacology</FP>
                <FP SOURCE="FP-1">• 26.1003: Neuropharmacology</FP>
                <FP SOURCE="FP-1">• 26.1004: Toxicology</FP>
                <FP SOURCE="FP-1">• 26.1005: Molecular Toxicology</FP>
                <FP SOURCE="FP-1">• 26.1006: Environmental Toxicology</FP>
                <FP SOURCE="FP-1">• 26.1007: Pharmacology and Toxicology</FP>
                <FP SOURCE="FP-1">• 26.1099: Pharmacology and Toxicology, Other</FP>
                <FP SOURCE="FP-1">• 26.1101: Biometry/Biometrics</FP>
                <FP SOURCE="FP-1">• 26.1102: Biostatistics</FP>
                <FP SOURCE="FP-1">• 26.1103: Bioinformatics</FP>
                <FP SOURCE="FP-1">• 26.1199: Biomathematics and Bioinformatics, Other</FP>
                <FP SOURCE="FP-1">• 26.1201: Biotechnology</FP>
                <FP SOURCE="FP-1">• 26.1306: Population Biology</FP>
                <FP SOURCE="FP-1">• 26.1309: Epidemiology</FP>
                <FP SOURCE="FP-1">• 26.1399: Ecology, Evolution, Systematics and Population Biology, Other</FP>
                <FP SOURCE="FP-1">• 26.1401: Molecular Medicine</FP>
                <FP SOURCE="FP-1">• 26.1501: Neuroscience</FP>
                <FP SOURCE="FP-1">• 26.1502: Neuroanatomy</FP>
                <FP SOURCE="FP-1">• 26.1503: Neurobiology and Neurophysiology</FP>
                <FP SOURCE="FP-1">• 26.1504: Neurobiology and Behavior</FP>
                <FP SOURCE="FP-1">• 26.1599: Neurobiology and Neurosciences, Other</FP>
                <FP SOURCE="FP-1">• 26.9999: Biological and Biomedical Sciences, Other</FP>
                <FP SOURCE="FP-1">• 30.1001: Biopsychology</FP>
                <FP SOURCE="FP-1">• 30.1101: Gerontology</FP>
                <FP SOURCE="FP-1">• 30.1901: Nutrition Sciences</FP>
                <FP SOURCE="FP-1">• 51.0000: Health Services/Allied Health/Health Sciences, General</FP>
                <FP SOURCE="FP-1">• 51.0001: Health and Wellness, General</FP>
                <FP SOURCE="FP-1">• 51.0101: Chiropractic (DC)</FP>
                <FP SOURCE="FP-1">• 51.0201: Communication Disorders, General</FP>
                <FP SOURCE="FP-1">• 51.0202: Audiology/Audiologist and Hearing Services</FP>
                <FP SOURCE="FP-1">• 51.0203: Speech-Language Pathology/Pathologist</FP>
                <FP SOURCE="FP-1">• 51.0204: Audiology/Audiologist and Speech-Language Pathology/Pathologist</FP>
                <FP SOURCE="FP-1">• 51.0299: Communication Disorders Sciences and Services, Other</FP>
                <FP SOURCE="FP-1">• 51.0401: Dentistry (DDS, DMD)</FP>
                <FP SOURCE="FP-1">• 51.0501: Dental Clinical Sciences, General (MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.0502: Advanced General Dentistry (Cert, MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.0503: Oral Biology and Oral Pathology (MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.0504: Dental Public Health and Education (Cert., MS/MPH, Ph.D./DPH)</FP>
                <FP SOURCE="FP-1">• 51.0505: Dental Materials (MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.0506: Endodontics/Endodontology (Cert., MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.0507: Oral/Maxillofacial Surgery (Cert., MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.0508: Orthodontics/Orthodontology (Cert., MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.0509: Pediatric Dentistry/Pedodontics (Cert., MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.0510: Periodontics/Periodontology (Cert., MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.0511: Prosthodontics/Prosthodontology (Cert., MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.0599: Advanced/Graduate Dentistry and Oral Sciences, Other</FP>
                <FP SOURCE="FP-1">• 51.0912: Physician Assistant</FP>
                <FP SOURCE="FP-1">• 51.1201: Medicine (MD)</FP>
                <FP SOURCE="FP-1">• 51.1401: Medical Scientist (MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.1701: Optometry (OD)</FP>
                <FP SOURCE="FP-1">• 51.1901: Osteopathic Medicine/Osteopathy (DO)</FP>
                <FP SOURCE="FP-1">• 51.2001: Pharmacy (PharmD [USA], PharmD or BS/BPharm [Canada])</FP>
                <FP SOURCE="FP-1">• 51.2002: Pharmacy Administration and Pharmacy Policy and Regulatory Affairs (MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.2004: Medicinal and Pharmaceutical Chemistry (MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.2008: Clinical, Hospital, and Managed Care Pharmacy (MS, Ph.D.)</FP>
                <FP SOURCE="FP-1">• 51.2010: Pharmaceutical Sciences</FP>
                <FP SOURCE="FP-1">• 51.2099: Pharmacy, Pharmaceutical Sciences, and Administration, Other</FP>
                <FP SOURCE="FP-1">• 51.2101: Podiatric Medicine/Podiatry (DPM)</FP>
                <FP SOURCE="FP-1">• 51.2314: Rehabilitation Science</FP>
                <FP SOURCE="FP-1">• 51.2399: Rehabilitation and Therapeutic Professions, Other</FP>
                <FP SOURCE="FP-1">• 51.3101: Dietetics/Dietician (RD)</FP>
                <FP SOURCE="FP-1">• 51.3199: Dietetics and Clinical Nutrition Services, Other</FP>
                <FP SOURCE="FP-1">• 51.9999: Health Professions and Related Clinical Sciences, Other</FP>
                <HD SOURCE="HD1">Clinical Psychology, Marriage and Family Counseling, Clinical Social Work, Clinical Counseling</HD>
                <FP SOURCE="FP-1">• 13.1101: Counselor Education/School Counseling and Guidance Services</FP>
                <FP SOURCE="FP-1">• 19.0701: Human Development and Family Studies, General</FP>
                <FP SOURCE="FP-1">• 19.0704: Family Systems</FP>
                <FP SOURCE="FP-1">• 19.0707: Family and Community Services</FP>
                <FP SOURCE="FP-1">• 19.0710: Developmental Services Worker</FP>
                <FP SOURCE="FP-1">• 19.0799: Human Development, Family Studies, and Related Services, Other</FP>
                <FP SOURCE="FP-1">• 30.1001: Biopsychology</FP>
                <FP SOURCE="FP-1">• 30.1701: Behavioral Sciences</FP>
                <FP SOURCE="FP-1">• 30.2501: Cognitive Science</FP>
                <FP SOURCE="FP-1">• 42.0101: Psychology, General</FP>
                <FP SOURCE="FP-1">• 42.2701: Cognitive Psychology and Psycholinguistics</FP>
                <FP SOURCE="FP-1">• 42.2702: Comparative Psychology</FP>
                <FP SOURCE="FP-1">• 42.2703: Developmental and Child Psychology</FP>
                <FP SOURCE="FP-1">• 42.2704: Experimental Psychology</FP>
                <FP SOURCE="FP-1">• 42.2705: Personality Psychology</FP>
                <FP SOURCE="FP-1">• 42.2706: Physiological Psychology/Psychobiology</FP>
                <FP SOURCE="FP-1">• 42.2707: Social Psychology</FP>
                <FP SOURCE="FP-1">• 42.2708: Psychometrics and Quantitative Psychology</FP>
                <FP SOURCE="FP-1">• 42.2709: Psychopharmacology</FP>
                <FP SOURCE="FP-1">• 42.2799: Research and Experimental Psychology, Other</FP>
                <FP SOURCE="FP-1">• 42.2801: Clinical Psychology</FP>
                <FP SOURCE="FP-1">• 42.2802: Community Psychology</FP>
                <FP SOURCE="FP-1">• 42.2803: Counseling Psychology</FP>
                <FP SOURCE="FP-1">• 42.2804: Industrial and Organizational Psychology</FP>
                <FP SOURCE="FP-1">• 42.2805: School Psychology</FP>
                <FP SOURCE="FP-1">• 42.2806: Educational Psychology</FP>
                <FP SOURCE="FP-1">• 42.2807: Clinical Child Psychology</FP>
                <FP SOURCE="FP-1">• 42.2808: Environmental Psychology</FP>
                <FP SOURCE="FP-1">• 42.2809: Geropsychology</FP>
                <FP SOURCE="FP-1">• 42.2810: Health/Medical Psychology</FP>
                <FP SOURCE="FP-1">• 42.2811: Family Psychology</FP>
                <FP SOURCE="FP-1">• 42.2812: Forensic Psychology</FP>
                <FP SOURCE="FP-1">• 42.2813: Applied Psychology</FP>
                <FP SOURCE="FP-1">• 42.2814: Applied Behavior Analysis</FP>
                <FP SOURCE="FP-1">• 42.2899: Clinical, Counseling and Applied Psychology, Other</FP>
                <FP SOURCE="FP-1">• 42.9999: Psychology, Other</FP>
                <FP SOURCE="FP-1">• 44.0701: Social Work</FP>
                <FP SOURCE="FP-1">• 44.0702: Youth Services/Administration</FP>
                <FP SOURCE="FP-1">• 44.0799: Social Work, Other</FP>
                <FP SOURCE="FP-1">• 51.1501: Substance Abuse/Addiction Counseling</FP>
                <FP SOURCE="FP-1">• 51.1503: Clinical/Medical Social Work</FP>
                <FP SOURCE="FP-1">• 51.1504: Community Health Services/Liaison/Counseling</FP>
                <FP SOURCE="FP-1">• 51.1505: Marriage and Family Therapy/Counseling</FP>
                <FP SOURCE="FP-1">• 51.1506: Clinical Pastoral Counseling/Patient Counseling</FP>
                <FP SOURCE="FP-1">• 51.1507: Psychoanalysis and Psychotherapy</FP>
                <FP SOURCE="FP-1">• 51.1508: Mental Health Counseling/Counselor</FP>
                <FP SOURCE="FP-1">• 51.1509: Genetic Counseling/Counselor</FP>
                <FP SOURCE="FP-1">• 51.1599: Mental and Social Health Sciences and Allied Professions, Other</FP>
                <P>
                    As further described in the regulatory definition of a qualifying graduate program, the above list of eligible professions applies only to the initial three award years the Department 
                    <PRTPAGE P="53988"/>
                    calculates the D/E and EP metrics. Following this initial period, and every three award years thereafter, the Secretary will publish an updated list of CIP codes that contains qualifying graduate programs, identifying fields that lead to a graduate degree for which graduates must complete postgraduate training programs averaging at least three years to complete and for which the Secretary determines that a majority of programs demonstrate outlier earnings growth.
                </P>
                <P>
                    <E T="03">Accessible Format:</E>
                     On request to the program contact person listed under 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    , individuals with disabilities can obtain this document in an accessible format. The Department will provide the requestor with an accessible format that may include Rich Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, braille, large print, audiotape, or compact disc, or other accessible format.
                </P>
                <P>
                    <E T="03">Electronic Access to This Document:</E>
                     The official version of this document is the document published in the 
                    <E T="04">Federal Register</E>
                    . You may access the official edition of the 
                    <E T="04">Federal Register</E>
                     and the Code of Federal Regulations at 
                    <E T="03">www.govinfo.gov.</E>
                     At this site, you can view this document, as well as all other documents of this Department published in the 
                    <E T="04">Federal Register</E>
                    , in text or Portable Document Format (PDF). To use PDF, you must have Adobe Acrobat Reader, which is available free at this site.
                </P>
                <P>
                    You may also access documents of the Department published in the 
                    <E T="04">Federal Register</E>
                     by using the article search feature at 
                    <E T="03">www.federalregister.gov.</E>
                     Specifically, through the advanced search feature at this site, you can limit your search to documents published by the Department.
                </P>
                <P>
                    <E T="03">Program Authority:</E>
                     20 U.S.C. 1087 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <NAME>Nasser Paydar,</NAME>
                    <TITLE>Assistant Secretary for the Office of Postsecondary Education.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14217 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4000-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF EDUCATION</AGENCY>
                <SUBJECT>Presidential Advisory Commission on Advancing Educational Equity, Excellence, and Economic Opportunity for Black Americans</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>White House Initiative on Advancing Educational Equity, Excellence, and Economic Opportunity for Black Americans, Office of the Secretary, Department of Education.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Announcement of an open meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This notice sets forth the agenda for the July 18, 2024, open meeting of the Presidential Advisory Commission on Advancing Educational Equity, Excellence, and Economic Opportunity for Black Americans (PAC) and provides information to members of the public about how to attend the meeting and submit written comments related to the work of the PAC.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The PAC will meet on July 18, 2024, from 10:00 a.m. to 1:00 p.m. E.D.T.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The meeting will occur virtually.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Monique Toussaint, Designated Federal Official, U.S. Department of Education, White House Initiative on Advancing Educational Equity, Excellence, and Economic Opportunity for Black Americans, 400 Maryland Avenue SW, Washington, DC 20202; email 
                        <E T="03">monique.toussaint@ed.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    <E T="03">PAC's Statutory Authority and Function:</E>
                     The PAC is established by Executive Order 14050 (October 19, 2021) and is continued by Executive Order 14109 (September 29, 2023). The PAC is governed by the provisions of 5 U.S.C. chapter 10, which sets forth standards for the formation and use of advisory committees. The purpose of the PAC is to advise the President, through the Secretary of the U.S. Department of Education, on all matters pertaining to advancing educational equity, excellence, and economic opportunity for Black Americans and communities.
                </P>
                <P>The PAC advises the President in the following areas: (i) what is needed for the development, implementation, and coordination of educational programs and initiatives at the Department and other agencies to improve educational opportunities and outcomes for Black Americans; (ii) how to promote career pathways for in-demand jobs for Black students, including registered apprenticeships, internships, fellowships, mentorships, and work-based learning initiatives; (iii) how to increase public awareness of and generate solutions for the educational and training challenges and equity disparities that Black Americans face and the causes of these challenges; and (iv) approaches to establish local and national partnerships with public, private, philanthropic, and nonprofit stakeholders to advance the mission and objectives of Executive Order 14050, consistent with applicable law. Notice of the meeting is required by 5 U.S.C. chapter 10 (Federal Advisory Committees) and is intended to notify the public of its opportunity to attend.</P>
                <P>
                    <E T="03">Meeting Agenda:</E>
                     On July 18, 2024, the meeting agenda will include welcome remarks; voting on Commission business, as needed; working group updates on the policy papers; presentations by subject matter experts on topics that reflect the priorities outlined in the Executive Order; and a group discussion. Members of the public should follow the instructions below for submitting written comment prior to the meeting.
                </P>
                <P>
                    <E T="03">Access to the Meeting:</E>
                     An RSVP is required in order to attend the meeting virtually. Please RSVP at 
                    <E T="03">https://sites.ed.gov/whblackinitiative/our-commission/.</E>
                     RSVPs must be received by 5:00 p.m. E.D.T. on July 15, 2024. Members of the public that RSVP will get information on how to attend the meeting virtually.
                </P>
                <P>
                    <E T="03">Submission of written comments</E>
                    : The public may submit written comments pertaining to the work of the PAC no later than 5:00 p.m. E.D.T. on July 15, 2024. Written comments must be submitted via the registration site or to the 
                    <E T="03">whblackinitiative@ed.gov</E>
                     mailbox and include in the subject line “PAC Public Comment.” The email must include the name(s), title, organization/affiliation, mailing address, email address, and telephone number, of the person(s) making the comment. Comments should be submitted as a Microsoft Word document or in a medium compatible with Microsoft Word (not a PDF file) that is attached to an electronic mail message (email) or provided in the body of an email message. Please do not send material directly to the PAC members.
                </P>
                <P>
                    <E T="03">Access to Records of the Meeting:</E>
                     The Department will post the official report of the meeting on the Initiative's website no later than 90 days after the meeting. Pursuant to 5 U.S.C. 1009, the public may also inspect the meeting materials and other PAC records at 400 Maryland Avenue SW, Washington, DC, by emailing 
                    <E T="03">whblackinitiative@ed.gov</E>
                     to schedule an appointment.
                </P>
                <P>
                    <E T="03">Reasonable Accommodations:</E>
                     The meeting platform is accessible to individuals with disabilities. If you will need an auxiliary aid or service to participate in the meeting (
                    <E T="03">e.g.,</E>
                     interpreting service, assistive listening device, or materials in an alternate format), notify the contact person listed in this notice at least one week before the meeting date. Although we will attempt to meet a request received after that date, we may not be able to make available the requested auxiliary aid or 
                    <PRTPAGE P="53989"/>
                    service because of insufficient time to arrange it.
                </P>
                <P>
                    <E T="03">Electronic Access to this Document:</E>
                     The official version of this document is the document published in the 
                    <E T="04">Federal Register</E>
                    . Free internet access to the official edition of the 
                    <E T="04">Federal Register</E>
                     and the Code of Federal Regulations is available via the Federal Digital System at: 
                    <E T="03">www.gpo.gov/fdsys.</E>
                     At this site you can view this document, as well as all other documents of this Department published in the 
                    <E T="04">Federal Register</E>
                    , in text or Adobe Portable Document Format (PDF). To use PDF, you must have Adobe Acrobat Reader, which is available free at the site.
                </P>
                <P>
                    You may also access documents of the Department published in the 
                    <E T="04">Federal Register</E>
                     by using the article search feature at: 
                    <E T="03">www.federalregister.gov.</E>
                     Specifically, through the advanced search feature at this site, you can limit your search to documents published by the Department.
                </P>
                <P>
                    <E T="03">Authority:</E>
                     Presidential Executive Order 14050.
                </P>
                <SIG>
                    <NAME>Alexis Barrett,</NAME>
                    <TITLE>Chief of Staff, Office of the Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14340 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4000-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Energy Information Administration</SUBAGY>
                <SUBJECT>Agency Information Collection Extension</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Energy Information Administration (EIA), U.S. Department of Energy (DOE).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        EIA submitted an information collection request for extension as required by the Paperwork Reduction Act of 1995. The information collection requests a three-year extension, with change, of its Form EIA-111 
                        <E T="03">Quarterly Electricity Imports and Exports Report,</E>
                         OMB Control Number 1905-0208. Form EIA-111 collects information on U.S. imports and exports of electricity. Data are used to obtain estimates on the flows of electricity into and out of the United States.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Comments on this information collection must be received no later than July 29, 2024. Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Glenn McGrath at (202) 586-4325 or by email at 
                        <E T="03">Glenn.Mcgrath@eia.gov.</E>
                         The form and instructions are available at 
                        <E T="03">https://www.eia.gov/survey/changes/electricity/.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This information collection request contains:</P>
                <P>
                    (1) 
                    <E T="03">OMB No.:</E>
                     1905-0208;
                </P>
                <P>
                    (2) 
                    <E T="03">Information Collection Request Title:</E>
                     Quarterly Electricity Imports and Exports Report;
                </P>
                <P>
                    (3) 
                    <E T="03">Type of Request:</E>
                     Three-year extension with change;
                </P>
                <P>
                    (4) 
                    <E T="03">Purpose:</E>
                     Form EIA-111 collects U.S. electricity import and export data on a quarterly basis. The data are used to measure the flow of electricity into and out of the United States. The import and export data are reported by U.S. purchasers, sellers and transmitters of wholesale electricity, including persons authorized by Order to export electric energy from the United States to foreign countries, persons authorized by Presidential Permit to construct, operate, maintain, or connect electric power transmission lines that cross the U.S. international border, and U.S. Balancing Authorities that are directly interconnected with foreign Balancing Authorities. Such entities report monthly flows of electric energy received or delivered across the border, the cost associated with the transactions, and actual and implemented interchange.
                </P>
                <P>
                    (4a) 
                    <E T="03">Proposed Changes to Information Collection:</E>
                     There is a reduction in the number of survey respondents required to file EIA-111 reports. This reduces the annual estimated responses and associated burden hours. There is no change to the content collected on the EIA-111.
                </P>
                <P>
                    (5) 
                    <E T="03">Annual Estimated Number of Respondents:</E>
                     153;
                </P>
                <P>
                    (6) 
                    <E T="03">Annual Estimated Number of Total Responses:</E>
                     612;
                </P>
                <P>
                    (7) 
                    <E T="03">Annual Estimated Number of Burden Hours:</E>
                     918;
                </P>
                <P>
                    (8) 
                    <E T="03">Annual Estimated Reporting and Recordkeeping Cost Burden:</E>
                     $83,685 (918 burden hours times $91.16 per hour). EIA estimates that respondents will have no additional costs associated with the surveys other than the burden hours and the maintenance of the information as part of the normal course of business.
                </P>
                <P>Comments are invited on whether or not: (a) The proposed collection of information is necessary for the proper performance of agency functions, including whether the information will have a practical utility; (b) EIA's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used, is accurate; (c) EIA can improve the quality, utility, and clarity of the information it will collect; and (d) EIA can minimize the burden of the collection of information on respondents, such as automated collection techniques or other forms of information technology.</P>
                <P>
                    <E T="03">Statutory Authority:</E>
                     15 U.S.C. 772(b), 42 U.S.C. 7101 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Signed in Washington, DC, on June 24, 2024.</DATED>
                    <NAME>Samson A. Adeshiyan</NAME>
                    <TITLE>Director, Office of Statistical Methods and Research, U.S. Energy Information Administration.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14248 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6450-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Western Area Power Administration</SUBAGY>
                <SUBJECT>Pick-Sloan Missouri Basin Program—Eastern Division—Rate Order No. WAPA-213</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Western Area Power Administration, Department of Energy (DOE).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of proposed firm power service and sale of surplus products formula rates.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Upper Great Plains (UGP) region of the Western Area Power Administration (WAPA) proposes revised formula rates for the Pick-Sloan Missouri Basin Program (P-SMBP)—Eastern Division (ED) firm power, firm peaking power service, and sale of surplus products. The existing formula rates for these services, under Rate Schedules P-SED-F14 and P-SED-FP14, and sale of surplus products, under formula rate schedule P-SED-M2, do not expire until December 31, 2027; however, the existing firm power and firm peaking power service rates no longer provide sufficient revenue to recover interest expense and repay investments. The formula rate for sale of surplus products is not changing but is being included in Rate Order No. WAPA-213 (WAPA-213) in order to make these rate schedules effective for the same time frame.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        A consultation and comment period will begin June 28, 2024 and end August 27, 2024. Due to not receiving final Fiscal Year (FY) 2023 financial data until late January, holding subsequent rate impact discussions with customers between February and April, and the subsequent time frame required 
                        <PRTPAGE P="53990"/>
                        for completion of the 
                        <E T="04">Federal Register</E>
                         notice workflow process, the publication of this proposal was not possible prior to the June 2024 time frame. As such, and in order to continue with the existing January 2025 implementation date, the time frame of the consultation and comment period has been shortened from the standard 90 days to 60 days. This shortened time frame is allowed under 10 CFR 903.14(a), which states that, “. . . periods may be shortened for good cause shown.”
                    </P>
                    <P>
                        UGP will present a detailed explanation of the proposed P-SMBP—ED formula rates and other modifications at a public information forum that will be held on August 7, 2024, at 8:30 MDT to no later than 10:30 MDT. UGP will also host a public comment forum on August 7, 2024, at 11:00 MDT to no later than noon MDT. The public information forum and the public comment forum will only be conducted virtually. Instructions for participating in the forums will be posted on UGP's website at least 14 days prior to the public information and comment forums at: 
                        <E T="03">www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.</E>
                    </P>
                    <P>UGP will accept comments any time during the consultation and comment period.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and requests to be informed of Federal Energy Regulatory Commission (FERC) actions concerning the proposed formula rates submitted by UGP to FERC for approval should be sent to: Lloyd Linke, Regional Manager, Upper Great Plains Region, Western Area Power Administration, 2900 4th Avenue North, 6th Floor, Billings, MT 59101-1266, or email: 
                        <E T="03">ugpfirmrate@wapa.gov.</E>
                         UGP will post information about the proposed formula rates and written comments received to its website at: 
                        <E T="03">www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Linda Cady-Hoffman, Rates Manager, Upper Great Plains Region, Western Area Power Administration, 2900 4th Avenue North, 6th Floor, Billings, MT 59101-1266, telephone (406) 255-2920, email 
                        <E T="03">cady@wapa.gov</E>
                         or 
                        <E T="03">ugpfirmrate@wapa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    On June 29, 2023, FERC confirmed and approved Rate Schedules P-SED-F14, P-SED-FP14, and P-SED-M2 under Rate Order No. WAPA-203 (WAPA-203) on a final basis through December 31, 2027.
                    <SU>1</SU>
                    <FTREF/>
                     These schedules apply to firm power, firm peaking power service, and the sale of surplus products. UGP intends for the proposed formula rates under P-SED-F15, P-SED-FP15, and P-SED-M3 to go into effect January 1, 2025. The proposed formula rates schedules would remain in effect until December 31, 2029, or until WAPA supersedes or changes the formula rates through another public rate process pursuant to 10 CFR part 903, whichever occurs first.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">Order Confirming and Approving Rate Schedules on a Final Basis,</E>
                         FERC Docket No. EF23-2-000, (2023).
                    </P>
                </FTNT>
                <P>
                    The proposed formula rates would provide sufficient revenue to recover annual operation, maintenance, and replacement (OM&amp;R) expenses, interest expense, irrigation assistance, and capital repayment requirements while ensuring repayment of the project within the cost recovery criteria set forth in Department of Energy (DOE) Order RA 6120.2. For more information on the proposed rates, please see the customer brochure located on UGP's website at: 
                    <E T="03">www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.</E>
                </P>
                <HD SOURCE="HD1">Firm Power and Firm Peaking Power Services</HD>
                <P>The P-SMBP FY 2023 Power Repayment Study (PRS) revenue requirement, changes to future workplans, and projected water conditions are the determining factors for this proposed rate adjustment.</P>
                <P>The base component costs for the P-SMBP have increased primarily due to increased OM&amp;R from WAPA and the generating agencies.</P>
                <P>The driver behind the P-SMBP drought adder component decrease is the United States Army Corps of Engineers' (USACE) 2024 Annual Operating Plan (AOP) projecting less than average generation, though it is better than generation projected in the WAPA-203 January 2023 rate. Planned repayment of both the base and drought deficits are in the same time frame (2027) as they were projected to be repaid under WAPA-203. Uncertainties with water inflows, hydro generation, and replacement energy prices continue to pose potential risks for meeting firm power contractual commitments.</P>
                <P>The net effect of these adjustments to the base and drought adder components results in an overall increase to the P-SMBP—ED revenue requirement. Under Rate Schedules P-SED-F15 and P-SED-FP15, UGP is proposing a two-step rate adjustment. For the base component, the revenue requirements and associated charges for each step would be set values. For the drought adder component, UGP is proposing estimated revenue requirements based on the USACE's 2024 AOP and drought costs projected in the Final FY 2023 PRS for the first and second steps. UGP will follow the previously established “annual drought adder adjustment process” to determine if these estimated values for the January 2025 and 2026 rate years require adjustment. If a drought adder component change is required for January 2025, a modified drought adder revenue requirement and the associated charges for January 2025, and possibly new estimates for January 2026, will be included in the publication of the notice of rate order WAPA-213 and become effective January 1, 2025. UGP will also inform customers of updates by letter and post updates to UGP's external website.</P>
                <P>
                    A comparison of the current and proposed revenue requirements is shown in Table 1:
                    <PRTPAGE P="53991"/>
                </P>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s100,12,12,12,12,12">
                    <TTITLE>Table 1—Summary of Current and Two-Step Proposal Revenue Requirements</TTITLE>
                    <BOXHD>
                        <CHED H="1">Firm power service</CHED>
                        <CHED H="1">
                            Current
                            <LI>under</LI>
                            <LI>P-SED-F14</LI>
                            <LI>as of</LI>
                            <LI>Jan. 1, 2023</LI>
                            <LI>(in million $)</LI>
                        </CHED>
                        <CHED H="1">
                            Proposed
                            <LI>under</LI>
                            <LI>P-SED-F15</LI>
                            <LI>first step</LI>
                            <LI>as of</LI>
                            <LI>Jan. 1, 2025</LI>
                            <LI>(in million $)</LI>
                        </CHED>
                        <CHED H="1">
                            First step
                            <LI>percent</LI>
                            <LI>change</LI>
                        </CHED>
                        <CHED H="1">
                            Proposed
                            <LI>under</LI>
                            <LI>P-SED-F15</LI>
                            <LI>second step</LI>
                            <LI>as of</LI>
                            <LI>Jan. 1, 2026</LI>
                            <LI>
                                (in million $) 
                                <SU>2</SU>
                            </LI>
                        </CHED>
                        <CHED H="1">
                            Second step
                            <LI>percent</LI>
                            <LI>change</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">
                            Total Revenue Requirement 
                            <SU>1</SU>
                        </ENT>
                        <ENT>$268.4</ENT>
                        <ENT>$288.1</ENT>
                        <ENT>7.4</ENT>
                        <ENT>$306.0</ENT>
                        <ENT>6.2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Base Component</ENT>
                        <ENT>235.4</ENT>
                        <ENT>264.5</ENT>
                        <ENT>12.4</ENT>
                        <ENT>292.4</ENT>
                        <ENT>10.5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            Drought Adder Component 
                            <SU>2</SU>
                        </ENT>
                        <ENT>33.0</ENT>
                        <ENT>23.6</ENT>
                        <ENT>−28.5</ENT>
                        <ENT>13.6</ENT>
                        <ENT>−42.4</ENT>
                    </ROW>
                    <TNOTE>
                        <SU>1</SU>
                         Proposed values are estimates only based on using final base and estimated drought adder components.
                    </TNOTE>
                    <TNOTE>
                        <SU>2</SU>
                         Proposed values are estimates that may change during the existing annual drought adder adjustment process.
                    </TNOTE>
                </GPOTABLE>
                <P>Under the current rate methodology, rates for P-SMBP—ED firm power and firm peaking power service are designed to recover an annual revenue requirement that includes investment repayment, interest, purchase power, OM&amp;R, and other expenses within the allowable period. The annual revenue requirement continues to be allocated equally between demand and energy.</P>
                <P>A comparison of the current and proposed rates is shown in Table 2:</P>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s100,12,12,12,12,12">
                    <TTITLE>Table 2—Summary of Current and Two-Step Proposal Rates</TTITLE>
                    <BOXHD>
                        <CHED H="1">P-SMBP—ED firm power service</CHED>
                        <CHED H="1">
                            Current under
                            <LI>P-SED-F14/</LI>
                            <LI>P-SED-FP14</LI>
                            <LI>as of</LI>
                            <LI>Jan. 1, 2023</LI>
                        </CHED>
                        <CHED H="1">
                            Proposed under
                            <LI>P-SED-F15/</LI>
                            <LI>P-SED-FP15</LI>
                            <LI>as of</LI>
                            <LI>
                                Jan. 1, 2025 
                                <SU>1</SU>
                            </LI>
                        </CHED>
                        <CHED H="1">
                            First step
                            <LI>percent</LI>
                            <LI>change</LI>
                        </CHED>
                        <CHED H="1">
                            Proposed under
                            <LI>P-SED-F15/</LI>
                            <LI>P-SED-FP15</LI>
                            <LI>as of</LI>
                            <LI>
                                Jan. 1, 2026 
                                <SU>1</SU>
                            </LI>
                        </CHED>
                        <CHED H="1">
                            Second step
                            <LI>percent</LI>
                            <LI>change</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">P-SMBP—ED Composite Rate (mills/kilowatt-hour)</ENT>
                        <ENT>27.91</ENT>
                        <ENT>30.00</ENT>
                        <ENT>7.5</ENT>
                        <ENT>31.87</ENT>
                        <ENT>6.2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Firm Demand ($/kilowatt-month)</ENT>
                        <ENT>$6.20</ENT>
                        <ENT>$6.60</ENT>
                        <ENT>6.5</ENT>
                        <ENT>$7.00</ENT>
                        <ENT>6.1</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Firm Energy (mills/kilowatt-hour)</ENT>
                        <ENT>15.27</ENT>
                        <ENT>16.55</ENT>
                        <ENT>8.4</ENT>
                        <ENT>17.60</ENT>
                        <ENT>6.3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Firm Peaking Demand ($/kilowatt-month)</ENT>
                        <ENT>$5.70</ENT>
                        <ENT>$6.05</ENT>
                        <ENT>6.1</ENT>
                        <ENT>$6.40</ENT>
                        <ENT>5.8</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            Firm Peaking Energy 
                            <SU>2</SU>
                             (mills/kilowatt-hour)
                        </ENT>
                        <ENT>15.27</ENT>
                        <ENT>16.55</ENT>
                        <ENT>8.4</ENT>
                        <ENT>17.60</ENT>
                        <ENT>6.3</ENT>
                    </ROW>
                    <TNOTE>
                        <SU>1</SU>
                         Proposed values are estimates only based on using final base and estimated drought adder components.
                    </TNOTE>
                    <TNOTE>
                        <SU>2</SU>
                         Firm Peaking Energy is normally returned. This charge will be assessed in the event Firm Peaking Energy is not returned.
                    </TNOTE>
                </GPOTABLE>
                <P>As a part of the current and proposed rate schedules, UGP provides for a formula-based adjustment of the drought adder component, with an annual increase of up to 2 mills per kilowatt-hour (kWh). The 2 mills/kWh cap places a limit on the amount the drought adder component can be adjusted upward relative to associated drought costs included in the drought adder formula rate for any one-year cycle. Continuing to identify the firm power service revenue requirement using base and drought adder components will assist UGP in the presentation of future impacts of droughts, demonstrate repayment of drought-related costs in the PRS, and allow UGP to be more responsive to changes caused by drought-related expenses. UGP will continue to charge and bill its customers firm power and firm peaking power service rates for energy and demand, which are the sum of the base and drought adder components.</P>
                <P>A summary of the proposed charge components is shown in Table 3:</P>
                <GPOTABLE COLS="7" OPTS="L2,i1" CDEF="s100,12,12,12,12,12,12">
                    <TTITLE>Table 3—Summary of P-SMBP—ED Two-Step Proposal Charge Components</TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1">
                            Proposed charges under rate schedules
                            <LI>P-SED-F15 and P-SED-FP15 first step</LI>
                            <LI>as of January 1, 2025</LI>
                        </CHED>
                        <CHED H="2">
                            Base
                            <LI>component</LI>
                        </CHED>
                        <CHED H="2">
                            Drought adder
                            <LI>
                                component 
                                <SU>1</SU>
                            </LI>
                        </CHED>
                        <CHED H="2">
                            Total
                            <LI>
                                charge 
                                <SU>2</SU>
                            </LI>
                        </CHED>
                        <CHED H="1">
                            Proposed charges under rate schedules
                            <LI>P-SED-F15 and P-SED-FP15 second step</LI>
                            <LI>as of January 1, 2026</LI>
                        </CHED>
                        <CHED H="2">
                            Base
                            <LI>component</LI>
                        </CHED>
                        <CHED H="2">
                            Drought adder
                            <LI>
                                component 
                                <SU>1</SU>
                            </LI>
                        </CHED>
                        <CHED H="2">
                            Total
                            <LI>
                                charge 
                                <SU>2</SU>
                            </LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Firm Demand ($/kilowatt-month)</ENT>
                        <ENT>$6.05</ENT>
                        <ENT>$0.55</ENT>
                        <ENT>$6.60</ENT>
                        <ENT>$6.70</ENT>
                        <ENT>$0.30</ENT>
                        <ENT>$7.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Firm Energy (mills/kWh)</ENT>
                        <ENT>15.21</ENT>
                        <ENT>1.34</ENT>
                        <ENT>16.55</ENT>
                        <ENT>16.80</ENT>
                        <ENT>0.80</ENT>
                        <ENT>17.60</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Firm Peaking Demand ($/kilowatt-month)</ENT>
                        <ENT>$5.55</ENT>
                        <ENT>$0.50</ENT>
                        <ENT>$6.05</ENT>
                        <ENT>$6.10</ENT>
                        <ENT>$0.30</ENT>
                        <ENT>$6.40</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            Firm Peaking Energy 
                            <SU>3</SU>
                            <LI>(mills/kWh)</LI>
                        </ENT>
                        <ENT>15.21</ENT>
                        <ENT>1.34</ENT>
                        <ENT>16.55</ENT>
                        <ENT>16.80</ENT>
                        <ENT>0.80</ENT>
                        <ENT>17.60</ENT>
                    </ROW>
                    <TNOTE>
                        <SU>1</SU>
                         Proposed values are estimates that may change during the existing annual drought adder adjustment process.
                    </TNOTE>
                    <TNOTE>
                        <SU>2</SU>
                         Proposed values are estimates only based on using final base and estimated drought adder components.
                    </TNOTE>
                    <TNOTE>
                        <SU>3</SU>
                         Firm peaking energy is normally returned. This charge will be assessed in the event firm peaking energy is not returned.
                    </TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD1">Sale of Surplus Products</HD>
                <P>
                    The Sale of Surplus Products rate schedule is formula-based, providing for P-SMBP—ED Marketing to sell P-SMBP—ED surplus energy and demand products. If P-SMBP—ED surplus products are available, as specified in the rate schedule, the charge will be based on market rates plus administrative costs. The customer will be responsible for acquiring 
                    <PRTPAGE P="53992"/>
                    transmission service necessary to deliver the product(s) for which a separate charge may be incurred. The proposed Rate Schedule P-SED-M3 continues to allow for the sale of energy, frequency response, regulation, and reserves.
                </P>
                <HD SOURCE="HD1">Legal Authority</HD>
                <P>
                    Existing DOE procedures for public participation in power and transmission rate adjustments (10 CFR part 903) were published on September 18, 1985, and February 21, 2019.
                    <SU>2</SU>
                    <FTREF/>
                     The proposed action is a major rate adjustment, as defined by 10 CFR 903.2(d). In accordance with 10 CFR 903.15(a) and 10 CFR 903.16(a), UGP will hold public information and public comment forums for this rate adjustment. UGP will review and consider all timely public comments at the conclusion of the consultation and comment period and adjust the proposal as appropriate. The rates will then be approved on an interim basis.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
                    </P>
                </FTNT>
                <P>
                    WAPA is establishing the formula rates for P-SMPB—ED in accordance with section302 of the DOE Organization Act (42 U.S.C. 7152).
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         This Act transferred to, and vested in, the Secretary of Energy the power marketing functions of the Secretary of the Department of the Interior and the Bureau of Reclamation (Reclamation) under the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent laws, particularly section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)) and section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s); and other acts that specifically apply to the projects involved.
                    </P>
                </FTNT>
                <P>By Delegation Order No. S1-DEL-RATES-2016, effective November 19, 2016, the Secretary of Energy delegated: (1) the authority to develop power and transmission rates to the WAPA Administrator; (2) the authority to confirm, approve, and place such rates into effect on an interim basis to the Deputy Secretary of Energy; and (3) the authority to confirm, approve, and place into effect on a final basis, or to remand or disapprove such rates to FERC. By Delegation Order No. S1-DEL-S3-2023, effective April 10, 2023, the Secretary of Energy also delegated the authority to confirm, approve, and place such rates into effect on an interim basis to the Under Secretary for Infrastructure. By Redelegation Order No. S3-DEL-WAPA1-2023, effective April 10, 2023, the Under Secretary for Infrastructure redelegated the authority to confirm, approve, and place such rates into effect on an interim basis to WAPA's Administrator.</P>
                <HD SOURCE="HD1">Availability of Information</HD>
                <P>
                    All brochures, studies, comments, letters, memorandums, or other documents that UGP initiates or uses to develop the proposed formula rates are available for inspection and copying at the Upper Great Plains Regional Office, located at 2900 4th Avenue North, 6th Floor, Billings, Montana. Many of these documents and supporting information are also available on UGP's website at: 
                    <E T="03">www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.</E>
                </P>
                <HD SOURCE="HD1">Ratemaking Procedure Requirements Environmental Compliance</HD>
                <P>
                    WAPA is in the process of determining whether an environmental assessment or an environmental impact statement should be prepared or if this action can be categorically excluded from those requirements.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         In compliance with the National Environmental Policy Act (NEPA) of 1969, as amended, 42 U.S.C. 4321-4347; the Council on Environmental Quality Regulations for implementing NEPA (40 CFR parts 1500-1508); and DOE NEPA Implementing Procedures and Guidelines (10 CFR part 1021).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Determination Under Executive Order 12866</HD>
                <P>WAPA has an exemption from centralized regulatory review under Executive Order 12866; accordingly, no clearance of this notice by the Office of Management and Budget is required.</P>
                <HD SOURCE="HD1">Signing Authority</HD>
                <P>
                    This document of the Department of Energy was signed on June 24, 2024, by Tracey A. LeBeau, Administrator, Western Area Power Administration, pursuant to delegated authority from the Secretary of Energy. That document, with the original signature and date, is maintained by DOE. For administrative purposes only, and in compliance with requirements of the Office of the Federal Register, the undersigned DOE Federal Register Liaison Officer has been authorized to sign and submit the document in electronic format for publication, as an official document of the Department of Energy. This administrative process in no way alters the legal effect of this document upon publication in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <DATED>Signed in Washington, DC, on June 25, 2024.</DATED>
                    <NAME>Treena V. Garrett,</NAME>
                    <TITLE>Federal Register Liaison Officer, U.S. Department of Energy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14275 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6450-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Western Area Power Administration</SUBAGY>
                <SUBJECT>Loveland Area Projects—Rate Order No. WAPA-212</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Western Area Power Administration, Department of Energy (DOE).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of proposed firm electric service and sale of surplus products formula rates.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Rocky Mountain (RM) region of the Western Area Power Administration (WAPA) proposes revised formula rates for the Loveland Area Projects (LAP) firm electric service (FES) and sale of surplus products. LAP consists of the Fryingpan-Arkansas Project (Fry-Ark) and the Pick-Sloan Missouri Basin Program (P-SMBP)—Western Division (WD), which were integrated for marketing and rate-making purposes in 1989. The existing formula rates for these services, under Rate Schedules L-F12 and L-M3, do not expire until December 31, 2027; however, the existing FES rate no longer provides sufficient revenues to recover interest expense and repay investments. The formula rate for sale of surplus products is not changing but is being included in Rate Order No. WAPA-212 (WAPA-212) in order to make these rate schedules effective for the same time frame.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        A consultation and comment period will begin June 28, 2024 and end August 27, 2024. Due to not receiving final Fiscal Year (FY) 2023 financial data until late January, holding subsequent rate impact discussions with customers between February and April, and the subsequent time frame required for completion of the 
                        <E T="04">Federal Register</E>
                         notice workflow process, the publication of this proposal was not possible prior to the June 2024 time frame. As such, and in order to continue with the existing January 2025 implementation date, the time frame of the consultation and comment period has been shortened from the standard 90 days to 60 days. This shortened time frame is allowed under 10 CFR 903.14(a), which states that, “. . . periods may be shortened for good cause shown.”
                    </P>
                    <P>
                        RM will present a detailed explanation of the proposed LAP formula rates and other modifications at a public information forum that will be held on August 7, 2024, at 8:30 a.m. MDT to no later than 10:30 a.m. MDT. RM will also host a public comment forum on August 7, 2024, at 11:00 a.m. MDT to no later than noon MDT. The 
                        <PRTPAGE P="53993"/>
                        public information forum and the public comment forum will only be conducted virtually. Instructions for participating in the forums will be posted on RM's website at least 14 days prior to the public information and comment forums at: 
                        <E T="03">www.wapa.gov/about-wapa/regions/rm/rm-rates/2025-rate-adjustment-firm-electric-service.</E>
                    </P>
                    <P>RM will accept comments any time during the consultation and comment period.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and requests to be informed of Federal Energy Regulatory Commission (FERC) actions concerning the proposed formula rates submitted by RM to FERC for approval should be sent to: Barton V. Barnhart, Regional Manager, Rocky Mountain Region, Western Area Power Administration, 5555 East Crossroads Boulevard, Loveland, CO 80538-8986, or email 
                        <E T="03">lapfirmadj@wapa.gov.</E>
                         RM will post information about the proposed formula rates and written comments received to its website at: 
                        <E T="03">www.wapa.gov/about-wapa/regions/rm/rm-rates/2025-rate-adjustment-firm-electric-service.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Sheila D. Cook, Rates Manager, Rocky Mountain Region, Western Area Power Administration, 5555 East Crossroads Boulevard, Loveland, CO 80538-8986, (970) 685-9562, or email 
                        <E T="03">scook@wapa.gov</E>
                         or 
                        <E T="03">lapfirmadj@wapa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    On September 12, 2023, FERC confirmed and approved Rate Schedule L-F12 and Rate Schedule L-M3 under Rate Order No. WAPA-202 (WAPA-202) on a final basis through December 31, 2027.
                    <SU>1</SU>
                    <FTREF/>
                     These schedules apply to FES and the sale of surplus products. RM intends the proposed formula rates under Rate Schedule L-F13 and Rate Schedule L-M4 to go into effect January 1, 2025. The proposed formula rate schedules would remain in effect until December 31, 2029, or until WAPA supersedes or changes the formula rates through another public rate process pursuant to 10 CFR part 903, whichever occurs first.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">Order Confirming and Approving Rate Schedules on a Final Basis,</E>
                         FERC Docket No. EF23-1-000 (2023).
                    </P>
                </FTNT>
                <P>
                    The proposed formula rates would provide sufficient revenue to recover annual operation, maintenance, and replacement (OM&amp;R) expenses, interest expense, irrigation assistance, and capital repayment requirements while ensuring repayment of the project within the cost recovery criteria set forth in Department of Energy (DOE) Order RA 6120.2. For more information on the proposed rates, please see the customer brochure located on RM's website at: 
                    <E T="03">www.wapa.gov/about-wapa/regions/rm/rm-rates/2025-rate-adjustment-firm-electric-service.</E>
                </P>
                <HD SOURCE="HD1">Firm Electric Service</HD>
                <P>The Fry-Ark and the P-SMBP FY 2023 Power Repayment Studies' (PRSs) revenue requirements, changes to future workplans, and projected water conditions are the determining factors for this proposed rate adjustment.</P>
                <P>The base component costs for the Fry-Ark have increased primarily due to increased annual expenses, mainly transmission purchases and OM&amp;R from both WAPA and the Bureau of Reclamation (Reclamation).</P>
                <P>The base component costs for the P-SMBP have increased primarily due to increased OM&amp;R from WAPA and the generating agencies.</P>
                <P>The driver behind the P-SMBP drought adder component decrease is the United States Army Corps of Engineers (USACE) 2024 Annual Operating Plan (AOP) projecting less than average generation, though it is better than generation projected in the WAPA-202 January 2023 rate. Planned repayment of both the base and drought deficits are in the same time frame (2027) as they were projected to be repaid under WAPA-202. Uncertainties with water inflows, hydro generation, and replacement energy prices continue to pose potential risks for meeting firm power contractual commitments.</P>
                <P>The net effect of these adjustments to the base and drought adder components results in an overall increase to the LAP revenue requirement. Under Rate Schedule L-F13, RM is proposing a two-step rate adjustment. For the base component, the revenue requirements and associated charges for each step would be set values. For the drought adder component, RM is proposing estimated revenue requirements based on the USACE's 2024 AOP and drought costs projected in the Final FY 2023 PRSs for the first and second steps. RM will follow the previously established “annual drought adder adjustment process” to determine if these estimated values for the January 2025 and 2026 rate years require adjustment. If a drought adder component change is required for January 2025, a modified drought adder revenue requirement and the associated charges for January 2025, and possibly new estimates for January 2026, will be included in the publication of the notice of rate order WAPA-212 and become effective January 1, 2025. RM will also inform customers of updates by letter and post updates to RM's external website.</P>
                <P>A comparison of the current and proposed revenue requirements is shown in Table 1:</P>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s100,12,12,12,12,12">
                    <TTITLE>Table 1—Summary of Current and Two-Step Proposal Revenue Requirements</TTITLE>
                    <BOXHD>
                        <CHED H="1">LAP firm electric service</CHED>
                        <CHED H="1">
                            Current
                            <LI>under L-F12</LI>
                            <LI>as of</LI>
                            <LI>Jan. 1, 2023</LI>
                            <LI>(in million $)</LI>
                        </CHED>
                        <CHED H="1">
                            Proposed
                            <LI>under L-F13</LI>
                            <LI>first step</LI>
                            <LI>as of</LI>
                            <LI>Jan. 1, 2025</LI>
                            <LI>(in million $)</LI>
                        </CHED>
                        <CHED H="1">
                            First step
                            <LI>percent</LI>
                            <LI>change</LI>
                        </CHED>
                        <CHED H="1">
                            Proposed
                            <LI>under L-F13</LI>
                            <LI>second step</LI>
                            <LI>as of</LI>
                            <LI>Jan. 1, 2026</LI>
                            <LI>(in million $)</LI>
                        </CHED>
                        <CHED H="1">
                            Second step
                            <LI>percent</LI>
                            <LI>change</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">
                            Total Revenue Requirement 
                            <SU>1</SU>
                        </ENT>
                        <ENT>$74.6</ENT>
                        <ENT>$81.3</ENT>
                        <ENT>9.0</ENT>
                        <ENT>$87.9</ENT>
                        <ENT>8.1</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Pick-Sloan—WD 
                            <SU>2</SU>
                        </ENT>
                        <ENT>58.5</ENT>
                        <ENT>62.6</ENT>
                        <ENT>7.0</ENT>
                        <ENT>66.3</ENT>
                        <ENT>5.9</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Fry-Ark</ENT>
                        <ENT>16.1</ENT>
                        <ENT>18.7</ENT>
                        <ENT>16.1</ENT>
                        <ENT>21.6</ENT>
                        <ENT>15.5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Base Component</ENT>
                        <ENT>67.8</ENT>
                        <ENT>76.4</ENT>
                        <ENT>12.7</ENT>
                        <ENT>85.1</ENT>
                        <ENT>11.4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Pick-Sloan—WD 
                            <SU>2</SU>
                        </ENT>
                        <ENT>51.7</ENT>
                        <ENT>57.7</ENT>
                        <ENT>11.6</ENT>
                        <ENT>63.5</ENT>
                        <ENT>10.1</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Fry-Ark</ENT>
                        <ENT>16.1</ENT>
                        <ENT>18.7</ENT>
                        <ENT>16.1</ENT>
                        <ENT>21.6</ENT>
                        <ENT>15.5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            Drought Adder Component 
                            <SU>3</SU>
                        </ENT>
                        <ENT>6.8</ENT>
                        <ENT>4.9</ENT>
                        <ENT>−27.9</ENT>
                        <ENT>2.8</ENT>
                        <ENT>−42.9</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">
                            Pick-Sloan—WD 
                            <SU>2</SU>
                        </ENT>
                        <ENT>6.8</ENT>
                        <ENT>4.9</ENT>
                        <ENT>−27.9</ENT>
                        <ENT>2.8</ENT>
                        <ENT>−42.9</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Fry-Ark</ENT>
                        <ENT>0.0</ENT>
                        <ENT>0.0</ENT>
                        <ENT>0.0</ENT>
                        <ENT>0.0</ENT>
                        <ENT>0.0</ENT>
                    </ROW>
                    <TNOTE>
                        <SU>1</SU>
                         Proposed values are estimates only based on using final base and estimated drought adder components.
                        <PRTPAGE P="53994"/>
                    </TNOTE>
                    <TNOTE>
                        <SU>2</SU>
                         Additional information on the overall P-SMBP PRS and charge components can be found in the proposal under Rate Order No. WAPA-213 and on the Upper Great Plains region's website at: 
                        <E T="03">www.wapa.gov/about-wapa/regions/ugp/ugp-rates/2025-firm-rate-adjustment.</E>
                    </TNOTE>
                    <TNOTE>
                        <SU>3</SU>
                         Proposed values are estimates that may change during the existing annual drought adder adjustment process.
                    </TNOTE>
                </GPOTABLE>
                <P>Under the current rate methodology, rates for LAP FES are designed to recover an annual revenue requirement that includes investment repayment, interest, purchase power, OM&amp;R, and other expenses within the allowable period. The annual revenue requirement continues to be allocated equally between capacity and energy.</P>
                <P>A comparison of the current and proposed rates is shown in Table 2:</P>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s100,12,12,12,12,12">
                    <TTITLE>Table 1—Summary of Current and Two-Step Proposal Rates</TTITLE>
                    <BOXHD>
                        <CHED H="1">Firm electric service</CHED>
                        <CHED H="1">
                            Current
                            <LI>under L-F12</LI>
                            <LI>as of</LI>
                            <LI>
                                Jan. 1, 2023 
                                <SU>1</SU>
                            </LI>
                        </CHED>
                        <CHED H="1">
                            Proposed
                            <LI>under L-F13</LI>
                            <LI>first step</LI>
                            <LI>as of</LI>
                            <LI>
                                Jan. 1, 2025 
                                <SU>1</SU>
                            </LI>
                        </CHED>
                        <CHED H="1">
                            First step
                            <LI>percent</LI>
                            <LI>change</LI>
                        </CHED>
                        <CHED H="1">
                            Proposed
                            <LI>under L-F13</LI>
                            <LI>second step</LI>
                            <LI>as of</LI>
                            <LI>
                                Jan. 1, 2026 
                                <SU>1</SU>
                            </LI>
                        </CHED>
                        <CHED H="1">
                            Second step
                            <LI>percent</LI>
                            <LI>change</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">LAP Composite Rate (mills/kilowatt-hour)</ENT>
                        <ENT>36.61</ENT>
                        <ENT>39.84</ENT>
                        <ENT>8.8</ENT>
                        <ENT>43.10</ENT>
                        <ENT>8.2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Firm Capacity Rate ($/kilowatt-month)</ENT>
                        <ENT>$4.80</ENT>
                        <ENT>$5.22</ENT>
                        <ENT>8.8</ENT>
                        <ENT>$5.65</ENT>
                        <ENT>8.2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Firm Energy Rate (mills/kilowatt-hour)</ENT>
                        <ENT>18.31</ENT>
                        <ENT>19.92</ENT>
                        <ENT>8.8</ENT>
                        <ENT>21.55</ENT>
                        <ENT>8.2</ENT>
                    </ROW>
                    <TNOTE>
                        <SU>1</SU>
                         Proposed values are estimates only based on using final base and estimated drought adder components.
                    </TNOTE>
                </GPOTABLE>
                <P>As a part of the current and proposed rate schedules, RM provides for a formula-based adjustment of the drought adder component, with an annual increase of up to 2 mills per kilowatt-hour (kWh) each year. The 2 mills/kWh cap places a limit on the amount the drought adder component can be adjusted upward relative to associated drought costs included in the drought adder formula rate for any one-year cycle. Continuing to identify the FES revenue requirement using base and drought adder components will assist RM in the presentation of future impacts of droughts, demonstrate repayment of drought-related costs in the PRSs, and allow RM to be more responsive to changes caused by drought-related expenses. RM will continue to charge and bill its customers FES rates for energy and capacity, which are the sum of the base and drought adder components.</P>
                <P>A summary of the proposed charge components is shown in Table 3:</P>
                <GPOTABLE COLS="7" OPTS="L2,i1" CDEF="s100,12,12,12,12,12,12">
                    <TTITLE>Table 3—Summary of Two-Step Proposal Charge Components</TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1">
                            Proposed charges under rate schedule
                            <LI>L-F13 first step as of Jan. 1, 2025</LI>
                        </CHED>
                        <CHED H="2">
                            Base
                            <LI>component</LI>
                        </CHED>
                        <CHED H="2">
                            Drought adder
                            <LI>
                                component 
                                <SU>1</SU>
                            </LI>
                        </CHED>
                        <CHED H="2">
                            Total charge 
                            <SU>2</SU>
                        </CHED>
                        <CHED H="1">
                            Proposed charges under rate schedule
                            <LI>L-F13 second step as of Jan. 1, 2026</LI>
                        </CHED>
                        <CHED H="2">
                            Base
                            <LI>component</LI>
                        </CHED>
                        <CHED H="2">
                            Drought adder
                            <LI>
                                component 
                                <SU>1</SU>
                            </LI>
                        </CHED>
                        <CHED H="2">
                            Total charge 
                            <SU>2</SU>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Firm Capacity ($/kilowatt-month)</ENT>
                        <ENT>$4.91</ENT>
                        <ENT>$0.31</ENT>
                        <ENT>$5.22</ENT>
                        <ENT>$5.47</ENT>
                        <ENT>$0.18</ENT>
                        <ENT>$5.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Firm Energy (mills/kWh)</ENT>
                        <ENT>18.72</ENT>
                        <ENT>1.20</ENT>
                        <ENT>19.92</ENT>
                        <ENT>20.86</ENT>
                        <ENT>0.69</ENT>
                        <ENT>21.55</ENT>
                    </ROW>
                    <TNOTE>
                        <SU>1</SU>
                         Proposed values are estimates that may change during the existing annual drought adder adjustment process.
                    </TNOTE>
                    <TNOTE>
                        <SU>2</SU>
                         Proposed values are estimates only based on using final base and estimated drought adder components.
                    </TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD1">Sale of Surplus Products</HD>
                <P>The Sale of Surplus Products rate schedule is formula-based, providing for LAP Marketing to sell LAP surplus energy and capacity products. If LAP surplus products are available, as specified in the rate schedule, the charge will be based on market rates plus administrative costs. The customer will be responsible for acquiring transmission service necessary to deliver the product(s) for which a separate charge may be incurred. The proposed Rate Schedule, L-M4, continues to allow for the sale of energy, frequency response, regulation, and reserves.</P>
                <HD SOURCE="HD1">Legal Authority</HD>
                <P>
                    Existing DOE procedures for public participation in power and transmission rate adjustments (10 CFR part 903) were published on September 18, 1985, and February 21, 2019.
                    <SU>2</SU>
                    <FTREF/>
                     The proposed action is a major rate adjustment, as defined by 10 CFR 903.2(d). In accordance with 10 CFR 903.15(a) and 10 CFR 903.16(a), RM will hold public information and public comment forums for this rate adjustment. RM will review and consider all timely public comments at the conclusion of the consultation and comment period and adjust the proposal as appropriate. The rates will then be approved on an interim basis.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
                    </P>
                </FTNT>
                <P>
                    WAPA is establishing the formula rates for LAP in accordance with section302 of the DOE Organization Act (42 U.S.C. 7152).
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         This Act transferred to, and vested in, the Secretary of Energy the power marketing functions of the Secretary of the Department of the Interior and Bureau of Reclamation (Reclamation) under the Reclamation Act of 1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by subsequent laws, particularly section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)) and section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s); and other acts that specifically apply to the projects involved.
                    </P>
                </FTNT>
                <P>
                    By Delegation Order No. S1-DEL-RATES-2016, effective November 19, 2016, the Secretary of Energy delegated: (1) the authority to develop power and transmission rates to the WAPA Administrator; (2) the authority to confirm, approve, and place such rates into effect on an interim basis to the Deputy Secretary of Energy; and (3) the authority to confirm, approve, and place into effect on a final basis, or to remand or disapprove such rates to FERC. By Delegation Order No. S1-DEL-S3-2023, effective April 10, 2023, the Secretary of Energy also delegated the authority to confirm, approve, and place such rates into effect on an interim basis to the Under Secretary for Infrastructure. By 
                    <PRTPAGE P="53995"/>
                    Redelegation Order No.S3-DEL-WAPA1-2023, effective April 10, 2023, the Under Secretary for Infrastructure redelegated the authority to confirm, approve, and place such rates into effect on an interim basis to WAPA's Administrator.
                </P>
                <HD SOURCE="HD1">Availability of Information</HD>
                <P>
                    All brochures, studies, comments, letters, memorandums, or other documents that RM initiates or uses to develop the proposed formula rates are available for inspection and copying at the Rocky Mountain Regional Office located at 5555 East Crossroads Boulevard, Loveland, Colorado. Many of these documents and supporting information are also available on RM's website at: 
                    <E T="03">www.wapa.gov/about-wapa/regions/rm/rm-rates/2025-rate-adjustment-firm-electric-service.</E>
                </P>
                <HD SOURCE="HD1">Ratemaking Procedure Requirements: Environmental Compliance</HD>
                <P>
                    WAPA is in the process of determining whether an environmental assessment or an environmental impact statement should be prepared or if this action can be categorically excluded from those requirements.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         In compliance with the National Environmental Policy Act (NEPA) of 1969, as amended, 42 U.S.C. 4321-4347; the Council on Environmental Quality Regulations for implementing NEPA (40 CFR parts 1500-1508); and DOE NEPA Implementing Procedures and Guidelines (10 CFR part 1021).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Determination Under Executive Order 12866</HD>
                <P>WAPA has an exemption from centralized regulatory review under Executive Order 12866; accordingly, no clearance of this notice by the Office of Management and Budget is required.</P>
                <HD SOURCE="HD1">Signing Authority</HD>
                <P>
                    This document of the Department of Energy was signed on June 24, 2024, by Tracey A. LeBeau, Administrator, Western Area Power Administration, pursuant to delegated authority from the Secretary of Energy. That document, with the original signature and date, is maintained by DOE. For administrative purposes only, and in compliance with requirements of the Office of the Federal Register, the undersigned DOE Federal Register Liaison Officer has been authorized to sign and submit the document in electronic format for publication, as an official document of the Department of Energy. This administrative process in no way alters the legal effect of this document upon publication in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <DATED>Signed in Washington, DC, on June 25, 2024.</DATED>
                    <NAME>Treena V. Garrett,</NAME>
                    <TITLE>Federal Register Liaison Officer, U.S. Department of Energy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14274 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6450-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <DEPDOC>[EPA-HQ-OW-2024-0206; FRL 11920-01-OW]</DEPDOC>
                <SUBJECT>2024 Clean Water Act Section 319 Guidelines</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of availability.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Environmental Protection Agency (EPA) announces revised guidelines for eligible recipients (states, territories, and the District of Columbia) awarded Federal grants under section 319 of the Clean Water Act (CWA) for the implementation of nonpoint source management programs (“2024 Guidelines”). The 2024 guidelines describe the requirements that apply to recipients of grants made with funds appropriated by Congress under the Clean Water Act. These new guidelines will replace the Nonpoint Source Program and Grants Guidelines for States and Territories that have been in effect since the fiscal year 2014 grant cycle. The revisions are intended to advance new science and information, engage communities, and guide the national Nonpoint Source Program.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Cynthia Curtis, Watershed Restoration, Assessment, and Protection Division, Office of Water (4503T), Environmental Protection Agency, 1301 Constitution Ave. NW, Washington, DC 20460; telephone number: 202-566-0340; email address: 
                        <E T="03">curtis.cynthia@epa.gov.</E>
                         A copy of the guidelines can be found on the Clean Water Act section 319 Grant Guidance website, 
                        <E T="03">https://www.epa.gov/nps/cwa-ss319-grant-current-guidance.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. General Information</HD>
                <P>
                    This notice of availability is intended to inform the public and state nonpoint source management programs of the release of the 2024 Guidelines. The revisions to these guidelines were informed by two years of stakeholder engagements with Clean Water Act section 319 grantees, sub-recipients of CWA section 319 funding, local community organizations, and other important stakeholders. Among other changes, these revisions encourage recipients (states, territories, and the District of Columbia) awarded CWA section 319 funds to take actions that ensure equitable access to nonpoint source water quality benefits and advance climate resilient nonpoint source solutions. More information is available on EPA's 2023 nonpoint source Guidelines updates website, 
                    <E T="03">h</E>
                    <E T="03">ttps</E>
                    <E T="03">:</E>
                    <E T="03">//www.epa.gov/nps/319-grant-historic-guidance.</E>
                     EPA publishes separate CWA section 319 guidelines for Tribal grantees, 
                    <E T="03">http://www.epa.gov/nps/tribal.</E>
                     State and Tribal nonpoint source programs include a variety of components, including technical assistance, financial assistance, education, training, technology transfer, demonstration projects, and regulatory programs. Clean Water Act section 319(h) grant funds are provided only to designated state, territorial, and Tribal agencies to implement EPA-approved nonpoint source management programs. More information is available on EPA's websites for 319 Grant Program for States and Territories 
                    <E T="03">https://www.epa.gov/nps/319-grant-program-states-and-territories</E>
                     and nonpoint source program equity information, 
                    <E T="03">https://www.epa.gov/nps/equity-resources.</E>
                </P>
                <P>
                    If you have questions regarding the applicability of this action to a particular entity, consult the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section.
                </P>
                <SIG>
                    <NAME>Ann Ferrio,</NAME>
                    <TITLE>Deputy Director, Office of Wetlands, Oceans and Watersheds.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14277 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY </AGENCY>
                <DEPDOC>[FRL OP-OFA-132] </DEPDOC>
                <SUBJECT>Environmental Impact Statements; Notice of Availability</SUBJECT>
                <P>
                    <E T="03">Responsible Agency:</E>
                     Office of Federal Activities, General Information 202-564-5632 or 
                    <E T="03">https://www.epa.gov/nepa.</E>
                </P>
                <FP SOURCE="FP-1">Weekly receipt of Environmental Impact Statements (EIS) </FP>
                <FP SOURCE="FP-1">Filed June 14, 2024 10 a.m. EST Through June 24, 2024 10 a.m. EST </FP>
                <FP SOURCE="FP-1">Pursuant to 40 CFR 1506.9. </FP>
                <P>
                    <E T="03">Notice:</E>
                     Section 309(a) of the Clean Air Act requires that EPA make public its comments on EISs issued by other Federal agencies. EPA's comment letters on EISs are available at: 
                    <E T="03">https://cdxapps.epa.gov/cdx-enepa-II/public/action/eis/search.</E>
                </P>
                <PRTPAGE P="53996"/>
                <FP SOURCE="FP-1">
                    <E T="03">EIS No. 20240113, Draft, FHWA, WI,</E>
                     Interstate 39/90/94 Corridor, Comment Period Ends: 08/12/2024, Contact: Lisa Hemesath 608-829-7503. 
                </FP>
                <FP SOURCE="FP-1">
                    <E T="03">EIS No. 20240114, Draft, USACE, MS,</E>
                     Yazoo Backwater Area Water Management Project, Comment Period Ends: 08/12/2024, Contact: Mike Renacker 601-631-5842. 
                </FP>
                <SIG>
                    <P>Dated: June 24, 2024. </P>
                    <NAME>Nancy Abrams, </NAME>
                    <TITLE>Associate Director, Office of Federal Activities.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14260 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <DEPDOC>[EPA-HQ-OAR-2023-0130; FRL—12063-01-OMS]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; NESHAP for Cellulose Products Manufacturing) (Renewal)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Environmental Protection Agency (EPA) has submitted an information collection request (ICR), NESHAP for Cellulose Products Manufacturing (EPA ICR Number 1974.12, OMB Control Number 2060-0488), to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act. This is a proposed extension of the ICR, which is currently approved through June 30, 2024. Public comments were previously requested, via the 
                        <E T="04">Federal Register</E>
                         on May 18, 2023 during a 60-day comment period. This notice allows for an additional 30 days for public comments.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments may be submitted on or before July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit your comments, referencing Docket ID Number EPA-HQ-OAR-2023-0130, to EPA online using 
                        <E T="03">https://www.regulations.gov/</E>
                         (our preferred method), or by email to 
                        <E T="03">a-and-r-docket@epa.gov,</E>
                         or by mail to: EPA Docket Center, Environmental Protection Agency, Mail Code 28221T, 1200 Pennsylvania Ave. NW, Washington, DC 20460. The EPA's policy is that all comments received will be included in the public docket without change, including any personal information provided, unless the comment includes profanity, threats, information claimed to be Confidential Business Information (CBI), or other information whose disclosure is restricted by statute.
                    </P>
                    <P>
                        Submit written comments and recommendations to OMB for the proposed information collection within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this specific information collection by selecting “Currently under Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Muntasir Ali, Sector Policies and Program Division (D243-05), Office of Air Quality Planning and Standards, U.S. Environmental Protection Agency, Research Triangle Park, North Carolina, 27711; telephone number: (919) 541-0833; email address: 
                        <E T="03">ali.muntasir@epa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This is a proposed extension of the ICR, which is currently approved through June 30, 2024. An agency may neither conduct nor sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.</P>
                <P>
                    Public comments were previously requested, via the 
                    <E T="04">Federal Register</E>
                    , on May 18, 2023 during a 60-day comment period (87 FR 43843). This notice allows for an additional 30 days for public comments. Supporting documents, which explain in detail the information that the EPA will be collecting, are available in the public docket for this ICR. The docket can be viewed online at 
                    <E T="03">https://www.regulations.gov,</E>
                     or in person, at the EPA Docket Center, WJC West Building, Room 3334, 1301 Constitution Ave. NW, Washington, DC. The telephone number for the Docket Center is 202-566-1744. For additional information about EPA's public docket, visit 
                    <E T="03">http://www.epa.gov/dockets.</E>
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     The National Emission Standards for Hazardous Air Pollutants (NESHAP) for Cellulose Products Manufacturing (40 CFR part 63, subpart UUUU) were proposed on August 28, 2000; promulgated on June 11, 2002; and most-recently amended on July 2, 2020. These regulations apply to each existing, reconstructed, and new Cellulose Products Manufacturing operation that is either a major source of hazardous air pollutant (HAP) emissions or is collocated with other sources that are individually, or collectively, a major source of HAP emissions. A major source either emits or has the potential to emit any single HAP at the rate of 10 tons (9.07 megagrams) or more per year, or any combination of HAP at a rate of 25 tons (22.68 megagrams) or more per year. New facilities include those that either commenced construction, modification or reconstruction after the date of proposal. This information is being collected to assure compliance with 40 CFR part 63, subpart UUUU.
                </P>
                <P>In general, all NESHAP standards require initial notifications, performance tests, and periodic reports by the owners/operators of the affected facilities. They are also required to maintain records of the occurrence and duration of any startup, shutdown, or malfunction in the operation of an affected facility, or any period during which the monitoring system is inoperative. These notifications, reports, and records are essential in determining compliance, and are required of all affected facilities subject to NESHAP.</P>
                <P>
                    <E T="03">Form Numbers:</E>
                     5900-647.
                </P>
                <P>
                    <E T="03">Respondents/affected entities:</E>
                     Cellulose Products Manufacturing facilities.
                </P>
                <P>
                    <E T="03">Respondent's obligation to respond:</E>
                     Mandatory (40 CFR part 63, subpart UUUU).
                </P>
                <P>
                    <E T="03">Estimated number of respondents:</E>
                     8 (total).
                </P>
                <P>
                    <E T="03">Frequency of response:</E>
                     Initially, semiannually.
                </P>
                <P>
                    <E T="03">Total estimated burden:</E>
                     7,256 hours (per year). Burden is defined at 5 CFR 1320.3(b).
                </P>
                <P>
                    <E T="03">Total estimated cost:</E>
                     $1,134,894 (per year), which includes $120,135 in annualized capital/startup and/or operation &amp; maintenance costs.
                </P>
                <P>
                    <E T="03">Changes in the Estimates:</E>
                     There are no significant changes in burden from the most-recently approved ICR as currently identified in the OMB Inventory of Approved Burdens. This is due to two considerations: 1) the regulations have not changed over the past three years and are not anticipated to change over the next three years; and 2) the growth rate for this industry is very low or non-existent, so there is no significant change in the overall burden. Since there are no changes in the regulatory requirements and there is no significant industry growth, there are also no changes in the capital/startup and/or operation and maintenance (O&amp;M) costs.
                </P>
                <SIG>
                    <NAME>Courtney Kerwin,</NAME>
                    <TITLE>Director, Information Engagement Division.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14293 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="53997"/>
                <AGENCY TYPE="N">EXPORT-IMPORT BANK</AGENCY>
                <DEPDOC>[Public Notice: 2024-6011]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities: Submission to the Office of Management and Budget for Review and Approval; Comment Request; Application for Short-Term Letter of Credit Export Credit Insurance Policy</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Export-Import Bank of the United States.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection; request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Export-Import Bank of the United States (EXIM), pursuant to the Export-Import Bank Act of 1945, as amended facilitates the finance of the export of U.S. goods and services. As part of its continuing effort to reduce paperwork and respondent burden, EXIM invites the general public and other Federal agencies to comment on the proposed information collection, as required by the paperwork Reduction Act of 1995.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before August 27, 2024 to be assured of consideration.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Comments may be submitted electronically on 
                        <E T="03">WWW.REGULATIONS.GOV</E>
                         (EIB 92-34), by email to Alyson Young at 
                        <E T="03">alyson.young@exim.gov,</E>
                         or by mail to Alyson Young, Export-Import Bank of the United States, 811 Vermont Ave. NW, Washington, DC 20571.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        To request additional information please contact Alyson Young, 
                        <E T="03">Alyson.young@exim.gov,</E>
                         202-565-3657.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The “Report of Premiums Payable for Exporters Only” form will be used by exporters to report and pay premiums on insured shipments to various foreign buyers. The Application for Short Term Letter of Credit Export Credit Insurance Policy is used to determine the eligibility of the applicant and the transaction for EXIM assistance under its insurance program. EXIM customers are able to submit this form on paper or electronically.</P>
                <P>
                    The application tool can be reviewed at: 
                    <E T="03">https://img.exim.gov/s3fs-public/pub/pending/eib92-34_short_term_bank_letter_of_credit_application_508_pending.pdf.</E>
                </P>
                <P>
                    <E T="03">Title and Form Number:</E>
                     EIB 92-34 Application for Short-Term Letter of Credit Export Credit Insurance Policy.
                </P>
                <P>
                    <E T="03">OMB Number:</E>
                     3048-0009.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Regular.
                </P>
                <P>
                    <E T="03">Need and Use:</E>
                     This form is used by a financial institution (or broker acting on its behalf) to obtain approval for coverage of a short-term letter of credit. The information allows the EXIM staff to make a determination of the eligibility of the applicant and transaction for EXIM assistance under its programs.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     This form affects entities involved in the export of U.S. goods and services.
                </P>
                <P>
                    <E T="03">Annual Number of Respondents:</E>
                     11.
                </P>
                <P>
                    <E T="03">Estimated Time per Respondent:</E>
                     0.5 hr.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     5.5.
                </P>
                <P>
                    <E T="03">Frequency of Reporting of Use:</E>
                     On occasion.
                </P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Andrew Smith,</NAME>
                    <TITLE>Records Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14295 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6690-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL MEDIATION AND CONCILIATION SERVICE</AGENCY>
                <SUBJECT>Privacy Act of 1974; System of Records</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY: </HD>
                    <P>Federal Mediation and Conciliation Service.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION: </HD>
                    <P>Notice of a new system of records.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY: </HD>
                    <P>The Federal Mediation and Conciliation Service (FMCS) uses this system to collect information to match FMCS employees with appropriate developmental resources. The information collected is analyzed and used to determine training modalities, mentors, or involvement in projects requiring special skills.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES: </HD>
                    <P>This system of records will be effective without further notice on July 29, 2024 unless otherwise revised pursuant to comments received. Comments must be received on or before July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES: </HD>
                    <P>You may send comments, identified by FMCS-0009 by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Office of General Counsel, 250 E Street SW Washington, DC 20427.
                    </P>
                    <P>
                        • 
                        <E T="03">Email: register@fmcs.gov.</E>
                         Include FMCS-0009 on the subject line of the message.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Anna Davis, General Counsel, at 
                        <E T="03">adavis@fmcs.gov</E>
                         or 202-606-3737.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The system collects information to match employees with individual mediator/mentor matching tools, agency-wide training needs assessment, class mentor selections, Conflict Management Professional program applications, and the Mediator Skills Survey. The system will use Microsoft Forms, Microsoft SharePoint, and Survey Monkey to collect information from FMCS employees.</P>
                <PRIACT>
                    <HD SOURCE="HD2">SYSTEM NAME AND NUMBER:</HD>
                    <P>FMCS-0009 Internal Assessment Records.</P>
                    <HD SOURCE="HD2">SECURITY CLASSIFICATION:</HD>
                    <P>Unclassified.</P>
                    <HD SOURCE="HD2">SYSTEM LOCATION:</HD>
                    <P>Federal Mediation and Conciliation Service, 250 E Street SW, Washington, DC 20427.</P>
                    <HD SOURCE="HD2">SYSTEM MANAGER(S):</HD>
                    <P>
                        Heather Brown, Chief Learning Officer, email 
                        <E T="03">hbrown@fmcs.gov, call (202) 379-8542, or send mail to</E>
                         Federal Mediation and Conciliation Service, 250 E Street Southwest, Washington, DC 20427, Attn: Heather Brown.
                    </P>
                    <HD SOURCE="HD2">AUTHORITY FOR MAINTENANCE OF THE SYSTEM:</HD>
                    <P>
                        Federal Mediation and Conciliation Service, 29 U.S.C. 172, 
                        <E T="03">et seq.,</E>
                         and Departmental Regulations, 5 U.S.C. 301.
                    </P>
                    <HD SOURCE="HD2">PURPOSE(S) OF THE SYSTEM:</HD>
                    <P>The records in this system are used to match employees with the appropriate developmental resources in alignment with three of the four Strategic Goals in FMCS's Four Year Strategic Plan 2022-2026. Three of the Strategic Goals are: (1) Efficiently provide top-tier conflict management and prevention services; (2) Increase agency-wide application and effectiveness of evidence-based decision-making; and (4) Prioritize lifelong learning in support of agency mission and individual professional development. The records collected is analyzed and used to determine training modalities, mentors, or involvement in projects requiring special skills.</P>
                    <HD SOURCE="HD2">CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:</HD>
                    <P>The categories of individuals covered in the system are FMCS employees.</P>
                    <HD SOURCE="HD2">CATEGORIES OF RECORDS IN THE SYSTEM:</HD>
                    <P>The categories of records maintained in the system include names, email addresses, and other information related to professional capabilities, desired or needed skills, and general preferences.</P>
                    <HD SOURCE="HD2">RECORD SOURCE CATEGORIES:</HD>
                    <P>Information in this system of records is provided by FMCS employees.</P>
                    <HD SOURCE="HD2">ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND PURPOSES OF SUCH USES:</HD>
                    <P>
                        In addition to those disclosures generally permitted under 5 U.S.C. 552a(b) of the Privacy Act, all or a 
                        <PRTPAGE P="53998"/>
                        portion of the records or information contained in this system may be disclosed to authorized entities, as is determined to be relevant and necessary, outside the FMCS as a routine use pursuant to 5 U.S.C. 552a(b)(3) as follows:
                    </P>
                    <P>(a) To disclose pertinent information to the appropriate Federal, State, or local agency responsible for investigating, prosecuting, enforcing, or implementing a statute, rule regulation or order where the record, either alone or in conjunction with other information creates an indication of a violation or potential violation of civil or criminal laws or regulations.</P>
                    <P>(b) To disclose information to contractors, grantees, experts, consultants, detailees, and other non-Government employees performing or working on a contract, service, or other assignment for the agency when necessary to accompany an agency function related to this system of records.</P>
                    <P>
                        (c) To officials of labor organizations and employers receiving services pursuant to 29 U.S.C. 172, 
                        <E T="03">et seq.</E>
                    </P>
                    <P>(d) To officials of labor organizations and Federal agencies recognized under 5 U.S.C. chapter 71 upon receipt of a formal request and in accordance with the conditions of 5 U.S.C. 7114 when relevant and necessary to their duties of exclusive representation concerning personnel policies, practices, and matters affecting working conditions.</P>
                    <P>(e) To disclose information to a Member of Congress or a congressional office in response to an inquiry made on behalf of, and at the request of, an individual who is the subject of the record.</P>
                    <P>(f) In an appropriate proceeding before a court, grand jury, or administrative or adjudicative body or official, when FMCS or other Agency representing FMCS determines the records are relevant and necessary to the proceeding; or in an appropriate proceeding before an administrative or adjudicative body when the adjudicator determines the records to be relevant to the proceeding.</P>
                    <P>(g) To the Department of Justice, including Offices of the U.S. Attorneys, or another Federal agency representing FMCS in pending or potential litigation or proceedings before any court, adjudicative, or administrative body. Such disclosure is permitted only when it is relevant and necessary to the litigation or proceeding, and one of the following is a party to the litigation or has an interest in such litigation:</P>
                    <P>(1) FMCS, or any component thereof;</P>
                    <P>(2) Any employee or former employee of FMCS in their official capacity;</P>
                    <P>(3) Any employee or former employee of FMCS in their capacity where the Department of Justice or FMCS has agreed to represent the employee;</P>
                    <P>(4) The United States, a Federal agency, or another party in litigation before a court, adjudicative, or administrative body, upon the FMCS General Counsel's approval, pursuant to 5 CFR part 295 or otherwise.</P>
                    <P>(h) To any agency, organization, or person for the purposes of performing audit or oversight operations related to the operation of this system of records or for Federal ethics compliance purposes as authorized by law, but only information necessary and relevant to such audit or oversight function.</P>
                    <P>(i) To disclose data or information to other Federal agencies, educational institutions, or FMCS clients who collaborate with FMCS to provide research or statistical information, services, or training concerning conflict management.</P>
                    <P>(j) To appropriate agencies, entities, and persons when (1) FMCS suspects or has confirmed that there has been a breach of the system of records, (2) FMCS has determined that as a result of the suspected or confirmed breach there is a risk of harm to individuals, FMCS (including its information systems, programs, and operations), the Federal Government, or national security; and (3) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with FMCS's efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm.</P>
                    <P>(k) To another Federal agency or Federal entity, when FMCS determines that information from this system of records is reasonably necessary to assist the recipient agency or entity in (1) responding to a suspected or confirmed breach or (2) preventing, minimizing, or remedying the risk of harm to individuals, the recipient agency or entity (including its information systems, programs, and operations), the Federal Government, or national security, resulting from a suspected or confirmed breach.</P>
                    <P>(l) To disclose information to the National Archives and Records Administration (NARA) or the General Services Administration in records management inspections conducted under authority of 44 U.S.C. 2904 and 2906.</P>
                    <P>(m) To a former employee of the Agency for purposes of responding to an official inquiry by a Federal, State, or local government entity or professional licensing authority, in accordance with applicable Agency regulations; or facilitating communications with a former employee that may be necessary for personnel-related or other official purposes where the Agency requires information and/or consultation assistance from the former employee regarding a matter within that person's former area of responsibility.</P>
                    <P>(n) To the Government Accountability Office (GAO) for oversight purposes; to the Department of Justice (DOJ) to obtain that department's adv(ice regarding disclosure obligations under the Freedom of Information Act (FOIA); or to the Office of Management and Budget (OMB) to obtain that office's advice regarding obligations under the Privacy Act.</P>
                    <P>(o) To disclose information to the Office of Personnel Management (OPM) and to the Equal Employment Opportunity Commission (EEOC) to respond to data calls and reports about career development and training opportunities, number of employees who use it, and other information or requests.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR STORAGE OF RECORDS:</HD>
                    <P>These records are maintained electronically, and data collected is accessed through agency internal drives which require a username and password.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:</HD>
                    <P>Records are retrieved by the name or other programmatic identifier such as a specific interest, skill, or other agency needs.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:</HD>
                    <P>All records are retained and disposed of in accordance with General Records Schedule 6.1, issued by the National Archives and Records Administration (NARA).</P>
                    <HD SOURCE="HD2">ADMINSTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS: </HD>
                    <P>
                        Electronic records are accessed on FMCS's internal drives and through web browsers to the internet that all require a username and password for login, are safeguarded in a secured environment, and are maintained in a secure, password-protected electronic system that utilize commensurate safeguards that may include firewalls, intrusion detection and prevention systems, and role-based access controls. All records are protected from unauthorized access through appropriate administrative, operational, and technical safeguards. These safeguards include restricting access to authorized personnel who 
                        <PRTPAGE P="53999"/>
                        have a “need to know” and password protection identification features.
                    </P>
                    <HD SOURCE="HD2">RECORD ACCESS PROCEDURES:</HD>
                    <P>
                        Individuals must provide the following information for their records to be located and identified: (1) Full name, (2) Address, and (3) A reasonably identifying description of the record content requested. Requests can be submitted via 
                        <E T="03">fmcs.gov/foia/,via</E>
                         email to 
                        <E T="03">privacy@fmcs.gov,</E>
                         or via mail to the Privacy Office at FMCS 250 E Street SW Washington, DC 20427. See 29 CFR 1410.3.
                    </P>
                    <HD SOURCE="HD2">CONTESTING RECORDS PROCEDURES:</HD>
                    <P>
                        Requests for correction or amendment of records, on how to contest the content of any records. Privacy Act requests to amend or correct records may be submitted to the Privacy Office at 
                        <E T="03">privacy@fmcs.gov</E>
                         or via mail to the Privacy Office at FMCS 250 E Street, SW Washington, DC 20427. Also, see 
                        <E T="03">https://www.fmcs.gov/privacy-policy/.</E>
                         See 29 CFR 1410.6.
                    </P>
                    <HD SOURCE="HD2">NOTIFICATION PROCEDURES:</HD>
                    <P>See 29 CFR 1410.3(a), Individual access requests.</P>
                    <HD SOURCE="HD2">EXEMPTIONS PROMULGATED FOR THE SYSTEM:</HD>
                    <P>None.</P>
                    <HD SOURCE="HD2">HISTORY:</HD>
                    <P>None.</P>
                </PRIACT>
                <SIG>
                    <DATED>Dated: May 21, 2024.</DATED>
                    <NAME>Alisa Zimmerman,</NAME>
                    <TITLE>Deputy General Counsel, Federal Mediation and Conciliation Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14239 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6732-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL RESERVE SYSTEM</AGENCY>
                <SUBJECT>Formations of, Acquisitions by, and Mergers of Bank Holding Companies</SUBJECT>
                <P>
                    The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 
                    <E T="03">et seq.</E>
                    ) (BHC Act), Regulation Y (12 CFR part 225), and all other applicable statutes and regulations to become a bank holding company and/or to acquire the assets or the ownership of, control of, or the power to vote shares of a bank or bank holding company and all of the banks and nonbanking companies owned by the bank holding company, including the companies listed below.
                </P>
                <P>
                    The public portions of the applications listed below, as well as other related filings required by the Board, if any, are available for immediate inspection at the Federal Reserve Bank(s) indicated below and at the offices of the Board of Governors. This information may also be obtained on an expedited basis, upon request, by contacting the appropriate Federal Reserve Bank and from the Board's Freedom of Information Office at 
                    <E T="03">https://www.federalreserve.gov/foia/request.htm.</E>
                     Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)).
                </P>
                <P>Comments received are subject to public disclosure. In general, comments received will be made available without change and will not be modified to remove personal or business information including confidential, contact, or other identifying information. Comments should not include any information such as confidential information that would not be appropriate for public disclosure.</P>
                <P>Comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors, Ann E. Misback, Secretary of the Board, 20th Street and Constitution Avenue NW, Washington, DC 20551-0001, not later than July 29, 2024.</P>
                <P>
                    <E T="03">A. Federal Reserve Bank of Boston</E>
                     (Prabal Chakrabarti, Senior Vice President) 600 Atlantic Avenue, Boston, Massachusetts 02210-2204. Comments can also be sent electronically to 
                    <E T="03">BOS.SRC.Applications.Comments@bos.frb.org:</E>
                </P>
                <P>
                    1. 
                    <E T="03">Eagle Bancorp, MHC;</E>
                     to become a bank holding company by acquiring Eagle Bank, both of Everett, Massachusetts.
                </P>
                <SIG>
                    <P>Board of Governors of the Federal Reserve System.</P>
                    <NAME>Michele Taylor Fennell,</NAME>
                    <TITLE>Deputy Associate Secretary of the Board.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14321 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">FEDERAL RESERVE SYSTEM</AGENCY>
                <SUBJECT>Agency Information Collection Activities: Announcement of Board Approval under Delegated Authority and Submission to OMB</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Board of Governors of the Federal Reserve System.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Board of Governors of the Federal Reserve System (Board) is adopting a proposal to extend for three years, with revision, the Margin Credit Reports (FR G-1, FR G-2, FR G-3, FR G-4, FR T-4, and FR U-1; OMB No. 7100-0011).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The revisions are applicable as of June 28, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Federal Reserve Board Clearance Officer—Nuha Elmaghrabi—Office of the Chief Data Officer, Board of Governors of the Federal Reserve System, 
                        <E T="03">nuha.elmaghrabi@frb.gov,</E>
                         (202) 452-3884.
                    </P>
                    <P>Office of Management and Budget (OMB) Desk Officer for the Federal Reserve Board, Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 10235, 725 17th Street NW, Washington, DC 20503, or by fax to (202) 395-6974.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    On June 15, 1984, OMB delegated to the Board authority under the Paperwork Reduction Act (PRA) to approve and assign OMB control numbers to collections of information conducted or sponsored by the Board. Board-approved collections of information are incorporated into the official OMB inventory of currently approved collections of information. The OMB inventory, as well as copies of the PRA Submission, supporting statements (which contain more detailed information about the information collections and burden estimates than this notice), and approved collection of information instrument(s) are available at 
                    <E T="03">https://www.reginfo.gov/public/do/PRAMain.</E>
                     These documents are also available on the Federal Reserve Board's public website at 
                    <E T="03">https://www.federalreserve.gov/apps/reportingforms/home/review</E>
                     or may be requested from the agency clearance officer, whose name appears above. On the page displayed at the link above, you can find the supporting information by referencing the collection identifier, FR G-1, FR G-2, FR G-3, FR G-4, FR T-4, or FR U-1.
                </P>
                <HD SOURCE="HD1">Final Approval Under OMB Delegated Authority of the Extension for Three Years, With Revision, of the Following Information Collection</HD>
                <P>
                    <E T="03">Collection title:</E>
                     Margin Credit Reports.
                </P>
                <P>
                    <E T="03">Collection identifier:</E>
                     FR G-1, FR G-2, FR G-3, FR G-4, FR T-4, and FR U-1.
                </P>
                <P>
                    <E T="03">OMB control number:</E>
                     7100-0011.
                </P>
                <P>
                    <E T="03">General description of collection:</E>
                     The Margin Credit Reports is comprised of the following six reports: Registration Statement for Persons Who Extend Credit Secured by Margin Stock (Other Than Banks, Brokers, or Dealers) (FR G-1), Deregistration Statement for Persons Registered Pursuant to Regulation U (FR G-2), Statement of Purpose for an Extension of Credit Secured by Margin Stock by a Person Subject to Registration Under Regulation U (FR G-3), Annual Report (FR G-4), Statement 
                    <PRTPAGE P="54000"/>
                    of Purpose for an Extension of Credit by a Creditor (FR T-4), and Statement of Purpose for an Extension of Credit Secured by Margin Stock (FR U-1). These reports relate to extensions of credit secured by margin stock. The Board collects the information gathered by the Margin Credit Reports so that it may meet certain obligations under the Securities Exchange Act of 1934.
                </P>
                <P>Certain lenders that are not brokers, dealers, or banks making loans secured by margin stock must register and deregister with the Federal Reserve using the FR G-1 and FR G-2, respectively, and must file an annual report (FR G-4) while registered. The FR G-1, FR G-2, and FR G-4 reporting requirements collect data used to identify lenders subject to the Board's Regulation U to verify their compliance with the regulation and to monitor margin credit.</P>
                <P>The FR T-4, FR U-1, and FR G-3 are forms that implement recordkeeping requirements for brokers and dealers, banks, and other lenders, respectively. The FR T-4 documents the purpose of credit being extended when that credit is not to purchase, carry, or trade in securities and the credit is in excess of that otherwise permitted under Regulation T. The FR G-3 and FR U-1 document the purpose of loans secured by margin stock.</P>
                <P>
                    <E T="03">Frequency:</E>
                     The FR G-1, FR G-2, FR G-3, FR T-4, and FR U-1 are event-generated; the FR G-4 is completed annually.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     The FR G-1, FR G-2, FR G-3, and FR G-4 panels comprise lenders, other than banks, brokers, or dealers, that extend margin credit, including federal and state credit unions; insurance companies; commercial and consumer credit organizations; production credit associations; small businesses; insurance premium funding plans; plan-lenders (a company or its affiliate that extends credit to employees to purchase company stock under an eligible employee stock option or stock purchase plan); and lenders to Employee Stock Ownership Plans (ESOPs), thrift plans, and broker-dealer affiliates. The FR T-4 panel comprises brokers and dealers and the FR U-1 panel comprises banks.
                </P>
                <P>
                    <E T="03">Total estimated number of respondents:</E>
                     FR G-1, 25; FR G-2, 12; FR G-3, 10; FR G-4, 129; FR T-4, 14; FR U-1, 14.
                </P>
                <P>
                    <E T="03">Estimated average hours per response:</E>
                     FR G-1, 1.65; FR G-2, 0.53; FR G-3, 0.25; FR G-4, 2.07; FR T-4, 0.25; FR U-1, 0.25.
                </P>
                <P>
                    <E T="03">Total estimated annual burden hours:</E>
                     697.
                </P>
                <P>
                    <E T="03">Current actions:</E>
                     On February 16, 2024, the Board published a notice in the 
                    <E T="04">Federal Register</E>
                     (89 FR 12342) requesting public comment for 60 days on the extension, with revision, of the FR G-1, FR G-2, FR G-3, FR G-4, FR T-4, and FR U-1. The Board revised the FR G-1 and FR G-4 by updating the confidentiality treatment as contained in the reporting instructions to state that individual respondents may request that information submitted to the Board through the FR G-1 and FR G-4 be kept confidential and the Board will evaluate whether such treatment is appropriate on a case-by-case basis. The comment period for this notice expired on April 16, 2024. The Board did not receive any comments.
                </P>
                <SIG>
                    <DATED>Board of Governors of the Federal Reserve System, June 25, 2024.</DATED>
                    <NAME>Benjamin W. McDonough,</NAME>
                    <TITLE>Deputy Secretary and Ombuds of the Board.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14341 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6210-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">GENERAL SERVICES ADMINISTRATION</AGENCY>
                <DEPDOC>[Notice-MEG-2024-02; Docket No. 2024-0002; Sequence No. 29]</DEPDOC>
                <SUBJECT>Notice of Establishment of a Federal Advisory Committee</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Government-wide Policy, General Services Administration (GSA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The General Services Administration (GSA) announces the establishment of the Open Government Federal Advisory Committee (hereinafter “the Committee” or “the OG FAC”) in accordance with the Federal Advisory Committee Act, as amended.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>June 28, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Arthur Brunson, Designated Federal Officer, Office of Government-wide Policy, 202-501-1126, or email: 
                        <E T="03">arthur.brunson@gsa.gov;</E>
                         or email: 
                        <E T="03">ogfac@gsa.gov</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Administrator of the U.S. General Services Administration (GSA) established the Open Government Federal Advisory Committee (OG FAC) as a discretionary advisory committee under agency authority in accordance with the provisions of the Federal Advisory Committee Act (FACA), as amended, 5 U.S.C. 10. GSA has determined that the establishment of OG FAC is necessary and in the public interest.</P>
                <P>GSA's Open Government Secretariat supports ensuring a more transparent, responsive and inclusive Federal Government. This is done by providing channels for members of the public to regularly engage with their government. The OG FAC will advise GSA in its endeavor to increase the public's access to data, to better advance equity, engage the public in the regulatory process, make government records more accessible, and improve the delivery of government services and benefits through expert advice.</P>
                <P>The OG FAC will serve as an advisory body to GSA on GSA Open Government initiatives including GSA's creation, implementation and monitoring of U.S. Open Government National Action Plans (NAPs) and commitment themes. The initial focus for the OG FAC will be to provide advice to GSA on the development of NAP 6, Open Government Policy, and Public Engagement. The OG FAC will advise GSA's Administrator on emerging open government issues, challenges and opportunities to support GSA's Open Government Secretariat.</P>
                <P>The OG FAC advisory committee is essential to conduct agency business for GSA and bring together civil society, Federal agencies, academia, industry, and other interested stakeholders. GSA needs a wide diversity of views on Open Government initiatives.</P>
                <SIG>
                    <NAME>Mehul Parekh,</NAME>
                    <TITLE>Acting Associate Administrator, Office of Government-wide Policy, General Services Administration.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14259 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6820-UA-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <DEPDOC>[60Day-24-24GU; Docket No. CDC-2024-0053]</DEPDOC>
                <SUBJECT>Proposed Data Collection Submitted for Public Comment and Recommendations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice with comment period.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Centers for Disease Control and Prevention (CDC), as part of its continuing effort to reduce public burden and maximize the utility of government information, invites the general public and other federal agencies the opportunity to comment on 
                        <PRTPAGE P="54001"/>
                        a proposed information collection, as required by the Paperwork Reduction Act of 1995. This notice invites comment on a proposed information collection project titled Assessing Adoption and Implementation of the National Institute of Occupational Safety and Health's (NIOSH) Outputs. NIOSH proposes using surveys, interviews, and focus groups to improve awareness, understanding, and assess the impact of adoption and implementation practices by users of NIOSH research efforts and products.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>CDC must receive written comments on or before August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by Docket No. CDC-2024-0053 by either of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal:</E>
                          
                        <E T="03">www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Jeffrey M. Zirger, Information Collection Review Office, Centers for Disease Control and Prevention, 1600 Clifton Road NE, MS H21-8, Atlanta, Georgia 30329.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name and Docket Number. CDC will post, without change, all relevant comments to 
                        <E T="03">www.regulations.gov.</E>
                    </P>
                    <P>
                        <E T="03">Please note:</E>
                         Submit all comments through the Federal eRulemaking portal (
                        <E T="03">www.regulations.gov</E>
                        ) or by U.S. mail to the address listed above.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        To request more information on the proposed project or to obtain a copy of the information collection plan and instruments, contact Jeffrey M. Zirger, Information Collection Review Office, Centers for Disease Control and Prevention, 1600 Clifton Road NE, MS H21-8, Atlanta, Georgia 30329; Telephone: 404-639-7570; Email: 
                        <E T="03">omb@cdc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-3520), federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. In addition, the PRA also requires federal agencies to provide a 60-day notice in the 
                    <E T="04">Federal Register</E>
                     concerning each proposed collection of information, including each new proposed collection, each proposed extension of existing collection of information, and each reinstatement of previously approved information collection before submitting the collection to the OMB for approval. To comply with this requirement, we are publishing this notice of a proposed data collection as described below.
                </P>
                <P>The OMB is particularly interested in comments that will help:</P>
                <P>1. 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;</P>
                <P>2. 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;</P>
                <P>3. Enhance the quality, utility, and clarity of the information to be collected;</P>
                <P>
                    4. 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 T="03">e.g.,</E>
                     permitting electronic submissions of responses; and
                </P>
                <P>5. Assess information collection costs.</P>
                <HD SOURCE="HD1">Proposed Project</HD>
                <P>Assessing Adoption and Implementation of the National Institute of Occupational Safety and Health's (NIOSH) Outputs—New—National Institute of Occupational Safety and Health's (NIOSH), Centers for Disease Control and Prevention (CDC).</P>
                <HD SOURCE="HD1">Background and Brief Description</HD>
                <P>The Centers for Disease Control and Prevention (CDC), National Institute for Occupational Safety and Health (NIOSH), is requesting approval of a new Generic information collection for a period of three years for the project titled, Assessing Adoption and Implementation of the National Institute of Occupational Safety and Health's (NIOSH) Outputs.</P>
                <P>With the continuation of the Government Performance and Results Act, and the more recent passage of the Foundations of Evidence-Based Policy Making Act, there is an increased need for federal agencies to measure and demonstrate their impact. However, measuring impact is challenging, especially for organizations that have a science-driven mission because of the time it takes to move from basic to applied research. Demonstrating attribution (cause and effect relationships) is particularly challenging for research organizations. NIOSH research is often designed to collect implementation and adoption data through document reviews of NIOSH records, including grantee final reports, and through interviews with NIOSH researchers (federal employees). While commonly recognized metrics, these data sources are not comprehensive, representative, or informative of the adoption and implementation of NIOSH products and efforts. Further, the design and execution of research projects has hindered research and program leaders prioritizing information collections to understand and assess the adoption and implementation of research efforts and products.</P>
                <P>The proposed Generic information collection package would allow researchers to expeditiously pursue efforts to provide NIOSH with critical information to inform mission-driven needs. Additionally, the proposed efforts go beyond simply measuring customer satisfaction and seek to advance NIOSH's burden, need, and impact framework for future research while also endeavoring to execute the Office of Management and Budget's guidance regarding the Foundations of Evidence-Based Policymaking Act. Respondents are expected to consist of users and potential users of NIOSH products including subject matter expects, former NIOSH funding recipients, and intermediary and end users. CDC requests OMB approval for an estimated 6,069 annual burden hours. There is no cost to respondents other than their time to participate.</P>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,r50,12,12,12,12">
                    <TTITLE>Estimated Annualized Burden Hours</TTITLE>
                    <BOXHD>
                        <CHED H="1">Type of respondent</CHED>
                        <CHED H="1">Type of data collection instrument</CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>responses per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Average
                            <LI>burden per</LI>
                            <LI>response</LI>
                            <LI>(in hours)</LI>
                        </CHED>
                        <CHED H="1">Total burden hours</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Subject matter experts</ENT>
                        <ENT>Survey instrument (pre and post)</ENT>
                        <ENT>5,000</ENT>
                        <ENT>1</ENT>
                        <ENT>20/60</ENT>
                        <ENT>1,667</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>Informed consent form</ENT>
                        <ENT>250</ENT>
                        <ENT>1</ENT>
                        <ENT>5/60</ENT>
                        <ENT>21</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>Interview or focus group guide</ENT>
                        <ENT>250</ENT>
                        <ENT>1</ENT>
                        <ENT>1</ENT>
                        <ENT>250</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Former NIOSH funding recipients</ENT>
                        <ENT>Survey instrument (pre and post)</ENT>
                        <ENT>200</ENT>
                        <ENT>1</ENT>
                        <ENT>20/60</ENT>
                        <ENT>67</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>Informed consent form</ENT>
                        <ENT>25</ENT>
                        <ENT>1</ENT>
                        <ENT>5/60</ENT>
                        <ENT>2</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="54002"/>
                        <ENT I="22"> </ENT>
                        <ENT>Interview or focus group guide</ENT>
                        <ENT>25</ENT>
                        <ENT>1</ENT>
                        <ENT>1</ENT>
                        <ENT>25</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            Intermediary or end users (
                            <E T="03">e.g.,</E>
                             employers, workers, manufactures, labor/professional associations, policymakers)
                        </ENT>
                        <ENT>
                            Survey instrument (pre and post)
                            <LI>Informed consent form</LI>
                        </ENT>
                        <ENT>
                            10,000
                            <LI>650</LI>
                        </ENT>
                        <ENT>
                            1
                            <LI>1</LI>
                        </ENT>
                        <ENT>
                            20/60
                            <LI>5/60</LI>
                        </ENT>
                        <ENT>
                            3,333
                            <LI>54</LI>
                        </ENT>
                    </ROW>
                    <ROW RUL="n,n,s">
                        <ENT I="22"> </ENT>
                        <ENT>Interview or focus group guide</ENT>
                        <ENT>650</ENT>
                        <ENT>1</ENT>
                        <ENT>1</ENT>
                        <ENT>650</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT>6,069</ENT>
                    </ROW>
                </GPOTABLE>
                <SIG>
                    <NAME>Jeffrey M. Zirger,</NAME>
                    <TITLE>Lead, Information Collection Review Office, Office of Public Health Ethics and Regulations, Office of Science, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14309 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Advisory Committee on Breast Cancer in Young Women; Notice of Charter Renewal</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of charter renewal.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Centers for Disease Control and Prevention (CDC), within the Department of Health and Human Services (HHS), announces the renewal of the charter of the Advisory Committee on Breast Cancer in Young Women (ACBCYW).</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Kimberly E. Smith, M.B.A., M.H.A., Designated Federal Officer, Advisory Committee on Breast Cancer in Young Women, Centers for Disease Control and Prevention, Department of Health and Human Services, 4770 Buford Highway NE, Mailstop S107-4, Atlanta, Georgia 30341-3717. Telephone: (404) 498-0073; Email: 
                        <E T="03">KESmith@cdc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>CDC is providing notice under 5 U.S.C. 1001-1014 of the renewal of the charter of the Advisory Committee on Breast Cancer in Young Women, Centers for Disease Control and Prevention, Department of Health and Human Services. This charter has been renewed for a two-year period through June 17, 2026.</P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14289 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Medicare &amp; Medicaid Services</SUBAGY>
                <DEPDOC>[Document Identifiers: CMS-179, CMS-10536, CMS-R-153 and CMS-10326]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities: Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Centers for Medicare &amp; Medicaid Services, Health and Human Services (HHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Centers for Medicare &amp; Medicaid Services (CMS) is announcing an opportunity for the public to comment on CMS' intention to collect information from the public. Under the Paperwork Reduction Act of 1995 (PRA), federal agencies are required to publish notice in the 
                        <E T="04">Federal Register</E>
                         concerning each proposed collection of information (including each proposed extension or reinstatement of an existing collection of information) and to allow 60 days for public comment on the proposed action. Interested persons are invited to send comments regarding our burden estimates or any other aspect of this collection of information, including the necessity and utility of the proposed information collection for the proper performance of the agency's functions, the accuracy of the estimated burden, ways to enhance the quality, utility, and clarity of the information to be collected, and the use of automated collection techniques or other forms of information technology to minimize the information collection burden.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received by August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>When commenting, please reference the document identifier or OMB control number. To be assured consideration, comments and recommendations must be submitted in any one of the following ways:</P>
                    <P>
                        1. 
                        <E T="03">Electronically.</E>
                         You may send your comments electronically to 
                        <E T="03">http://www.regulations.gov.</E>
                         Follow the instructions for “Comment or Submission” or “More Search Options” to find the information collection document(s) that are accepting comments.
                    </P>
                    <P>
                        2. 
                        <E T="03">By regular mail.</E>
                         You may mail written comments to the following address: CMS, Office of Strategic Operations and Regulatory Affairs, Division of Regulations Development, Attention: Document Identifier/OMB Control Number: Room C4-26-05, 7500 Security Boulevard, Baltimore, Maryland 21244-1850.
                    </P>
                    <P>
                        To obtain copies of a supporting statement and any related forms for the proposed collection(s) summarized in this notice, please access the CMS PRA website by copying and pasting the following web address into your web browser: 
                        <E T="03">https://www.cms.gov/Regulations-and-Guidance/Legislation/PaperworkReductionActof1995/PRA-Listing.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>William N. Parham at (410) 786-4669.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Contents</HD>
                <P>
                    This notice sets out a summary of the use and burden associated with the following information collections. More detailed information can be found in each collection's supporting statement 
                    <PRTPAGE P="54003"/>
                    and associated materials (see 
                    <E T="02">ADDRESSES</E>
                    ).
                </P>
                <P>CMS-179 Medicaid State Plan Base Plan Pages</P>
                <P>CMS-10536 Medicaid Eligibility and Enrollment (EE) Implementation Advanced Planning Document (IAPD) Template</P>
                <P>CMS-R-153 Medicaid Drug Use Review (DUR) Program</P>
                <P>CMS-10326 Electronic Submission of Medicare Graduate Medical Education (GME) </P>
                <HD SOURCE="HD1">Affiliation Agreements</HD>
                <P>
                    Under the PRA (44 U.S.C. 3501-3520), federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. The term “collection of information” is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) and includes agency requests or requirements that members of the public submit reports, keep records, or provide information to a third party. Section 3506(c)(2)(A) of the PRA requires federal agencies to publish a 60-day notice in the 
                    <E T="04">Federal Register</E>
                     concerning each proposed collection of information, including each proposed extension or reinstatement of an existing collection of information, before submitting the collection to OMB for approval. To comply with this requirement, CMS is publishing this notice.
                </P>
                <HD SOURCE="HD1">Information Collections</HD>
                <P>
                    1. 
                    <E T="03">Type of Information Collection Request:</E>
                     Extension of a currently approved collection; 
                    <E T="03">Title of Information Collection:</E>
                     Medicaid State Plan Base Plan Pages; 
                    <E T="03">Use:</E>
                     State Medicaid agencies complete the plan pages while we review the information to determine if the state has met all of the requirements of the provisions the states choose to implement. If the requirements are met, we will approve the amendments to the state's Medicaid plan giving the state the authority to implement the flexibilities. For a state to receive Medicaid Title XIX funding, there must be an approved Title XIX state plan. 
                    <E T="03">Form Number:</E>
                     CMS-179 (OMB control number 0938-0193); 
                    <E T="03">Frequency:</E>
                     Occasionally; 
                    <E T="03">Affected Public:</E>
                     State, Local, and Tribal Governments; 
                    <E T="03">Number of Respondents:</E>
                     56; 
                    <E T="03">Total Annual Responses:</E>
                     1,120; 
                    <E T="03">Total Annual Hours:</E>
                     22,400. (For policy questions regarding this collection contact Gary Knight at 304-347-5723.)
                </P>
                <P>
                    2. 
                    <E T="03">Type of Information Collection Request:</E>
                     Extension of a currently approved collection; 
                    <E T="03">Title of Information Collection:</E>
                     Medicaid Eligibility and Enrollment (EE) Implementation Advanced Planning Document (IAPD) Template; 
                    <E T="03">Use:</E>
                     To assess the appropriateness of states' requests for enhanced federal financial participation for expenditures related to Medicaid eligibility determination systems, we will review the submitted information and documentation to make an approval determination for the advanced planning document. 
                    <E T="03">Form Number:</E>
                     CMS-10536 (OMB control number: 0938-1268); 
                    <E T="03">Frequency:</E>
                     Yearly, once, and occasionally; 
                    <E T="03">Affected Public:</E>
                     State, Local, or Tribal Governments; 
                    <E T="03">Number of Respondents:</E>
                     56; 
                    <E T="03">Total Annual Responses: 168; Total Annual Hours:</E>
                     2,688. (For policy questions regarding this collection contact Loren Palestino at 410-786-8842.)
                </P>
                <P>
                    3. 
                    <E T="03">Type of Information Collection Request:</E>
                     Revision of a currently approved collection; 
                    <E T="03">Title of Information Collection:</E>
                     Medicaid Drug Use Review (DUR) Program; 
                    <E T="03">Use:</E>
                     States must provide for a review of drug therapy before each prescription is filled or delivered to a Medicaid patient. This review includes screening for potential drug therapy problems due to therapeutic duplication, drug-disease contraindications, drug-drug interactions, incorrect drug dosage or duration of drug treatment, drug-allergy interactions, and clinical abuse/misuse. Pharmacists must make a reasonable effort to obtain, record, and maintain Medicaid patient profiles. These profiles must reflect at least the patient's name, address, telephone number, date of birth/age, gender, history, 
                    <E T="03">e.g.,</E>
                     allergies, drug reactions, list of medications, and pharmacist's comments relevant to the individual's drug therapy. The State must conduct retrospective drug use review which provides for the ongoing periodic examination of claims data and other records in order to identify patterns of fraud, abuse, inappropriate or medically unnecessary care. Patterns or trends of drug therapy problems are identified and reviewed to determine the need for intervention activity with pharmacists and/or physicians. States may conduct interventions via telephone, correspondence, or face-to-face contact. The states and managed care organizations (MCOs) are provided the reporting instrument (a survey) by CMS, and by responding to the survey, the states generate annual reports which are submitted to CMS for the purposes of monitoring compliance and evaluating the progress of states' DUR programs. The survey and the annual recordkeeping and reporting requirements under the pertinent regulations, are completed by pharmacists employed by, or contracted with the various state Medicaid programs and their MCOs. The annual reports submitted by states are reviewed and results are compiled by CMS in a format intended to provide information, comparisons and trends related to states' experiences with DUR. The states benefit from the information and may enhance their programs each year based on state reported innovative practices that are compiled by CMS from the annual reports. A comparison/summary of the data from the annual reports is published on Medicaid.gov annually, and serves as a resource for stakeholders, including but not limited to states, manufacturers, researchers, congress, CMS, the Office of Inspector General, non-governmental payers and clinicians on the topic of DUR in state Medicaid programs. 
                    <E T="03">Form Number:</E>
                     CMS-R-153 (OMB control number: 0938-0659); 
                    <E T="03">Frequency:</E>
                     Yearly, quarterly, and occasionally; 
                    <E T="03">Affected Public:</E>
                     State, Local, or Tribal Governments; 
                    <E T="03">Number of Respondents:</E>
                     52; 
                    <E T="03">Total Annual Responses:</E>
                     676; 
                    <E T="03">Total Annual Hours:</E>
                     41,860. (For policy questions regarding this collection contact Mike Forman at 410-786-2666.)
                </P>
                <P>
                    4. 
                    <E T="03">Type of Information Collection Request:</E>
                     Reinstatement without change of a currently approved collection; 
                    <E T="03">Title of Information Collection:</E>
                     Electronic Submission of Medicare Graduate Medical Education (GME) Affiliation Agreements; 
                    <E T="03">Use:</E>
                     Existing regulations at §  413.75(b) permit hospitals that share residents to elect to form a Medicare GME affiliated group if they are in the same or contiguous urban or rural areas, if they are under common ownership, or if they are jointly listed as program sponsors or major participating institutions in the same program by the accrediting agency. The purpose of a Medicare GME affiliated group is to provide flexibility to hospitals in structuring rotations under an aggregate full time equivalent (FTE) resident cap when they share residents. The existing regulations at §  413.79(f)(1) specify that each hospital in a Medicare GME affiliated group must submit a Medicare GME affiliation agreement (as defined under §  413.75(b)) to the Medicare Administrative Contractor (MAC) servicing the hospital and send a copy to the Centers for Medicare and Medicaid Services' (CMS) Central Office, no later than July 1 of the residency program year during which the Medicare GME affiliation agreement will be in effect.
                </P>
                <P>
                    CMS will use the information contained in electronic affiliation agreements as documentation of the existence of Medicare GME affiliations, 
                    <PRTPAGE P="54004"/>
                    and to verify that the affiliations being formed by teaching hospitals for the purposes of sharing their Medicare GME FTE cap slots are valid according to CMS regulations. CMS will also use these affiliation agreements as reference materials when potential issues involving specific affiliations arise. While we have used hard copies of affiliation agreements for those same purposes in the past, we implemented this electronic submission process in order to expedite and ease the process of retrieving, analyzing and evaluating affiliation agreements. 
                    <E T="03">Form Number:</E>
                     CMS-10326 (OMB control number: 0938-1111); 
                    <E T="03">Frequency:</E>
                     Annually; 
                    <E T="03">Affected Public:</E>
                     Private Sector, Business or other for profits, Not for profit institutions; 
                    <E T="03">Number of Respondents:</E>
                     125; 
                    <E T="03">Total Annual Responses:</E>
                     125; 
                    <E T="03">Total Annual Hours:</E>
                     166. (For policy questions regarding this collection contact Shevi Marciano at 410-786-2874.)
                </P>
                <SIG>
                    <NAME>William N. Parham, III,</NAME>
                    <TITLE>Director, Division of Information Collections and Regulatory Impacts, Office of Strategic Operations and Regulatory Affairs.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14338 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4120-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Administration for Children and Families</SUBAGY>
                <SUBJECT>Submission for Office of Management and Budget Review; Refugee Support Services (RSS) and RSS Set Aside Sub-Agency List (Office of Management and Budget #0970-0556)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Refugee Resettlement, Administration for Children and Families, U.S. Department of Health and Human Services.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Request for public comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Administration for Children and Families (ACF) Office of Refugee Resettlement (ORR) is requesting a 3-year extension of the Refugee Support Services (RSS) and RSS Set Aside Sub-Agency List (Office of Management and Budget #0970-0556). ORR is not proposing any changes to the form.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments due within 30 days of publication.</E>
                         OMB must make a decision about the collection of information between 30 and 60 days after publication of this document in the 
                        <E T="04">Federal Register</E>
                        . Therefore, a comment is best assured of having its full effect if OMB receives it within 30 days of publication.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function. You can also obtain copies of the proposed collection of information by emailing 
                        <E T="03">infocollection@acf.hhs.gov.</E>
                         Identify all emailed requests by the title of the information collection.
                    </P>
                </ADD>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Description:</E>
                     The RSS and RSS Set Aside Sub-Agency List requests grantees to provide the agency name, city, state, website, and funding amount for each contracted sub-grantee.
                </P>
                <P>The information will be used for national resource mapping pertaining to ORR RSS funding at the local level. Improved communication and the knowledge of all local providers is important to ORR's overall oversight of the program. In addition to RSS formula funding to states and state replacement agencies who then issue sub-awards to local providers, ORR also awards discretionary grants that directly fund local refugee service providers. This report will continue to provide ORR a complete picture of the availability all ORR resources to assist newly arrived refugees at the local level increasing our ability to identify gaps or target areas of need.</P>
                <P>
                    <E T="03">Respondents:</E>
                     State agencies and replacement designees under 45 CFR 400.301(c) administering or supervising the administration of programs.
                </P>
                <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12C,12C,12C,12C">
                    <TTITLE>Annual Burden Estimates</TTITLE>
                    <BOXHD>
                        <CHED H="1">Instrument</CHED>
                        <CHED H="1">
                            Total
                            <LI>number of</LI>
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">
                            Annual
                            <LI>number of</LI>
                            <LI>responses per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Average
                            <LI>burden hours</LI>
                            <LI>per response</LI>
                        </CHED>
                        <CHED H="1">
                            Annual
                            <LI>burden hours</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">RSS and RSS Set Aside Sub-grantee List</ENT>
                        <ENT>59</ENT>
                        <ENT>1</ENT>
                        <ENT>2</ENT>
                        <ENT>118</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">Authority:</E>
                     Refugee Act of 1980 [Immigration and Nationality Act, title IV, chapter 2, section 412 (e)] and 45 CFR 400.28.
                </P>
                <SIG>
                    <NAME>Mary C. Jones,</NAME>
                    <TITLE>ACF/OPRE Certifying Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14165 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4184-45-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Administration for Children and Families</SUBAGY>
                <SUBJECT>Submission for Office of Management and Budget (OMB) Review; Community Services Block Grant (CSBG) Annual Progress Report (OMB No. 0970-0492)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Community Services, Administration for Children and Families, U.S. Department of Health and Human Services.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Request for public comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Office of Community Services (OCS), Administration for Children and Families (ACF) requests an extension with minor changes to the currently approved Community Services Block Grant (CSBG) Annual Progress Report, (OMB #0970-0492, expiration 6/30/2024) and is submitting the Tribal Annual Report and Tribal Short Form, as well as removing supplemental funding reports that are no longer in use. Plans for further revisions to this report are also discussed below.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments due</E>
                         July 29, 2024. OMB must make a decision about the collection of information between 30 and 60 days after publication of this document in the 
                        <E T="04">Federal Register</E>
                        . Therefore, a comment is best assured of having its full effect if OMB receives it within 30 days of publication.
                    </P>
                </DATES>
                <ADD>
                    <PRTPAGE P="54005"/>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function. You can also obtain copies of the proposed collection of information by emailing 
                        <E T="03">infocollection@acf.hhs.gov.</E>
                         Identify all emailed requests by the title of the information collection.
                    </P>
                </ADD>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Description:</E>
                     Section 678E of the CSBG Act requires states, including the District of Columbia and the Commonwealth of Puerto Rico, and U.S. territories, to annually prepare and submit a report on the measured performance of the state and the eligible entities in the state. Prior to the participation of the state in the performance measurement system, the state shall include in the report any information collected by the state relating to such performance. Each state shall also include in the report an accounting of the expenditure of funds received by the state through the CSBG program, including an accounting of funds spent on administrative costs by the state and the eligible entities, and funds spent by the eligible entities on the direct delivery of local services, and shall include information on the number of and characteristics of clients served under the subtitle in the state, based on data collected from the eligible entities. The state shall also include in the report a summary describing the training and technical assistance offered by the state.
                </P>
                <P>Section 3(b) of the Government Performance and Results (GPRA) Modernization Act of 2010 (GPRAMA) requires OCS, as an office under the U.S. Department of Health and Human Services, to collect performance information for the CSBG. This current request includes CSBG Annual Report 2.1. OCS is requesting an extension of the current Annual Report with clarification revisions to be used in federal fiscal year (FY) 2024 as a requirement to satisfy section 678E of the CSBG Act and then as an optional collection instrument in FY 2025 to support an incremental implementation. OCS also plans to discontinue the currently approved Supplemental Funding Reports under this OMB control number. OCS is introducing the CSBG Annual Report 3.0 Tribal Annual Report—a modified annual report to collect performance information from CSBG directly funded tribal grant recipients receiving more than $50,000. Tribes would be required to report using the Tribal Annual Report to fulfill FY 2024 to FY 2026 reporting requirements due each year on March 31; and the CSBG Annual Report 3.0 Tribal Short Form for use by tribes directly funded by CSBG below the $50,000 funding threshold. Both the Tribal Annual Report and Tribal Short Form were developed using the revisions of the CSBG Annual Report to provide a comparable reporting schema for directly funded CSBG tribes commensurate with their funding levels to minimize burden while collecting performance data. Tribes receiving less than $50,000 annual would be required to report using the Tribal Short Form to fulfill FY 2024 to FY 2026 reporting requirements due each year on March 31.</P>
                <P>
                    OCS has also updated the Annual Report for future years, the CSBG Annual Report 3.0. This updated version was originally planned to be submitted in conjunction with the extension of version 2.1, but in an effort to be responsive to the public comments received during the 60-day comment period (89 FR 29339), OCS is delaying submission of that version. Once all comments are reviewed, addressed and a final proposed version 3.0 is ready, a subsequent notice will be published in the 
                    <E T="04">Federal Register</E>
                     announcing the opportunity to provide comments in conjunction with submission to OMB. This will provide a 30-day comment period. The future request is expected to include the following:
                </P>
                <P>1. CSBG Annual Report 3.0—a substantial revision of the current Annual Report form. This updated version continues to streamline state administrative information, as well as National Performance Indicators for individuals and families as reported by eligible entities. The proposed revisions seek to lessen the burden of the previous iteration of the report by decreasing the amount of data points collected, clarifying data points by using clearer language, removing items not pertinent to annual report data collection, and improving data points to reflect industry standards in measuring the reduction of poverty. This revision would be an optional collection instrument in FY 2026 to support incremental implementation and minimize burden to the public and would become the required sole collection instrument in FY 2027.</P>
                <P>
                    Copies of the proposed collections of information can be obtained by visiting: 
                    <E T="03">http://www.acf.hhs.gov/programs/ocs/programs/csbg.</E>
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     State governments, including the District of Columbia, the Commonwealth of Puerto Rico, U.S. territories, directly funded federally and state-recognized tribes and CSBG eligible entities.
                </P>
                <HD SOURCE="HD1">Annual Burden Estimates</HD>
                <HD SOURCE="HD2">Estimated Burden—FY24</HD>
                <P>In FY24, states and tribal grant recipients would be required to complete the current versions of the Annual Reports.</P>
                <GPOTABLE COLS="5" OPTS="L2,nj,tp0,i1" CDEF="s50,13,13,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Instrument</CHED>
                        <CHED H="1">
                            Total number
                            <LI>of respondents</LI>
                        </CHED>
                        <CHED H="1">
                            Total number
                            <LI>of responses</LI>
                            <LI>per respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Average
                            <LI>burden hours</LI>
                            <LI>per response</LI>
                        </CHED>
                        <CHED H="1">
                            Annual
                            <LI>burden hours</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">CSBG Annual Report 2.1 (States)</ENT>
                        <ENT>56</ENT>
                        <ENT>1</ENT>
                        <ENT>198</ENT>
                        <ENT>11,088</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">CSBG Annual Report 2.1 (Eligible Entities)</ENT>
                        <ENT>1,000</ENT>
                        <ENT>1</ENT>
                        <ENT>493</ENT>
                        <ENT>493,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">CSBG Tribal Annual Report</ENT>
                        <ENT>24</ENT>
                        <ENT>1</ENT>
                        <ENT>111</ENT>
                        <ENT>2,664</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="01">CSBG Tribal Annual Report Short Form</ENT>
                        <ENT>30</ENT>
                        <ENT>1</ENT>
                        <ENT>40</ENT>
                        <ENT>1,200</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">FY24 Total Annual Burden Estimates</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT>507,952</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">Comments:</E>
                     The Department specifically requests comments on the following:
                </P>
                <P>1. Whether the proposed collection of information is necessary for the proper performance measurement of Federal, State, or local agencies.</P>
                <P>2. The quality of the information to be collected.</P>
                <P>3. The clarity of the information to be collected.</P>
                <P>
                    4. Does the information to be collected produce significant burden? If so, how could the burden be minimized 
                    <PRTPAGE P="54006"/>
                    on respondents, including using automated collection techniques or other forms of technology?
                </P>
                <P>5. The accuracy of the agency's estimate of the burden of the proposed collection of information.</P>
                <P>6. What, if any, additions, revisions, or modifications to the information collection would you suggest?</P>
                <P>Consideration will be given to comments and suggestions submitted within 30 days of this publication.</P>
                <P>
                    <E T="03">Authority:</E>
                     112 Stat. 2729; 42 U.S.C. 9902(2).
                </P>
                <SIG>
                    <NAME>Mary C. Jones,</NAME>
                    <TITLE>ACF/OPRE Certifying Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14172 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4184-27-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Administration for Community Living</SUBAGY>
                <SUBJECT>Intent to Award a Single-Source Supplement for the Expanding ACL Innovation Lab</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Administration for Community Living, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Administration for Community Living (ACL) announces the intent to award a single-source supplement to the current cooperative agreement held by the National Council on Aging for the ACL Innovation Lab (“the Lab”) program. The purpose of the Lab is to support research, demonstration, and evaluation efforts related to falls prevention amongst older adults and older adults with disabilities.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For further information or comments regarding this program supplement, contact Shannon Skowronski, U.S. Department of Health and Human Services, Administration for Community Living, Center for Policy and Evaluation, Office of Performance and Evaluation; telephone (202) 795-7438 email 
                        <E T="03">shannon.skowronski@acl.hhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The primary activities of the ACL Innovation Lab include:</P>
                <P>• Developing a taxonomy for falls prevention research.</P>
                <P>• Funding a cohort of sub-awards to community-based entities across the nation to conduct research to understand and measure the extent to which existing interventions reduce falls and risk factors.</P>
                <P>• Developing a secure, dynamic system to house the data collected and evidence developed by sub-awardees.</P>
                <P>• Serving as a national focal point for technical assistance that supports the delivery and scaling of effective falls prevention interventions across the aging network.</P>
                <P>The supplement for FY 2024 will be approximately $4,441,320 and will not be used for projects or activities outside the scope of the approved award. The supplement will provide sufficient resources for:</P>
                <P>• increasing the number and geographic reach of sub-awards to community-based entities.</P>
                <P>• providing enhanced technical assistance, with a particular focus on individually tailored supports for sub-awardees, data collection, navigating and securing Institutional Review Board approval, and expanding dissemination.</P>
                <P>
                    <E T="03">Program Name:</E>
                     ACL Innovation Lab.
                </P>
                <P>
                    <E T="03">Recipient:</E>
                     The National Council on Aging.
                </P>
                <P>
                    <E T="03">Period of Performance:</E>
                     September 1, 2023 through August 31, 2026 (fully-funded).
                </P>
                <P>
                    <E T="03">Award Amount:</E>
                     Approximately $4,441,320.
                </P>
                <P>
                    <E T="03">Award Type:</E>
                     Cooperative Agreement Supplement.
                </P>
                <P>
                    <E T="03">Statutory Authority:</E>
                     Older Americans Act of 1965, sections 201 and 411, as amended through Pub. L. 116-131 (42 U.S.C. 3011, 42 U.S.C. 3032).
                </P>
                <P>
                    <E T="03">Basis for Award:</E>
                     The National Council on Aging (NCOA) is currently funded to serve as the first-ever ACL Innovation Lab (“the Lab”) for the period of September 1, 2023 through August 31, 2026. Since project implementation began in September 2023, the grantee has accomplished a great deal. This supplement will enable the grantee to carry their work even further, providing additional sub-grants and enhanced technical assistance to advance falls prevention efforts across the nation.
                </P>
                <P>The NCOA is uniquely positioned to complete the work called for under this project. NCOA's primary partners on this project include Impact Genome and a Research Advisory Committee, comprised of experts in the fields of falls prevention, community-based participatory research, and related areas.</P>
                <P>Establishing an entirely new grant project for this program would be potentially disruptive to efforts currently underway. The Lab was authorized in 2020, but not funded and established until FY2023. Work is currently underway to build a solid foundation and infrastructure for the Lab. If this supplement were not provided, this would make it difficult to build the comprehensive and dynamic infrastructure needed to advance the goals and efforts of this program for years to come. Building a parallel infrastructure this early in the process would likely result in duplication of effort. In addition, it has become evident that sub-awardee technical assistance needs will exceed initial estimates. Providing this supplement to NCOA will allow for the greater realization of Congress' intent in Titles II and IV of the Older Americans Act (OAA), which calls for the establishment of a Research, Demonstration, and Evaluation Center (“the Lab”) for the purposes of “[conducting] research, research dissemination, evaluation, demonstration projects, and related activities . . .; “[providing] assessment of the programs and interventions authorized under [the OAA]; and “[increasing the repository of information on evidence-based programs and interventions available to the aging network . . .” (Title II) and supporting “applied social research, aligned with evidence-based practice, and analysis to improve access to and delivery of services for older individuals . . .” (Title IV).</P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Alison Barkoff,</NAME>
                    <TITLE>Principal Deputy Administrator for the Administration for Community Living, performing the delegable duties of the Administrator and Assistant Secretary for Aging.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14227 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4154-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Administration for Community Living</SUBAGY>
                <SUBJECT>Agency Information Collection Activities: Submission for OMB Review; Public Comment Request; the State Plan for Assistive Technology (OMB Control Number 0985-0048)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Administration for Community Living, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Administration for Community Living (ACL) is announcing that the proposed collection of information listed above has been submitted to the Office of Management and Budget (OMB) for review and clearance as required under section 506(c)(2)(A) of the Paperwork Reduction Act of 1995. This 30-day notice collects comments on the information collection requirements related to the proposed extension of the information collection requirements relating to the State Plan of Assistive Technology (OMB Control Number 0985-0048).</P>
                </SUM>
                <DATES>
                    <PRTPAGE P="54007"/>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments on the collection of information must be submitted electronically by 11:59 p.m. ET or postmarked. July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit written comments and recommendations for the proposed information collection within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain</E>
                        . Find the information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function. By mail to the Office of Information and Regulatory Affairs, OMB, New Executive Office Bldg., 725 17th St. NW, Rm. 10235, Washington, DC 20503, Attention: OMB Desk Officer for ACL.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        <E T="03">Robert.Groenendaal@acl.hhs.gov</E>
                         (202) 795-7356.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>In compliance with the Paperwork Reduction Act (44 U.S.C. 3506), the Administration for Community Living (ACL) has submitted the following proposed collection of information to OMB for review and clearance. Section 4 of the 21st Century Assistive Technology Act (AT Act) provides grants to states and territories to operate comprehensive statewide assistive technology programs (Statewide AT Programs) that increase access to and acquisition of AT devices and services for individuals with disabilities and older Americans. States and territories are required to apply to ACL in order to receive funds under this grant program. Section 4(d) of the AT Act requires that this application contain:</P>
                <P>(1) Information identifying and describing the lead agency and implementing entity (if applicable) responsible for carrying out the Statewide AT Program and a description of how the implementing entity (if applicable) coordinates and collaborates with the state;</P>
                <P>(2) A description of how public and private entities were involved in the development of the application and will be involved in implementation of the grant, including the resources to be committed by these entities;</P>
                <P>(3) A description of how the Statewide AT Program will implement the activities required under the grant, which include state financing, device reutilization, device loans, device demonstrations, training, technical assistance, and public awareness. Statewide AT Programs must conduct these activities in coordination and collaboration with other appropriate entities;</P>
                <P>(4) An explanation of how the grant funds will be allocated, used, and tracked;</P>
                <P>(5) A set of assurances; and</P>
                <P>(6) A description of the activities that will be supported with State funds.</P>
                <HD SOURCE="HD1">Section 4 Requirements Necessitating Submission of the State Plan for AT and Annual Data Collection</HD>
                <P>Section 4 of the AT Act authorizes grants to public agencies in the 50 states and the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Marianas (states and outlying areas). With these funds, the 56 states and territories operate “Statewide AT Programs” that conduct activities to increase access to, and acquisition of, assistive technology (AT) for individuals with disabilities and older Americans. These comprehensive activities are divided into two categories: “State-level Activities” and “State Leadership Activities.”</P>
                <P>According to Section 4 of the AT Act, as a condition of receiving a grant to support their Statewide AT Programs, the 56 states and territories must provide to ACL: (1) applications and (2) annual progress reports on their activities.</P>
                <P>
                    <E T="03">Applications:</E>
                     The application required of states and territories is a three-year State Plan for Assistive Technology (State Plan for AT or State Plan) (OMB No. 0985-0048). The content of the State Plan for AT is based on the requirements in Section 4(d) of the AT Act. As a part of this State Plan, Section 4(d)(3) of the AT Act requires that states and territories conduct activities addressing the assistive technology needs of individuals with disabilities in education, employment, community living and information technology/telecommunications.
                </P>
                <P>National aggregation of data related to the required state-level and state leadership activities is necessary for the Government Performance and Results Modernization Act of 2010 (GPRAMA) as well as an Annual Report to Congress. Therefore, this State Plan for AT instrument provides a way for all 56 grantees—50 U.S. states, DC, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands to collect and report data on their performance in a consistent manner.</P>
                <P>
                    <E T="03">Annual Reports:</E>
                     In addition to submitting a State Plan for AT every three years, states and outlying areas are required to submit annual progress reports on their activities. The data required in that progress report is specified in Section 4(f) of the AT Act.
                </P>
                <HD SOURCE="HD1">Section 8 Requirements Necessitating Collection</HD>
                <P>Section 8(d) of the AT Act requires that ACL submit to Congress an annual report on the activities identified in the State Plan for AT and an analysis of the progress of the states and territories in meeting their measurable goals. The State Plan for AT must include a compilation and summary of the activities conducted under Section 4(f). In order to make this possible, states and territories must provide their data uniformly. This State Plan for AT instrument was developed to ensure that all 56 states and territories report data in a consistent manner in alignment with the requirements of Section 4(f).</P>
                <HD SOURCE="HD2">Comments in Response to the 60-Day Federal Register Notice (FRN)</HD>
                <P>ACL published a 60-day FRN on March 26, 2024, at 89 FR 20977. ACL received six comments in support of the updates to the State Plan for AT instrument: one each from the Michigan AT Program, the Wisconsin AT Program, and the Association of Assistive Technology Act Programs (ATAP). A public comment summary and ACL responses are provided below.</P>
                <P>
                    <E T="03">Comment Summary:</E>
                     Proposed overall updates to the State Plan for Assistive Technology (AT) information collection (IC) instrument and instruction manual to align with the reauthorization of the Assistive Technology Act. Two State AT Act Program grantees and the Association of Assistive Technology Act Programs (ATAP) commented in support of the proposed updates to the State Plan for AT IC as reasonable changes to align with the 
                    <E T="03">21st Century Assistive Technology Act.</E>
                </P>
                <HD SOURCE="HD3">Comments</HD>
                <P>
                    (1) Wisconsin Assistive Technology Program: “I have reviewed the proposed State Plan for AT Instrument and Instructions and also reviewed it with our Statewide Assistive Technology Advisory Council. The reporting structure and requirements appear to satisfy the 
                    <E T="03">21st Century Assistive Technology Act.</E>
                     The updated components and information do not appear that they will cause our program any undue burden or increase our level of reporting for completion of the State Plan for Assistive Technology. I look forward to submitting our next three-year State Plan to ACL once this is finalized.”
                </P>
                <P>
                    (2) Michigan Assistive Technology Program: “I just wanted to submit a 
                    <PRTPAGE P="54008"/>
                    comment on the proposed changes to the state plan—the proposed changes look great and won't be a burden for our state. Thank you for all you are doing.”
                </P>
                <P>
                    (3) Association of Assistive Technology Act Programs: “On behalf of the Association of Assistive Technology Act Programs (ATAP), we would like to respond to the U.S. Department of Health and Human Services, Administration for Community Living (ACL)'s 
                    <E T="04">Federal Register</E>
                     Notice (FRN) published on March 26, 2024 in 89 FR 20977 regarding the proposed updates to the State Plan for Assistive Technology.
                </P>
                <P>ATAP represents State and Territory Assistive Technology Act Programs formula funded under Section 4 of the Assistive Technology (AT) Act. State and Territory AT Act Programs operate in all 50 states, the District of Columbia, Puerto Rico and four territories and are available for persons with all types of disabilities, all ages, in all environments (education, employment, community living, and information technology). State and Territory AT Act Programs are able to best match the proper assistive technology (AT) with individuals' needs, provide a device demonstration, loan a device, and provide training and support for the use of the device. Assistive technology and/or adaptive equipment can facilitate, support, and improve functionality so every individual with disability can obtain an education, gain, and maintain employment, and live independently in their community.</P>
                <P>
                    ATAP supports ACL's proposed updates to the State Plan for Assistive Technology that mirror the changes made to the Assistive Technology Act in the 2022 reauthorization, retitling the law to the 
                    <E T="03">21st Century Assistive Technology Act.</E>
                </P>
                <P>ATAP appreciates the opportunity to comment. Please let me know if we can provide any additional information.”</P>
                <P>
                    <E T="03">ACL Response:</E>
                     ACL acknowledged receipt of comments in support of the updates to the State Plan for AT.
                </P>
                <P>
                    <E T="03">Comment Summary:</E>
                     The Texas Assistive Technology Act Program submitted three comments on proposed changes for clarification of terms and activities consistent with the reauthorization of the AT Act.
                </P>
                <HD SOURCE="HD3">Comment 1: Advisory Council</HD>
                <P>“While I completely agree in the proposed representation on the Advisory Committee, unless the other agency has a commensurate data point or a fiscal incentive, they may not be inclined to participate on a state AT Program Advisory. I would assume a state AT program would do their due diligence to acquire representation, and could likely document doing so, it still may not occur. I would hope the plan would provide an opportunity for a State AT Program to document such efforts.</P>
                <P>As a specific example for Texas' SEA has been reluctant to engage the state AT Program in any respect. While TTAP has been able to gain participation at Regional levels (Education Service Centers which serve under Texas' SEA—so in essence are representatives but are not directly employed by the SEA), and local levels (LEAs that engage the TTAP Advisory in some capacity), we have not been able to get an actual SEA employee to participate in our Advisory. We speculate, there are many possible reasons—understaffing, frequent turn over, lack of support for AT/assumption that LEAs are “doing fine” with AT, etc. I have heard from other programs similar issues—also extending to VA, housing, Medicaid/HHS, and transportation representation.</P>
                <P>To summarize, I see the value of this expectation but think many programs will not be able to make the mark. I am hopeful there will be a mechanism to share efforts programs have made to fulfill this grant obligation even if it was not realized—perhaps some place to record future plans to encourage engagement.”</P>
                <P>
                    <E T="03">ACL Response:</E>
                     ACL acknowledged receipt of comment. The updated State Plan for AT instrument enables grantees to describe their efforts to secure required Advisory Council membership.
                </P>
                <HD SOURCE="HD3">Comment 2: Education/Training, Technical Assistance, and Public Awareness</HD>
                <P>“I think this section does not capture the dept of work State AT programs put into this activity. This changes practice which eventually affects outcomes. We can provide access to technology all day long but if people (professionals, care givers, and people with disabilities) do not know what to do with it, it is useless. The collection tool asks for no more than three examples, but education/training, and technical assistance are what make the biggest difference. Anecdotal and narrative information does not measure the impact these activities have on the provision of AT devices and services. I would also like to be able to highlight more than one or two public awareness event plans. These state leadership activities drive increased state level activities. State AT programs should be able to share this robust information and possibly outline 1-3-5-year plans for increasing leadership to better support state level programs.”</P>
                <P>
                    <E T="03">ACL Response:</E>
                     ACL acknowledged receipt and agrees with the comment, which is specific to data collection and reporting for the AT Annual Progress Report (APR) Information Collection (IC) instrument. The State Plan for AT is a high-level three-year planning document outlining projected AT Act activities. The AT APR provides an expansive mechanism to report annually on these activities.
                </P>
                <HD SOURCE="HD3">Comment 3: Coordination/Collaboration and State Improvement Initiatives</HD>
                <P>“I did not see this reflected in the State AT planning document though we do collect data on this annually. It also highlights the local control afforded state programs to determine specific needs for our consumers which is a positive aspect of the grant.”</P>
                <P>
                    <E T="03">ACL Response:</E>
                     ACL acknowledged receipt and agrees with the comment that is specific to the AT APR IC. The State Plan for AT is a high-level three-year planning document outlining projected AT Act activities. The AT APR provides an expansive mechanism to report annually on these activities.
                </P>
                <HD SOURCE="HD2">Estimated Program Burden</HD>
                <P>ACL estimates the burden of this collection of information as follows:</P>
                <P>Fifty-six grantees report to ACL using the web-based data collection system. A workgroup of grantees estimated that the average amount of time required to complete all responses to the data collection instrument is 73 hours annually. The burden estimates affect the reporting responsibilities of the Statewide AT Programs, and the directors were chosen to represent the diversity of the 56 programs based on regions of the country, sizes of the programs, types of agencies operating the programs, and whether or not the director is an individual with a disability. The estimated response burden includes time to review the instructions, gather existing information, and complete and review the data entries.</P>
                <FP SOURCE="FP-2">a. Number of respondents—56</FP>
                <FP SOURCE="FP-2">b. Frequency of response—1</FP>
                <FP SOURCE="FP-2">c. Total annual responses (a × b)—56</FP>
                <FP SOURCE="FP-2">d. Hours per response—73</FP>
                <FP SOURCE="FP-2">e. Total burden hours (c × d)—4,088</FP>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Alison Barkoff,</NAME>
                    <TITLE>Principal Deputy Administrator for the Administration for Community Living, performing the delegable duties of the Administrator and the Assistant Secretary for Aging.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14226 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4154-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="54009"/>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Food and Drug Administration</SUBAGY>
                <DEPDOC>[Docket No. FDA-2024-N-2275]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Proposed Collection; Comment Request; Produce Regulatory Program Standards</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Food and Drug Administration, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Food and Drug Administration (FDA, Agency, or we) is announcing an opportunity for public comment on the proposed collection of certain information by the Agency. Under the Paperwork Reduction Act of 1995 (PRA), Federal Agencies are required to publish notice in the 
                        <E T="04">Federal Register</E>
                         concerning each proposed collection of information and to allow 60 days for public comment in response to the notice. This notice solicits comments on collections of information associated with our Produce Regulatory Program Standards (PRPS).
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Either electronic or written comments on the collection of information must be submitted by August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        You may submit comments as follows. Please note that late, untimely filed comments will not be considered. The 
                        <E T="03">https://www.regulations.gov</E>
                         electronic filing system will accept comments until 11:59 p.m. Eastern Time at the end of August 27, 2024. Comments received by mail/hand delivery/courier (for written/paper submissions) will be considered timely if they are received on or before that date.
                    </P>
                </ADD>
                <HD SOURCE="HD2">Electronic Submissions</HD>
                <P>Submit electronic comments in the following way:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal:</E>
                      
                    <E T="03">https://www.regulations.gov.</E>
                     Follow the instructions for submitting comments. Comments submitted electronically, including attachments, to 
                    <E T="03">https://www.regulations.gov</E>
                     will be posted to the docket unchanged. Because your comment will be made public, you are solely responsible for ensuring that your comment does not include any confidential information that you or a third party may not wish to be posted, such as medical information, your or anyone else's Social Security number, or confidential business information, such as a manufacturing process. Please note that if you include your name, contact information, or other information that identifies you in the body of your comments, that information will be posted on 
                    <E T="03">https://www.regulations.gov.</E>
                </P>
                <P>• If you want to submit a comment with confidential information that you do not wish to be made available to the public, submit the comment as a written/paper submission and in the manner detailed (see “Written/Paper Submissions” and “Instructions”).</P>
                <HD SOURCE="HD2">Written/Paper Submissions</HD>
                <P>Submit written/paper submissions as follows:</P>
                <P>
                    • 
                    <E T="03">Mail/Hand delivery/Courier (for written/paper submissions):</E>
                     Dockets Management Staff (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
                </P>
                <P>• For written/paper comments submitted to the Dockets Management Staff, FDA will post your comment, as well as any attachments, except for information submitted, marked and identified, as confidential, if submitted as detailed in “Instructions.”</P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the Docket No. FDA-2024-N-2275 for “Agency Information Collection Activities; Proposed Collection; Comment Request; Produce Regulatory Program Standards.” Received comments, those filed in a timely manner (see 
                    <E T="02">ADDRESSES</E>
                    ), will be placed in the docket and, except for those submitted as “Confidential Submissions,” publicly viewable at 
                    <E T="03">https://www.regulations.gov</E>
                     or at the Dockets Management Staff between 9 a.m. and 4 p.m., Monday through Friday, 240-402-7500.
                </P>
                <P>
                    • Confidential Submissions—To submit a comment with confidential information that you do not wish to be made publicly available, submit your comments only as a written/paper submission. You should submit two copies total. One copy will include the information you claim to be confidential with a heading or cover note that states “THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.” The Agency will review this copy, including the claimed confidential information, in its consideration of comments. The second copy, which will have the claimed confidential information redacted/blacked out, will be available for public viewing and posted on 
                    <E T="03">https://www.regulations.gov.</E>
                     Submit both copies to the Dockets Management Staff. If you do not wish your name and contact information to be made publicly available, you can provide this information on the cover sheet and not in the body of your comments and you must identify this information as “confidential.” Any information marked as “confidential” will not be disclosed except in accordance with 21 CFR 10.20 and other applicable disclosure law. For more information about FDA's posting of comments to public dockets, see 80 FR 56469, September 18, 2015, or access the information at: 
                    <E T="03">https://www.govinfo.gov/content/pkg/FR-2015-09-18/pdf/2015-23389.pdf.</E>
                </P>
                <P>
                    <E T="03">Docket:</E>
                     For access to the docket to read background documents or the electronic and written/paper comments received, go to 
                    <E T="03">https://www.regulations.gov</E>
                     and insert the docket number, found in brackets in the heading of this document, into the “Search” box and follow the prompts and/or go to the Dockets Management Staff, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852, 240-402-7500.
                </P>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Domini Bean, Office of Operations, Food and Drug Administration, Three White Flint North, 10A-12M, 11601 Landsdown St., North Bethesda, MD 20852, 301-796-5733, 
                        <E T="03">PRAStaff@fda.hhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Under the PRA (44 U.S.C. 3501-3521), Federal Agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. “Collection of information” is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) and includes Agency requests or requirements that members of the public submit reports, keep records, or provide information to a third party. Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A)) requires Federal Agencies to provide a 60-day notice in the 
                    <E T="04">Federal Register</E>
                     concerning each proposed collection of information before submitting the collection to OMB for approval. To comply with this requirement, FDA is publishing notice of the proposed collection of information set forth in this document.
                </P>
                <P>
                    With respect to the following collection of information, FDA invites comments on these topics: (1) whether the proposed collection of information is necessary for the proper performance of FDA's functions, including whether the information will have practical utility; (2) the accuracy of FDA's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques, when appropriate, and other forms of information technology.
                    <PRTPAGE P="54010"/>
                </P>
                <HD SOURCE="HD1">Produce Regulatory Program Standards</HD>
                <HD SOURCE="HD2">OMB Control Number—0910-NEW</HD>
                <P>This information collection helps establish and implement FDA's “Produce Regulatory Program Standards.” Section 1012 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 399c) authorizes FDA to administer training and education programs for employees of State, local, Territorial, and Tribal food safety authorities relating to regulatory programs. Also, under section 205 of the FDA Safety Modernization Act (codified in 21 U.S.C. 2224), FDA, together with the Centers for Disease Control and Prevention is directed to enhance foodborne illness surveillance to improve the collection, analysis, reporting, and usefulness of data on foodborne illnesses. As part of this effort, we have initiated programs that include developing and instituting regulatory standards intended to reduce the risk of foodborne illness through coordinated efforts with our strategic partners. Regulatory program standards establish a uniform foundation for the design and management of State, local, Tribal, and Territorial programs that have the responsibility for regulating human and animal food. Partnering with other regulatory officials also helps maximize limited resources in administering FDA regulations pertaining to the manufacturing/processing, packing, or holding of food for consumption in the United States.</P>
                <P>
                    The PRPS are the result of external collaboration and coordination with the Association of Food and Drug Officials (AFDO), the National Association of State Departments of Agriculture (NASDA), and state produce regulatory programs. FDA, NASDA, AFDO, and states worked collaboratively to develop the content of the PRPS. A copy of the standards and accompanying worksheets and forms is available in the 
                    <E T="04">Federal Register</E>
                     docket for this notice. We recommend that State and Territorial produce safety regulatory programs use these program standards as the framework to design and manage their produce safety regulatory programs. The states that assisted in the development of PRPS were representative of the 43 State and Territorial programs regulatory programs enrolled currently conducting produce safety inspections via funding from a cooperative agreement grant, “The FDA's Cooperative Agreement Program for States and Territories to Implement a National Produce Safety Program, PAR-21-174
                    <E T="03">,”</E>
                     (this program also includes 4 programs which do not conduct inspections). For more information on this cooperative agreement, we invite you to visit our website at: 
                    <E T="03">https://www.fda.gov/federal-state-local-tribal-and-territorial-officials/grants-and-cooperative-agreements/fda-state-produce-safety-implementation-cooperative-agreement-program.</E>
                </P>
                <P>The PRPS identifies and includes resource and training material for the following standards: regulatory foundations; training; inspection; product-specific illnesses, outbreaks and hazard response; compliance and enforcement; industry and community relations; program assessments; and product sampling and testing. We recommend using the worksheets and forms contained in the standards, however, alternate forms that are equivalent may be used. The educational worksheets and resource materials include recordkeeping and reporting activities that help FDA verify participation and successful completion of the respective requirements. In the first year of enrollment, information is used to conduct a baseline self-assessment to determine whether the materials meet the elements of each standard. In subsequent years, we use the information to conduct a comprehensive review and evaluate program effectiveness and participation. We modify the program standards based on the ongoing assessments as well as comments and informal feedback obtained from participants.</P>
                <P>
                    <E T="03">Description of Respondents:</E>
                     Respondents are State Departments of Agriculture or Health regulatory officials who enroll in the PRPS (State or Territorial governments). Currently we estimate 43 respondents to the information collection based on expected participation.
                </P>
                <P>We estimate the burden of this collection of information as follows:</P>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s100,12C,12C,12C,12C,12C">
                    <TTITLE>
                        Table 1—Estimated Annual Recordkeeping Burden 
                        <SU>1</SU>
                    </TTITLE>
                    <BOXHD>
                        <CHED H="1">Information collection activity</CHED>
                        <CHED H="1">
                            Number of 
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">
                            Number of 
                            <LI>responses per respondent</LI>
                        </CHED>
                        <CHED H="1">Total annual responses</CHED>
                        <CHED H="1">
                            Average 
                            <LI>burden per </LI>
                            <LI>response</LI>
                        </CHED>
                        <CHED H="1">Total hours</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">State or Territorial Governments; Development and reporting of data consistent with PRPS</ENT>
                        <ENT>43</ENT>
                        <ENT>11</ENT>
                        <ENT>473</ENT>
                        <ENT>88</ENT>
                        <ENT>41,624</ENT>
                    </ROW>
                    <TNOTE>
                        <SU>1</SU>
                         There are no capital costs or operating and maintenance costs associated with this collection of information.
                    </TNOTE>
                </GPOTABLE>
                <P>To demonstrate conformance with the standards prior to and after enrollment in the grant program, State and Territorial governments participating in the PRPS (respondents) will submit comprehensive program assessments and evaluations to their technical advisors at FDA using a dedicated email. The information required for these submissions is outlined in the provided worksheets. Additionally, the PRPS requires ongoing documentation to verify conformance. We estimate, based on the implementation of other standards programs and informal consultation with the affected State and Territorial governments, that the information collection activities will average 968 hours annually for each of the 43 participants, for a total of 41,624 hours.</P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Lauren K. Roth,</NAME>
                    <TITLE>Associate Commissioner for Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14329 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4164-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Food and Drug Administration</SUBAGY>
                <DEPDOC>[Docket No. FDA-2021-D-0789]</DEPDOC>
                <SUBJECT>Diversity Action Plans To Improve Enrollment of Participants From Underrepresented Populations in Clinical Studies; Draft Guidance for Industry; Availability</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Food and Drug Administration, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of availability.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Food and Drug Administration (FDA, Agency, or we) is 
                        <PRTPAGE P="54011"/>
                        announcing the availability of a draft guidance for industry entitled “Diversity Action Plans to Improve Enrollment of Participants from Underrepresented Populations in Clinical Studies.” FDA is issuing this draft guidance as mandated under the Food and Drug Omnibus Reform Act of 2022 (FDORA) which requires that FDA update or issue guidance relating to the format and content of Diversity Action Plans required by the Federal Food, Drug, and Cosmetic Act (FD&amp;C Act), as amended by FDORA. This guidance describes the format and content of Diversity Action Plans, including the timing and process for submitting such plans by application or notification type. In addition, this draft guidance describes the criteria and process by which FDA will evaluate sponsors' requests for waivers from the FD&amp;C Act. Because FDA is required by statute to specify the form and manner for the submission of Diversity Action Plans in guidance, insofar as this draft guidance specifies the form and manner for submission of Diversity Action Plans, when this guidance is finalized, it will have binding effect.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit either electronic or written comments on the draft guidance by September 26, 2024 to ensure that the Agency considers your comment on this draft guidance before it begins work on the final version of the guidance.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments on any guidance at any time as follows:</P>
                </ADD>
                <HD SOURCE="HD2">Electronic Submissions</HD>
                <P>Submit electronic comments in the following way:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal: https://www.regulations.gov.</E>
                     Follow the instructions for submitting comments. Comments submitted electronically, including attachments, to 
                    <E T="03">https://www.regulations.gov</E>
                     will be posted to the docket unchanged. Because your comment will be made public, you are solely responsible for ensuring that your comment does not include any confidential information that you or a third party may not wish to be posted, such as medical information, your or anyone else's Social Security number, or confidential business information, such as a manufacturing process. Please note that if you include your name, contact information, or other information that identifies you in the body of your comments, that information will be posted on 
                    <E T="03">https://www.regulations.gov.</E>
                </P>
                <P>• If you want to submit a comment with confidential information that you do not wish to be made available to the public, submit the comment as a written/paper submission and in the manner detailed (see “Written/Paper Submissions” and “Instructions”).</P>
                <HD SOURCE="HD2">Written/Paper Submissions</HD>
                <P>Submit written/paper submissions as follows:</P>
                <P>
                    • 
                    <E T="03">Mail/Hand Delivery/Courier (for written/paper submissions):</E>
                     Dockets Management Staff (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
                </P>
                <P>• For written/paper comments submitted to the Dockets Management Staff, FDA will post your comment, as well as any attachments, except for information submitted, marked and identified, as confidential, if submitted as detailed in “Instructions.”</P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the Docket No. FDA-2021-D-0789 for “Diversity Action Plans to Improve Enrollment of Participants from Underrepresented Populations in Clinical Studies.” Received comments will be placed in the docket and, except for those submitted as “Confidential Submissions,” publicly viewable at 
                    <E T="03">https://www.regulations.gov</E>
                     or at the Dockets Management Staff between 9 a.m. and 4 p.m., Monday through Friday, 240-402-7500.
                </P>
                <P>
                    • Confidential Submissions—To submit a comment with confidential information that you do not wish to be made publicly available, submit your comments only as a written/paper submission. You should submit two copies total. One copy will include the information you claim to be confidential with a heading or cover note that states “THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.” The Agency will review this copy, including the claimed confidential information, in its consideration of comments. The second copy, which will have the claimed confidential information redacted/blacked out, will be available for public viewing and posted on 
                    <E T="03">https://www.regulations.gov.</E>
                     Submit both copies to the Dockets Management Staff. If you do not wish your name and contact information to be made publicly available, you can provide this information on the cover sheet and not in the body of your comments and you must identify this information as “confidential.” Any information marked as “confidential” will not be disclosed except in accordance with 21 CFR 10.20 and other applicable disclosure law. For more information about FDA's posting of comments to public dockets, see 80 FR 56469, September 18, 2015, or access the information at: 
                    <E T="03">https://www.govinfo.gov/content/pkg/FR-2015-09-18/pdf/2015-23389.pdf.</E>
                </P>
                <P>
                    <E T="03">Docket:</E>
                     For access to the docket to read background documents or the electronic and written/paper comments received, go to 
                    <E T="03">https://www.regulations.gov</E>
                     and insert the docket number, found in brackets in the heading of this document, into the “Search” box and follow the prompts and/or go to the Dockets Management Staff, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852, 240-402-7500.
                </P>
                <P>You may submit comments on any guidance at any time (see 21 CFR 10.115(g)(5)).</P>
                <P>
                    Submit written requests for single copies of the draft guidance to the Division of Drug Information, Center for Drug Evaluation and Research, Food and Drug Administration, 10001 New Hampshire Ave., Hillandale Building, 4th Floor, Silver Spring, MD 20993-0002; or Office of Communication, Outreach and Development, Center for Biologics Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 71, Rm. 3128, Silver Spring, MD 20993-0002; or Office of the Center Director, Guidance and Policy Development, Center for Devices and Radiological Health, 10903 New Hampshire Ave., Bldg. 66, Rm. 5431, Silver Spring, MD 20993-0002. Send one self-addressed adhesive label to assist that office in processing your requests. See the 
                    <E T="02">SUPPLEMENTARY INFORMATION</E>
                     section for electronic access to the draft guidance document.
                </P>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Lola Fashoyin-Aje, Oncology Center of Excellence, Food and Drug Administration, 10903 New Hampshire Ave., Silver Spring, MD 20993-0002, 240-402-0205; Tamy Kim, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Silver Spring, MD 20993-0002, 301-796-1125; or James Myers, Office of Communication, Outreach and Development, Center of Biologics Evaluation and Research, Bldg. 71, Rm. 7301, Silver Spring, MD 20993-0002, 240-402-7911; or Josh Chetta, Center for Devices and Radiological Health, Bldg. 66, Rm. 5554, 10903 New Hampshire Ave., Silver Spring, MD 20993, 240-402-4910, 
                        <E T="03">CDRHClinicalEvidence@fda.hhs.gov.</E>
                    </P>
                    <P>
                        <E T="03">For PRA comments:</E>
                         Domini Bean, Office of Operations, Food and Drug Administration, Three White Flint North, 10A-12M, 11601 Landsdown St., North Bethesda, MD 20852, 301-796-5733, 
                        <E T="03">PRAStaff@fda.hhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Background</HD>
                <P>
                    FDA is announcing the availability of a draft guidance for industry entitled 
                    <PRTPAGE P="54012"/>
                    “Diversity Action Plans to Improve Enrollment of Participants from Underrepresented Populations in Clinical Studies.” FDA is issuing this guidance as mandated under section 3602 of FDORA, which requires that FDA update or issue guidance relating to the format and content of diversity action plans required by sections 505(z) and 520(g) of the FD&amp;C Act (21 U.S.C. 355(z) and 360j(g) as amended by section 3601 of FDORA. This draft guidance describes the form, content, and manner of diversity action plans, the applicable medical products, and clinical studies for which a diversity action plan is required, the timing and process for submitting diversity action plans, and the criteria and process by which FDA will evaluate sponsors' requests for waivers from the requirement to submit a Diversity Action Plan. This draft guidance replaces the draft guidance for industry entitled “Diversity Plans to Improve Enrollment of Participants From Underrepresented Racial and Ethnic Populations in Clinical Trials,” published April 14, 2022 (87 FR 22211). The 2022 draft guidance, which issued prior to FDORA becoming law on December 29, 2022, provided recommendations to sponsors developing medical products on the approach for developing a Race and Ethnicity Diversity Plan to enroll representative numbers of participants in clinical trials from underrepresented racial and ethnic populations in the United States.
                </P>
                <P>Clinical studies characterize the safety and effectiveness of medical products intended for the prevention, treatment, or diagnosis of many conditions or diseases. Some populations in the United States are frequently underrepresented in biomedical research including in clinical studies, even when they have a disproportionate burden for certain conditions or diseases relative to their proportional representation in the general population. There are myriad reasons for this, including but not limited to assumptions regarding the feasibility of enrolling a population in a clinical study that is representative of the intended use population and the impact on study timelines, and the lack of the prospective development and implementation of a strategy that helps ensure enrollment and retention of a clinical study population representative of the intended use population.</P>
                <P>Consistent with section 3602(a) of FDORA, this draft guidance primarily focuses on Diversity Action Plans for the enrollment and retention of a clinically relevant study population, to help ensure adequate representativeness of study participants that reflect different age groups, sexes, and racial and ethnic demographic characteristics. However, FDA recognizes the broader issues regarding health disparities and differential access to health care and clinical studies that may occur based on other factors, including but not limited to, geographic location, gender identity, sexual orientation, socioeconomic status, physical and mental disabilities, pregnancy status, lactation status, and comorbidity, and encourages sponsors to consider such additional factors when developing Diversity Action Plans. We welcome comments on how sponsors could effectively consider such additional factors, as appropriate, to broaden their Diversity Action Plans to include all clinically relevant populations. This draft guidance is one of many efforts by FDA to help address the participation of underrepresented populations to help ensure that clinical trials relating to FDA regulated products appropriately test the product against a representative sample of the product's intended use population.</P>
                <P>
                    In general, FDA's guidance documents do not establish legally enforceable responsibilities. See 21 CFR 10.115(d). Instead, guidances describe the Agency's current thinking on a topic and should be viewed only as recommendations, unless specific regulatory or statutory requirements are cited. The use of the word 
                    <E T="03">should</E>
                     in Agency guidances means that something is suggested or recommended, but not required.
                </P>
                <P>
                    An exception to that framework derives from the requirement in section 3601 of FDORA for FDA to specify in guidance the form and manner for the submission of Diversity Action Plans. Accordingly, insofar as Section VII of this document specifies the form and manner for submission of a Diversity Action Plan, it will have binding effect, once this guidance is finalized, as indicated by the use of the words, 
                    <E T="03">must, shall,</E>
                     or 
                    <E T="03">required.</E>
                </P>
                <HD SOURCE="HD1">II. Paperwork Reduction Act of 1995</HD>
                <P>
                    Under the Paperwork Reduction Act of 1995 (the PRA) (44 U.S.C. 3501-3520), Federal Agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. This draft guidance contains proposed collections of information. “Collection of information” is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) and includes Agency requests or requirements that members of the public submit reports, keep records, or provide information to a third party. Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A)) requires Federal Agencies to publish a 60-day notice in the 
                    <E T="04">Federal Register</E>
                     soliciting public comment on each proposed collection of information before submitting the collection to OMB for approval. To comply with this requirement, FDA will publish a 60-day notice on the proposed collections of information in this draft guidance in a separate issue of the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <HD SOURCE="HD1">III. Electronic Access</HD>
                <P>
                    Persons with access to the internet may obtain the draft guidance at https://www.fda.gov/drugs/guidance-compliance-regulatory-information/guidances-drugs, 
                    <E T="03">https://www.fda.gov/regulatory-information/search-fda-guidance-documents,</E>
                     or 
                    <E T="03">https://www.regulations.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Lauren K. Roth,</NAME>
                    <TITLE>Associate Commissioner for Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14284 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4164-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>Request for Information (RFI): National Institute for Mental Health Strategic Plan Evaluation.</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Institutes of Health, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The National Institute of Mental Health (NIMH), National Institutes of Health (NIH) is soliciting feedback on its current Strategic Plan for Research to inform the development of future strategic plans.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before (11:59:59 p.m. ET) on July 24, 2024 to ensure consideration.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Responses to this RFI must be submitted electronically using the web-based form at: 
                        <E T="03">https://rfi.grants.nih.gov/?s=662fcf74748dc0f159063c02.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Eliza Jacobs-Brichford, Ph.D., Science Policy and Evaluation Branch, Office of Science Policy, Planning, and Communications (OSPPC), National Institute of Mental Health, 6001 Executive Boulevard, MSC 9663, Telephone: 1-866-615-6464 (toll-free), 1-301-443-8431 (TTY), 1-866-415-8051 (TTY toll-free), Fax: 1-301-443-4279, Email: 
                        <E T="03">NIMHStratPlan@mail.nih.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">
                    SUPPLEMENTARY INFORMATION:
                    <PRTPAGE P="54013"/>
                </HD>
                <HD SOURCE="HD1">Background</HD>
                <P>NIMH is the lead Federal agency for research on mental illnesses. NIMH's mission is to transform the understanding and treatment of mental illnesses through basic and clinical research, paving the way for prevention, recovery, and cure. NIMH is guided by its Strategic Plan for Research, which outlines the institute's priorities, spanning fundamental science to public health impact. This notice is in accordance with the 21st Century Cures Act; NIH Institutes are required to regularly update their strategic plans.</P>
                <HD SOURCE="HD1">Information Requested</HD>
                <P>
                    NIMH is seeking feedback on its current Strategic Plan for Research (
                    <E T="03">https://www.nimh.nih.gov/about/strategic-planning-reports</E>
                    ) to improve the potential usability, effectiveness, and impact of future strategic plans. In particular, NIMH is interested in learning:
                </P>
                <FP SOURCE="FP-1">• Who is using the Strategic Plan</FP>
                <FP SOURCE="FP-1">• How people are using the Strategic Plan</FP>
                <FP SOURCE="FP-1">
                    • What elements (
                    <E T="03">e.g.,</E>
                     content, format, organization) in the Strategic Plan are useful, and which are not
                </FP>
                <FP SOURCE="FP-1">• What is missing from the Strategic Plan</FP>
                <HD SOURCE="HD1">Submitting a Response</HD>
                <P>Responses are welcome from all interested parties, including but not limited to academic and research institutions; professional associations, organizations, and societies; advocacy organizations; and members of the public. We appreciate your input and invite you to share this RFI opportunity with your colleagues and others in your community. This RFI is for information and planning purposes only and should not be construed as a solicitation or as an obligation on the part of the Federal Government in general, the NIH, or NIMH specifically. Responses to this RFI are voluntary. Respondents are advised that the Government is under no obligation to acknowledge receipt of the information shared or provide feedback to respondents with respect to any information submitted.</P>
                <P>Submitted information will not be considered confidential. No proprietary, classified, confidential, or sensitive information should be included in your response.</P>
                <SIG>
                    <NAME>Shelli Avenevoli,</NAME>
                    <TITLE>Acting Director, National Institute of Mental Health, National Institutes of Health.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14251 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>National Institute of General Medical Sciences; Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to section 1009 of the Federal Advisory Committee Act, as amended, notice is hereby given of the following meeting.</P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <EXTRACT>
                    <P>
                        <E T="03">Name of Committee:</E>
                         National Institute of General Medical Sciences Special Emphasis Panel; Review of R25, UE5 and R13 applications.
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         July 9, 2024.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         10:00 a.m. to 6:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institutes of Health, National Institute of General Medical Sciences, Natcher Building, 45 Center Drive, Bethesda, Maryland 20892 (Virtual Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Lee Warren Slice, Ph.D., Scientific Review Officer, Office of Scientific Review, National Institute of General Medical Sciences, National Institutes of Health, 45 Center Drive, Room 3AN12, Bethesda, Maryland 20892, 301-435-0807, 
                        <E T="03">slicelw@mail.nih.gov</E>
                        .
                    </P>
                    <FP>(Catalogue of Federal Domestic Assistance Program No. 93.859, Biomedical Research and Research Training, National Institutes of Health, HHS)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: June 11, 2024.</DATED>
                    <NAME>Miguelina Perez,</NAME>
                    <TITLE>Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14205 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>Final Draft National Institute of Environmental Health Sciences FY2025-FY2029 Strategic Plan</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Institutes of Health, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The goal of the National Institute of Environmental Health Sciences (NIEHS) strategic planning process is to set scientific areas of emphasis and priority approaches to anticipate and meet areas of opportunity for furthering environmental health sciences research, training, and translation. NIEHS makes available the final draft of the FY2025-FY2029 NIEHS Strategic Plan.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received by 11:59:59 p.m. (ET) on July 21, 2024, to ensure consideration.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Comments should be submitted by email to 
                        <E T="03">ehs-strategic-plan@niehs.nih.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Dr. Nicole J. Garbarini, Office of Scientific Coordination, Planning, and Evaluation, email: 
                        <E T="03">ehs-strategic-plan@niehs.nih.gov</E>
                         or call non-toll-free number 301-435-4642.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    This 
                    <E T="04">Federal Register</E>
                     notice is in accordance with the 21st Century Cures Act, requiring NIH and its Institutes and Centers to regularly update their strategic plans. NIEHS is one of the 27 institutes and centers that makes up the National Institute of Health, and conducts and supports research on factors in the environment that affect human health.
                </P>
                <P>The mission of the NIEHS is to discover how the environment affects people, in order to promote healthier lives. The vision of the NIEHS is to provide global leadership for innovative research that improves public health by preventing disease and disability. NIEHS research covers all organ systems, diseases, and conditions that could be caused or affected by environmental impacts, which are defined broadly. The NIEHS achieves its mission and vision through multidisciplinary biomedical research programs, as well as prevention and intervention efforts. NIEHS research is disseminated to inform evidence-based environmental health policies to prevent disease and protect health. The NIEHS also focuses on communication and research translation strategies that encompass training, education, technology transfer, and community engagement.</P>
                <P>
                    During January 31-April 20, 2023, NIEHS solicited input to its strategic planning process through public comments on its 2018-2023 Strategic Plan and its associated goals, as well as any other aspect of environmental health sciences. Approximately 169 unique responses, both individual and group, were received in response to this RFI. In April 2023, NIEHS hosted a virtual community workshop including more than 100 invited participants from across diverse sectors to provide input 
                    <PRTPAGE P="54014"/>
                    through presentation and discussion of their ideas for priorities of the strategic plan. Reports and recommendations on key topics were generated as output of this workshop. Comment on strategic priorities in environmental health sciences was also solicited through discussion with the the National Advisory Environmental Health Sciences Council and the Board of Scientific Counselors. . Following compilation, curation, and analysis of all input, results of this curation were presented to NIEHS Senior Leadership to inform discussions and development of the plan, including Research Areas of Emphasis. and, and priority approaches for achieving the plan's translational goals.The NIEHS seeks comments from all interested parties on its final draft “FY2025-FY2028 NIEHS Strategic Plan: Health at the Intersection of People and Their Environments.”
                </P>
                <P>
                    The final draft plan may be viewed online at 
                    <E T="03">https://www.niehs.nih.gov/about/strategicplan/finaldraft.</E>
                </P>
                <SIG>
                    <DATED>Dated: June 20, 2024.</DATED>
                    <NAME>Richard P. Woychik,</NAME>
                    <TITLE>Director, National Institute of Environmental Health Sciences and National Toxicology Program.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14241 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>Center for Scientific Review; Notice of Closed Meetings</SUBJECT>
                <P>Pursuant to section 1009 of the Federal Advisory Committee Act, as amended, notice is hereby given of the following meetings.</P>
                <P>The meetings will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <EXTRACT>
                    <P>
                        <E T="03">Name of Committee:</E>
                         Center for Scientific Review Special Emphasis Panel; Topics in Neurogenesis and Metabolism.
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         July 23, 2024.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         1:00 p.m. to 4:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institutes of Health, Rockledge II, 6701 Rockledge Drive, Bethesda, MD 20892 (Virtual Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Ashley Marie Kopec, Ph.D., Scientific Review Officer, Center for Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Bethesda, MD 20892, (301) 496-9293, 
                        <E T="03">kopecam@csr.nih.gov</E>
                        .
                    </P>
                    <P>
                        <E T="03">Name of Committee:</E>
                         Center for Scientific Review Special Emphasis Panel; Member Conflict: Sensorimotor and Olfaction.
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         July 24, 2024.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         11:00 a.m. to 6:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institutes of Health, Rockledge II, 6701 Rockledge Drive, Bethesda, MD 20892 (Virtual Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Kirk Thompson, Ph.D., Scientific Review Officer, Center for Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Room 5184, MSC 7844, Bethesda, MD 20892, 301-435-1242, 
                        <E T="03">kgt@mail.nih.gov</E>
                        .
                    </P>
                    <P>
                        <E T="03">Name of Committee:</E>
                         Center for Scientific Review Special Emphasis Panel; Member Conflict: Cancer Biology.
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         July 24, 2024.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         1:00 p.m. to 8:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institutes of Health, Rockledge II, 6701 Rockledge Drive, Bethesda, MD 20892 (Virtual Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Juraj Bies, Ph.D., Scientific Review Officer, Center for Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Room 4158, MSC 7806, Bethesda, MD 20892, (301) 435-1256, 
                        <E T="03">biesj@mail.nih.gov</E>
                        .
                    </P>
                    <P>
                        <E T="03">Name of Committee:</E>
                         Center for Scientific Review Special Emphasis Panel; Small Business: The Cancer Biotherapeutics Development (CBD).
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         July 25-26, 2024.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         9:00 a.m. to 7:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institutes of Health, Rockledge II, 6701 Rockledge Drive, Bethesda, MD 20892 (Hybrid Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Laurie Ann Shuman Moss, Ph.D., Scientific Review Officer, Center for Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Bethesda, MD 20892, (301) 867-5309, 
                        <E T="03">laurie.shumanmoss@nih.gov</E>
                        .
                    </P>
                    <P>
                        <E T="03">Name of Committee:</E>
                         Center for Scientific Review Special Emphasis Panel; Member Conflict: Topics in Pathogenic Eukaryotes.
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         July 25, 2024.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         1:30 p.m. to 8:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institutes of Health, Rockledge II, 6701 Rockledge Drive, Bethesda, MD 20892 (Virtual Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Liying Guo, Ph.D., Scientific Review Officer, Center for Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Room 4198, MSC 7812, Bethesda, MD 20892, (301) 827-7728, 
                        <E T="03">lguo@mail.nih.gov</E>
                        .
                    </P>
                    <P>
                        <E T="03">Name of Committee:</E>
                         Center for Scientific Review Special Emphasis Panel; Member Conflict: Topics in Basic Neuroscience.
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         July 25, 2024.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         12:00 p.m. to 8:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institutes of Health, Rockledge II, 6701 Rockledge Drive, Bethesda, MD 20892 (Virtual Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Christine Jean DiDonato, Ph.D., Scientific Review Officer, Center for Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Room 1014J, Bethesda, MD 20892, (301) 435-1042,
                        <E T="03">didonatocj@csr.nih.gov</E>
                        .
                    </P>
                    <P>
                        <E T="03">Name of Committee:</E>
                         Center for Scientific Review Special Emphasis Panel; Member Conflict: Arthritis, Connective Tissue and Skin Sciences (ACTS).
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         July 26, 2024.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         9:00 a.m. to 8:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institutes of Health, Rockledge II, 6701 Rockledge Drive, Bethesda, MD 20892 (Virtual Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Thomas Zeyda, Ph.D., Scientific Review Officer, The Center for Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Bethesda, MD 20892, (301) 480-6921, 
                        <E T="03">thomas.zeyda@nih.gov</E>
                        .
                    </P>
                    <FP>(Catalogue of Federal Domestic Assistance Program Nos. 93.306, Comparative Medicine; 93.333, Clinical Research, 93.306, 93.333, 93.337, 93.393-93.396, 93.837-93.844, 93.846-93.878, 93.892, 93.893, National Institutes of Health, HHS)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Lauren A. Fleck, </NAME>
                    <TITLE>Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14204 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>Center for Scientific Review; Amended Notice of Meeting</SUBJECT>
                <P>
                    Notice is hereby given of a change in the meeting of the Center for Scientific Review Special Emphasis Panel: HAMI Hypersensitivity and Mucosal Immunology, July 10, 2024, 10:00 a.m. to July 11, 2024, 08:00 p.m., National Institutes of Health, Rockledge II, 6701 Rockledge Drive, Bethesda, MD 20892 which was published in the 
                    <E T="04">Federal Register</E>
                     on June 17, 2024, 89 FR 51355 Doc No. 2024-13252.
                </P>
                <P>This notice is being amended to change the panel name from: HAMI Hypersensitivity and Mucosal Immunology to PAR Panel: Hypersensitivity, Allergies, and Mucosal Immunology (HAMI). The meeting is closed to the public.</P>
                <SIG>
                    <PRTPAGE P="54015"/>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>David W. Freeman, </NAME>
                    <TITLE>Supervisory Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14252 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>National Institute of Allergy and Infectious Diseases; Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to section 1009 of the Federal Advisory Committee Act, as amended, notice is hereby given of the following meeting.</P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <EXTRACT>
                    <P>
                        <E T="03">Name of Committee:</E>
                         National Institute of Allergy and Infectious Diseases Special Emphasis Panel; Multidisciplinary Research to Accelerate Hepatitis B Cure in Persons Living with HIV and HBV (U19 Clinical Trial Not Allowed).
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         July 25-26, 2024.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         10:00 a.m. to 6:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institute of Allergy and Infectious Diseases, National Institutes of Health, 5601 Fishers Lane, Room 3G22B, Rockville, MD 20892 (Video Assisted Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Kristina S. Wickham, Ph.D., Scientific Review Officer, Scientific Review Program, Division of Extramural Activities,  National Institute of Allergy and Infectious Diseases, National Institutes of Health, 5601 Fishers Lane, Room 3G22B, Rockville, MD 20892, 301-761-5390, 
                        <E T="03">kristina.wickham@nih.gov.</E>
                    </P>
                    <FP>(Catalogue of Federal Domestic Assistance Program Nos. 93.855, Allergy, Immunology, and Transplantation Research; 93.856, Microbiology and Infectious Diseases Research, National Institutes of Health, HHS)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Lauren A. Fleck,</NAME>
                    <TITLE>Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14202 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Substance Abuse and Mental Health Services Administration</SUBAGY>
                <SUBJECT>Fiscal Year (FY) 2024 Notice of Supplemental Funding Opportunity</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Substance Abuse and Mental Health Services Administration, Department of Health and Human Services (HHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of intent to award supplemental funding.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This notice is to inform the public that the Substance Abuse and Mental Health Services Administration (SAMHSA) is supporting one supplement (in scope of the parent award) for the Cooperative Agreement for National Suicide Prevention Lifeline and Disaster Distress Helpline recipient, Mental Health Association of New York City, Inc. (DBA Vibrant Emotional Health), funded in FY 2021 under Notice of Funding Opportunity (NOFO) SM 21-005. The recipient may receive up to $80,000,000 and has a project end date of September 29, 2026. The supplemental funding will be used to maintain 988 operations and services, both at local levels and across all backup, chat, text, LGBTQI+ youth, Spanish language, and videophone based services. This funding will ensure continuation of all 988 services and supports.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mary Woodruff, Public Health Advisor, 988 and Behavioral Health Crisis Coordinating Office, Substance Abuse and Mental Health Services Administration, 5600 Fishers Lane, Rockville, MD 20857, telephone 240-276-1733; email: 
                        <E T="03">mary.woodruff@samhsa.hhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Funding Opportunity Title:</E>
                     Cooperative Agreement for the National Suicide Prevention Lifeline and Disaster Distress Helpline, SM-21-005.
                </P>
                <P>
                    <E T="03">Assistance Listing Number:</E>
                     93.243.
                </P>
                <P>
                    <E T="03">Authority:</E>
                     Section 520E-3 (42 U.S.C. 290bb-36c) of the Public Health Service Act, as amended.
                </P>
                <P>
                    <E T="03">Justification:</E>
                     The 988 Suicide and Crisis Lifeline Cooperative Agreement (988 Lifeline) manages, enhances, and strengthens the 988 Lifeline network that routes individuals in the United States to a network of certified crisis centers that links to local emergency, mental health, and social services resources. The 988 Lifeline is a 24/7 confidential suicide and crisis hotline providing phone, chat, and text services for anyone in the United States experiencing a suicidal crisis or in emotional distress. This supplemental funding will ensure continuation of all active services, including continuing expanded access for high-risk populations, improving access to services to ensure equity of access, and supporting infrastructure to ensure stability, safety, privacy, and connection of service.
                </P>
                <P>Since 2005, Vibrant Emotional Health has provided oversight and management of the Suicide Prevention Lifeline and its local call centers, backup centers, Spanish network, and chat/text functions with a network of over 215+ centers in all fifty states. Vibrant Emotional Health has the infrastructure, experience, and national reach to work with the backup centers, language services, and chat/text organizations to address the increased contact volumes expected in 2023 and beyond. With the transition to 988 accomplished, consistent services, such as ensuring access to the local and national Lifeline backup centers, geo-routing, language services, system evaluation and data reporting, and access to specialized care for populations to be known at higher risk for suicide, are required to fully realize the potential impact to 988 contact service. Through this supplemental funding, SAMHSA and Vibrant can ensure capacity to address increased call, chat and text volume following 988 implementation, further develop connection and support for individuals at higher risk of suicide, and strengthen the efficiency and customer experience of the network through unified technology.</P>
                <P>This is not a formal request for application. Assistance will only be provided to the recipient, funded in FY 2021 under the Cooperative Agreement for the National Suicide Prevention Lifeline and Disaster Distress Helpline (SM-21-005) based on the receipt of a satisfactory application and associated budget that is approved by a review group.</P>
                <SIG>
                    <NAME>Savannah Kidd,</NAME>
                    <TITLE>Supervisory Public Health Analyst.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14055 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4162-20-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="54016"/>
                <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>U.S. Customs and Border Protection</SUBAGY>
                <SUBJECT>Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds of Customs Duties</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Customs and Border Protection, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>General notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This notice advises the public that the quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties will remain the same from the previous quarter. For the calendar quarter beginning July 1, 2024, the interest rates for underpayments will be 8 percent for both corporations and non-corporations. The interest rate for overpayments will be 8 percent for non-corporations and 7 percent for corporations. This notice is published for the convenience of the importing public and U.S. Customs and Border Protection personnel.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The rates announced in this notice are applicable as of July 1, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Bruce Ingalls, Revenue Division, Collection Refunds &amp; Analysis Branch, 6650 Telecom Drive, Suite #100, Indianapolis, Indiana 46278; telephone (317) 298-1107.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    Pursuant to 19 U.S.C. 1505 and Treasury Decision 85-93, published in the 
                    <E T="04">Federal Register</E>
                     on May 29, 1985 (50 FR 21832), the interest rate paid on applicable overpayments or underpayments of customs duties must be in accordance with the Internal Revenue Code rate established under 26 U.S.C. 6621 and 6622. Section 6621 provides different interest rates applicable to overpayments: one for corporations and one for non-corporations.
                </P>
                <P>The interest rates are based on the Federal short-term rate and determined by the Internal Revenue Service (IRS) on behalf of the Secretary of the Treasury on a quarterly basis. The rates effective for a quarter are determined during the first-month period of the previous quarter.</P>
                <P>In Revenue Ruling 2024-11, the IRS determined the rates of interest for the calendar quarter beginning July 1, 2024, and ending on September 30, 2024. The interest rate paid to the Treasury for underpayments will be the Federal short-term rate (5%) plus three percentage points (3%) for a total of eight percent (8%) for both corporations and non-corporations. For overpayments made by non-corporations, the rate is the Federal short-term rate (5%) plus three percentage points (3%) for a total of eight percent (8%). For corporate overpayments, the rate is the Federal short-term rate (5%) plus two percentage points (2%) for a total of seven percent (7%). These interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties remain the same from the previous quarter. These interest rates are subject to change for the calendar quarter beginning October 1, 2024, and ending on December 31, 2024.</P>
                <P>For the convenience of the importing public and U.S. Customs and Border Protection personnel, the following list of IRS interest rates used, covering the period from July of 1974 to date, to calculate interest on overdue accounts and refunds of customs duties, is published in summary format.</P>
                <GPOTABLE COLS="5" OPTS="L2,tp0,i1" CDEF="s50,15,15,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Beginning date</CHED>
                        <CHED H="1">Ending date</CHED>
                        <CHED H="1">
                            Under-payments
                            <LI>(percent)</LI>
                        </CHED>
                        <CHED H="1">
                            Over-payments
                            <LI>(percent)</LI>
                        </CHED>
                        <CHED H="1">
                            Corporate
                            <LI>over-payments</LI>
                            <LI>(eff. 1-1-99)</LI>
                            <LI>(percent)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">070174</ENT>
                        <ENT>063075</ENT>
                        <ENT>6</ENT>
                        <ENT>6</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">070175</ENT>
                        <ENT>013176</ENT>
                        <ENT>9</ENT>
                        <ENT>9</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">020176</ENT>
                        <ENT>013178</ENT>
                        <ENT>7</ENT>
                        <ENT>7</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">020178</ENT>
                        <ENT>013180</ENT>
                        <ENT>6</ENT>
                        <ENT>6</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">020180</ENT>
                        <ENT>013182</ENT>
                        <ENT>12</ENT>
                        <ENT>12</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">020182</ENT>
                        <ENT>123182</ENT>
                        <ENT>20</ENT>
                        <ENT>20</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">010183</ENT>
                        <ENT>063083</ENT>
                        <ENT>16</ENT>
                        <ENT>16</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">070183</ENT>
                        <ENT>123184</ENT>
                        <ENT>11</ENT>
                        <ENT>11</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">010185</ENT>
                        <ENT>063085</ENT>
                        <ENT>13</ENT>
                        <ENT>13</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">070185</ENT>
                        <ENT>123185</ENT>
                        <ENT>11</ENT>
                        <ENT>11</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">010186</ENT>
                        <ENT>063086</ENT>
                        <ENT>10</ENT>
                        <ENT>10</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">070186</ENT>
                        <ENT>123186</ENT>
                        <ENT>9</ENT>
                        <ENT>9</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">010187</ENT>
                        <ENT>093087</ENT>
                        <ENT>9</ENT>
                        <ENT>8</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">100187</ENT>
                        <ENT>123187</ENT>
                        <ENT>10</ENT>
                        <ENT>9</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">010188</ENT>
                        <ENT>033188</ENT>
                        <ENT>11</ENT>
                        <ENT>10</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">040188</ENT>
                        <ENT>093088</ENT>
                        <ENT>10</ENT>
                        <ENT>9</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">100188</ENT>
                        <ENT>033189</ENT>
                        <ENT>11</ENT>
                        <ENT>10</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">040189</ENT>
                        <ENT>093089</ENT>
                        <ENT>12</ENT>
                        <ENT>11</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">100189</ENT>
                        <ENT>033191</ENT>
                        <ENT>11</ENT>
                        <ENT>10</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">040191</ENT>
                        <ENT>123191</ENT>
                        <ENT>10</ENT>
                        <ENT>9</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">010192</ENT>
                        <ENT>033192</ENT>
                        <ENT>9</ENT>
                        <ENT>8</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">040192</ENT>
                        <ENT>093092</ENT>
                        <ENT>8</ENT>
                        <ENT>7</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">100192</ENT>
                        <ENT>063094</ENT>
                        <ENT>7</ENT>
                        <ENT>6</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">070194</ENT>
                        <ENT>093094</ENT>
                        <ENT>8</ENT>
                        <ENT>7</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">100194</ENT>
                        <ENT>033195</ENT>
                        <ENT>9</ENT>
                        <ENT>8</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">040195</ENT>
                        <ENT>063095</ENT>
                        <ENT>10</ENT>
                        <ENT>9</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">070195</ENT>
                        <ENT>033196</ENT>
                        <ENT>9</ENT>
                        <ENT>8</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">040196</ENT>
                        <ENT>063096</ENT>
                        <ENT>8</ENT>
                        <ENT>7</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">070196</ENT>
                        <ENT>033198</ENT>
                        <ENT>9</ENT>
                        <ENT>8</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">040198</ENT>
                        <ENT>123198</ENT>
                        <ENT>8</ENT>
                        <ENT>7</ENT>
                        <ENT/>
                    </ROW>
                    <ROW>
                        <ENT I="01">010199</ENT>
                        <ENT>033199</ENT>
                        <ENT>7</ENT>
                        <ENT>7</ENT>
                        <ENT>6</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">040199</ENT>
                        <ENT>033100</ENT>
                        <ENT>8</ENT>
                        <ENT>8</ENT>
                        <ENT>7</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">040100</ENT>
                        <ENT>033101</ENT>
                        <ENT>9</ENT>
                        <ENT>9</ENT>
                        <ENT>8</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">040101</ENT>
                        <ENT>063001</ENT>
                        <ENT>8</ENT>
                        <ENT>8</ENT>
                        <ENT>7</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="54017"/>
                        <ENT I="01">070101</ENT>
                        <ENT>123101</ENT>
                        <ENT>7</ENT>
                        <ENT>7</ENT>
                        <ENT>6</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">010102</ENT>
                        <ENT>123102</ENT>
                        <ENT>6</ENT>
                        <ENT>6</ENT>
                        <ENT>5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">010103</ENT>
                        <ENT>093003</ENT>
                        <ENT>5</ENT>
                        <ENT>5</ENT>
                        <ENT>4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">100103</ENT>
                        <ENT>033104</ENT>
                        <ENT>4</ENT>
                        <ENT>4</ENT>
                        <ENT>3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">040104</ENT>
                        <ENT>063004</ENT>
                        <ENT>5</ENT>
                        <ENT>5</ENT>
                        <ENT>4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">070104</ENT>
                        <ENT>093004</ENT>
                        <ENT>4</ENT>
                        <ENT>4</ENT>
                        <ENT>3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">100104</ENT>
                        <ENT>033105</ENT>
                        <ENT>5</ENT>
                        <ENT>5</ENT>
                        <ENT>4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">040105</ENT>
                        <ENT>093005</ENT>
                        <ENT>6</ENT>
                        <ENT>6</ENT>
                        <ENT>5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">100105</ENT>
                        <ENT>063006</ENT>
                        <ENT>7</ENT>
                        <ENT>7</ENT>
                        <ENT>6</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">070106</ENT>
                        <ENT>123107</ENT>
                        <ENT>8</ENT>
                        <ENT>8</ENT>
                        <ENT>7</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">010108</ENT>
                        <ENT>033108</ENT>
                        <ENT>7</ENT>
                        <ENT>7</ENT>
                        <ENT>6</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">040108</ENT>
                        <ENT>063008</ENT>
                        <ENT>6</ENT>
                        <ENT>6</ENT>
                        <ENT>5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">070108</ENT>
                        <ENT>093008</ENT>
                        <ENT>5</ENT>
                        <ENT>5</ENT>
                        <ENT>4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">100108</ENT>
                        <ENT>123108</ENT>
                        <ENT>6</ENT>
                        <ENT>6</ENT>
                        <ENT>5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">010109</ENT>
                        <ENT>033109</ENT>
                        <ENT>5</ENT>
                        <ENT>5</ENT>
                        <ENT>4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">040109</ENT>
                        <ENT>123110</ENT>
                        <ENT>4</ENT>
                        <ENT>4</ENT>
                        <ENT>3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">010111</ENT>
                        <ENT>033111</ENT>
                        <ENT>3</ENT>
                        <ENT>3</ENT>
                        <ENT>2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">040111</ENT>
                        <ENT>093011</ENT>
                        <ENT>4</ENT>
                        <ENT>4</ENT>
                        <ENT>3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">100111</ENT>
                        <ENT>033116</ENT>
                        <ENT>3</ENT>
                        <ENT>3</ENT>
                        <ENT>2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">040116</ENT>
                        <ENT>033118</ENT>
                        <ENT>4</ENT>
                        <ENT>4</ENT>
                        <ENT>3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">040118</ENT>
                        <ENT>123118</ENT>
                        <ENT>5</ENT>
                        <ENT>5</ENT>
                        <ENT>4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">010119</ENT>
                        <ENT>063019</ENT>
                        <ENT>6</ENT>
                        <ENT>6</ENT>
                        <ENT>5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">070119</ENT>
                        <ENT>063020</ENT>
                        <ENT>5</ENT>
                        <ENT>5</ENT>
                        <ENT>4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">070120</ENT>
                        <ENT>033122</ENT>
                        <ENT>3</ENT>
                        <ENT>3</ENT>
                        <ENT>2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">040122</ENT>
                        <ENT>063022</ENT>
                        <ENT>4</ENT>
                        <ENT>4</ENT>
                        <ENT>3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">070122</ENT>
                        <ENT>093022</ENT>
                        <ENT>5</ENT>
                        <ENT>5</ENT>
                        <ENT>4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">100122</ENT>
                        <ENT>123122</ENT>
                        <ENT>6</ENT>
                        <ENT>6</ENT>
                        <ENT>5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">010123</ENT>
                        <ENT>093023</ENT>
                        <ENT>7</ENT>
                        <ENT>7</ENT>
                        <ENT>6</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">100123</ENT>
                        <ENT>093024</ENT>
                        <ENT>8</ENT>
                        <ENT>8</ENT>
                        <ENT>7</ENT>
                    </ROW>
                </GPOTABLE>
                <SIG>
                    <NAME>Crinley S. Hoover,</NAME>
                    <TITLE>Acting Chief Financial Officer, U.S. Customs and Border Protection.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14171 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9111-14-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID FEMA-2024-0002; Internal Agency Docket No. FEMA-B-2442]</DEPDOC>
                <SUBJECT>Proposed Flood Hazard Determinations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Comments are requested on proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for the communities listed in the table below. The purpose of this notice is to seek general information and comment regarding the preliminary FIRM, and where applicable, the FIS report that the Federal Emergency Management Agency (FEMA) has provided to the affected communities. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are to be submitted on or before September 26, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The Preliminary FIRM, and where applicable, the FIS report for each community are available for inspection at both the online location 
                        <E T="03">https://hazards.fema.gov/femaportal/prelimdownload</E>
                         and the respective Community Map Repository address listed in the tables below. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                        <E T="03">https://msc.fema.gov</E>
                         for comparison.
                    </P>
                    <P>
                        You may submit comments, identified by Docket No. FEMA-B-2442, to Rick Sacbibit, Chief, Engineering Services Branch, Federal Insurance and Mitigation Administration, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rick Sacbibit, Chief, Engineering Services Branch, Federal Insurance and Mitigation Administration, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov;</E>
                         or visit the FEMA Mapping and Insurance eXchange (FMIX) online at 
                        <E T="03">https://www.floodmaps.fema.gov/fhm/fmx_main.html.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>FEMA proposes to make flood hazard determinations for each community listed below, in accordance with section 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR 67.4(a).</P>
                <P>
                    These proposed flood hazard determinations, together with the floodplain management criteria required by 44 CFR 60.3, are the minimum that are required. They should not be construed to mean that the community must change any existing ordinances that are more stringent in their floodplain management requirements. The community may at any time enact stricter requirements of its own or pursuant to policies established by other Federal, State, or regional entities. These flood hazard determinations are 
                    <PRTPAGE P="54018"/>
                    used to meet the floodplain management requirements of the NFIP.
                </P>
                <P>The communities affected by the flood hazard determinations are provided in the tables below. Any request for reconsideration of the revised flood hazard information shown on the Preliminary FIRM and FIS report that satisfies the data requirements outlined in 44 CFR 67.6(b) is considered an appeal. Comments unrelated to the flood hazard determinations also will be considered before the FIRM and FIS report become effective.</P>
                <P>
                    Use of a Scientific Resolution Panel (SRP) is available to communities in support of the appeal resolution process. SRPs are independent panels of experts in hydrology, hydraulics, and other pertinent sciences established to review conflicting scientific and technical data and provide recommendations for resolution. Use of the SRP only may be exercised after FEMA and local communities have been engaged in a collaborative consultation process for at least 60 days without a mutually acceptable resolution of an appeal. Additional information regarding the SRP process can be found online at 
                    <E T="03">https://www.floodsrp.org/pdfs/srp_overview.pdf.</E>
                </P>
                <P>
                    The watersheds and/or communities affected are listed in the tables below. The Preliminary FIRM, and where applicable, FIS report for each community are available for inspection at both the online location 
                    <E T="03">https://hazards.fema.gov/femaportal/prelimdownload</E>
                     and the respective Community Map Repository address listed in the tables. For communities with multiple ongoing Preliminary studies, the studies can be identified by the unique project number and Preliminary FIRM date listed in the tables. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                    <E T="03">https://msc.fema.gov</E>
                     for comparison.
                </P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance No. 97.022, “Flood Insurance.”)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Nicholas A. Shufro,</NAME>
                    <TITLE>Assistant Administrator (Acting) for Risk Management, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s100,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Community</CHED>
                        <CHED H="1">Community map repository address</CHED>
                    </BOXHD>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Brunswick County, Virginia and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="21">
                            <E T="02">Project: 20-03-0040S Preliminary Date: August 18, 2023</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Unincorporated Areas of Brunswick County</ENT>
                        <ENT>Brunswick County Government Building, 228 North Main Street, Lawrenceville, VA 23868.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Alberta</ENT>
                        <ENT>Municipal Office, 136 West First Avenue, Alberta, VA 23821.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Lawrenceville</ENT>
                        <ENT>Municipal Building, 400 North Main Street, Lawrenceville, VA 23868.</ENT>
                    </ROW>
                </GPOTABLE>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14174 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID FEMA-2024-0002]</DEPDOC>
                <SUBJECT>Final Flood Hazard Determinations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports have been made final for the communities listed in the table below. The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the Federal Emergency Management Agency's (FEMA's) National Flood Insurance Program (NFIP).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The date of October 24, 2024 has been established for the FIRM and, where applicable, the supporting FIS report showing the new or modified flood hazard information for each community.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The FIRM, and if applicable, the FIS report containing the final flood hazard information for each community is available for inspection at the respective Community Map Repository address listed in the tables below and will be available online through the FEMA Map Service Center at 
                        <E T="03">https://msc.fema.gov</E>
                         by the date indicated above.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rick Sacbibit, Chief, Engineering Services Branch, Federal Insurance and Mitigation Administration, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov;</E>
                         or visit the FEMA Mapping and Insurance eXchange (FMIX) online at 
                        <E T="03">https://www.floodmaps.fema.gov/fhm/fmx_main.html.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Federal Emergency Management Agency (FEMA) makes the final determinations listed below for the new or modified flood hazard information for each community listed. Notification of these changes has been published in newspapers of local circulation and 90 days have elapsed since that publication. The Deputy Associate Administrator for Insurance and Mitigation has resolved any appeals resulting from this notification.</P>
                <P>This final notice is issued in accordance with section 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR part 67. FEMA has developed criteria for floodplain management in floodprone areas in accordance with 44 CFR part 60.</P>
                <P>
                    Interested lessees and owners of real property are encouraged to review the new or revised FIRM and FIS report available at the address cited below for each community or online through the FEMA Map Service Center at 
                    <E T="03">https://msc.fema.gov.</E>
                </P>
                <P>The flood hazard determinations are made final in the watersheds and/or communities listed in the table below.</P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance No. 97.022, “Flood Insurance.”)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Nicholas A. Shufro,</NAME>
                    <TITLE>Assistant Administrator (Acting) for Risk Management, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
                <PRTPAGE P="54019"/>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s100,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Community</CHED>
                        <CHED H="1">Community map repository address</CHED>
                    </BOXHD>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Bay County, Florida and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2157</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Callaway</ENT>
                        <ENT>Planning and Zoning Department, 324 South Berthe Avenue, Callaway, FL 32404.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Lynn Haven</ENT>
                        <ENT>Planning and Zoning Department, 825 Ohio Avenue, Lynn Haven, FL 32444.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Mexico Beach</ENT>
                        <ENT>City Hall, 201 Paradise Path, Mexico Beach, FL 32456.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Panama City</ENT>
                        <ENT>Planning Department, 501 Harrison Avenue, Panama City, FL 32401.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Panama City Beach</ENT>
                        <ENT>Building Department, 116 South Arnold Road, Panama City Beach, FL 32413.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Parker</ENT>
                        <ENT>City Hall, 1001 West Park Street, Parker, FL 32404.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Springfield</ENT>
                        <ENT>City Hall, 408 School Avenue, Springfield, FL 32401.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Unincorporated Areas of Bay County</ENT>
                        <ENT>Bay County Planning and Zoning Department, 840 West 11th Street, Panama City, FL 32401.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Boulder County, Colorado and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2011 and B-2069</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Boulder</ENT>
                        <ENT>Park Central, 1739 Broadway, Boulder, CO 80302.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Longmont</ENT>
                        <ENT>Development Services Center, 385 Kimbark Street, Longmont, CO 80501.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Erie</ENT>
                        <ENT>Town Hall, 645 Holbrook Street, Erie, CO 80516.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Jamestown</ENT>
                        <ENT>Town Hall, 118 Main Street, Jamestown, CO 80455.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Lyons</ENT>
                        <ENT>Town Hall, 432 5th Avenue, Lyons, CO 80540.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Nederland</ENT>
                        <ENT>Town Hall, 45 West 1st Street, Nederland, CO 80466.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Superior</ENT>
                        <ENT>Public Works and Utilities Department, 405 Center Drive, Suite E, Superior, CO 80027.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Ward</ENT>
                        <ENT>Town Hall, 1 Columbia Street, Ward, CO 80481.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Unincorporated Areas of Boulder County</ENT>
                        <ENT>Boulder County Community Planning and Permitting Department, 2045 13th Street, Boulder, CO 80302.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Summers County, West Virginia and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2360</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Hinton</ENT>
                        <ENT>City Hall, 322 Summers Street, Hinton, WV 25951.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Unincorporated Areas of Summers County</ENT>
                        <ENT>Summers County Courthouse, 120 Ballengee Street, Suite 203, Hinton, WV 25951.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Milwaukee County, Wisconsin (All Jurisdictions)</E>
                        </ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2318</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Cudahy</ENT>
                        <ENT>City Hall, 5050 South Lake Drive, Cudahy, WI 53110.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Franklin</ENT>
                        <ENT>City Hall, 9229 West Loomis Road, Franklin, WI 53132.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Glendale</ENT>
                        <ENT>City Hall, 5909 North Milwaukee River Parkway, Glendale, WI 53209.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Greenfield</ENT>
                        <ENT>City Hall, 7325 West Forest Home Avenue, Greenfield, WI 53220.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Milwaukee</ENT>
                        <ENT>City Hall, 200 East Wells Street, Milwaukee, WI 53202.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Oak Creek</ENT>
                        <ENT>City Hall, 8040 South 6th Street, Oak Creek, WI 53154.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of South Milwaukee</ENT>
                        <ENT>City Hall, 2424 15th Avenue, South Milwaukee, WI 53172.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of St. Francis</ENT>
                        <ENT>City Hall, 3400 East Howard Avenue, St. Francis, WI 53235.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Wauwatosa</ENT>
                        <ENT>City Hall, 7725 West North Avenue, Wauwatosa, WI 53213.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of West Allis</ENT>
                        <ENT>City Hall, 7525 West Greenfield Avenue, West Allis, WI 53214.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Village of Bayside</ENT>
                        <ENT>Village Hall, 9075 North Regent Road, Bayside, WI 53217.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Village of Brown Deer</ENT>
                        <ENT>Village Hall, 4800 West Green Brook Drive, Brown Deer, WI 53223.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Village of Fox Point</ENT>
                        <ENT>Village Hall, 7200 North Santa Monica Boulevard, Fox Point, WI 53217.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Village of Greendale</ENT>
                        <ENT>Village Hall, 6500 Northway Street, Greendale, WI 53129.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Village of Hales Corners</ENT>
                        <ENT>Village Hall, 5635 South New Berlin Road, Hales Corners, WI 53130.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Village of River Hills</ENT>
                        <ENT>Village Hall, 7650 North Pheasant Lane, River Hills, WI 53217.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Village of Shorewood</ENT>
                        <ENT>Village Hall, 3930 North Murray Avenue, Shorewood, WI 53211.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Village of Whitefish Bay</ENT>
                        <ENT>Village Hall, 5300 North Marlborough Drive, Whitefish Bay, WI 53217.</ENT>
                    </ROW>
                </GPOTABLE>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14179 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="54020"/>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID FEMA-2024-0002]</DEPDOC>
                <SUBJECT>Final Flood Hazard Determinations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports have been made final for the communities listed in the table below. The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the Federal Emergency Management Agency's (FEMA's) National Flood Insurance Program (NFIP).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The date of November 7, 2024 has been established for the FIRM and, where applicable, the supporting FIS report showing the new or modified flood hazard information for each community.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The FIRM, and if applicable, the FIS report containing the final flood hazard information for each community is available for inspection at the respective Community Map Repository address listed in the tables below and will be available online through the FEMA Map Service Center at 
                        <E T="03">https://msc.fema.gov</E>
                         by the date indicated above.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rick Sacbibit, Chief, Engineering Services Branch, Federal Insurance and Mitigation Administration, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov;</E>
                         or visit the FEMA Mapping and Insurance eXchange (FMIX) online at 
                        <E T="03">https://www.floodmaps.fema.gov/fhm/fmx_main.html.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Federal Emergency Management Agency (FEMA) makes the final determinations listed below for the new or modified flood hazard information for each community listed. Notification of these changes has been published in newspapers of local circulation and 90 days have elapsed since that publication. The Deputy Associate Administrator for Insurance and Mitigation has resolved any appeals resulting from this notification.</P>
                <P>This final notice is issued in accordance with section 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR part 67. FEMA has developed criteria for floodplain management in floodprone areas in accordance with 44 CFR part 60.</P>
                <P>
                    Interested lessees and owners of real property are encouraged to review the new or revised FIRM and FIS report available at the address cited below for each community or online through the FEMA Map Service Center at 
                    <E T="03">https://msc.fema.gov.</E>
                </P>
                <P>The flood hazard determinations are made final in the watersheds and/or communities listed in the table below.</P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance No. 97.022, “Flood Insurance.”)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Nicholas A. Shufro,</NAME>
                    <TITLE>Assistant Administrator (Acting) for Risk Management, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s100,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Community</CHED>
                        <CHED H="1">Community map repository address</CHED>
                    </BOXHD>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Klamath County, Oregon and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2156 and B-2343</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Bonanza</ENT>
                        <ENT>City Hall, 2900 4th Avenue, Bonanza, OR 97623.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Chiloquin</ENT>
                        <ENT>City Hall, 127 South 1st Avenue, Chiloquin, OR 97624.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Klamath Falls</ENT>
                        <ENT>Land Use Planning Office, 226 South 5th Street, Klamath Falls, OR 97601.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Merrill</ENT>
                        <ENT>City Hall, 301 East 2nd Street, Merrill, OR 97633.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">The Klamath Tribes</ENT>
                        <ENT>Klamath Tribes Administration, 501 Chiloquin Boulevard, Chiloquin, OR 97624.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Unincorporated Areas of Klamath County</ENT>
                        <ENT>Klamath County Government Center—Community Development Office, 305 Main Street, Klamath Falls, OR 97601.</ENT>
                    </ROW>
                </GPOTABLE>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14178 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID FEMA-2024-0002; Internal Agency Docket No. FEMA-B-2441]</DEPDOC>
                <SUBJECT>Proposed Flood Hazard Determinations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Comments are requested on proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for the communities listed in the table below. The purpose of this notice is to seek general information and comment regarding the preliminary FIRM, and where applicable, the FIS report that the Federal Emergency Management Agency (FEMA) has provided to the affected communities. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are to be submitted on or before September 26, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The Preliminary FIRM, and where applicable, the FIS report for each community are available for inspection at both the online location 
                        <E T="03">
                            https://hazards.fema.gov/femaportal/
                            <PRTPAGE P="54021"/>
                            prelimdownload
                        </E>
                         and the respective Community Map Repository address listed in the tables below. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                        <E T="03">https://msc.fema.gov</E>
                         for comparison.
                    </P>
                    <P>
                        You may submit comments, identified by Docket No. FEMA-B-2441, to Rick Sacbibit, Chief, Engineering Services Branch, Federal Insurance and Mitigation Administration, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rick Sacbibit, Chief, Engineering Services Branch, Federal Insurance and Mitigation Administration, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov;</E>
                         or visit the FEMA Mapping and Insurance eXchange (FMIX) online at 
                        <E T="03">https://www.floodmaps.fema.gov/fhm/fmx_main.html.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>FEMA proposes to make flood hazard determinations for each community listed below, in accordance with section 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR 67.4(a).</P>
                <P>These proposed flood hazard determinations, together with the floodplain management criteria required by 44 CFR 60.3, are the minimum that are required. They should not be construed to mean that the community must change any existing ordinances that are more stringent in their floodplain management requirements. The community may at any time enact stricter requirements of its own or pursuant to policies established by other Federal, State, or regional entities. These flood hazard determinations are used to meet the floodplain management requirements of the NFIP.</P>
                <P>The communities affected by the flood hazard determinations are provided in the tables below. Any request for reconsideration of the revised flood hazard information shown on the Preliminary FIRM and FIS report that satisfies the data requirements outlined in 44 CFR 67.6(b) is considered an appeal. Comments unrelated to the flood hazard determinations also will be considered before the FIRM and FIS report become effective.</P>
                <P>
                    Use of a Scientific Resolution Panel (SRP) is available to communities in support of the appeal resolution process. SRPs are independent panels of experts in hydrology, hydraulics, and other pertinent sciences established to review conflicting scientific and technical data and provide recommendations for resolution. Use of the SRP only may be exercised after FEMA and local communities have been engaged in a collaborative consultation process for at least 60 days without a mutually acceptable resolution of an appeal. Additional information regarding the SRP process can be found online at 
                    <E T="03">https://www.floodsrp.org/pdfs/srp_overview.pdf.</E>
                </P>
                <P>
                    The watersheds and/or communities affected are listed in the tables below. The Preliminary FIRM, and where applicable, FIS report for each community are available for inspection at both the online location 
                    <E T="03">https://hazards.fema.gov/femaportal/prelimdownload</E>
                     and the respective Community Map Repository address listed in the tables. For communities with multiple ongoing Preliminary studies, the studies can be identified by the unique project number and Preliminary FIRM date listed in the tables. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                    <E T="03">https://msc.fema.gov</E>
                     for comparison.
                </P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance No. 97.022, “Flood Insurance.”)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Nicholas A. Shufro,</NAME>
                    <TITLE>Assistant Administrator (Acting) for Risk Management, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s100,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Community</CHED>
                        <CHED H="1">Community map repository address</CHED>
                    </BOXHD>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Greensville County, Virginia and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW RUL="s" EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Project: 20-03-0043S Preliminary Date: November 21, 2023</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Emporia</ENT>
                        <ENT>City Hall, 201 South Main Street, Emporia, VA 23847.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Jarratt</ENT>
                        <ENT>Town Hall, 108 South Braxton Avenue, Jarratt, VA 23867.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Unincorporated Areas of Greensville County</ENT>
                        <ENT>Greensville County Government Center, 1781 Greensville County Circle, Emporia, VA 23847.</ENT>
                    </ROW>
                </GPOTABLE>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14180 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID FEMA-2024-0002; Internal Agency Docket No. FEMA-B-2447]</DEPDOC>
                <SUBJECT>Changes in Flood Hazard Determinations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This notice lists communities where the addition or modification of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or the regulatory floodway (hereinafter referred to as flood hazard determinations), as shown on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports, prepared by the Federal Emergency Management Agency (FEMA) for each community, is appropriate because of new scientific or technical data. The FIRM, and where applicable, portions of the FIS report, have been revised to reflect these flood hazard determinations through issuance of a Letter of Map Revision (LOMR), in accordance with Federal Regulations. The currently effective community number is shown in the table below and must be used for all new policies and renewals.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>These flood hazard determinations will be finalized on the dates listed in the table below and revise the FIRM panels and FIS report in effect prior to this determination for the listed communities.</P>
                    <P>
                        From the date of the second publication of notification of these changes in a newspaper of local circulation, any person has 90 days in which to request through the community that the Deputy Associate Administrator for Insurance and Mitigation reconsider the changes. The flood hazard determination information 
                        <PRTPAGE P="54022"/>
                        may be changed during the 90-day period.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The affected communities are listed in the table below. Revised flood hazard information for each community is available for inspection at both the online location and the respective community map repository address listed in the table below. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                        <E T="03">https://msc.fema.gov</E>
                         for comparison.
                    </P>
                    <P>Submit comments and/or appeals to the Chief Executive Officer of the community as listed in the table below.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rick Sacbibit, Chief, Engineering Services Branch, Federal Insurance and Mitigation Administration, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov;</E>
                         or visit the FEMA Mapping and Insurance eXchange (FMIX) online at 
                        <E T="03">https://www.floodmaps.fema.gov/fhm/fmx_main.html.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The specific flood hazard determinations are not described for each community in this notice. However, the online location and local community map repository address where the flood hazard determination information is available for inspection is provided.</P>
                <P>Any request for reconsideration of flood hazard determinations must be submitted to the Chief Executive Officer of the community as listed in the table below.</P>
                <P>
                    The modifications are made pursuant to section 201 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4105, and are in accordance with the National Flood Insurance Act of 1968, 42 U.S.C. 4001 
                    <E T="03">et seq.,</E>
                     and with 44 CFR part 65.
                </P>
                <P>The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP).</P>
                <P>These flood hazard determinations, together with the floodplain management criteria required by 44 CFR 60.3, are the minimum that are required. They should not be construed to mean that the community must change any existing ordinances that are more stringent in their floodplain management requirements. The community may at any time enact stricter requirements of its own or pursuant to policies established by other Federal, State, or regional entities. The flood hazard determinations are in accordance with 44 CFR 65.4.</P>
                <P>
                    The affected communities are listed in the following table. Flood hazard determination information for each community is available for inspection at both the online location and the respective community map repository address listed in the table below. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                    <E T="03">https://msc.fema.gov</E>
                     for comparison.
                </P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance No. 97.022, “Flood Insurance.”)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Nicholas A. Shufro,</NAME>
                    <TITLE>Assistant Administrator (Acting) for Risk Management, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
                <GPOTABLE COLS="7" OPTS="L2,nj,tp0,p7,7/8,i1" CDEF="s50,xl50,xl75,xl75,xl90,xs55,10">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">State and county</CHED>
                        <CHED H="1">Location and case No.</CHED>
                        <CHED H="1">
                            Chief executive officer of 
                            <LI>community</LI>
                        </CHED>
                        <CHED H="1">
                            Community map 
                            <LI>repository</LI>
                        </CHED>
                        <CHED H="1">
                            Online location of letter 
                            <LI>of map revision</LI>
                        </CHED>
                        <CHED H="1">
                            Date of 
                            <LI>modification</LI>
                        </CHED>
                        <CHED H="1">Community No.</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="22">Arizona:</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Cochise.</ENT>
                        <ENT>City of Sierra Vista (23-09-1001P).</ENT>
                        <ENT>The Honorable Clea McCaa II, Mayor, City of Sierra Vista, 1011 North Coronado Drive, Sierra Vista, AZ 85635.</ENT>
                        <ENT>Community Development Department, 1011 North Coronado Drive, Sierra Vista, AZ 85635.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 5, 2024</ENT>
                        <ENT>040017</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Maricopa.</ENT>
                        <ENT>City of Avondale (23-09-0716P).</ENT>
                        <ENT>The Honorable Kenneth N. Weise, Mayor, City of Avondale, 11465 West Civic Center Drive, Avondale, AZ 85323.</ENT>
                        <ENT>Development &amp; Engineering Services Department, 11465 West Civic Center Drive, Avondale, AZ 85323.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 9, 2024</ENT>
                        <ENT>040038</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Maricopa.</ENT>
                        <ENT>City of Phoenix (24-09-0419P).</ENT>
                        <ENT>The Honorable Kate Gallego, Mayor, City of Phoenix, 200 West Washington Street, 11th Floor, Phoenix, AZ 85003.</ENT>
                        <ENT>Street Transportation Department, 200 West Washington Street, 5th Floor, Phoenix, AZ 85003.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 9, 2024</ENT>
                        <ENT>040051</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Maricopa.</ENT>
                        <ENT>City of Surprise (23-09-0209P).</ENT>
                        <ENT>The Honorable Skip Hall, Mayor, City of Surprise, 16000 North Civic Center Plaza, Surprise, AZ 85374.</ENT>
                        <ENT>Public Works Department, Engineering Development Services, 16000 North Civic Center Plaza, Surprise, AZ 85374.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Sep. 6, 2024</ENT>
                        <ENT>040053</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Maricopa.</ENT>
                        <ENT>Unincorporated Areas of Maricopa County (23-09-0209P).</ENT>
                        <ENT>The Honorable Jack Sellers, Chair, Board of Supervisors, Maricopa County, 301 West Jefferson Street, 10th Floor, Phoenix, AZ 85003.</ENT>
                        <ENT>Flood Control District of Maricopa County, 2801 West Durango Street, Phoenix, AZ 85009.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Sep. 6, 2024</ENT>
                        <ENT>040037</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Pima.</ENT>
                        <ENT>Town of Marana (23-09-1387P).</ENT>
                        <ENT>The Honorable Ed Honea, Mayor, Town of Marana, 11555 West Civic Center Drive, Marana, AZ 85653.</ENT>
                        <ENT>Engineering Department, Marana Municipal Complex, 11555 West Civic Center Drive, Marana, AZ 85653.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Sep. 9, 2024</ENT>
                        <ENT>040118</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Pinal.</ENT>
                        <ENT>City of Apache Junction (23-09-1322P).</ENT>
                        <ENT>The Honorable Chip Wilson, Mayor, City of Apache Junction, 300 East Superstition Boulevard, Apache Junction, AZ 85119.</ENT>
                        <ENT>City Hall, 300 East Superstition Boulevard, Apache Junction, AZ 85119.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 28, 2024</ENT>
                        <ENT>040120</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">California:</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="54023"/>
                        <ENT I="03">Nevada.</ENT>
                        <ENT>Town of Truckee (23-09-0444P).</ENT>
                        <ENT>The Honorable David Polivy, Mayor, Town of Truckee, 10183 Truckee Airport Road, Truckee, CA 96161.</ENT>
                        <ENT>Eric W. Rood Administrative Center, 950 Maidu Avenue, Nevada City, CA 95959.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 19, 2024</ENT>
                        <ENT>060762</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">San Diego.</ENT>
                        <ENT>City of San Diego (23-09-0819P).</ENT>
                        <ENT>The Honorable Todd Gloria, Mayor, City of San Diego, 202 C Street, 11th Floor, San Diego, CA 92101.</ENT>
                        <ENT>Development Services Department, 1222 1st Avenue, MS 301, San Diego, CA 92101.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 16, 2024</ENT>
                        <ENT>060295</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">San Diego.</ENT>
                        <ENT>City of San Diego (24-09-0077P).</ENT>
                        <ENT>The Honorable Todd Gloria, Mayor, City of San Diego, 202 C Street, 11th Floor, San Diego, CA 92101.</ENT>
                        <ENT>Development Services Department, 1222 1st Avenue, MS 301, San Diego, CA 92101.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 29, 2024</ENT>
                        <ENT>060295</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Santa Clara.</ENT>
                        <ENT>City of Cupertino (22-09-1032P).</ENT>
                        <ENT>The Honorable Sheila Mohan, Mayor, City of Cupertino, 10300 Torre Avenue, Cupertino, CA 95014.</ENT>
                        <ENT>Planning Department, 10300 Torre Avenue, Cupertino, CA 95014.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Sep. 5, 2024</ENT>
                        <ENT>060339</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Santa Clara.</ENT>
                        <ENT>City of Los Altos (22-09-1032P).</ENT>
                        <ENT>The Honorable Jonathan D. Weinberg, Mayor, City of Los Altos, 1 North San Antonio Road, Los Altos, CA 94022.</ENT>
                        <ENT>Public Works Department, 26379 Fremont Road, Los Altos, CA 94022.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Sep. 5, 2024</ENT>
                        <ENT>060341</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Santa Clara.</ENT>
                        <ENT>City of Mountain View (22-09-1032P).</ENT>
                        <ENT>The Honorable Pat Showalter, Mayor, City of Mountain View, P.O. Box 7540, Mountain View, CA 94039.</ENT>
                        <ENT>Public Works Department, 500 Castro Street, 1st Floor, Mountain View, CA 94041.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Sep. 5, 2024</ENT>
                        <ENT>060347</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Santa Clara.</ENT>
                        <ENT>Unincorporated Areas of Santa Clara County (22-09-1032P).</ENT>
                        <ENT>The Honorable Susan Ellenberg, President, Board of Supervisors, Santa Clara County, 70 West Hedding Street 10th Floor, San Jose, CA 95110.</ENT>
                        <ENT>Santa Clara County, Department of Planning and Development, 70 West Hedding Street, 7th Floor East Wing, San Jose, CA 95110.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Sep. 5, 2024</ENT>
                        <ENT>060337</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Shasta.</ENT>
                        <ENT>Unincorporated Areas of Shasta County (23-09-0857P).</ENT>
                        <ENT>The Honorable Kevin W. Crye, Chair, Board of Supervisors, Shasta County, 1450 Court Street, Suite 308B, Redding, CA 96001.</ENT>
                        <ENT>Shasta County, Resource Management and Public Works Building, 1855 Placer Street, Redding, CA 96001.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 22, 2024</ENT>
                        <ENT>060358</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Tulare.</ENT>
                        <ENT>Unincorporated Areas of Tulare County (22-09-1347P).</ENT>
                        <ENT>The Honorable Larry Micari, Chair, Board of Supervisors, Tulare County, 2800 West Burrel Avenue, Visalia, CA 93291.</ENT>
                        <ENT>Tulare County Resource Management Agency, Government Plaza, 5961 South Mooney Boulevard, Visalia, CA 93277.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 8, 2024</ENT>
                        <ENT>065066</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Ventura.</ENT>
                        <ENT>Unincorporated Areas of Ventura County (24-09-0395P).</ENT>
                        <ENT>The Honorable Kelly Long, Chair, Board of Supervisors, Ventura County, 1203 Flynn Road, Suite 220, Camarillo, CA 93012.</ENT>
                        <ENT>Ventura County, Public Works Agency, 800 South Victoria Avenue, Ventura, CA 93009.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 27, 2024</ENT>
                        <ENT>060413</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">Florida:</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Bay.</ENT>
                        <ENT>Unincorporated Areas of Bay County (23-04-0322P).</ENT>
                        <ENT>Robert Majka, County Manager, Bay County Board of Commissioners, 840 West 11th Street, Panama City, FL 32401.</ENT>
                        <ENT>Bay County Planning and Zoning, 707 Jenks Avenue, Suite B, Panama City, FL 32401.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 8, 2024</ENT>
                        <ENT>120004</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Nassau.</ENT>
                        <ENT>Unincorporated Areas of Nassau County (23-04-5724P).</ENT>
                        <ENT>Taco Pope, County Manager, Nassau County, 96135 Nassau Place, Suite 1, Yulee, FL 32097.</ENT>
                        <ENT>Nassau County Building Department, 96161 Nassau Place, Yulee, FL 32097.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 8, 2024</ENT>
                        <ENT>120170</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">St. Johns.</ENT>
                        <ENT>Unincorporated Areas of St. Johns County (23-04-4828P).</ENT>
                        <ENT>Sarah Arnold, Chair, St. Johns County Board of Commissioners, 500 San Sebastian View, St. Augustine, FL 32084.</ENT>
                        <ENT>St. Johns County Permit Center, 4040 Lewis Speedway, St. Augustine, FL 32084.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 19, 2024</ENT>
                        <ENT>125147</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">Idaho:</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Ada.</ENT>
                        <ENT>City of Eagle (23-10-0615P).</ENT>
                        <ENT>The Honorable Brad Pike, Mayor, City of Eagle, City Hall, 660 East Civil Lane, Eagle, ID 83616.</ENT>
                        <ENT>City Hall, 660 East Civil Lane, Eagle, ID 83616.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 15, 2024</ENT>
                        <ENT>160003</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="54024"/>
                        <ENT I="03">Blaine.</ENT>
                        <ENT>Unincorporated Areas of Blaine County. (23-10-0498P).</ENT>
                        <ENT>Muffy Davis, Chair, Blaine County Board of Commissioners, 206 South 1st Avenue, Suite 300, Hailey, ID 83333.</ENT>
                        <ENT>Blaine County Courthouse Annex Building, 219 1st Avenue South, Suite 208, Hailey, ID 83333.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 1, 2024</ENT>
                        <ENT>165167</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">Indiana:</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Boone.</ENT>
                        <ENT>Town of Whitestown (23-05-1314P).</ENT>
                        <ENT>The Honorable Dan Patterson, Town Council President, Town of Whitestown, 6210 Veterans Drive, Whitestown, IN 46075.</ENT>
                        <ENT>Town Hall, 3 South Main Street, Whitestown, IN 46075.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 9, 2024</ENT>
                        <ENT>180015</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Boone.</ENT>
                        <ENT>Town of Zionsville (23-05-1314P).</ENT>
                        <ENT>The Honorable John Stehr, Mayor, Zionsville Town Hall, 1100 West Oak Street, Zionsville, IN 46077.</ENT>
                        <ENT>Planning Department, Town Hall, 1100 West Oak Street, Zionsville, IN 46077.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 9, 2024</ENT>
                        <ENT>180016</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Elkhart.</ENT>
                        <ENT>City of Elkhart (23-05-0829P).</ENT>
                        <ENT>The Honorable Rod Roberson, Mayor, City of Elkhart, 229 South 2nd Street, Elkhart, IN 46516.</ENT>
                        <ENT>City Hall, 229 South 2nd Street, Elkhart, IN 46516.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 22, 2024</ENT>
                        <ENT>180057</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Lake.</ENT>
                        <ENT>Town of Griffith (23-05-0583P).</ENT>
                        <ENT>The Honorable Rick Ryfa, Town Council President, Town of Griffith, 111 North Broad Street Griffith, IN 46319.</ENT>
                        <ENT>Town Hall, 111 North Broad Street, Griffith, IN 46319.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 26, 2024</ENT>
                        <ENT>185175</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Lake.</ENT>
                        <ENT>Town of Merrillville (23-05-0583P).</ENT>
                        <ENT>The Honorable Rick Bella, Town Council President, Town of Merrillville, 7820 Broadway Street, Merrillville, IN 46410.</ENT>
                        <ENT>Municipal Complex, 7820 Broadway Street, Merrillville, IN 46410.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 26, 2024</ENT>
                        <ENT>180138</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Lake.</ENT>
                        <ENT>Town of Schererville (23-05-0583P).</ENT>
                        <ENT>The Honorable Thomas J. Schmitt, Town Council President, Town of Schererville, 10 East Joliet Street, Schererville, IN 46375.</ENT>
                        <ENT>Town Hall, 10 East Joliet Street, Schererville, IN 46375.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 26, 2024</ENT>
                        <ENT>180142</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">Minnesota:</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Olmsted.</ENT>
                        <ENT>City of Rochester (23-05-2698P).</ENT>
                        <ENT>The Honorable Kim Norton, Mayor, City of Rochester, Mayor's Office Government Center, 201 4th Street Southeast, Rochester, MN 55904.</ENT>
                        <ENT>Planning, Land Use, Zoning Department, 2122 Campus Drive Southeast, Suite 100, Rochester, MN 55904.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 14, 2024</ENT>
                        <ENT>275246</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Olmsted.</ENT>
                        <ENT>Unincorporated Areas of Olmsted County (23-05-2698P).</ENT>
                        <ENT>Greg Wright, Olmsted County Commissioner, 3rd District, 151 4th Street Southeast, Rochester, MN 55904.</ENT>
                        <ENT>Olmsted County, Planning, Land Use, Zoning Department, 2122 Campus Drive Southeast, Suite 100, Rochester, MN 55904.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 14, 2024</ENT>
                        <ENT>270626</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">Missouri:</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">St. Charles.</ENT>
                        <ENT>City of St. Charles (23-07-0528P).</ENT>
                        <ENT>The Honorable Dan Borgmeyer, Mayor, City of St. Charles, 200 North 2nd Street, St. Charles, MO 63301.</ENT>
                        <ENT>City Hall, 200 North 2nd Street, St. Charles, MO 63301.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 26, 2024</ENT>
                        <ENT>290318</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">St. Charles.</ENT>
                        <ENT>Unincorporated Areas of St. Charles County (23-07-0528P).</ENT>
                        <ENT>Steve Ehlmann, County Executive, St. Charles County, 100 North 3rd Street, St. Charles, MO 63301.</ENT>
                        <ENT>St. Charles County Administration Building, 201 North 2nd Street, Suite 420, St. Charles, MO 63301.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 26, 2024</ENT>
                        <ENT>290315</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Nebraska: York.</ENT>
                        <ENT>City of York (23-07-0607P).</ENT>
                        <ENT>The Honorable Barry Redfern, Mayor, City of York, 100 East 4th Street, York, NE 68467.</ENT>
                        <ENT>Municipal Building, 100 East 4th Street, York, NE 68467.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 16, 2024</ENT>
                        <ENT>310237</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">Nevada:</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Carson City.</ENT>
                        <ENT>City of Carson City (22-09-0387P).</ENT>
                        <ENT>The Honorable Lori Bagwell, Mayor, City of Carson City, City Hall, 201 North Carson Street, Suite 2, Carson City, NV 89701.</ENT>
                        <ENT>Building Division, Permit Center, 108 East Proctor Street, Carson City, NV 89071.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 15, 2024</ENT>
                        <ENT>320001</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Clark.</ENT>
                        <ENT>Unincorporated Areas of Clark County (23-09-1159P).</ENT>
                        <ENT>The Honorable Tick Segerblom, Chair, Board of Commissioners, Clark County, 500 South Grand Central Parkway, 6th Floor, Las Vegas, NV 89155.</ENT>
                        <ENT>Clark County, Office of the Director of Public Works, 500 South Grand Central Parkway, 2nd Floor, Las Vegas, NV 89155.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 6, 2024</ENT>
                        <ENT>320003</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="54025"/>
                        <ENT I="03">Clark.</ENT>
                        <ENT>Unincorporated Areas of Clark County (23-09-1252P).</ENT>
                        <ENT>The Honorable Tick Segerblom, Chair, Board of Commissioners, Clark County, 500 South Grand Central Parkway, 6th Floor, Las Vegas, NV 89155.</ENT>
                        <ENT>Clark County, Office of the Director of Public Works, 500 South Grand Central Parkway, 2nd Floor, Las Vegas, NV 89155.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Sep. 9, 2024</ENT>
                        <ENT>320003</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">New York: Oswego.</ENT>
                        <ENT>City of Oswego (23-02-0639P).</ENT>
                        <ENT>The Honorable Robert A. Corradino, Mayor, City of Oswego, City Hall—2nd Floor, 13 West Oneida Street, Oswego, NY 13126.</ENT>
                        <ENT>City Hall, Engineering Office, 3rd Floor, 13 West Oneida Street, Oswego, NY 13126.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Oct. 10, 2024</ENT>
                        <ENT>360656</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Ohio: Butler.</ENT>
                        <ENT>Unincorporated Areas of Butler County (23-05-1958P).</ENT>
                        <ENT>Cindy Carpenter, President, Butler County Board of Commissioners, Government Services Center, 315 High Street, 6th Floor, Hamilton, OH 45011.</ENT>
                        <ENT>Butler County Administrative Center Building and Zoning Department, 130 High Street, 1st Floor, Hamilton, OH 45011.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 14, 2024</ENT>
                        <ENT>390037</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oregon: Benton.</ENT>
                        <ENT>Unincorporated Areas of Benton County (23-10-0749P).</ENT>
                        <ENT>Xanthippe Augerot, Chair, Benton County Board of Commissioners, Kalapuya Building, 4500 Southwest Research Way, Corvallis, OR 97333.</ENT>
                        <ENT>Benton County Sheriff's Office, 180 Northwest 5th Street, Corvallis, OR 97333.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Jul. 31, 2024</ENT>
                        <ENT>410008</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Texas: Tarrant.</ENT>
                        <ENT>City of Fort Worth (22-06-2195P).</ENT>
                        <ENT>The Honorable Mattie Parker, Mayor, City of Fort Worth, City Hall, 200 Texas Street, Fort Worth, TX 76102.</ENT>
                        <ENT>Department of Transportation and Public Works, 1000 Throckmorton Street, Fort Worth, TX 76102.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Aug. 7, 2024</ENT>
                        <ENT>480596</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">Wisconsin:</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Marathon.</ENT>
                        <ENT>Unincorporated Areas of Marathon County (23-05-1298P).</ENT>
                        <ENT>Kurt Gibbs, County Board Member District 32, Marathon County, 500 Forest Street, Wausau, WI 54403.</ENT>
                        <ENT>Marathon County, Conservation, Planning and Zoning Office, 210 River Drive, Wausau, WI 54403.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Oct. 14, 2024</ENT>
                        <ENT>550245</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Waukesha.</ENT>
                        <ENT>Unincorporated Areas of Waukesha County (23-05-1476P).</ENT>
                        <ENT>Paul Decker, Executive Committee Chair, Waukesha County, 325 Parkview Court, Hartland, WI 53029.</ENT>
                        <ENT>Waukesha County Administration Building, 515 West Moreland Boulevard, Waukesha, WI 53188.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Oct. 15, 2024</ENT>
                        <ENT>550476</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Waukesha.</ENT>
                        <ENT>Village of Sussex (23-05-1476P).</ENT>
                        <ENT>The Honorable Anthony J. LeDonne, President, Village of Sussex, W233N6478 Kneiske Drive, Sussex, WI 53089.</ENT>
                        <ENT>Village Hall, N64W23760 Main Street, Sussex, WI 53089.</ENT>
                        <ENT>
                            <E T="03">https://msc.fema.gov/portal/advanceSearch.</E>
                        </ENT>
                        <ENT>Oct. 15, 2024</ENT>
                        <ENT>550490</ENT>
                    </ROW>
                </GPOTABLE>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14177 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID FEMA-2024-0002; Internal Agency Docket No. FEMA-B-2446]</DEPDOC>
                <SUBJECT>Proposed Flood Hazard Determinations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Comments are requested on proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for the communities listed in the table below. The purpose of this notice is to seek general information and comment regarding the preliminary FIRM, and where applicable, the FIS report that the Federal Emergency Management Agency (FEMA) has provided to the affected communities. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are to be submitted on or before September 26, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The Preliminary FIRM, and where applicable, the FIS report for each community are available for inspection at both the online location 
                        <E T="03">https://hazards.fema.gov/femaportal/prelimdownload</E>
                         and the respective Community Map Repository address listed in the tables below. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                        <E T="03">https://msc.fema.gov</E>
                         for comparison.
                    </P>
                    <P>
                        You may submit comments, identified by Docket No. FEMA-B-2446, to Rick Sacbibit, Chief, Engineering Services Branch, Federal Insurance and Mitigation Administration, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rick Sacbibit, Chief, Engineering Services Branch, Federal Insurance and 
                        <PRTPAGE P="54026"/>
                        Mitigation Administration, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov;</E>
                         or visit the FEMA Mapping and Insurance eXchange (FMIX) online at 
                        <E T="03">https://www.floodmaps.fema.gov/fhm/fmx_main.html.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>FEMA proposes to make flood hazard determinations for each community listed below, in accordance with section 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR 67.4(a).</P>
                <P>These proposed flood hazard determinations, together with the floodplain management criteria required by 44 CFR 60.3, are the minimum that are required. They should not be construed to mean that the community must change any existing ordinances that are more stringent in their floodplain management requirements. The community may at any time enact stricter requirements of its own or pursuant to policies established by other Federal, State, or regional entities. These flood hazard determinations are used to meet the floodplain management requirements of the NFIP.</P>
                <P>The communities affected by the flood hazard determinations are provided in the tables below. Any request for reconsideration of the revised flood hazard information shown on the Preliminary FIRM and FIS report that satisfies the data requirements outlined in 44 CFR 67.6(b) is considered an appeal. Comments unrelated to the flood hazard determinations also will be considered before the FIRM and FIS report become effective.</P>
                <P>
                    Use of a Scientific Resolution Panel (SRP) is available to communities in support of the appeal resolution process. SRPs are independent panels of experts in hydrology, hydraulics, and other pertinent sciences established to review conflicting scientific and technical data and provide recommendations for resolution. Use of the SRP only may be exercised after FEMA and local communities have been engaged in a collaborative consultation process for at least 60 days without a mutually acceptable resolution of an appeal. Additional information regarding the SRP process can be found online at 
                    <E T="03">https://www.floodsrp.org/pdfs/srp_overview.pdf.</E>
                </P>
                <P>
                    The watersheds and/or communities affected are listed in the tables below. The Preliminary FIRM, and where applicable, FIS report for each community are available for inspection at both the online location 
                    <E T="03">https://hazards.fema.gov/femaportal/prelimdownload</E>
                     and the respective Community Map Repository address listed in the tables. For communities with multiple ongoing Preliminary studies, the studies can be identified by the unique project number and Preliminary FIRM date listed in the tables. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                    <E T="03">https://msc.fema.gov</E>
                     for comparison.
                </P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance No. 97.022, “Flood Insurance.”)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Nicholas A. Shufro,</NAME>
                    <TITLE>Assistant Administrator (Acting) for Risk Management, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s100,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Community</CHED>
                        <CHED H="1">Community map repository address</CHED>
                    </BOXHD>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Mohave County, Arizona and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="21">
                            <E T="02">Project: 20-09-0009S Preliminary Date: April 10, 2024</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Kingman</ENT>
                        <ENT>Engineering Department, 220 North 4th Street, Kingman, AZ 86401.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Unincorporated Areas of Mohave County</ENT>
                        <ENT>Mohave County Development Services, 3250 East Kino Avenue, Kingman, AZ 86409.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Codington County, South Dakota and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="21">
                            <E T="02">Project: 18-08-0048S Preliminary Date: February 22, 2022 and March 29, 2024</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Watertown</ENT>
                        <ENT>City Hall, 23 2nd Street NE, Watertown, SD 57201.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Sisseton Wahpeton Oyate Tribe</ENT>
                        <ENT>Sisseton Wahpeton Oyate Emergency Management Office, 114 Lake Traverse Drive, Sisseton, SD 57262.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Florence</ENT>
                        <ENT>City Finance Office, 220 Main Street, Florence, SD 57235.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Henry</ENT>
                        <ENT>Town Hall, 210 Main Street, Henry, SD 57243.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Kranzburg</ENT>
                        <ENT>Town Hall, 202 Hastings Avenue NW, Kranzburg, SD 57245.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of South Shore</ENT>
                        <ENT>Codington County Extension Complex, 1910 West Kemp Avenue, Watertown, SD 57201.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Unincorporated Areas of Codington County</ENT>
                        <ENT>Codington County Extension Complex, 1910 West Kemp Avenue, Watertown, SD 57201.</ENT>
                    </ROW>
                </GPOTABLE>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14173 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <DEPDOC>[Docket No.: CISA-2024-0011]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities: CISA Gateway User Registration</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Cybersecurity and Infrastructure Security Agency (CISA), Department of Homeland Security (DHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day notice and request for comments; renewal, 1670-0009.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        DHS CISA Infrastructure Security Division (ISD), will submit the following information collection request (ICR) to the Office of Management and Budget (OMB) for review and clearance. CISA previously published this information collection request (ICR) in the 
                        <E T="04">Federal Register</E>
                         on April 24, 2024, for a 60-day public comment period. No comments were received by CISA. The purpose of this notice is to allow an additional 30 days for public comments.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are encouraged and will be accepted until July 29, 2024. Submissions received after the deadline for receiving comments may not be considered.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                        <PRTPAGE P="54027"/>
                    </P>
                    <P>OMB is particularly interested in comments that:</P>
                    <P>1. 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:</P>
                    <P>2. 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:</P>
                    <P>3. Enhance the quality, utility, and clarity of the information to be collected; and</P>
                    <P>
                        4. 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 T="03">e.g.,</E>
                         permitting electronic submissions of responses.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Iesha Alexander, 202-440-0834, 
                        <E T="03">Iesha.Alexander@CISA.DHS.GOV.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Homeland Security Presidential Directive-7, Presidential Policy Directive-22, and the National Infrastructure Protection Plan highlight the need for a centrally managed repository of infrastructure attributes capable of assessing risks and facilitating data sharing. The Critical Infrastructure Information Act of 2002 and Title 6 Code of Federal Regulation part 29 direct an information protection program and a system to record the receipt, acknowledgement, and validation of submitted critical infrastructure information (CII), as well as storage, dissemination, and destruction of original Protected Critical Infrastructure Information (PCII). To support these missions, the DHS CISA ISD developed the CISA Gateway and the Protected Critical Infrastructure Information Management System (PCIIMS). The CISA Gateway and PCIIMS contain several capabilities which support the homeland security mission in the area of critical infrastructure (CI) and information protection.</P>
                <P>The purpose of this collection is to gather the details pertaining to the users of the CISA Gateway and PCIIMS for the purpose of creating accounts to access the CISA Gateway and PCIIMS. This information is also used to verify a need to know to access the CISA Gateway and PCIIMS. After being vetted and granted access, users are prompted and required to take an online training course upon first logging into the system. After completing the training, users are permitted full access to the systems. In addition, this collection will gather feedback from the users of the CISA Gateway to determine any future system improvements.</P>
                <P>The information gathered will be used by the CISA Gateway Program Management Team and the PCII Program Office for PCIIMS to vet users for a need to know and grant access to the system. For the CISA Gateway, as part of the registration process, users are required to take a one-time online training course. When logging into the system for the first time, the system prompts users to take the training courses. Users cannot opt out of the training and are required to take the course in order to gain and maintain access to the system. When users complete the training, the system automatically logs that the training is complete and allows full access to the system. For PCIIMS, after registration and vetting, users are directed to take PCII Authorized User training, which must be retaken annually to maintain their active status.</P>
                <P>The collection of information uses automated electronic forms. During the online registration process, there is an electronic form used to create a user account and an online training course required to grant access.</P>
                <P>The collection was initially approved on October 9, 2007, and the most recent approval was on December 19, 2023, with an expiration date of June 30, 2024. The changes to the collection since the previous OMB approval include updating the title of the collection, decrease in burden estimates and decrease in costs.</P>
                <P>The total annual burden cost for the collection has changed by $3,096.40, from $4,128 to $7,224.40 due to the removal of the utilization survey, and the addition of PCIIMS respondents. For the CISA Gateway, the total number of responses has increased from 350 to 700 due to the updated metrics resulting from the awareness campaign and due to the registration process changing which does not include the training registration. The annual government cost for this collection has changed by $8,340.92 from $5,723 to $14,063.92 due to the removal of the utilization survey, and the addition of PCIIMS respondents. This is a renewal of an information collection.</P>
                <HD SOURCE="HD1">Analysis</HD>
                <P>
                    <E T="03">Agency:</E>
                     Cybersecurity and Infrastructure Security Agency (CISA), Department of Homeland Security (DHS).
                </P>
                <P>
                    <E T="03">Title of Collection:</E>
                     CISA Gateway User Registration.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1670-0009.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Annually.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     State, local, Tribal, and Territorial governments and private sector individuals.
                </P>
                <P>
                    <E T="03">Number of Annualized Respondents:</E>
                     700.
                </P>
                <P>
                    <E T="03">Estimated Time per Respondent:</E>
                     0.167 hours for registration, 0.167 hours for training.
                </P>
                <P>
                    <E T="03">Total Annualized Burden Hours:</E>
                     116.679 hours.
                </P>
                <P>
                    <E T="03">Total Annualized Respondent Opportunity Cost:</E>
                     $7,224.40.
                </P>
                <P>
                    <E T="03">Total Annualized Respondent Out-of-Pocket Cost:</E>
                     $0.
                </P>
                <P>
                    <E T="03">Total Annualized Government Cost:</E>
                     $14,063.92.
                </P>
                <SIG>
                    <NAME>Robert J. Costello,</NAME>
                    <TITLE>Chief Information Officer, Department of Homeland Security, Cybersecurity and Infrastructure Security Agency.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14286 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9111-LF-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>U.S. Citizenship and Immigration Services</SUBAGY>
                <DEPDOC>[OMB Control Number 1615-0102]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Extension, Without Change, of a Currently Approved Collection: Form G-639; Freedom of Information/Privacy Act Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Citizenship and Immigration Services, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Department of Homeland Security (DHS), U.S. Citizenship and Immigration Services (USCIS) invites the general public and other Federal agencies to comment upon this proposed extension. In accordance with the Paperwork Reduction Act (PRA) of 1995, the information collection notice is published in the 
                        <E T="04">Federal Register</E>
                         to obtain comments regarding the nature of the information collection, the categories of respondents, the estimated burden (
                        <E T="03">i.e.,</E>
                         the time, effort, and resources used by the respondents to respond), the estimated cost to the respondent, and the actual information collection instruments.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are encouraged and will be accepted for 60 days until August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        All submissions received must include the OMB Control Number 
                        <PRTPAGE P="54028"/>
                        1615-0102 in the body of the letter, the agency name and Docket ID USCIS-2008-0028. Submit comments via the Federal eRulemaking Portal website at 
                        <E T="03">https://www.regulations.gov</E>
                         under e-Docket ID number USCIS-2008-0028.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        USCIS, Office of Policy and Strategy, Regulatory Coordination Division, Samantha Deshommes, Chief, telephone number (240) 721-3000 (This is not a toll-free number. Comments are not accepted via telephone message). Please note contact information provided here is solely for questions regarding this notice. It is not for individual case status inquiries. Applicants seeking information about the status of their individual cases can check Case Status Online, available at the USCIS website at 
                        <E T="03">https://www.uscis.gov,</E>
                         or call the USCIS Contact Center at 800-375-5283 (TTY 800-767-1833).
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Comments</HD>
                <P>
                    You may access the information collection instrument with instructions or additional information by visiting the Federal eRulemaking Portal site at: 
                    <E T="03">https://www.regulations.gov</E>
                     and entering USCIS-2008-0028 in the search box. Comments must be submitted in English, or an English translation must be provided. All submissions will be posted, without change, to the Federal eRulemaking Portal at 
                    <E T="03">https://www.regulations.gov,</E>
                     and will include any personal information you provide. Therefore, submitting this information makes it public. You may wish to consider limiting the amount of personal information that you provide in any voluntary submission you make to DHS. DHS may withhold information provided in comments from public viewing that it determines may impact the privacy of an individual or is offensive. For additional information, please read the Privacy Act notice that is available via the link in the footer of 
                    <E T="03">https://www.regulations.gov.</E>
                </P>
                <P>Written comments and suggestions from the public and affected agencies should address one or more of the following four points:</P>
                <P>(1) 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;</P>
                <P>(2) 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;</P>
                <P>(3) Enhance the quality, utility, and clarity of the information to be collected; and</P>
                <P>
                    (4) 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 T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </P>
                <HD SOURCE="HD1">Overview of This Information Collection</HD>
                <P>
                    (1) 
                    <E T="03">Type of Information Collection:</E>
                     Extension, Without Change, of a Currently Approved Collection.
                </P>
                <P>
                    (3) 
                    <E T="03">Agency form number, if any, and the applicable component of the DHS sponsoring the collection:</E>
                     Form G-639; Freedom of Information/Privacy Act Request; USCIS.
                </P>
                <P>
                    (4) 
                    <E T="03">Affected public who will be asked or required to respond, as well as a brief abstract: Primary:</E>
                     Individuals or households. Form G-639 is used to request access to U.S. Citizenship and Immigration Services (USCIS) records under the Freedom of Information Act (FOIA) and the Privacy Act of 1974 (PA), if applicable. This form is also used to request amendment or correction of records under the PA, if applicable. USCIS created Form G-639 as a convenient and expeditious option that individuals can use in lieu of submitting written FOIA requests. Form G-639 can be submitted electronically using the online FOIA Immigration Records System (FIRST) or printed and submitted by mail.
                </P>
                <P>
                    (5) 
                    <E T="03">An estimate of the total number of respondents and the amount of time estimated for an average respondent to respond:</E>
                     The estimated total number of respondents for the information collection Form G-639 (paper) is 74,558 and the estimated hour burden per response is 0.67 hours. The estimated total number of respondents for the information collection Online FOIA Request is 365,872 and the estimated hour burden per response is 0.5 hours.
                </P>
                <P>
                    (6) 
                    <E T="03">An estimate of the total public burden (in hours) associated with the collection:</E>
                     The total estimated annual hour burden associated with this collection is 232,890 hours.
                </P>
                <P>
                    (7) 
                    <E T="03">An estimate of the total public burden (in cost) associated with the collection:</E>
                     The estimated total annual cost burden associated with this collection of information is $4,155,376.50.
                </P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Samantha L. Deshommes,</NAME>
                    <TITLE>Chief, Regulatory Coordination Division, Office of Policy and Strategy, U.S. Citizenship and Immigration Services, Department of Homeland Security.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14282 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9111-97-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</AGENCY>
                <DEPDOC>[Docket No. FR-7086-N-18]</DEPDOC>
                <SUBJECT>60-Day Notice of Proposed Information Collection: Personal Financial and Credit Statement; OMB Control No.: 2502-0001</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>HUD is seeking approval from the Office of Management and Budget (OMB) for the information collection described below. In accordance with the Paperwork Reduction Act, HUD is requesting comment from all interested parties on the proposed collection of information. The purpose of this notice is to allow for 60 days of public comment.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments Due Date:</E>
                         August 27, 2024.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Interested persons are invited to submit comments regarding this proposal.</P>
                    <P>
                        Written comments and recommendations for the proposed information collection can be sent within 60 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 60-day Review—Open for Public Comments” or by using the search function. Interested persons are also invited to submit comments regarding this proposal by name and/or OMB Control Number and should be sent to: Colette Pollard, Reports Management Officer, REE, Department of Housing and Urban Development, 451 7th Street SW, Room 8210, Washington, DC 20410-5000; telephone (202) 402-3400 (this is not a toll-free number) or email: 
                        <E T="03">PaperworkReductionActOffice@hud.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Colette Pollard, Reports Management Officer, REE, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; email Colette Pollard at 
                        <E T="03">Colette.Pollard@hud.gov</E>
                         or telephone 202-402-3400. 
                        <PRTPAGE P="54029"/>
                        This is not a toll-free number. HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech and communication disabilities. To learn more about how to make an accessible telephone call, please visit: 
                        <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E>
                    </P>
                    <P>Copies of available documents submitted to OMB may be obtained from Ms. Pollard.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This notice informs the public that HUD is seeking approval from OMB to reinstate the information collection described in Section A.</P>
                <HD SOURCE="HD1">A. Overview of Information Collection</HD>
                <P>
                    <E T="03">Title of Information Collection:</E>
                     Personal Financial and Credit Statement.
                </P>
                <P>
                    <E T="03">OMB Approval Number:</E>
                     2502-0001.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Reinstatement of previously approved collection for which approval has expired.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     HUD-92417.
                </P>
                <P>
                    <E T="03">Description of the need for the information and proposed use:</E>
                     On 7/31/22, this information collection expired. HUD is reinstating the collection to transfer the form HUD-92417 to another approved collection 2502-0029 and to discontinue 2502-0001.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     Individuals.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     1,824.
                </P>
                <GPOTABLE COLS="8" OPTS="L2,tp0,p7,7/8,i1" CDEF="s50,10C,11C,10C,10C,10C,10C,12C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Information collection</CHED>
                        <CHED H="1">Number of respondents</CHED>
                        <CHED H="1">Frequency of response</CHED>
                        <CHED H="1">Responses per annum</CHED>
                        <CHED H="1">
                            Burden hour per 
                            <LI>response</LI>
                        </CHED>
                        <CHED H="1">
                            Annual 
                            <LI>burden hours</LI>
                        </CHED>
                        <CHED H="1">
                            Hourly cost per 
                            <LI>response</LI>
                        </CHED>
                        <CHED H="1">Annual cost</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">HUD-92417</ENT>
                        <ENT>1,824</ENT>
                        <ENT>1</ENT>
                        <ENT>1,824</ENT>
                        <ENT>8</ENT>
                        <ENT>14,592</ENT>
                        <ENT>$32.83</ENT>
                        <ENT>$479,055.36</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">B. Solicitation of Public Comment</HD>
                <P>This notice is soliciting comments from members of the public and affected parties concerning the collection of information described in Section A on the following:</P>
                <P>(1) 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;</P>
                <P>(2) The accuracy of the agency's estimate of the burden of the proposed collection of information;</P>
                <P>(3) Ways to enhance the quality, utility, and clarity of the information to be collected; and</P>
                <P>
                    (4) Ways to minimize the burden of the collection of information on those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </P>
                <P>HUD encourages interested parties to submit comment in response to these questions.</P>
                <HD SOURCE="HD1">C. Authority</HD>
                <P>Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.</P>
                <SIG>
                    <NAME>Jeffrey D. Little,</NAME>
                    <TITLE>General Deputy Assistant Secretary, Office of Housing.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14163 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4210-67-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</AGENCY>
                <DEPDOC>[Docket No. FR-7090-N-06]</DEPDOC>
                <SUBJECT>60-Day Notice of Proposed Information Collection: Evaluation of the HUD-DOJ Pay for Success Permanent Supportive Housing Demonstration; OMB Control No.: 2528-0319</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Policy Development and Research, HUD.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>HUD is seeking approval from the Office of Management and Budget (OMB) for the information collection described below. In accordance with the Paperwork Reduction Act, HUD is requesting comment from all interested parties on the proposed collection of information. The purpose of this notice is to allow for 60 days of public comment.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments Due Date:</E>
                         August 27, 2024.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Interested persons are invited to submit comments regarding this proposal. Written comments and recommendations for the proposed information collection can be submitted within 60 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting, “Currently under 60-day Review—Open for Public Comments” or by using the search function. Interested persons are also invited to submit comments regarding this proposal by name and/or OMB Control Number and can be sent to: Anna Guido, Reports Management Officer, REE, Department of Housing and Urban Development, 451 7th Street SW, Room 8210, Washington, DC 20410-5000 or email at 
                        <E T="03">PaperworkReductionActOffice@hud.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Anna Guido, Reports Management Officer, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; email; 
                        <E T="03">Anna.P.Guido@hud.gov;</E>
                         telephone (202) 402-5535 (this is not a toll-free number). HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech or communication disabilities. To learn more about how to make an accessible telephone call, please visit 
                        <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E>
                    </P>
                    <P>Copies of available documents submitted to OMB may be obtained from Ms. Guido.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This notice informs the public that HUD is seeking approval from OMB for the information collection described in Section A.</P>
                <HD SOURCE="HD1">A. Overview of Information Collection</HD>
                <P>
                    <E T="03">Title of Information Collection:</E>
                     Evaluation of the HUD-DOJ Pay for Success Permanent Supportive Housing Demonstration.
                </P>
                <P>
                    <E T="03">OMB Approval Number:</E>
                     2528-0319.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Extension without change of currently approved collection.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     N/A.
                </P>
                <P>
                    <E T="03">Description of the need for the information and proposed use:</E>
                     The U.S. Departments of Housing and Urban Development (HUD) and Justice (DOJ) entered into an interagency collaboration that combines DOJ's mission to promote safer communities by focusing on the reentry population with HUD's mission to end chronic homelessness. This collaboration resulted in the HUD-DOJ Pay for Success Permanent Supportive Housing Demonstration with $8.68M awarded to seven communities to develop 
                    <PRTPAGE P="54030"/>
                    supportive housing for persons cycling between the jail or prison systems and the homeless service systems using pay for success (PFS) as a funding mechanism. HUD announced seven grantees from across the country in June 2016. As of August 2020, six grantee communities remain. The PFS Demonstration grant supports activities throughout the PFS lifecycle, including feasibility analysis, transaction structuring, and outcome evaluation and success payments, with each grantee receiving funds for different stages in the PFS lifecycle. Through the national evaluation, which is funded through an interagency agreement between HUD and DOJ and managed by HUD's Office of Policy Development and Research, HUD-DOJ seek to assess whether PFS is a viable model for scaling supportive housing to improve outcomes for a re-entry population. The main goal of the evaluation is to learn how the PFS model is implemented in diverse settings with different structures, populations, and community contexts. The Urban Institute has been conducting a multi-disciplinary, multi-method approach to “learn as we do” and meet the key objectives of the formative evaluation. To understand project implementation, the evaluation includes data collection on both the time that project partners dedicate to each PFS project as well as PFS partner perceptions and interactions and community-level changes that may benefit the target population. This information collection request is for an ongoing time survey and an annual partnership web survey. The time survey will be used to assess staff time spent on development of each PFS project throughout the different lifecycle phases and the partnership survey will be used to document partner perceptions and interactions and community-level changes that may benefit the target population.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     PFS grantee staff and other project stakeholders.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     The annual web-based partnership survey will have up to 65 respondents across all 4 remaining Demonstration sites. The quarterly web-based time survey will have up to 17 respondents across all sites.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     The response time for the annual web-based partnership survey is .25 hour. The response time for the quarterly web-based time survey is 1 hour.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     The annual web-based partnership survey will be administered once annually. The web-based time survey will be administered four times annually.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     The total annual burden for this information collection is 84.25 hrs.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Cost:</E>
                     The total annual cost for this information collection is $2,461.79.
                </P>
                <P>The typical key project partner role is either a management or support role. The estimate uses the average of the most recent (May 2022) Bureau of Labor Statistics, Occupational Employment Statistics median hourly wages for the labor categories Social and Community Services Manager (11-9151) and Community and Social Service Specialist, All Other (21-1099). To estimate cost burden to project partner respondents, we averaged the median hourly wage for the two labor categories; this produces an average of the occupations listed or $29.22.</P>
                <GPOTABLE COLS="5" OPTS="L2,tp0,i1" CDEF="s50,r100,15,15,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Respondent</CHED>
                        <CHED H="1">Occupation</CHED>
                        <CHED H="1">SOC code</CHED>
                        <CHED H="1">Median hourly wage rate</CHED>
                        <CHED H="1">
                            Average 
                            <LI>(median) </LI>
                            <LI>hourly </LI>
                            <LI>wage rate</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">HUD-DOJ PFS Key Project Partners</ENT>
                        <ENT>
                            (1) Social and Community Services Manager
                            <LI>(2) Community and Social Service Specialist, All Other</LI>
                        </ENT>
                        <ENT>
                            (1) 11-9151
                            <LI>(2) 21-1099</LI>
                        </ENT>
                        <ENT>
                            (1) $35.69
                            <LI>(2) $22.74</LI>
                        </ENT>
                        <ENT>$29.22</ENT>
                    </ROW>
                    <TNOTE>
                        Source: Occupational Employment Statistics, accessed online January 11, 2021, at 
                        <E T="03">http://www.bls.gov/oes/current/oes_stru.htm.</E>
                    </TNOTE>
                </GPOTABLE>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">Legal Authority:</E>
                     The data collection is conducted under title 12, United States Code, section 1701z and Section 3507 of the Paperwork Reduction Act of 1995, 44, U.S.C., Chapter 35.
                </P>
                <GPOTABLE COLS="8" OPTS="L2,tp0,p7,7/8,i1" CDEF="s75,10,10,10,10,10,10,10">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Information collection</CHED>
                        <CHED H="1">Number of respondents</CHED>
                        <CHED H="1">Frequency of response</CHED>
                        <CHED H="1">Responses per annum</CHED>
                        <CHED H="1">
                            Burden hour per 
                            <LI>response</LI>
                        </CHED>
                        <CHED H="1">
                            Annual 
                            <LI>burden hours</LI>
                        </CHED>
                        <CHED H="1">
                            Hourly cost per 
                            <LI>response</LI>
                        </CHED>
                        <CHED H="1">Annual cost</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">HUD-DOJ PFS Key Project Partners (Annual web-based partnership survey)</ENT>
                        <ENT>65</ENT>
                        <ENT>1</ENT>
                        <ENT>65</ENT>
                        <ENT>0.25</ENT>
                        <ENT>16.25</ENT>
                        <ENT>$29.22</ENT>
                        <ENT>$474.83</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="01">HUD-DOJ PFS Key Project Partners (Quarterly time survey)</ENT>
                        <ENT>17</ENT>
                        <ENT>4</ENT>
                        <ENT>68</ENT>
                        <ENT>1.0</ENT>
                        <ENT>68</ENT>
                        <ENT>29.22</ENT>
                        <ENT>1,986.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total</ENT>
                        <ENT>82</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT>84.25</ENT>
                        <ENT/>
                        <ENT>2,461.79</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">B. Solicitation of Public Comment</HD>
                <P>This notice is soliciting comments from members of the public and affected parties concerning the collection of information described in Section A on the following:</P>
                <P>(1) 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;</P>
                <P>(2) The accuracy of the agency's estimate of the burden of the proposed collection of information;</P>
                <P>(3) Ways to enhance the quality, utility, and clarity of the information to be collected, and</P>
                <P>
                    (4) Ways to minimize the burden of the collection of information on those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </P>
                <P>HUD encourages interested parties to submit comments in response to these questions.</P>
                <HD SOURCE="HD1">C. Authority</HD>
                <P>Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. 3507.</P>
                <SIG>
                    <NAME>Todd M. Richardson,</NAME>
                    <TITLE>General Deputy Assistant Secretary for Policy Development and Research.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14238 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4210-67-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="54031"/>
                <AGENCY TYPE="N">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Fish and Wildlife Service</SUBAGY>
                <DEPDOC>[Docket No. FWS-HQ-IA-2024-0113; FXIA16710900000-245-FF09A30000]</DEPDOC>
                <SUBJECT>Emergency Exemption: Issuance of Emergency Permit to Import Endangered Species</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Fish and Wildlife Service, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of issuance of permit.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        We, the U.S. Fish and Wildlife Service, have waived the 30-day public notice period and have issued an endangered species permit for import of up to 20 viable eggs salvaged from the nests of wild piping plover (
                        <E T="03">Charadrius melodus</E>
                        ), an endangered bird species. We issue this permit under the Endangered Species Act and Migratory Bird Treaty Act.
                    </P>
                </SUM>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Materials pertaining to the permit application are available by submitting a Freedom of Information Act (FOIA) request to the Service's FOIA office at 
                        <E T="03">https://www.doi.gov/foia/foia-request-form.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Brenda Tapia, by phone at 703-358-2104 or via email at 
                        <E T="03">DMAFR@fws.gov.</E>
                         Individuals in the United States who are deaf, blind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    We, the U.S. Fish and Wildlife Service (Service), have issued an emergency permit to conduct certain activities with the endangered piping plover (
                    <E T="03">Charadrius melodus</E>
                    ) in response to a permit application that we received under the authority of section 10(a)(1)(A) of the Endangered Species Act of 1973 (ESA; 16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    )
                </P>
                <P>We issued the requested permit subject to certain conditions set forth in the permit. For the application, we found that (1) the application was filed in good faith, (2) the granted permit would not operate to the disadvantage of the endangered species, and (3) the granted permit would be consistent with the purposes and policy set forth in section 2 of the ESA.</P>
                <GPOTABLE COLS="3" OPTS="L2,nj,p7,7/8,i1" CDEF="xs50,r100,xs56">
                    <TTITLE>Permit Issued Under Emergency Exemption</TTITLE>
                    <BOXHD>
                        <CHED H="1">Permit No.</CHED>
                        <CHED H="1">Applicant</CHED>
                        <CHED H="1">Permit issuance date</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">PER10966266</ENT>
                        <ENT>U.S. Fish and Wildlife Service, Michigan Field Office</ENT>
                        <ENT>June 10, 2024.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The Service's Michigan Field Office requested a permit to import up to 20 viable eggs salvaged from wild piping plover nests collected by the Canadian Wildlife Service and Birds Canada in Ontario, Canada, due to the nests being abandoned by the parents or the eggs being buried in sand or partially covered by water. The Service determined that an emergency affecting the viability of the piping plover eggs existed, and that no reasonable alternative was available to the applicant.</P>
                <P>On June 10, 2024, the Service issued permit no. PER10966266 to the U.S. Fish and Wildlife Service's Michigan Field Office, to import up to 20 viable eggs salvaged from wild piping plover nests for the purpose of enhancement of the survival of the species. The eggs were salvaged so that the Michigan Field Office could transfer them to a permitted captive-rearing facility in the United States for eventual release of the fledged birds into the wild.</P>
                <HD SOURCE="HD1">Authority</HD>
                <P>
                    We issue this notice under the authority of the Endangered Species Act of 1973, as amended (ESA; 16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ), and its implementing regulations.
                </P>
                <SIG>
                    <NAME>Brenda Tapia,</NAME>
                    <TITLE>Supervisory Program Analyst/Data Administrator, Branch of Permits, Division of Management Authority.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14206 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4333-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[245D0102DM, DS62600000, DLSN 00000.000000, DX62601]; OMB Control Number 1090-NEW]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; DOI Performance Progress Report (PPR)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Secretary, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection; request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Paperwork Reduction Act of 1995, we, the Office of the Secretary, Office of Grants Management are proposing a new information collection.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Interested persons are invited to submit comments on or before August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Send your comments on this information collection request (ICR) by mail to Cara Whitehead, Director, Office of Grants Management, Department of the Interior, 1849 C Street NW, Mail Stop 3023 MIB, Washington, DC 20240; email 
                        <E T="03">Cara_Whitehead@ios.doi.gov;</E>
                         telephone 202-208-3100. Please reference OMB Control Number 1090-NEW-PPR in the subject line of your comments.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        To request additional information about this ICR, contact Cara Whitehead, Director, Office of Grants Management, Department of the Interior, 1849 C Street NW, Mail Stop 3023 MIB, Washington, DC 20240; email 
                        <E T="03">Cara_Whitehead@ios.doi.gov;</E>
                         telephone 202-208-3100. Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    In accordance with the Paperwork Reduction Act of 1995 (PRA, 44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ) and 5 CFR 1320.8(d)(1), all information collections require approval under the PRA. We may not conduct or sponsor and you are not required to respond to a collection of information unless it displays a currently valid OMB control number.
                </P>
                <P>As part of our continuing effort to reduce paperwork and respondent burdens, we invite the public and other Federal agencies to comment on new, proposed, revised, and continuing collections of information. This helps us assess the impact of our information collection requirements and minimize the public's reporting burden. It also helps the public understand our information collection requirements and provide the requested data in the desired format.</P>
                <P>
                    We are especially interested in public comment addressing the following:
                    <PRTPAGE P="54032"/>
                </P>
                <P>(1) Whether or not the collection of information is necessary for the proper performance of the functions of the agency, including whether or not the information will have practical utility;</P>
                <P>(2) The accuracy of our estimate of the burden for this collection of information, including the validity of the methodology and assumptions used;</P>
                <P>(3) Ways to enhance the quality, utility, and clarity of the information to be collected; and</P>
                <P>
                    (4) How might the agency 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 T="03">e.g.,</E>
                     permitting electronic submission of response.
                </P>
                <P>Comments that you submit in response to this notice are a matter of public record. We will include or summarize each comment in our request to OMB to approve this ICR. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.</P>
                <HD SOURCE="HD1">Abstract</HD>
                <P>DOI's Grants Management Program is proposing the new collection of program performance data for DOI's discretionary grantees modeled on the existing form used by Health and Human Services, Administration for Children and Families (OMB #0970-0406, expiration January 31, 2026) form with minor changes. DOI revisions include collection of the Unique Entity Identifier (UEI) instead of the Data Universal Numbering System (DUNS), a rewording of the submission instructions to replace DUNS to the UEI, and revision of reporting due dates in compliance with the revisions of 2 CFR part 200. The form was created from the basic template of the OMB-approved reporting format of the Program Performance Report. DOI uses this data to ensure grantees are proceeding in a satisfactory manner in meeting the approved goals and objectives of the project and if funding should be continued for another budget period.</P>
                <P>OMB grants policy requires grantees to report on performance. Specific citations are contained in 2 CFR 200.329, “Monitoring and reporting program performance.”</P>
                <P>
                    <E T="03">Title of Collection:</E>
                     Department of the Interior Performance Progress Report (PPR).
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1090-NEW.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     None.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     New approved collection.
                </P>
                <P>
                    <E T="03">Respondents/Affected Public:</E>
                     All DOI discretionary grantees. State governments, Native American Tribal governments, Native American Tribal organizations, local governments, universities, and nonprofits with 501(c)(3) status with the IRS.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Respondents:</E>
                     14,000.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Responses:</E>
                     2.
                </P>
                <P>
                    <E T="03">Estimated Completion Time per Response:</E>
                     1 hour.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Burden Hours:</E>
                     28,000.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Mandatory based upon the post-award financial assistance reporting requirements identified in the notice of funding opportunity and award documents.
                </P>
                <P>
                    <E T="03">Frequency of Collection:</E>
                     Varies based upon on the requirements of the financial assistance program.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Non-hour Burden Cost:</E>
                     Not applicable.
                </P>
                <P>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.</P>
                <P>
                    The authority for this action is the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <SIG>
                    <NAME>Jeffrey Parrillo,</NAME>
                    <TITLE>Departmental Information Collection Clearance Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14294 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4334-63-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Bureau of Land Management</SUBAGY>
                <DEPDOC>[BLM_AK_FRN_MO4500178883; AA-10414.]</DEPDOC>
                <SUBJECT>Alaska Native Claims Selection</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Land Management, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of decision approving lands for conveyance.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Bureau of Land Management (BLM) hereby provides constructive notice that it will issue an appealable decision approving conveyance of the surface and subsurface estates in certain lands to Calista Corporation, an Alaska Native regional corporation, pursuant to the Alaska Native Claims Settlement Act of 1971 (ANCSA), as amended.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Any party claiming a property interest in the lands affected by the decision may appeal the decision in accordance with the requirements of 43 CFR part 4 within the time limits set out in the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may obtain a copy of the decision from the Bureau of Land Management, Alaska State Office, 222 West Seventh Avenue, #13, Anchorage, AK 99513-7504.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                         Heidi C. Wanner, Supervisory Land Law Examiner, BLM Alaska State Office, 907-271-3153 or 
                        <E T="03">hwanner@blm.gov.</E>
                         Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point of contact in the United States.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    As required by 43 CFR 2650.7(d), notice is hereby given that the BLM will issue an appealable decision to Calista Corporation. The decision approves conveyance of the surface and subsurface estates in certain lands pursuant to ANCSA (43 U.S.C. 1601, 
                    <E T="03">et seq.</E>
                    ), as amended.
                </P>
                <P>The lands are located in the vicinity of Stony River, Alaska, within T. 20 N., R. 37 W., Seward Meridian, Alaska, and containing 0.50 acres.</P>
                <P>The decision addresses public access easements, if any, to be reserved to the United States pursuant to sec. 17(b) of ANCSA (43 U.S.C. 1616(b)), in the lands approved for conveyance.</P>
                <P>The BLM will also publish notice of the decision once a week for four consecutive weeks in The Delta Discovery, Inc., newspaper.</P>
                <P>Any party claiming a property interest in the lands affected by the decision may appeal the decision in accordance with the requirements of 43 CFR part 4 within the following time limits:</P>
                <P>1. Unknown parties, parties unable to be located after reasonable efforts have been expended to locate, parties who fail or refuse to sign their return receipt, and parties who receive a copy of the decision by regular mail which is not certified, return receipt requested, shall have until July 29, 2024 to file an appeal.</P>
                <P>
                    2. Parties receiving service of the decision by certified mail shall have 30 
                    <PRTPAGE P="54033"/>
                    days from the date of receipt to file an appeal.
                </P>
                <P>Parties who do not file an appeal in accordance with the requirements of 43 CFR part 4 shall be deemed to have waived their rights. Notices of appeal transmitted by facsimile will not be accepted as timely filed.</P>
                <SIG>
                    <NAME>Heidi C. Wanner,</NAME>
                    <TITLE>Supervisory Land Law Examiner, Adjudication Section.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14230 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4331-10-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Bureau of Land Management</SUBAGY>
                <DEPDOC>[BLM_AK_FRN_MO4500178354; F-14916-A]</DEPDOC>
                <SUBJECT>Alaska Native Claims Selection</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Land Management, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of decision approving lands for conveyance.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Bureau of Land Management (BLM) hereby provides constructive notice that it will issue an appealable decision approving conveyance of the surface estate in certain lands to Oscarville Native Corporation for the Native village of Oscarville, pursuant to the Alaska Native Claims Settlement Act of 1971 (ANCSA). The subsurface estate in the same lands will be conveyed to Calista Corporation when the surface estate is conveyed to Oscarville Native Corporation.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Any party claiming a property interest in the lands affected by the decision may appeal the decision in accordance with the requirements of 43 CFR part 4 within the time limits set out in the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may obtain a copy of the decision from the Bureau of Land Management, Alaska State Office, 222 West Seventh Avenue, #13, Anchorage, AK 99513-7504.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Matthew Colburn, Land Law Examiner, BLM Alaska State Office, 907-271-5067, or 
                        <E T="03">mcolburn@blm.gov.</E>
                         Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point of contact in the United States.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    As required by 43 CFR 2650.7(d), notice is hereby given that the BLM will issue an appealable decision to Oscarville Native Corporation. The decision approves conveyance of the surface estate in certain lands pursuant to ANCSA (43 U.S.C. 1601, 
                    <E T="03">et seq.</E>
                    ), as amended. As provided by ANCSA, the subsurface estate in the same lands will be conveyed to Calista Corporation when the surface estate is conveyed to Oscarville Native Corporation. The lands are located in the vicinity of Oscarville, Alaska, and are described as:
                </P>
                <EXTRACT>
                    <HD SOURCE="HD1">Seward Meridian, Alaska</HD>
                    <FP SOURCE="FP-2">T. 7 N., R. 69 W.,</FP>
                    <FP SOURCE="FP1-2">Secs. 10 and 15.</FP>
                    <P>Containing 696.23 acres.</P>
                </EXTRACT>
                <P>The decision addresses public access easements, if any, to be reserved to the United States pursuant to sec. 17(b) of ANCSA (43 U.S.C. 1616(b)), in the lands described above.</P>
                <P>The BLM will also publish notice of the decision once a week for four consecutive weeks in the The Delta Discovery newspaper.</P>
                <P>Any party claiming a property interest in the lands affected by the decision may appeal the decision in accordance with the requirements of 43 CFR part 4 within the following time limits:</P>
                <P>1. Unknown parties, parties unable to be located after reasonable efforts have been expended to locate, parties who fail or refuse to sign their return receipt, and parties who receive a copy of the decision by regular mail which is not certified, return receipt requested, shall have until July 29, 2024 to file an appeal.</P>
                <P>2. Parties receiving service of the decision by certified mail shall have 30 days from the date of receipt to file an appeal.</P>
                <P>Parties who do not file an appeal in accordance with the requirements of 43 CFR part 4 shall be deemed to have waived their rights. Notices of appeal transmitted by facsimile will not be accepted as timely filed.</P>
                <SIG>
                    <NAME>Eileen M. Ford,</NAME>
                    <TITLE>Chief, Branch of Adjudication.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14219 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4331-10-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Bureau of Land Management</SUBAGY>
                <DEPDOC>[BLM_NV_FRN_MO#4500176314]</DEPDOC>
                <SUBJECT>Notice of Intent To Amend a Resource Management Plan and Prepare an Associated Environmental Assessment; Notice of Realty Action: Proposed Sale of Public Land in Nye County, Nevada</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Land Management, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of intent; notice of realty action.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In compliance with the National Environmental Policy Act of 1969, as amended (NEPA), and the Federal Land Policy and Management Act of 1976, as amended (FLPMA), the Bureau of Land Management (BLM) Nevada State Director intends to prepare a Resource Management Plan (RMP) Amendment with an associated Environmental Assessment (EA) for the non-competitive direct sale of 248.74 acres of public land in rural east-central Nye County, Nevada to Foreland Refining Corporation (Foreland) (N-100365/NVNV105851725). The sale would be for no less than the appraised fair market value. The sale would be subject to the applicable provisions of section 203 of FLPMA and the BLM land sale regulations. This notice announces the beginning of the scoping period to solicit public comments and identify issues, provides the planning criteria for public review, and announces a comment period on the proposed realty action offering the sale of public land.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Interested parties may submit written comments concerning the proposed land sale, scope of the analysis, potential alternatives, and identification of relevant information and studies by August 12, 2024. To afford the BLM the opportunity to consider issues raised by commenters in the Draft RMP Amendment and EA, please ensure your comments are received prior to the close of the 45-day scoping period or 15 days after the last public meeting, whichever is later.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit written comments concerning the realty action and on issues and planning criteria related to the proposed RMP Amendment and non-competitive direct sale of public land in Nye County, Nevada, by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Website: https://eplanning.blm.gov/eplanning-ui/project/2024259/510.</E>
                    </P>
                    <P>
                        • 
                        <E T="03">Email: egilseth@blm.gov.</E>
                        <PRTPAGE P="54034"/>
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         775-482-7810.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         BLM, Tonopah Field Office, P.O. Box 911 (1553 South Main Street), Tonopah, Nevada 89049.
                    </P>
                    <P>
                        Documents pertinent to this proposal may be examined online at 
                        <E T="03">https://eplanning.blm.gov/eplanning-ui/project/2024259/510</E>
                         and at the Tonopah Field Office.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Frederick Marcell, Lead Realty Specialist, Nevada State Office; telephone 202 912-7339; email at 
                        <E T="03">fmarcell@blm.gov;</E>
                         or Perry Wickham, Field Manager, telephone 775-482-7801; Tonopah Field Office, P.O. Box 911 (1553 South Main Street), Tonopah, Nevada 89049; email 
                        <E T="03">pwickham@blm.gov.</E>
                         Contact Mr. Wickham to have your name added to our mailing list. Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This document provides notice that the BLM Nevada State Director proposes to segregate the identified public land and prepare an RMP Amendment with an associated EA for the non-competitive direct sale of public land in Nye County, Nevada, and announces the beginning of the scoping process to seek public input on issues and planning criteria. The RMP Amendment would change the existing 1997 Tonopah Field Office Record of Decision and Approved RMP. The RMP Amendment is being considered to evaluate whether the subject parcel of public land meets the disposal criteria described in section 203 of FLPMA.</P>
                <P>Foreland holds a right-of-way grant (N-41035/NVNV105896178) on the northwestern 40-acre portion of the proposed sale parcel, which contains the Eagle Springs Refinery. The purpose of the sale would be to protect existing Eagle Springs Refinery improvements consisting of fencing, underground phone lines, roads, multiple buildings, an on-site water well, propane tank, and septic system, and the refinery's oil delivery/distribution systems for refining operations, and to allow for future expansion of the refinery. The sale would be subject to the applicable provisions of Section 203 of FLPMA and the BLM land sale regulations. The subject parcel was not previously identified for disposal in the RMP; therefore, the BLM must amend the RMP for the proposed sale to proceed.</P>
                <P>The BLM will examine the following described public land for disposal suitability:</P>
                <EXTRACT>
                    <HD SOURCE="HD1">Mount Diablo Meridian, Nevada,</HD>
                    <FP SOURCE="FP-2">T. 9 N., R. 56 E.,</FP>
                    <FP SOURCE="FP1-2">
                        Sec. 24, S
                        <FR>1/2</FR>
                        NE
                        <FR>1/4</FR>
                        SE
                        <FR>1/4</FR>
                         and SE
                        <FR>1/4</FR>
                        SE
                        <FR>1/4</FR>
                        ;
                    </FP>
                    <FP SOURCE="FP1-2">
                        Sec. 25, E
                        <FR>1/2</FR>
                        NE
                        <FR>1/4</FR>
                        .
                    </FP>
                    <FP SOURCE="FP-2">T. 9 N., R. 57 E.,</FP>
                    <FP SOURCE="FP1-2">Sec. 19, lot 4;</FP>
                    <FP SOURCE="FP1-2">Sec. 30, lots 1 and 2.</FP>
                    <P>The area described contains 248.74 acres, according to the official plats of the surveys on file with the BLM.</P>
                </EXTRACT>
                <P>
                    Upon publication of this Notice in the 
                    <E T="04">Federal Register</E>
                    , the public land described above will be segregated from all forms of appropriation under the public land laws, including the mining laws, except for the sale provisions of FLPMA. The segregation will terminate upon (1) issuance of a conveyance document; (2) publication in the 
                    <E T="04">Federal Register</E>
                     terminating the segregation; or (3) two years from publication of this notice, unless extended by the BLM Nevada State Director in accordance with 43 CFR 2711.1-2(d).
                </P>
                <P>In addition, upon publication of this notice and until completion of this sale, the BLM will no longer accept land-use applications affecting the identified public land, except applications to amend previously filed right-of-way applications or existing authorizations to modify grant terms in accordance with 43 CFR 2807.15 and 43 CFR 2886.15.</P>
                <P>The BLM will analyze the parcel and develop an EA to evaluate the environmental effects of the proposed RMP Amendment and the sale criteria under FLPMA Section 203(a)(3) and 43 CFR 2710.0-3(a)(3) to ensure the disposal of the tract will serve important public objectives, including for the conveyance out of Federal ownership of a parcel of public land that, because of its location or other characteristics, is difficult and uneconomic to manage as part of the public lands and is not suitable for management by another Federal department or agency. After the BLM has analyzed public scoping comments and prepared the analysis, the EA will be available for a 30-day comment period. The parcel being considered for direct sale is not required for any other Federal purpose. Regulations contained in 43 CFR 2710.0-6(c)(3)(iii) and 2711.3-3(a)(3) make allowances for direct sales where necessary to protect existing equities in the public land and where there is a need to recognize an authorized use such as an existing business that could suffer a substantial economic loss if the tract were purchased by other than the authorized user. The BLM will consider selling this parcel if it is determined that the public interest would best be served by selling the BLM-administered land for the fair market value and ensure the Federal Government receives fair compensation for the sale of the parcel.</P>
                <P>The subject parcel is located on both sides of United States Highway 6, which allows access to the area from either Tonopah or Ely, Nevada. The BLM has determined the parcel is not an access point for recreation in accordance with Secretary's Order 3373, Evaluating Public Access in Bureau of Land Management Public Disposal and Exchanges. Disposal of this parcel will have no anticipated impacts on recreational access to adjacent parcels of publicly accessible lands.</P>
                <P>The conveyance document, if issued, will contain the following reservations, terms, and conditions:</P>
                <P>(1) The reservation of a right-of way thereon for ditches or canals constructed by the authority of the United States, Act of August 30, 1890 (43 U.S.C. 945).</P>
                <P>(2) The reservation of all the mineral deposits in the land so patented pursuant to the Act of October 21, 1976 (43 U.S.C. 1719), including, without limitation, substances subject to disposition under the general mining laws, the general mineral leasing laws, the Materials Act, and the Geothermal Steam Act, and to it, its permittees, licensees, lessees, and mining claimants, the right to prospect for, mine, and remove the minerals owned by the United States under applicable law and such regulations as the Secretary of the Interior may prescribe. This reservation includes necessary access and exit rights and the right to conduct all necessary and incidental activities including, without limitation, all drilling, underground, open pit or surface mining operations, storage, and transportation facilities deemed reasonably necessary.</P>
                <P>Unless otherwise provided by separate agreement with the surface owner, mining claimants, permittees, licensees, and lessees of the United States shall reclaim disturbed areas to the extent prescribed by regulations issued by the Secretary of the Interior.</P>
                <P>
                    All causes of action brought to enforce the rights of the surface owner under the regulations above referred to shall be instituted against mining claimants, permittees, licensees, and lessees of the United States, and the United States shall not be liable for the acts or 
                    <PRTPAGE P="54035"/>
                    omissions of its mining claimants, permittees, licensees, and lessees.
                </P>
                <P>(3) The conveyance document would be subject to all valid existing rights.</P>
                <P>(4) The parcel is subject to reservations for roads and public utilities.</P>
                <P>(5) An appropriate indemnification clause protecting the United States from claims arising out of the patentee's use, occupancy, or occupation on the patented lands.</P>
                <P>(6) Additional terms and conditions that the authorized officer deems appropriate.</P>
                <P>
                    The BLM will publish this notice once a week for three consecutive weeks in the Tonopah Times-Bonanza &amp; Goldfield News. Comments will be accepted as discussed in the 
                    <E T="02">ADDRESSES</E>
                     section above.
                </P>
                <P>Any adverse comments regarding the sale will be reviewed by the BLM Nevada State Director or other authorized official of the Department of the Interior, who may sustain, vacate, or modify this realty action in response to such comments. In the absence of adverse comments, this realty action will become the final determination of the Department of the Interior.</P>
                <P>The planning area is in Nye County, Nevada and encompasses approximately 248.74 acres of public land. The scope of this land use planning process does not include addressing the evaluation or designation of areas of critical environmental concern (ACECs), and the BLM is not considering ACEC nominations as part of this process.</P>
                <HD SOURCE="HD1">Purpose and Need</HD>
                <P>The purpose of the Federal action is to consider an RMP Amendment to make available by direct sale BLM-administered public lands that are not currently identified for disposal in the Tonopah RMP, as well as to respond to Foreland's request for a FLPMA direct land sale. The need for the action is established by BLM's responsibility under section 203 of FLPMA and 43 CFR 2711.1-1(c) to respond to a request for a land sale, and to ensure compliance with the Tonopah RMP Management Decisions.</P>
                <HD SOURCE="HD1">Preliminary Alternatives</HD>
                <P>There are currently no alternatives other than the no action alternative. The BLM welcomes comments on all preliminary alternatives as well as suggestions for additional alternatives.</P>
                <HD SOURCE="HD1">Planning Criteria</HD>
                <P>
                    The planning criteria guides the planning effort and lays the groundwork for effects analysis by identifying the preliminary issues and their analytical frameworks. Preliminary issues for the planning area have been identified by BLM personnel and from early engagement conducted for this planning effort with Federal, Tribal, State, and local agencies, and other stakeholders. The planning criteria are available for public review and comment at the BLM National NEPA Register (see 
                    <E T="02">ADDRESSES</E>
                    ).
                </P>
                <HD SOURCE="HD1">Public Scoping Process</HD>
                <P>This notice of intent initiates the scoping period and public review of the planning criteria, which guide the development and analysis of the RMP Amendment and EA.</P>
                <P>The BLM does not intend to hold any public meetings, in-person or virtual, during the public scoping period. Should the BLM later determine to hold public meetings, the specific date(s) and location(s) of any meeting will be announced at least 15 days in advance through the local media, newspapers, and the project's web page on the BLM National NEPA Register.</P>
                <HD SOURCE="HD1">Sale Notifications</HD>
                <P>The notification of the proposed RMP Amendment and EA and, if applicable, signed finding of no significant impact (FONSI) would begin a 30-day protest period subject to BLM Manual Section 2711.1 step 4(d) on the land-sale decision. The BLM Nevada State Director will review all protests and may sustain, vacate, or modify the RMP Amendment and land sale, in whole or in part. In the absence of any protests, the BLM may select the approved RMP Amendment alternative and prepare a decision record which would document the final determination of the Department of the Interior for the land sale.</P>
                <P>Any other subsequent notices related to the RMP Amendment and land sale may also be published in the local newspaper.</P>
                <HD SOURCE="HD1">Interdisciplinary Team</HD>
                <P>The BLM will use an interdisciplinary approach to develop the plan to consider the variety of resource issues and concerns identified. Specialists with expertise in the following disciplines will be involved in this planning effort: outdoor recreation, archaeology, lands and realty, sociology, cultural resources, paleontological resources, Native American coordination and consultation, environmental justice, social and economic values, recreational resources, visual resources, wilderness, geology, minerals, wastes—hazardous or solid, wildlife, threatened and endangered species, special status species, migratory birds, noise, wild horses and burros, water quality/quantity, wetlands and/or riparian zones, wild and scenic rivers, floodplains, grazing management, noxious weeds and invasive non-native species, human health and safety, soils, vegetation, forestry, air quality, and land use authorization.</P>
                <HD SOURCE="HD1">Additional Information</HD>
                <P>The BLM will identify, analyze, and consider mitigation to address the reasonably foreseeable impacts to resources from the proposed plan amendment and all analyzed reasonable alternatives and, in accordance with 40 CFR 1502.14(e), include appropriate mitigation measures not already included in the proposed plan amendment or alternatives. Mitigation may include avoidance, minimization, rectification, reduction or elimination over time, and compensation; and it may be considered at multiple scales, including the landscape scale.</P>
                <P>The BLM will utilize and coordinate the NEPA and land use planning processes for this planning effort to help support compliance with applicable procedural requirements under the Endangered Species Act (16 U.S.C. 1536) and Section 106 of the National Historic Preservation Act (54 U.S.C. 306108) as provided in 36 CFR 800.2(d)(3), including public involvement requirements of Section 106. The information about historic and cultural resources and threatened and endangered species within the area potentially affected by the proposed plan will assist the BLM in identifying and evaluating impacts to such resources.</P>
                <P>The BLM will consult with local Tribes on a government-to-government basis in accordance with Executive Order 13175, BLM Manual 1780, and other Departmental policies. Tribal concerns, including impacts on Indian trust assets and potential impacts to cultural resources, will be given due consideration. Federal, State, and local agencies, along with Indian Tribal Nations and stakeholders that may be interested in or affected by the proposed sale of public land in Nye County, Nevada and the proposed RMP Amendment, and accompanying Record of Decision that the BLM is evaluating, are invited to participate in the scoping process and, if eligible, may request or be requested by the BLM to participate in the development of the environmental analysis as a cooperating agency.</P>
                <P>
                    Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that 
                    <PRTPAGE P="54036"/>
                    your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.
                </P>
                <EXTRACT>
                    <FP>(Authority: 40 CFR 1501.9, 43 CFR 1610.2, and 43 CFR 2710)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Jon K. Raby,</NAME>
                    <TITLE>State Director.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14176 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4331-21-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>National Park Service</SUBAGY>
                <DEPDOC>[NPS-SERO-NCPTT-38001; PPWOCRADTI, PCU00PT14.GT0000]</DEPDOC>
                <SUBJECT>Preservation Technology and Training Board Notice of Public Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Park Service, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Meeting notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Federal Advisory Committee Act of 1972, as amended, the National Park Service (NPS) is hereby giving notice that the Preservation Technology and Training Board (Board) of the National Center for Preservation Technology and Training (NCPTT) will meet as indicated below.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The in-person meeting will take place from 9:00 a.m. to 5:00 p.m. (Central) or until business is completed on Wednesday, July 17, 2024, and from 9:00 a.m. to 12:00 p.m. (Central) on Thursday, July 18, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The Board will meet at The University of Texas at San Antonio downtown campus, 501 W Cesar Chavez Boulevard, Frio Street Building, San Antonio, Texas 78207.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Anyone interested in attending should contact Kirk A. Cordell, Executive Director, National Center for Preservation Technology and Training, 645 University Parkway, Natchitoches, Louisiana 71457, by telephone (318) 356-7444, or by email 
                        <E T="03">kirk_cordell@nps.gov.</E>
                         Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Board was established by Congress to provide leadership, policy advice, and professional oversight to the NCPTT in compliance with section 404 of the National Historic Preservation Act of 1966, as amended (54 U.S.C. 305303). All meetings are open to the public and will have time allocated for public comment.</P>
                <P>
                    <E T="03">Purpose of the Meeting:</E>
                     The Board meeting will consist of the following proposed agenda items:
                </P>
                <FP SOURCE="FP-2">1. Review and Comment on NCPTT FY 2023 Accomplishments, and Operational Priorities for FY 2024</FP>
                <FP SOURCE="FP-2">2. FY 2023 and FY 2024 NCPTT Budget and Initiatives</FP>
                <FP SOURCE="FP-2">3. Research Activities</FP>
                <FP SOURCE="FP-2">4. Training Activities</FP>
                <FP SOURCE="FP-2">5. Public Comments</FP>
                <FP SOURCE="FP-2">6. Adjournment</FP>
                <P>
                    The final agenda will be posted on the Board's website at 
                    <E T="03">https://www.nps.gov/subjects/ncptt/ptt-board.htm.</E>
                     Interested persons may present, either orally or through written comments, information for the Board to consider during the public meeting. Written comments will be accepted prior to, during, or after the meeting. Members of the public may submit written comments by mailing them to the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section.
                </P>
                <P>Due to time constraints during the meeting, the Board is not able to read written public comments submitted into the record. Individuals or groups requesting to make oral comments at the public Board meeting will be limited to no more than three minutes per speaker. All comments will be made part of the public record and will be electronically distributed to all Board members. Detailed minutes of the meeting will be available for public inspection within 90 days of the meeting.</P>
                <P>
                    <E T="03">Requests for Accommodations:</E>
                     The meeting is open to the public. Please make requests in advance for sign language interpreter services, assistive listening devices, language translation services, or other reasonable accommodations. We ask that you contact the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section of this notice at least seven (7) business days prior to the meeting to give the Department of the Interior sufficient time to process your request. All reasonable accommodation requests are managed on a case-by-case basis.
                </P>
                <P>
                    <E T="03">Public Disclosure of Comments:</E>
                     Before including your address, phone number, email address, or other personal identifying information in your written comments, you should be aware that your entire comment including your personal identifying information will be publicly available. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.
                </P>
                <P>
                    <E T="03">Authority</E>
                    : 5 U.S.C. ch. 10.
                </P>
                <SIG>
                    <NAME>Alma Ripps,</NAME>
                    <TITLE>Chief, Office of Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14221 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4312-52-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>National Park Service</SUBAGY>
                <DEPDOC>[NPS-ACR-NPS0035530; 5038 PPSESEROR4 PX.P0318045B.00.1; OMB Control Number 1024-NEW]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; National Park Service Application for the Lower Mississippi Delta Initiative</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Park Service, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection; request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Paperwork Reduction Act of 1995 we, the National Park Service (NPS), are proposing a new information collection.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Interested persons are invited to submit comments on or before August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Please provide a copy of your comments to the NPS Information Collection Clearance Officer (ADIR-ICCO), 13461 Sunrise Valley Drive, (MS-244) Herndon, VA 20171 (mail); or to 
                        <E T="03">phadrea_ponds@nps.gov</E>
                         (email). Please reference OMB Control Number 1024-NEW (LMDI) in the subject line of your comments.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        To request additional information about this ICR, contact Cynthia Walton, Branch Manager, Archeological and Historic Preservation Partnerships to 
                        <E T="03">cynthia_walton@nps.gov</E>
                         (email) or at 404-354-6072 (telephone). Please reference OMB Control Number 1024-NEW (LMDI) in the subject line of your comments. Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    In accordance with the Paperwork Reduction Act of 1995 (PRA, 44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ) and 5 CFR 1320.8(d)(1), we provide the general public and other Federal agencies with an opportunity to comment on new, proposed, revised, 
                    <PRTPAGE P="54037"/>
                    and continuing collections of information. This helps us assess the impact of our information collection requirements and minimize the public's reporting burden. It also helps the public understand our information collection requirements and provide the requested data in the desired format.
                </P>
                <P>We are soliciting comments on the proposed ICR that is described below. We are especially interested in public comment addressing the following issues: (1) is the collection necessary for the proper functions of the NPS; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the NPS enhance the quality, utility, and clarity of the information to be collected; and (5) how might the NPS minimize the burden of this collection on the respondents, including through the use of information technology.</P>
                <P>Comments that you submit in response to this notice are a matter of public record. We will include or summarize each comment in our request to OMB to approve this ICR. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.</P>
                <P>
                    <E T="03">Abstract:</E>
                     The Lower Mississippi Delta Initiatives (LMDI) authorizes the Department of the Interior to establish within the National Park Service (NPS) a program to award grants to qualified tribal, governmental, and non-governmental entities and individuals to assist the Secretary in the preservation of regional culture and history, and the enhancement of educational and other recreational opportunities for delta residents. The Secretary is further authorized to award grants and provide other types of technical and financial assistance to the aforementioned entities and individuals to conserve and protect historic and archeological sites and structures in the Delta Region.
                </P>
                <P>
                    As part of this effort, sites, facilities, programs, or properties applying for inclusion in the Network we are requesting OMB to approve the following collections: 10-2020 LMDI 
                    <E T="03">Local Heritage Grants Application,</E>
                     and 10-2020A 
                    <E T="03">LMDI Budget and Funding Form.</E>
                     Both will be used by the NPS and Jefferson National Parks Association (JNPA) to determine eligibility. Grant recipients will be required to submit a 
                    <E T="03">Midway and Annual Report.</E>
                </P>
                <P>
                    <E T="03">Title of Collection:</E>
                     Application for the National Park Service Lower Mississippi Delta Initiative (LMDI).
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1024-NEW.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     10-2020 
                    <E T="03">LMDI Local Heritage Grants Application,</E>
                     10-2020A 
                    <E T="03">LMDI Budget and Funding Form,</E>
                     Midway and Final Reports.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     New.
                </P>
                <P>
                    <E T="03">Respondents/Affected Public:</E>
                     State, Local, or Tribal Government and Not-for-profit institutes.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Respondents:</E>
                     10.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Responses:</E>
                     40.
                </P>
                <P>
                    <E T="03">Estimated Completion Time per Response:</E>
                     8 hours per application, form, or report.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Burden Hours:</E>
                     320 hours.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">Frequency of Collection:</E>
                     One time per respondent.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Nonhour Burden Cost:</E>
                     None.
                </P>
                <P>
                    An agency may not conduct or sponsor nor is a person required to respond to a collection of information unless it displays a currently valid OMB control number. The authority for this action is the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <SIG>
                    <NAME>Phadrea Ponds,</NAME>
                    <TITLE>Information Collection Clearance Officer, National Park Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14160 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4312-52-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>National Park Service</SUBAGY>
                <DEPDOC>[NPS-WASO-NRSS-BITH-NPS0037523; 7145; PPMVSIE1Z.I00000; FPDEFAULT; OMB Control Number 1024-NEW]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Big Thicket National Preserve Hunting and Trapping Harvest Cards</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Park Service, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection; request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Paperwork Reduction Act of 1995 we, the National Park Service (NPS), are proposing a new information collection.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Interested persons are invited to submit comments on or before August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments on this information collection request (ICR) can be sent to the NPS Information Collection Clearance Officer (ADIR-ICCO), 13461 Sunrise Valley Drive, (MS 244) Herndon, VA 20171 (mail); or 
                        <E T="03">phadrea_ponds@nps.gov</E>
                         (email). Please reference Office of Management and Budget (OMB) Control Number “1024-NEW (BITH Hunting Report)” in the subject line of your comments.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        To request additional information about this ICR, contact Megan Urban, Chief of Interpretation and Education, at 
                        <E T="03">megan_urban@nps.gov</E>
                         (email) or 409-554-9016 (telephone). Please reference OMB Control Number “1024-NEW (BITH Hunting Report)” in the subject line of your comments. Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point of contact in the United States.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    In accordance with the Paperwork Reduction Act of 1995 (PRA, 44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ) and 5 CFR 1320.8(d)(1), we provide the general public and other Federal agencies with an opportunity to comment on new, proposed, revised, and continuing collections of information. This helps us assess the impact of our information collection requirements and minimize the public's reporting burden. It also helps the public understand our information collection requirements and provide the requested data in the desired format.
                </P>
                <P>We are soliciting comments on the proposed ICR that is described below. We are especially interested in public comment addressing the following issues: (1) is the collection necessary for the proper functions of the NPS; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the NPS enhance the quality, utility, and clarity of the information to be collected; and (5) how might the NPS minimize the burden of this collection on the respondents, including through the use of information technology.</P>
                <P>
                    Comments that you submit in response to this notice are a matter of public record. We will include or summarize each comment in our request to OMB to approve this ICR. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may 
                    <PRTPAGE P="54038"/>
                    be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     Big Thicket National Preserve (BITH) enabling legislation states that “The Secretary shall permit hunting, fishing, and trapping on lands and waters under their jurisdiction within the preserve following the applicable laws of the United States and the State of Texas.” Special Use Regulations for hunting and trapping in the Preserve was published in the 
                    <E T="04">Federal Register</E>
                     (48 FR 30296) on June 30, 1983, effective October 3, 1983. These regulations, found at 36 CFR 7.85, provide for proper use, management, government, public safety, and visitor enjoyment of hunting and trapping on Preserve lands. One of the goals in the draft Hunting and Trapping plan for Big Thicket is to “
                    <E T="03">Provide the Preserve with a mechanism for tracking population trends using harvest records and to establish trigger points when additional survey methods should be used to document major shifts of game species populations.</E>
                    ” This information will be collected using harvest cards.
                </P>
                <P>
                    <E T="03">Title of Collection:</E>
                     Big Thicket National Preserve Hunting and Trapping Harvest Cards.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1024-NEW.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     None.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     New.
                </P>
                <P>
                    <E T="03">Respondents/Affected Public:</E>
                     Individuals and Households.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Responses:</E>
                     18,456.
                </P>
                <P>
                    <E T="03">Estimated Completion Time per Response:</E>
                     5 mins.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Burden Hours:</E>
                     1,538 hrs.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Required to obtain or retain benefits.
                </P>
                <P>
                    <E T="03">Frequency of Collection:</E>
                     One-time.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Nonhour Burden Cost:</E>
                     None.
                </P>
                <P>An agency may not conduct or sponsor nor is a person required to respond to a collection of information unless it displays a currently valid OMB control number.</P>
                <P>
                    The authority for this action is the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <SIG>
                    <NAME>Phadrea Ponds,</NAME>
                    <TITLE>Information Collection Clearance Officer, National Park Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14161 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4312-52-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">INTERNATIONAL TRADE COMMISSION</AGENCY>
                <DEPDOC>[Investigation No. 337-TA-1118 (Remand)]</DEPDOC>
                <SUBJECT>Certain Movable Barrier Operator Systems and Components Thereof; Notice of a Commission Determination To Review a Remand Initial Determination on Second Remand Order; Request for Written Submissions on Remedy, the Public Interest, and Bond</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>International Trade Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Notice is hereby given that the U.S. International Trade Commission (the “Commission”) has determined to review a Remand Initial Determination on Second Remand Order (“Second RID”) finding that complainant The Chamberlain Group, Inc. (“Chamberlain”) has satisfied the economic prong of the domestic industry requirement with respect to U.S. Patent No. 8,587,404 (“the '404 patent”). The Commission requests written submissions from the parties, interested government agencies, and other interested persons on the issues of remedy, the public interest, and bond, under the schedule set forth below.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Carl P. Bretscher, Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436, telephone (202) 205-2382. Copies of non-confidential documents filed in connection with this investigation may be viewed on the Commission's electronic docket system (“EDIS”) at 
                        <E T="03">https://edis.usitc.gov.</E>
                         For help accessing EDIS, please email 
                        <E T="03">EDIS3Help@usitc.gov.</E>
                         General information concerning the Commission may also be obtained by accessing its internet server at 
                        <E T="03">https://www.usitc.gov.</E>
                         Hearing-impaired persons are advised that information on this matter can be obtained by contacting the Commission's TDD terminal, telephone (202) 205-1810.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The Commission instituted this investigation on June 11, 2018, based on a complaint, as supplemented, filed by Chamberlain of Oak Brook, Illinois. 83 FR 27020-21 (June 11, 2018). The complaint alleges a violation of section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337 (“section 337”) by way of importing, selling for importation, or selling in the United States after importation certain movable barrier operator systems that allegedly infringe one or more of the asserted claims of the '404 patent, U.S. Patent Nos. 7,755,223 (“the '223 patent”), and 6,741,052 (“the '052 patent”). 
                    <E T="03">Id.</E>
                     The Commission's notice of investigation named Nortek Security &amp; Control, LLC of Carlsbad, California (presently doing business as Nice North America LLC); Nortek, Inc. of Providence, Rhode Island; and GTO Access Systems, LLC of Tallahassee, Florida (collectively, “Nortek”) as respondents. 
                    <E T="03">Id.</E>
                     The complaint further alleged the existence of a domestic industry. The Office of Unfair Import Investigations was not named as a party to this investigation. 
                    <E T="03">See id.</E>
                </P>
                <P>
                    On November 25, 2019, the presiding administrative law judge (“ALJ”) issued two initial determinations (“IDs”). First, the ALJ issued Order No. 38, granting Chamberlain's motion for summary determination that it satisfied the economic prong of the domestic industry requirement (“DI economic prong”). Order No. 38 (Nov. 25, 2019). Second, the ALJ issued a final ID (“FID”) on violation, as well as a recommended determination (“RD”) on remedy and bond. The FID finds no violation of section 337 because: (i) Nortek did not infringe claim 11 of the '404 patent; (ii) Nortek did not infringe the '223 patent and Chamberlain did not satisfy the technical prong of the domestic industry requirement (“DI technical prong”) for that patent; and (iii) asserted claim 1 of the '052 patent is invalid as obvious. FID at 1, 286-87. The RD recommends issuing a limited exclusion order (“LEO”) and cease-and-desist orders (“CDO”) against Nortek and setting the bond at 100 percent during the period of Presidential review, if the Commission finds that Nortek violated section 337. 
                    <E T="03">Id.</E>
                     at 280, 282, 286.
                </P>
                <P>
                    The parties did not file any submissions pursuant to Commission Rule 210.50(a)(4), 19 CFR 210.50(a)(4). The Commission also received no submissions in response to its notice soliciting comments from the public on impacts on the public interest should the recommended relief be granted. 84 FR 70998-999 (Dec. 26, 2019). On April 22, 2020, the Commission determined to review and, on review, to adopt the FID's no-violation finding for the '404 patent, which was based on a narrow construction of “movable barrier operator” that excluded the wall station from its scope. Comm'n Notice at 3 (Apr. 22, 2020). The Commission determined to review and ultimately took no position on the FID's finding that Nortek failed to prove by clear and convincing evidence that claim 11 of the '404 patent is abstract and thus patent-ineligible under 35 U.S.C. 101. At the same time, the Commission vacated 
                    <PRTPAGE P="54039"/>
                    Order No. 38 and remanded the economic prong issue to the ALJ for further proceedings with respect to the '223 patent, which was still under review at that time. 
                    <E T="03">Id.;</E>
                     Order Vacating and Remanding Order No. 38 (Apr. 22, 2020) (“First Remand Order”).
                </P>
                <P>On July 10, 2020, the ALJ, after re-analyzing the domestic industry per the Commission's instructions, issued a Remand Initial Determination (“First RID” or “RID1”). The First RID finds that Chamberlain made significant investments in plant and equipment as well as labor and capital, and thus satisfied the DI economic prong for the '223 patent under 19 U.S.C. 1337(a)(3)(A) and (B), respectively.</P>
                <P>On September 9, 2020, the Commission determined to review the First RID and requested additional briefing by the parties on issues relating to the DI economic prong with respect to the '223 patent and remedy, bond, and the public interest. 85 FR 57249-50 (Sept. 14, 2020).</P>
                <P>
                    On December 3, 2020, the Commission determined to adopt the First RID's findings that Chamberlain satisfied the DI economic prong under subsections 337(a)(3)(A) and (B). 85 FR 79217-18 (Dec. 9, 2020). The Commission also reversed the FID's non-infringement finding for the '223 patent and found instead that Nortek violated section 337 by way of infringing the '223 patent. 
                    <E T="03">Id.</E>
                     Finding no public interest factors that precluded relief, the Commission proceeded to issue an LEO and CDOs against Nortek. 
                    <E T="03">Id.</E>
                </P>
                <P>On June 16, 2020, Chamberlain appealed the Commission's no-violation determinations with respect to the '404 and '052 patents. On April 1, 2021, Nortek cross-appealed the Commission's violation determination for the '223 patent. While the appeals were pending, the '052 patent expired.</P>
                <P>
                    On April 27, 2023, the Federal Circuit issued its decision, in which it: (i) affirmed the Commission's violation determination for the '223 patent; (ii) for the '404 patent, reversed the Commission's construction of the limitation “movable barrier operator,” vacated its non-infringement, waiver, and no-violation determinations, and remanded to the Commission with instructions to re-evaluate infringement using a proper claim construction; and (iii) vacated the Commission's determinations for the expired '052 patent and remanded with instructions to dismiss the infringement claim as moot. 
                    <E T="03">The Chamberlain Group, Inc.</E>
                     v. 
                    <E T="03">ITC,</E>
                     Appeal Nos. 20-1965, 21-1829, 2023 WL 3115579 (Fed. Cir. Apr. 27, 2023). The mandate issued on July 19, 2023, returning jurisdiction to the Commission for the remanded issues.
                </P>
                <P>On August 4, 2023, the Commission issued a notice asking the parties whether additional proceedings were necessary on remand. Comm'n Notice (Aug. 4, 2023). The parties agreed there was no need to reopen the evidentiary record, as it has already been fully developed.</P>
                <P>
                    On October 4, 2023, the Commission issued a second notice directing the parties to brief: (i) which, if any, of the accused products infringe claim 11 of the '404 patent under the Court's new construction of “movable barrier operator”; and (ii) whether the FID properly finds that claim 11 is not patent-ineligible under 35 U.S.C. 101. Comm'n Notice at 3 (Oct. 4, 2023). The Commission determined not to reopen the evidentiary record. 
                    <E T="03">See id.</E>
                     The Commission also remanded the investigation to the presiding ALJ for the sole purpose of determining whether Chamberlain satisfied the DI economic prong for the '404 patent. In the original investigation, the Commission found no infringement of the '404 patent and thus DI economic prong as to this patent was not at issue when the ALJ issued the First RID. 
                    <E T="03">Id.;</E>
                     Remand Order (Oct. 4, 2023) (“Second Remand Order”). The Commission also determined to dismiss the infringement claim against the expired '052 patent and vacate all findings regarding that expired patent as moot.
                </P>
                <P>Chamberlain and Nortek filed their initial responses to the Commission's second notice on October 27, 2023, and their replies on November 13, 2023.</P>
                <P>On January 11, 2024, the presiding ALJ issued Order No. 46 directing the parties to provide additional or supplemental information regarding the covered products allegedly protected by the '404 patent, the extent to which the domestic investments relating to products covered by the '223 patent were equally applicable to products covered by the '404 patent, the domestic inventories of products covered by the '404 patent, and other issues relating to the DI economic prong analysis. Order No. 46 (Jan. 11, 2024). The parties filed their initial responses to Order No. 46 on January 29, 2024, and their respective replies on February 5, 2024.</P>
                <P>On May 8, 2024, the ALJ issued the Second RID. Order No. 50 (May 8, 2024). The Second RID finds that Chamberlain has satisfied the DI economic prong for the '404 patent under subsections 337(a)(3)(A), (B), and (C). The Second RID notes that the Commission previously determined that Chamberlain's domestic industry products (the “ '404 DI Products”) practice the '404 patent, and thus finds that Chamberlain has satisfied the DI technical prong for that patent. Although the Commission did not ask the ALJ to make findings regarding infringement or the DI technical prong, the Second RID finds that Nortek infringes the '404 patent, and the same Nortek products that infringe the '404 patent also infringe the '223 patent.</P>
                <P>On May 20, 2024, Nortek filed a petition for review of the Second RID. On May 28, 2024, Chamberlain filed its opposition to Nortek's petition for review.</P>
                <P>Upon review of the evidence of record, the parties' submissions, the final ID, the Second RID, and the Federal Circuit's decision on appeal, the Commission has determined to review the Second RID.</P>
                <P>
                    In connection with the final disposition of this investigation, the statute authorizes issuance of, 
                    <E T="03">inter alia,</E>
                     (1) an exclusion order that could result in the exclusion of the subject articles from entry into the United States; and/or (2) cease and desist orders that could result in the respondent(s) being required to cease and desist from engaging in unfair acts in the importation and sale of such articles. Accordingly, the Commission is interested in receiving written submissions that address the form of remedy, if any, that should be ordered. If a party seeks exclusion of an article from entry into the United States for purposes other than entry for consumption, the party should so indicate and provide information establishing that activities involving other types of entry either are adversely affecting it or likely to do so. For background, see 
                    <E T="03">Certain Devices for Connecting Computers via Telephone Lines,</E>
                     Inv. No. 337-TA-360, USITC Pub. No. 2843, Comm'n Op. at 7-10 (Dec. 1994).
                </P>
                <P>The statute requires the Commission to consider the effects of that remedy upon the public interest. The public interest factors the Commission will consider include the effect that an exclusion order and cease and desist orders would have on: (1) the public health and welfare, (2) competitive conditions in the U.S. economy, (3) U.S. production of articles that are like or directly competitive with those that are subject to investigation, and (4) U.S. consumers. The Commission is therefore interested in receiving written submissions that address the aforementioned public interest factors in the context of this investigation.</P>
                <P>
                    If the Commission orders some form of remedy, the U.S. Trade Representative, as delegated by the 
                    <PRTPAGE P="54040"/>
                    President, has 60 days to approve, disapprove, or take no action on the Commission's determination. 
                    <E T="03">See</E>
                     Presidential Memorandum of July 21, 2005, 70 FR 43251 (July 26, 2005). During this period, the subject articles would be entitled to enter the United States under bond, in an amount determined by the Commission and prescribed by the Secretary of the Treasury. The Commission is therefore interested in receiving submissions concerning the amount of the bond that should be imposed if a remedy is ordered.
                </P>
                <P>
                    <E T="03">Written Submissions:</E>
                     Parties to the investigation, interested government agencies, and any other interested parties are encouraged to file written submissions on the issues of remedy, the public interest, and bonding. Such submissions should take into consideration the remedy and bond previously issued in this investigation, the Commission's Opinion of December 3, 2020, with respect to remedy, the public interest, and bond, and the recommended determination on remedy and bond issued by the presiding ALJ on November 25, 2019.
                </P>
                <P>In its initial submission, Complainant is also requested to identify the remedy sought and to submit proposed remedial orders for the Commission's consideration. Complainant is further requested to state the dates that the asserted patents expire, to provide the HTSUS subheadings under which the accused products are imported, and to supply the identification information for all known importers of the products at issue in this investigation. The initial written submissions and proposed remedial orders must be filed no later than close of business on July 8, 2024. Reply submissions must be filed no later than the close of business on July 15, 2024. No further submissions on these issues will be permitted unless otherwise ordered by the Commission. Opening submissions are limited to 15 pages. Reply submissions are limited to 10 pages. No further submissions on any of these issues will be permitted unless otherwise ordered by the Commission.</P>
                <P>
                    Persons filing written submissions must file the original document electronically on or before the deadlines stated above. The Commission's paper filing requirements in 19 CFR 210.4(f) are currently waived. 85 FR 15798 (March 19, 2020). Submissions should refer to the investigation number (Inv. No. 337-TA-1118 (remand)) in a prominent place on the cover page and/or the first page. (
                    <E T="03">See</E>
                     Handbook for Electronic Filing Procedures, 
                    <E T="03">https://www.usitc.gov/documents/handbook_on_filing_procedures.pdf</E>
                    ). Persons with questions regarding filing should contact the Secretary at (202) 205-2000.
                </P>
                <P>Any person desiring to submit a document to the Commission in confidence must request confidential treatment by marking each document with a header indicating that the document contains confidential information. This marking will be deemed to satisfy the request procedure set forth in Rules 201.6(b) and 210.5(e)(2) (19 CFR 201.6(b) &amp; 210.5(e)(2)). Documents for which confidential treatment by the Commission is properly sought will be treated accordingly. Any non-party wishing to submit comments containing confidential information must serve those comments on the parties to the investigation pursuant to the applicable Administrative Protective Order. A redacted non-confidential version of the document must also be filed with the Commission and served on any parties to the investigation within two business days of any confidential filing. All information, including confidential business information and documents for which confidential treatment is properly sought, submitted to the Commission for purposes of this investigation may be disclosed to and used: (i) by the Commission, its employees and Offices, and contract personnel (a) for developing or maintaining the records of this or a related proceeding, or (b) in internal investigations, audits, reviews, and evaluations relating to the programs, personnel, and operations of the Commission including under 5 U.S.C. Appendix 3; or (ii) by U.S. government employees and contract personnel, solely for cybersecurity purposes. All contract personnel will sign appropriate nondisclosure agreements. All nonconfidential written submissions will be available for public inspection on EDIS.</P>
                <P>The Commission vote for this determination took place on June 24, 2024.</P>
                <P>The authority for the Commission's determination is contained in section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and in part 210 of the Commission's Rules of Practice and Procedure (19 CFR part 210).</P>
                <SIG>
                    <P>By order of the Commission.</P>
                    <DATED>Issued: June 25, 2024.</DATED>
                    <NAME>Lisa Barton,</NAME>
                    <TITLE>Secretary to the Commission.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14291 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7020-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">INTERNATIONAL TRADE COMMISSION</AGENCY>
                <DEPDOC>[Investigation No. 731-TA-1696 (Preliminary)]</DEPDOC>
                <SUBJECT>Large Top Mount Combination Refrigerator-Freezers From Thailand; Revised Schedule for the Subject Investigation</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>United States International Trade Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>June 24, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Stamen Borisson ((202) 205-3125), Office of Investigations, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Hearing-impaired persons can obtain information on this matter by contacting the Commission's TDD terminal on 202-205-1810. Persons with mobility impairments who will need special assistance in gaining access to the Commission should contact the Office of the Secretary at 202-205-2000. General information concerning the Commission may also be obtained by accessing its internet server (
                        <E T="03">https://www.usitc.gov</E>
                        ). The public record for these investigations may be viewed on the Commission's electronic docket (EDIS) at 
                        <E T="03">https://edis.usitc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>On May 30, 2024, the Commission established a schedule for the conduct of the preliminary phase of the subject investigation (89 FR 48190, June 5, 2024). Subsequently, the Department of Commerce (“Commerce”) extended the deadline for its initiation determination from June 19, 2024 to July 9, 2024 (89 FR 52024, June 21, 2024). The Commission, therefore, is revising its schedule to conform with Commerce's new schedule.</P>
                <P>The Commission must reach a preliminary determination within 25 days after the date on which the Commission receives notice from Commerce of initiation of the investigation, and the Commission's views must be transmitted to Commerce within five business days thereafter.</P>
                <P>For further information concerning this proceeding, see the Commission's notice cited above and consult the Commission's Rules of Practice and Procedure, part 201, subparts A and B (19 CFR part 201), and part 207, subparts A and B (19 CFR part 207).</P>
                <P>
                    <E T="03">Authority:</E>
                     This investigation is being conducted under authority of title VII of the Tariff Act of 1930; this notice is published pursuant to § 207.12 of the Commission's rules.
                </P>
                <SIG>
                    <PRTPAGE P="54041"/>
                    <P>By order of the Commission.</P>
                    <DATED>Issued: June 24, 2024.</DATED>
                    <NAME>Lisa Barton,</NAME>
                    <TITLE>Secretary to the Commission.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14222 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7020-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Utility Broadband Alliance, Inc.</SUBJECT>
                <P>
                    Notice is hereby given that, on April 26, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Utility Broadband Alliance, Inc. (“UBBA”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, Grain Management LLC, Washington, DC; Celplan Technologies, Inc., Reston, VA; Capgemini America, Inc., New York, NY; AFL, Duncan, SC; Syncworks, Ponte Vedra Beach, FL; Digital Plus Solutions LLC, Kansas City, MO; and Oncor Electric Delivery Company LLC, Dallas, TX, have been added as parties to this venture.
                </P>
                <P>Also, Council Rock, Rochester, NY; Ciena, Hannover, MD; Double Radius, Indian Trail, NC; Alliant Energy, Madison, WI; Q-net Security, St Louis, MO; Cyient, Telangaga, INDIA; Tessco, Hunt Valley, MD; American Electric Power, Columbus, OH; CDM Smith, Boston, MA; Oklahoma Gas &amp; Electric, Oklahoma City, OK; Teal Communications, Inc., Seattle, WA; and Copper Labs, Inc., Boulder, CO, have withdrawn as parties to this venture.</P>
                <P>
                    Additionally, Wirepas USA LLC, New York, NY was inadvertently reported as a new party on the last filing published in the 
                    <E T="04">Federal Register</E>
                     on March 13, 2024. Wirepas USA LLC is not a party to this venture.
                </P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and UBBA intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On May 4, 2021, UBBA filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on June 10, 2021 (86 FR 30981).
                </P>
                <P>
                    The last notification was filed with the Department on February 2, 2024. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on March 13, 2024 (89 FR 18437).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14316 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Maritime Sustainment and Technology Innovation Consortium</SUBJECT>
                <P>
                    Notice is hereby given that, on April 15, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Maritime Sustainment and Technology Innovation Consortium (“MSTIC”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, A&amp;B Foundry LLC, Franklin, OH; Admartec, Inc., Hazlet, NJ; Advanced Technology and Research Corp., Beltsville, MD; American Additive Manufacturing LLC, Horsham, PA; APCO Technologies Engineering Inc., Providence, RI; BEC Systems LLC, Harleysville, PA; Beehive Industries LLC, Centennial, CO; Berry Engineering, Inc., Williamsburg, VA; Centurum Information Technology, Inc., Marlton, NJ; CEPEDA Associates, Inc., Louisville, KY; Curtiss-Wright Flow Control Corp., East Farmingdale, NY; Dante Valve Company, Norfolk, VA; Diversified Technologies, Inc., Bedford, MA; Excelco Newbrook, Inc., Silver Creek, NY; Fairmount Automation, Inc., West Conshohocken, PA; FasTech LLC, Danville, VA; Fluid Conditioning Products, Inc., Lititz, PA; FormAlloy Technologies, Inc., Spring Valley, CA; Graham Corp., Batavia, NY; HAMR Industries LLC, Clinton, PA; HEBI Robotics, Inc., Pittsburgh, PA; Horizons, Inc. Camcode Division, Cleveland, OH; Howell Laboratories, Inc., Bridgton, ME; Hyphen Innovations, Beavercreek, OH; IMI-Critical Engineering PBM LLC, Irwin, PA; Innovative Defense Technologies LLC, Arlington, VA; Iron EagleX, Inc., Tampa, FL; Keysight Technologies, Santa Rosa, CA; MATSYS, Inc., Sterling, VA; Reliability &amp; Performance Technologies LLC, Dublin, PA; Roush Industries, Inc., Livonia, MI; Simulation Systems Technologies, Inc., Voorhees, NJ; Strategic Technology Consulting LLC, Chantilly, VA; Trustees of the Colorado School of Mines, Golden, CO; TVAR Solutions LLC, McLean, VA; University of Delaware, Newark, DE; V.E.P. Manufacturing, Inc., Jackson, NJ; Velan Valve Corp., Williston, VT; VSolvit LLC, Henderson, NV; and Wireless Research Center of North Carolina, Wake Forest, NC, have been added as parties to this venture.
                </P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and MSTIC intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On October 21, 2020, MSTIC filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on November 19, 2020 (85 FR 73750).
                </P>
                <P>
                    The last notification was filed with the Department on January 8, 2024. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on March 13, 2024 (89 FR 18440).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14310 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Clean Highly Efficient Decarbonized Engines</SUBJECT>
                <P>
                    Notice is hereby given that, on April 16, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Clean Highly Efficient Decarbonized Engines (“CHEDE-9”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were 
                    <PRTPAGE P="54042"/>
                    filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, Convergent Science, Inc., Madison, WI; General Motors, Detroit, MI; Honda Racing Corporation, Santa Clarita, CA; and Tianjin SwARC Automotive Research Laboratory Co., Ltd., Tianjin, PEOPLE'S REPUBLIC OF CHINA, have been added as parties to this venture.
                </P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and CHEDE-9 intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On January 4, 2024, CHEDE-9 filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on February 6, 2024 (89 FR 8243).
                </P>
                <P>
                    The last notification was filed with the Department on February 14, 2024. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on April 16, 2024 (89 FR 26921).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14308 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P+</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>
                    Notice Pursuant to the National Cooperative Research and Production Act of 1993—Cooperative Research Group H
                    <E T="0735">2</E>
                    ICE Demonstration Vehicle (“H
                    <E T="0735">2</E>
                    ICE”)
                </SUBJECT>
                <P>
                    Notice is hereby given that, on April 18, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Cooperative Research Group H
                    <E T="52">2</E>
                    ICE Demonstration Vehicle (“H
                    <E T="52">2</E>
                    ICE”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, Superturbo Technologies, Inc., Loveland, CO, has been added as a party to this venture.
                </P>
                <P>
                    No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and H
                    <E T="52">2</E>
                    ICE intends to file additional written notifications disclosing all changes in membership.
                </P>
                <P>
                    On August 14, 2023, H
                    <E T="52">2</E>
                    ICE filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on November 20, 2023 (88 FR 80763).
                </P>
                <P>
                    The last notification was filed with the Department on February 14, 2024. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on April 16, 2024 (89 FR 26922).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director of Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14303 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Consortium for Rare Earth Technologies</SUBJECT>
                <P>
                    Notice is hereby given that, on April 12, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Consortium for Rare Earth Technologies (“CREaTe”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, CF Technologies, Boston, MA; Forge Nano, Thornton, CO; Strogen Strategic Sustainability, LLC, Washington, DC; and Evergreeneers, Morristown, NJ, have been added as parties to this venture.
                </P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and CREaTe intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On April 22, 2022, CREaTe filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on May 13, 2022 (87 FR 29384).
                </P>
                <P>
                    The last notification was filed with the Department on October 23, 2023. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on December 15, 2023 (88 FR 86933).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14306 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Resilient Infrastructure + Secure Energy Consortium</SUBJECT>
                <P>
                    Notice is hereby given that, on April 1, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Resilient Infrastructure + Secure Energy Consortium (“RISE”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, Barber Nichols, Arvada, CO; Clear Science, Inc., Keystone Heights, FL; GHOST Development, Inc., Virginia Beach, VA; Last Energy, Washington, DC; New Dominion Enterprises, Inc., San Antonio, TX; Sol Donum, Washington, DC; and Toffler Associates, Arlington, VA, have been added as parties to this venture.
                </P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and RISE intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On July 2, 2021, RISE filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on August 23, 2021 (86 FR 47155).
                </P>
                <P>
                    The last notification was filed with the Department on January 5, 2024. A notice was published in the 
                    <E T="04">
                        Federal 
                        <PRTPAGE P="54043"/>
                        Register
                    </E>
                     pursuant to section 6(b) of the Act on March 13, 2024 (89 FR 18438).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14269 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Countering Weapons of Mass Destruction</SUBJECT>
                <P>
                    Notice is hereby given that, on April 3, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Countering Weapons of Mass Destruction (“CWMD”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, Advanced BioScience Laboratories, Inc., Rockville, MD; BadVR, Inc., Pacoima, CA; Bluemont Technology &amp; Research, Inc., Luray, VA; Defense Industry Advisors, LLC, Dayton, OH; Fieldstone Bio, Inc., Woburn, MA; Fluor Intercontinental, Greenville, SC; Innovative Defense Technologies, Arlington, VA; Salvus LLC, Valdosta, GA; and Spectree Inc, Seattle, WA, have been added as parties to this venture.
                </P>
                <P>Also, Software AG Government Solutions, Inc., Herndon, VA, has withdrawn as a party to this venture.</P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and CWMD intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On January 8, 2018, CWMD filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on March 12, 2018 (83 FR 10750).
                </P>
                <P>
                    The last notification was filed with the Department on January 8, 2024. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on April 22, 2024 (89 FR 29362).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14261 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Southwest Research Institute: Cooperative Research Group on Consortium for NASGRO Development and Support</SUBJECT>
                <P>
                    Notice is hereby given that, on February 1, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Southwest Research Institute: Cooperative Research Group on Consortium for NASGRO Development and Support (“NASGRO”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, BAE Systems (Operations) Ltd., Lancashire, UNITED KINGDOM, has been added as a party to this venture.
                </P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and NASGRO intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On October 3, 2001, NASGRO filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on January 22, 2002 (67 FR 2910).
                </P>
                <P>
                    The last notification was filed with the Department on October 3, 2022. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on November 8, 2022 (87 FR 67492).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14256 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Consortium for Battery Innovation</SUBJECT>
                <P>
                    Notice is hereby given that, on March 18, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Consortium for Battery Innovation (“CBI”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, Battery Consultants Ltd, Hampshire, UNITED KINGDOM; Dixon Batteries, Vereeniging, SOUTH AFRICA; and Fenix Metals Sp.Z.o.o., Chmielów, POLAND, have been added as parties to this venture.
                </P>
                <P>Also, Ceylon Graphene Technologies (PVT) Ltd, Rajagiriya, SRI LANKA; Inbatec, Hagen, GERMANY; Kustan, Gelsenkirchen, GERMANY; Ramcar Technology, Sta. Maria, Bulacan, PHILIPPINES; and Zesar Kalipcilik Sanayi Ve Ticaret A.S., Istanbul, TURKEY, have withdrawn as parties to this venture.</P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and CBI intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On May 24, 2019, CBI filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on June 21, 2019 (84 FR 29241).
                </P>
                <P>
                    The last notification was filed with the Department on September 6, 2023. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on November 20, 2023 (88 FR 80764).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14266 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="54044"/>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Integrated Photonics Institute for Manufacturing Innovation Operating Under the Name of the American Institute for Manufacturing Integrated Photonics</SUBJECT>
                <P>
                    Notice is hereby given that, on March 28, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), the Integrated Photonics Institute for Manufacturing Innovation operating under the name of the American Institute for Manufacturing Integrated Photonics (“AIM Photonics”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, Lawrence Livermore National Security, Livermore, CA; LyteChip Inc., Newton, MA; and OAM Photonics LLC, Albuquerque, NM, have been added as parties to this venture.
                </P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and AIM Photonics intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On June 16, 2016, AIM Photonics filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on July 25, 2016 (81 FR 48450).
                </P>
                <P>
                    The last notification was filed with the Department on December 22, 2023. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on February 6, 2024 (89 FR 8247).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14258 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Undersea Technology Innovation Consortium</SUBJECT>
                <P>
                    Notice is hereby given that, on April 29, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Undersea Technology Innovation Consortium (“UTIC”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, Luna Innovations, Inc., Roanoke, VA; Major Tool and Machine, Inc., Indianapolis, IN; HEBI Robotics, Inc., Pittsburgh, PA; Diversified Technologies, Inc., Bedford, MA; Integrated Solutions for Systems, Inc., Huntsville, AL; Gradient Marine, San Diego, CA; Guide Star Engineering LLC, Kapolei, HI; Chase Supply, Inc., Hampton, VA; nou Systems, Inc., Huntsville, AL; Rolls-Royce Marine North America, Inc., Walpole, MA; and Defense Maritime Solutions, Inc., Chesapeake, VA, have been added as parties to this venture.
                </P>
                <P>Also, Advanced Scientific Concepts LLC, Santa Barbara, CA; Critical Prism Defense LLC, Ashland, MA; Graphene Composites USA, Inc., Providence, RI; Monterey Technologies, Inc., Park City, UT; and Research &amp; Development Solutions, Inc., McLean, VA, have withdrawn as parties to this venture.</P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and UTIC intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On October 9, 2018, UTIC filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on November 2, 2018 (83 FR 55203).
                </P>
                <P>
                    The last notification was filed with the Department on January 10, 2024. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on April 16, 2024 (89 FR 26922).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14285 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Defense Electronics Consortium</SUBJECT>
                <P>
                    Notice is hereby given that, on April 9, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Defense Electronics Consortium (“DEC”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, AlchLight LLC, Rochester, NY; Carbon Technology, Inc., Irvine, CA; Crystal Sonic, Inc., Phoenix, AZ; Design West Technologies, Inc., Tustin, CA; DuPont Specialty Products USA LLC, Circleville, OH; Ectron Corp., San Diego, CA; Firan Technology Group USA, Chatsworth, CA; Freedom Photonics, Goleta, CA; Gigantor Technologies, Inc., Melbourne Beach, FL; Graf Research Corp., Blacksburg, VA; GreenSource Fabrication LLC, Charlestown, NH; Hughes Circuits, San Marcos, CA; ITCLAD, Inc., Prescott, WI; Kyma Technologies, Inc., Raleigh, NC; Light and Charge Solutions LLC dba Margik, Charlotte, NC; Lux Semiconductors, Albany, NY; Materion Newton, Inc., Newton, MA; Momentum Optics, Fort Collins, CO; Mosaic Microsystems LLC, Rochester, NY; NanoElectronic Imaging, Inc., Riverside, CA; Nanohmics, Inc., Austin, TX; NEXT Semiconductor Technologies, Inc., San Diego, CA; OAM Photonics LLC, Albuquerque, NM; Orbital Mining Corp., Golden, CO; Pison Technology, Inc., Boston, MA; Power Technology, Inc., Alexander, AR; PseudolithIC, Santa Barbara, CA; Quantic Evans, East Providence, RI; Sciperio, Inc., Orlando, FL; Siemens Government Technologies, Inc., Reston, VA; SiliconCore Technology, Inc., Milpitas, CA; Soctera, Inc., Ithaca, NY; TalkingHeads Wireless, Inc., Somerville, MA; Teliatry, Inc., Richardson, TX; and Tiami LLC, Elk 
                    <PRTPAGE P="54045"/>
                    Grove, CA, have been added as parties to this venture.
                </P>
                <P>Also, AlchLight LLC, Rochester, NY; Carbon Technology, Inc., Irvine, CA; Crosstalk LLC, Kansas City, MO; Guardion, Inc., Burlington, MA; InertialWave, Inc., Torrance, CA; Intrinsix Corp., Marlborough, MA; Lux Semiconductors, Albany, NY; Nano OPS, Inc., Burlington, MA; OptiCOMP Networks, Attleboro, MA; Orbital Mining Corp., Golden, CO; ResCav LLC, Columbus, OH; SRI International, Menlo Park, CA; TalkingHeads Wireless, Inc., Somerville, MA; Teliatry, Inc., Richardson, TX; and The Crestridge Group LLC, Lubbock, TX, have withdrawn as parties to this venture.</P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and DEC intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On April 12, 2023, DEC filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on August 8, 2023 (88 FR 53520).
                </P>
                <P>
                    The last notification was filed with the Department on October 11, 2023. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on December 15, 2023 (88 FR 86935).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14283 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Naval Surface Technology &amp; Innovation Consortium</SUBJECT>
                <P>
                    Notice is hereby given that, on April 10, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Naval Surface Technology &amp; Innovation Consortium (“NSTIC”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, Advanced Armor Research Group (AARG) LLC, Fredericksburg, VA; Advanced Simulation Technology, Inc. (ASTi), Herndon, VA; AI Signal Research, Inc., Huntsville, AL; Alkemix Corp, Laguna Hills, CA; Axiom Consulting Group LLC, Winter Garden, FL; BAE Systems Technology Solutions &amp; Services, Inc., Rockville, MD; Barrow Wise Consulting, LLC, Rockville, MD; Decision Technologies, Inc., Arlington, VA; GaN Corporation, Huntsville, AL; Genesis Codes Inc., Menlo Park, CA; GIRD Systems, Inc., Cincinnati, OH; HEBI Robotics, Inc., Pittsburgh, PA; Mantis Composites, Inc., San Luis Obispo, CA; Mosaic ATM, Inc., Leesburg, VA; NuWaves Engineering, Middletown, OH; Orion's Belt Engineering, Inc., Morrison, CO; Palaemus Oceanic, LLC, Wendell, NC; Pallas Industries, Inc., Arlington, VA; Saronic Technologies, Inc., Austin, TX; Simulation Systems Technologies, Inc., Voorhees, NJ; Swarmbotics AI, Inc., Scottsdale, AZ; Textum OPCO LLC, Belmont, NC; The Glimpse Group, Inc., New York, NY; Thunderbolt Software LLC, Mullica Hill, NJ; Unmanned Systems Inc, dba Albers Aerospace, McKinney, TX; VPI Technology, a division of Ludlum Measurements, Draper, UT; and Wireless Research Center of North Carolina, Wake Forest, NC, have been added as parties to this venture.
                </P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and NSTIC intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On October 8, 2019, NSTIC filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on November 12, 2019 (84 FR 61071).
                </P>
                <P>
                    The last notification was filed with the Department on January 9, 2024. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on March 13, 2024 (89 FR 18440).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14311 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-11-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Training &amp; Readiness Accelerator II</SUBJECT>
                <P>
                    Notice is hereby given that, on April 19, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), Training &amp; Readiness Accelerator II (“TReX II”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, 10x National Security, Aldie, VA; Active Optical Systems LLC, Albuquerque, NM; Aerospace Business Development Associates, Inc., Fairborn, OH; ANDRO Computational Solutions LLC, Rome, NY; Applied Technology Solutions, Inc., Huntsville, AL; Aspen Consulting Group, Inc., Point Pleasant Boro, NJ; Aviation &amp; Missile Solutions LLC, Huntsville, AL; BAE Systems, Inc., Fast Labs, Nashua, NH; Ball Aerospace &amp; Technologies Corp., Boulder, CO; Barrow Wise Consulting LLC, Rockville, MD; Cahaba Federal Solutions LLC, Huntsville, AL; Carley Corp., Orlando, FL; Cognitive Medical Systems, Inc., San Diego, CA; Combustion Research &amp; Flow Technology, Inc., Pipersville, PA; Concordia Technologies, Inc., Huntsville, AL; CymSTAR LLC, Broken Arrow, OK; DBV Technology LLC, North Kingstown, RI; Defense Unicorns, Inc., Colorado Springs, CO; Delta Development Team, Inc., Tucson, AZ; Electronics Services LLC, Great Mills, MD; Emelody Worldwide, Inc., Peachtree Corners, GA; Ether Form, Inc., McMinnville, OR; FEI-ELCOM TECH, Inc., Northvale, NJ; Firefly Photonics LLC, Coralville, IA; Galois, Inc., Portland, OR; General Atomics, San Diego, CA; General Dynamics Land Systems, Sterling Heights, MI; Goldbelt Hawk LLC, Newport News, VA; GrammaTech, Ithaca, NY; Hawk Technologies, Hancock, MI; IN Space LLC, Lafayette, IN; InterSystems Corp., Cambridge, MA; JRM Enterprises, Inc., Orlando, FL; Kent Optronics, Inc., Hopwell Junction, NY; Kinnami Software Corp., Braintree, MA; Kratos Defense &amp; Rocket Support Services, Inc., Huntsville, AL; Kratos Space &amp; Missile Defense Systems, Inc., San Diego, CA; L3 Harris Technologies, Inc. Electronic 
                    <PRTPAGE P="54046"/>
                    Warfare, Clifton, NJ; Metronome LLC, Fairfax, VA; Microwave Applications Group, Santa Maria, CA; Mike Sutton Consulting, Inc. dba MSCI, Owens Cross Roads, AL; Modern Technology Solutions, Inc., Alexandria, VA; MZA Associates Corp., Albuquerque, NM; Nanohmics, Inc., Austin, TX; Neya Systems, Warrendale, PA; Pandora Cloud LLC, Roswell, GA; Parallax Advanced Research, Beavercreek, OH; Parraid, Hollywood, MD; Physical Sciences, Inc., Andover, MA; Platform Systems, Inc. dba Platform Aerospace, Hollywood, MD; Quantum Ventura, Inc., San Jose, CA; Raft, Reston, VA; Red Balloon Security, Inc., New York, NY; REDLattice, Inc., Chantilly, VA; Scale AI, San Francisco, CA; Semantic AI, Inc., San Diego, CA; Serco, Inc., Herndon, VA; Shared Spectrum Company, Vienna, VA; Shock Stream LLC, Oviedo, FL; Sierra Lobo, Inc., Fremont, OH; SKIFTECH, Oviedo, FL; Southeastern Computer Consultants, Inc., Frederick, MD; Teledyne Digital Imaging US, Inc., Trenton, NJ; Telesis Corp., Sterling, VA; The Glimpse Group, Inc., New York, NY; The Pennsylvania State University—Applied Research Laboratory, University Park, PA; Tier 1 Performance Solutions LLC, Covington, KY; TransWave Photonics LLC, Austin, TX; Venus Aerospace, Houston, TX; Voss Scientific LLC, Albuquerque, NM; Vulcan Ventura, Inc., Concord, NC; Wright Brothers Institute, Dayton, OH; and Yrikka, Inc., Iowa City, IA, have been added as parties to this venture.
                </P>
                <P>Also, Optimization Technologies, Inc. dba OptTek Systems, Boulder, CO; Origami Software Solutions, Norfolk, VA; Pamunkey Indian Enterprises—Professional Services (PIE-PS), King William, VA; QuesTek Innovations, Evanston, IL; Setter Research, Inc., Greensboro, NC; and TrustedQA, Inc., Reston, VA, have withdrawn as parties to this venture.</P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and TReX II intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On February 17, 2023, TReX II filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on June 13, 2023 (88 FR 38536).
                </P>
                <P>
                    The last notification was filed with the Department on January 15, 2024. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on April 16, 2024 (89 FR 26921).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14304 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—National Spectrum Consortium</SUBJECT>
                <P>
                    Notice is hereby given that, on April 3, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (“the Act”), National Spectrum Consortium (“NSC”) has filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, Iowa State University of Science and Technology, Ames, IA, has been added as a party to this venture.
                </P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and NSC intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On September 23, 2014, NSC filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on November 4, 2014 (79 FR 65424).
                </P>
                <P>
                    The last notification was filed with the Department on January 9, 2024. A notice was published in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on April 16, 2024 (89 FR 26923).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14257 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Antitrust Division</SUBAGY>
                <SUBJECT>Notice Pursuant to the National Cooperative Research and Production Act of 1993—Pistoia Alliance, Inc.</SUBJECT>
                <P>
                    Notice is hereby given that, on May 28, 2024, pursuant to section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301 
                    <E T="03">et seq.</E>
                     (the “Act”), Pistoia Alliance, Inc. filed written notifications simultaneously with the Attorney General and the Federal Trade Commission disclosing changes in its membership. The notifications were filed for the purpose of extending the Act's provisions limiting the recovery of antitrust plaintiffs to actual damages under specified circumstances. Specifically, First Line Software, Wynnum, AUSTRALIA; Open Phacts Foundation, Cambridge, UNITED KINGDOM; and Excelra, Iselin, NJ, have been added as parties to the venture.
                </P>
                <P>Also, TetraScience Inc., Boston, MA; Terra Quantum, Rorschach, SWITZERLAND; Vortex Biosciences, Cambridge, UNITED KINGDOM; Schrodinger, New York, NY; and Sanofi, Cambridge, MA, have withdrawn as parties to this venture.</P>
                <P>No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and Pistoia Alliance, Inc. intends to file additional written notifications disclosing all changes in membership.</P>
                <P>
                    On May 28, 2009, Pistoia Alliance, Inc. filed its original notification pursuant to section 6(a) of the Act. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on July 15, 2009 (74 FR 34364).
                </P>
                <P>
                    The last notification was filed with the Department on March 7, 2024. The Department of Justice published a notice in the 
                    <E T="04">Federal Register</E>
                     pursuant to section 6(b) of the Act on April 16, 2024 (89 FR 26923).
                </P>
                <SIG>
                    <NAME>Suzanne Morris,</NAME>
                    <TITLE>Deputy Director Civil Enforcement Operations, Antitrust Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14255 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="54047"/>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Drug Enforcement Administration</SUBAGY>
                <DEPDOC>[Docket No. 22-54]</DEPDOC>
                <SUBJECT>Michael Gore, P.A.; Decision and Order</SUBJECT>
                <P>
                    On August 26, 2022, the Drug Enforcement Administration (DEA or Government) issued an Order to Show Cause (OSC) to Michael Gore, P.A., (Respondent) of Staten Island, New York. OSC, at 1, 8. The OSC proposed the revocation of Respondent's DEA Certificate of Registration, Control No. MG1185277, alleging that Respondent's continued registration is inconsistent with the public interest. 
                    <E T="03">Id.</E>
                     at 1 (citing 21 U.S.C. 823(g)(1),
                    <SU>1</SU>
                    <FTREF/>
                     824(a)(4)), 2.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         Effective December 2, 2022, the Medical Marijuana and Cannabidiol Research Expansion Act, Public Law 117-215, 136 Stat. 2257 (2022) (Marijuana Research Amendments or MRA), amended the Controlled Substances Act (CSA) and other statutes. Relevant to this matter, the MRA redesignated 21 U.S.C. 823(f), cited in the OSC, as 21 U.S.C. 823(g)(1). Accordingly, this Decision cites to the current designation, 21 U.S.C. 823(g)(1), and to the MRA-amended CSA throughout.
                    </P>
                </FTNT>
                <P>
                    A hearing was held before DEA Administrative Law Judge Paul E. Soeffing (ALJ), who, on September 8, 2023, issued his Recommended Rulings, Findings of Fact, Conclusions of Law, and Decision (Recommended Decision or RD), which recommended revocation of Respondent's registration. RD, at 45. Respondent did not file Exceptions to the RD. Having reviewed the entire record, the Agency adopts and hereby incorporates by reference the entirety of the ALJ's rulings, credibility findings,
                    <SU>2</SU>
                    <FTREF/>
                     findings of fact, conclusions of law, sanctions analysis, and recommended sanction as found in the RD.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         The Agency adopts the ALJ's summary of each of the witnesses' testimonies as well as the ALJ's assessment of each of the witnesses' credibility. 
                        <E T="03">See</E>
                         RD, at 2-22. The Agency agrees with the ALJ that the testimony from the DEA Diversion Investigator (DI), which was primarily focused on the introduction of the Government's documentary evidence, was generally consistent, without indication of any animosity towards Respondent, and thus was fully credible and warranted substantial weight. 
                        <E T="03">Id.</E>
                         at 4-5. The Agency also agrees with the ALJ that the testimony from the DEA Special Agent (SA), which was primarily focused on the introduction of the Government's documentary evidence and how the undercover visits were conducted, was generally consistent, without indication of any animosity towards Respondent, and thus was fully credible and warranted substantial weight. 
                        <E T="03">Id.</E>
                         at 8. Finally, the Agency agrees with the ALJ that the testimony from the Government's expert witness, Dr. Brian Durkin, D.O., which was focused on the New York standard of care and Respondent's prescribing to the Undercover Officer, presented an objective analysis that was internally consistent, logically persuasive, credible, reliable, and warranted significant weight. 
                        <E T="03">Id.</E>
                         at 22.
                    </P>
                </FTNT>
                  
                <HD SOURCE="HD1">I. Findings of Fact  </HD>
                <HD SOURCE="HD2">New York Standard of Care</HD>
                <P>
                    Dr. Brian Durkin, D.O., testified for the Government as an expert in the area of pain management and the standard of care for prescribing controlled substances in the state of New York. RD, at 9; Tr. 367.
                    <SU>3</SU>
                    <FTREF/>
                     Dr. Durkin practices as an anesthesiologist and pain management specialist and testified that his expert opinion regarding the standard of care in this case is informed by his experiences, the experiences of his colleagues (including physicians and advanced practice providers), and the medical societies that he participates in or leads. RD, at 8, 13; Tr. 363, 499.
                    <SU>4</SU>
                    <FTREF/>
                     Dr. Durkin also testified that New York has codified the standards for the prescribing of opioids. RD, at 13; Tr. 500.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         On cross-examination, Dr. Durkin testified that the standard of care varies geographically based on the specialists available to patients that live in a given locality; nonetheless, all practitioners in New York are required to complete an opioid prescribing course every two years that establishes guidelines for prescribing opioids in New York. RD, at 12-13; Tr. 497-98, 501-02. When asked to clarify his testimony regarding a regional standard of care, Dr. Durkin testified that the regional aspect was confined to the availability of specialists, and provided as an example that a general practitioner could be competent to deliver a baby in a rural community without obstetricians but is likely not competent and should not offer obstetric services in an urban environment with many local obstetricians. RD, at 13 n.21; Tr. 554-56. Regarding the current matter, Dr. Durkin opined that Respondent's care fell below the standard of care in every New York region and community “because nothing was ever done to address the problem or make a correct diagnosis,” as required throughout the state. RD, at 13 n.21; Tr. 556-57.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         For Dr. Durkin's full qualifications, 
                        <E T="03">see</E>
                         Government Exhibit (GX) 19; RD, at 8-9.
                    </P>
                </FTNT>
                <P>
                    According to Dr. Durkin, under the standard of care in New York, a practitioner must establish a patient and provider relationship to prescribe controlled substances and must have a legitimate medical reason to prescribe opioids. RD, at 9; Tr. 368, 383. Further, the practitioner must form a diagnosis and treatment plan after reviewing the patient's full medical history,
                    <SU>5</SU>
                    <FTREF/>
                     conducting a physical examination, and ordering any necessary tests or referring the patient to a specialist. RD, at 9; Tr. 368, 370-71. Dr. Durkin explained that a proper physical examination requires an initial observation of the patient's presentation and functionality, followed by a targeted physical examination related to the patient's pain complaint, including tests aimed at diagnosing specific causes of pain. RD, at 10; Tr. 377-78, 494-95, 550. According to Dr. Durkin, a physical examination should be conducted during every encounter, including initial visits, follow-up visits, telehealth visits, and in-person visits. RD, at 10; Tr. 384. Dr. Durkin testified that an in-person physical examination is more involved than a virtual examination, but the physician can still examine the patient virtually, for example, by listening to the patient's voice to see if his words are slurred and observing the patient's state of mind. RD, at 10, 20; Tr. 383-84, 419-20.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Dr. Durkin testified that a full medical history includes past medical history, past surgical history, a social history, and family history; a full medical history also sometimes focuses on a particular part of the body depending on the complaint of pain, but is always aimed at assessing a patient's overall health. RD, at 9; Tr. 369-70. Dr. Durkin also testified that a practitioner needs records from previous treating providers to make sure that the treatment is not repetitive and to make sure that the patient is treated safely, effectively, and cost effectively. RD, at 9 n.18; Tr. 370.
                    </P>
                </FTNT>
                <P>Regarding documentation, Dr. Durkin testified that the standard of care requires that practitioners document history and physical examinations in patient records to: 1) guide the diagnosis, treatment plan, and any decisions about diagnostic testing; 2) make the patient's care more efficient and cost-effective; and 3) generate a robust record for future providers. RD, at 11; Tr. 378-81. Dr. Durkin also noted that the standard of care requires that practitioners not falsify patient records. RD, at 9-10; Tr. 549-50.</P>
                <P>
                    Regarding the prescribing of opioids to treat pain, Dr. Durkin testified that opioids may be the first line of treatment for acute or severe pain, such as pain following surgery, provided that they are prescribed for no more than three to seven days. RD, at 11; Tr. 368. In contrast, with chronic pain lasting three months or more, there are other modalities that are safer and more effective than opioid therapy. 
                    <E T="03">Id.</E>
                     These modalities should be assessed based on their level of invasiveness and risk. RD, at 11; Tr. 369. Dr. Durkin explained that if less-invasive options, such as surgery and physical therapy, have failed, the practitioner should begin medication management with the less risky medications, such as anti-inflammatory drugs and muscle relaxants. RD, at 11; Tr. 369, 371-72, 405. If all of these options fail, then a practitioner may consider opioid therapy, but the practitioner needs to weigh the risks (ranging from mild issues to death) and benefits to the patient. 
                    <E T="03">Id.</E>
                </P>
                <P>
                    Dr. Durkin testified that prior to beginning opioid therapy, the physician must obtain informed consent by discussing the risks and benefits of treatment. RD, at 12; Tr. 374-75, 405. Informed consent typically involves a written agreement, signed by the patient (and a witness), that outlines the risks, benefits, rules, and guidelines of opioid treatment, as well as compliance 
                    <PRTPAGE P="54048"/>
                    measures that will be utilized to prevent diversion and abuse, such as urinalysis and pill counts. RD, at 12, 13; Tr. 374-76, 405, 469-71. Dr. Durkin testified that a prescriber must also review a patient's I-STOP 
                    <SU>6</SU>
                    <FTREF/>
                     data, history of addiction and substance abuse, and family history of addiction before prescribing opioids. RD, at 12; Tr. 372-74. Finally, practitioners must address any red flags of abuse or diversion to ensure that the medications that they prescribe are being used safely and legitimately. RD, at 19; Tr. 413-14.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         I-STOP, New York's Prescription Monitoring Program, includes a record of controlled substances prescribed to a patient in New York. RD, at 6 n. 12, 12; Tr. 372-73. This data is analyzed to ensure that patients are not doctor shopping or receiving opioids from multiple providers. RD, at 12; Tr. 383.
                    </P>
                </FTNT>
                <P>
                    Regarding follow-up visits, Dr. Durkin testified that a provider must assess the effectiveness of the treatment plan, including, (1) whether the patient has tried alternative therapies such as physical therapy, (2) how the patient is progressing in the treatment plan, and (3) the efficacy of any prescribed medications as well as any side effects. RD, at 19-20; Tr. 418-19. For opioid medications in particular, the provider must also conduct an ongoing risk assessment, document functional improvements, and determine whether weaning off or increasing the medication is needed. 
                    <E T="03">Id.</E>
                </P>
                <HD SOURCE="HD2">Respondent's Treatment of the Undercover Officer</HD>
                <HD SOURCE="HD3">March 11, 2021 Visit</HD>
                <P>Dr. Durkin reviewed audiovisual recordings of the interactions between Respondent and an Undercover Officer (UC), transcripts of the recordings, the UC's medical records, and the prescription history for the UC. RD, at 13; Tr. 387, 469. The UC first visited Respondent on March 11, 2021, complaining of shoulder pain. RD, at 15; Tr. 388-89, 493; GX 2; GX 3, at 4. The UC reported having pain for ten years, that he had not had any diagnostic imaging done, and that he took his girlfriend's oxycodone because she had insurance. RD, at 15; Tr. 389; GX 1, at 1; GX 2; GX 3, at 4.</P>
                <P>
                    Dr. Durkin testified that a physician acting within the standard of care would have made a diagnosis and developed a treatment plan (as described above), after conducting a focused physical examination of the UC's cervical spine, shoulders, and upper extremities, and ordering imaging of those areas. RD, at 15; Tr. 390-91.
                    <SU>7</SU>
                    <FTREF/>
                     Respondent documented a very thorough physical examination of the UC—including a full vascular, muscular, and neurological examination and range of motion testing—but Dr. Durkin's review of the video recording revealed that the actual physical examination that Respondent performed was “[not] anywhere close to what [was] documented in the medical record.” RD, at 17; Tr. 400; GX 1, at 2-4. According to Dr. Durkin, Respondent's examination of the UC appeared to take about twelve seconds, whereas the examination documented in the medical file would have taken a neurologist ten or fifteen minutes to complete. RD, at 17; Tr. 400-01; GX 2; GX 3, at 6. Moreover, while there was a documented pain score in the record, Dr. Durkin saw “no indication that there was a pain score asked [about] during the audio visual or in the transcripts.” Tr. 402; 
                    <E T="03">see also</E>
                     RD, at 17; GX 1, at 2; GX 2; GX 3, at 3-11. As such, Dr. Durkin concluded that the notes in the UC's patient file do not accurately reflect what happened during the March 11, 2021 visit. RD, at 17; Tr. 401.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         On cross-examination, Dr. Durkin was asked how an uninsured patient can afford diagnostic imaging. RD, at 15 n.26; Tr. 509-15. Dr Durkin testified that Respondent could have helped the UC find an affordable Medicaid plan that would cover imaging or could have referred the UC to a university hospital for free or low-cost imaging and “charity care.” 
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Regarding Respondent's patient notes from this visit, Dr. Durkin testified that the “Past Medical/Surgical History” section should have detailed any chronic medical problems and past surgeries; however, this section in the UC's medical file is blank. RD, at 16; Tr. 391. Further, based on the recording of this visit, Respondent did not ask the UC about his medical or surgical history, did not request any medical files or imaging studies from previous providers, and did not order any diagnostic imaging. RD, at 16; Tr. 391-93; GX 1; GX 2; GX 3, at 3-10. Dr. Durkin testified that this is “Medicine 101” and that the “heart and soul of medicine is getting a history, a physical examination, and confirmation with testing.” RD, at 16; Tr. 392-93. Regarding a patient's history in particular, providers need to know what treatments the patient has tried, whether they have worked, and whether non-opioid medications have been trialed. RD, at 16; Tr. 392-394, 396.
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         On cross-examination, when asked about the UC having a fictious identity with no prior medical history or records, Dr. Durkin opined that this lack of history and records should have generated additional red flags of abuse or diversion. RD, at 16 n.27; Tr. 502-04.
                    </P>
                </FTNT>
                <P>As for the “Medications” and “Allergies” sections of Respondent's patient notes from the initial visit, Dr. Durkin noted that these sections are blank in the UC's medical file despite the UC telling Respondent: (1) that he had been taking oxycodone 20 mg (which was prescribed to his girlfriend) several times a day; and (2) that he is allergic to penicillin and sulfa antibiotics. RD, at 16; Tr. 395-398, 549; GX 1, at 1-2; GX 2; GX 3, at 4-5. As for the “Social History” section, Dr. Durkin testified that Respondent did not ask the UC about his history of smoking or alcohol during the initial visit but Respondent documented that the UC does not use alcohol or tobacco. RD, at 16; Tr. 398; GX 1, at 2; GX 2; GX 3, at 11. Further, despite the UC reporting his use of oxycodone (not prescribed to him) three weeks prior to the visit, the “Social History” section indicates that the UC was not using drugs. RD, at 16; Tr. 399-400; GX 1, at 2; GX 2; GX 3, at 4.</P>
                <P>
                    Regarding the “Assessment” section of the UC's patient file, Dr. Durkin testified that this is where the “working diagnosis” should be located. RD, at 17-18; Tr. 403. For a patient complaining of chronic shoulder pain, Dr. Durkin explained that an appropriate diagnosis based solely on a history and physical examination would be chronic shoulder pain or acute shoulder pain. RD, at 18; Tr. 403. However, Respondent documented that the UC had a herniated disc and lumbar radiculopathy, which are diagnoses that cannot be made without imaging, or justified by the limited physical examination that Respondent conducted; Dr. Durkin therefore concluded that these assessments do not make sense. RD, at 18, 20; Tr. 403-04, 423-24; GX 1, at 4. Dr. Durkin further noted that while the UC only complained of shoulder pain, the “Assessment” section references back and leg pain with no mention of shoulder pain or a working diagnosis related to the shoulder pain. RD, at 18; Tr. 404. As such, Dr. Durkin concluded that no steps were taken to hone in on an actual diagnosis. 
                    <E T="03">Id.</E>
                </P>
                <P>
                    Overall, Dr. Durkin opined that Respondent's prescribing of 90 tablets of oxycodone 10 mg to the UC on the UC's initial March 11, 2021 visit was “clearly outside the bounds of legitimate prescribing of opioids.” RD, at 19; Tr. 408; 
                    <E T="03">see</E>
                     GX 1, at 4. Dr. Durkin testified that Respondent's diagnosis of the UC did not resemble the UC's complaint or justify opioid therapy, despite Respondent's attempts to generate inaccurate paperwork to justify the prescribing. 
                    <E T="03">Id.</E>
                     Dr. Durkin further testified that issuing an opioid prescription without an established diagnosis is outside the standard of care and that the oxycodone prescription issued to the UC was not issued for a legitimate medical purpose by a 
                    <PRTPAGE P="54049"/>
                    practitioner acting within the normal course of professional practice. RD, at 19; Tr. 408-09, 415. Dr. Durkin noted that the UC presented himself as a high-risk patient by admitting to using opioids that were not prescribed to him, as well as presenting with other concerning factors such as his age and lack of documented treatment history, yet Respondent failed to conduct a sufficient risk assessment. RD, at 19; Tr. 409-11. Additionally, Respondent completely ignored red flags of abuse and diversion and therefore disregarded the risks associated with prescribing oxycodone to the UC. 
                    <E T="03">Id.</E>
                     Dr. Durkin also testified that Respondent failed to obtain informed consent from the UC for prescribing opioids because he failed to discuss the risks of opioids, possible interactions with other substances, and proper storage and disposal, and failed to advise the UC to discontinue the opioids if they were not effective. RD, at 18-19; Tr. 405-406.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         On cross-examination, Dr. Durkin was asked whether his opinions would change if the UC had filled out an intake form or pain management agreement that was not included in the files that he reviewed. RD, at 14-15; Tr. 469, 474-76, 479-80, 534-35, 546-49, 551-53, 481-87. Dr. Durkin testified that these documents would not change his opinions. 
                        <E T="03">Id.</E>
                         Although intake forms can be a good starting point to initiate a patient visit, they do not absolve a physician of the duty to have the necessary discussions with his patient to establish a diagnosis or treatment plan. RD, at 14-15; Tr. 479-80, 534-35. And if a patient had filled out a pain management agreement prior to the visit that the physician did not discuss with the patient during the visit, it would generate an additional red flag because it would indicate that the practice was prescribing opioids readily. RD, at 15; Tr. 548, 552-53. Moreover, the Agency may infer from Respondent's failure to produce these forms that they would not be supportive of his case. 
                        <E T="03">Pharmacy Drs. Enters.,</E>
                         83 FR 10876, 10899 (2018) (“[W]hen a party has relevant evidence within his control which he fails to produce, that failure gives rise to an inference that the evidence is unfavorable to him.”); 
                        <E T="03">UAW</E>
                         v. 
                        <E T="03">NLRB,</E>
                         459 F.2d 1329, 1338 (D.C. Cir. 1972); 
                        <E T="03">Huthnance</E>
                         v. 
                        <E T="03">DC,</E>
                         722 F.3d 371, 378 (D.C. Cir. 2013).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Follow-Up Visits (April 2021-October 2021)</HD>
                <P>Regarding the UC's follow-up visit to Respondent on April 8, 2021, Dr. Durkin testified that he would expect to see in the “History of Present Illness” section of the medical file an assessment of the UC's functional gains and improvements related to the treatment plan, whether the UC's condition had worsened, and how the UC was doing since the last visit. RD, at 20; Tr. 420-21. However, Dr. Durkin testified that the visit was very brief, lasting approximately one minute, and Respondent's examination of the UC was only “a quick look at the patient as he popped his head in the room.” RD, at 20; Tr. 420. Dr. Durkin testified that despite this, the notes in the “History of Present Illness” section are, again, far more extensive than what actually occurred during the visit and the patient record does not accurately reflect the visit. RD, at 20; Tr. 421-22; GX 1, at 6-9; GX 4, GX 5, at 1-2. According to Dr. Durkin, although the patient file indicates that a thorough examination and pain assessment took place, including notes of symptoms that were not discussed, the actual April 8, 2021 visit only consisted of a “how are you doing, we'll see you next month[,] . . . I'll send in your prescription refills.” RD, at 20; Tr. 421-22; GX 1, at 6-8; GX 4; GX 5, at 1-2. In addition to continuing to include the unsupported diagnoses of herniated discs and lumbar radiculopathy, the medical records also falsely indicate that Respondent checked I-STOP, executed an opioid agreement with the UC, discussed physical therapy, and reviewed the pain management policies of Respondent's practice, as well as the expectations of opioid treatment and treatment goals. RD, at 20-21; Tr. 423-26; GX 1, at 9; GX 4; GX 5, at 1-2.</P>
                <P>
                    Dr. Durkin testified that Respondent did not obtain the UC's informed consent for continued opioid treatment and that Respondent could not have adequately examined the UC to justify prescribing opioids during this one-minute visit. RD, at 21; Tr. 424, 426-27. Ultimately, Dr. Durkin opined that the prescription for 90 tablets of oxycodone 10 mg issued by Respondent to the UC on April 8, 2021, was not issued for a legitimate medical purpose by a practitioner acting within the normal course of professional practice. RD, at 21; Tr. 427; 
                    <E T="03">see</E>
                     GX 1, at 9.
                </P>
                <P>
                    Regarding the UC's approximately monthly follow-up visits (both in-person and via telehealth) to Respondent through October 2021, Dr. Durkin again observed concerning deficiencies and contradictions between the recordings and the medical records similar to his concerns with the initial visit. RD, at 21-22; Tr. 427-462; GX 1, at 10-26; GX 6; GX 7, at 1-3; GX 8; GX 9, at 1-2; GX 10; GX 11; GX 12; GX 13, at 1-5; GX 14; GX 15; 
                    <E T="03">see also</E>
                     GX 17, at 1, 5, 6, 9, 10, 12. Ultimately, Dr. Durkin opined that the prescriptions issued by Respondent to the UC, each for 90 tablets of oxycodone 10 mg, were not issued for a legitimate medical purpose by a practitioner acting within the normal course of professional practice. RD, at 21-22.
                </P>
                <P>In sum, based on his review of the recordings and the related medical records of the UC's visits with Respondent, Dr. Durkin opined that all of the prescriptions issued by Respondent to the UC for oxycodone were not issued for a legitimate medical purpose by a practitioner acting within the normal course of professional practice. RD, at 22; Tr. 461. Dr. Durkin further opined that Respondent's prescribing of oxycodone to the UC was likely to cause harm to the UC and fell below the standard of care for a practitioner in New York. RD, at 22; Tr. 462.</P>
                <P>Respondent offered no testimony or documentary evidence and did not present a case-in-chief. RD, at 22.</P>
                <HD SOURCE="HD1">II. Discussion</HD>
                <HD SOURCE="HD2">A. The Five Public Interest Factors</HD>
                <P>Under the Controlled Substances Act (CSA), “[a] registration . . . to . . . dispense a controlled substance . . . may be suspended or revoked by the Attorney General upon a finding that the registrant . . . has committed such acts as would render his registration under section 823 of this title inconsistent with the public interest as determined under such section.” 21 U.S.C. 824(a). In making the public interest determination, the CSA requires consideration of the following factors:</P>
                <EXTRACT>
                    <P>(A) The recommendation of the appropriate State licensing board or professional disciplinary authority.</P>
                    <P>(B) The [registrant's] experience in dispensing, or conducting research with respect to controlled substances.</P>
                    <P>(C) The [registrant's] conviction record under Federal or State laws relating to the manufacture, distribution, or dispensing of controlled substances.</P>
                    <P>(D) Compliance with applicable State, Federal, or local laws relating to controlled substances.</P>
                    <P>(E) Such other conduct which may threaten the public health and safety.</P>
                </EXTRACT>
                <FP>21 U.S.C. 823(g)(1).</FP>
                <P>
                    The Agency considers these public interest factors in the disjunctive. 
                    <E T="03">Robert A. Leslie, M.D.,</E>
                     68 FR 15227, 15230 (2003). Each factor is weighed on a case-by-case basis. 
                    <E T="03">Morall</E>
                     v. 
                    <E T="03">Drug Enf't Admin.,</E>
                     412 F.3d 165, 173-74 (D.C. Cir. 2005). Any one factor, or combination of factors, may be decisive. 
                    <E T="03">David H. Gillis, M.D.,</E>
                     58 FR 37507, 37508 (1993).
                </P>
                <P>
                    The Government has the burden of proof in this proceeding. 21 CFR 1301.44. While the Agency has considered all of the public interest factors in 21 U.S.C. 823(g)(1), the Government's evidence in support of its 
                    <E T="03">prima facie</E>
                     case for revocation of Respondent's registration is confined to Factors B and D. RD, at 25; 
                    <E T="03">see also id.</E>
                     at 25 n.32 (finding that Factors A, C, and E do not weigh for or against revocation).
                </P>
                <P>
                    Having reviewed the record and the RD, the Agency agrees with the ALJ, 
                    <PRTPAGE P="54050"/>
                    adopts the ALJ's analysis, and finds that the Government's evidence satisfies its 
                    <E T="03">prima facie</E>
                     burden of showing that Respondent's continued registration would be “inconsistent with the public interest.” 21 U.S.C. 824(a)(4); RD, at 22-41.
                </P>
                <HD SOURCE="HD2">B. Factors B and D</HD>
                <P>
                    Evidence is considered under Public Interest Factors B and D when it reflects compliance (or non-compliance) with laws related to controlled substances and experience dispensing controlled substances. 
                    <E T="03">See Sualeh Ashraf, M.D.,</E>
                     88 FR 1095, 1097 (2023); 
                    <E T="03">Kareem Hubbard, M.D.,</E>
                     87 FR 21156, 21162 (2022). In the current matter, the Government has alleged that Respondent violated numerous Federal and State laws regulating controlled substances. OSC/ISO, at 1-2. Specifically, Federal law requires that “[a] prescription for a controlled substance to be effective must be issued for a legitimate medical purpose by an individual practitioner acting in the usual course of his professional practice.” 21 CFR 1306.04(a).
                    <SU>10</SU>
                    <FTREF/>
                     As for state law, New York regulations also provide that a controlled substance may only be prescribed by “[a] practitioner, in good faith, and in the course of his or her professional practice.” N.Y. Pub. Health Law section 3331(2); 
                    <SU>11</SU>
                    <FTREF/>
                      
                    <E T="03">see also</E>
                     N.Y. Comp. Codes R. &amp; Regs. tit. 10, sections 80.62(a) (practitioners “in the course of their professional practice, may dispense, administer or prescribe controlled substances for legitimate medical purposes or treatment . . . ”), 80.65 (prescriptions for controlled substances “shall be issued for legitimate medical purposes only”), 94.2(e)(2) (a physician assistant may only prescribe controlled substances “in good faith and acting within his or her lawful scope of practice”). Further, New York state law provides that a practitioner's license “may be revoked . . . in whole or in part upon a finding that the licensee or certificate holder has . . . falsified any [required] application, report, or record” or “failed to maintain effective control against diversion of controlled substances . . . .” N.Y. Pub. Health Law section 3390(1), (5).
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         The Agency need not adjudicate the criminal violations alleged in the instant OSC/ISO. 
                        <E T="03">Ruan</E>
                         v. 
                        <E T="03">United States,</E>
                         142 S. Ct. 2,370 (2022) (decided in the context of criminal proceedings).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         A “practitioner” is defined as “[a] physician . . . or other person licensed, or otherwise permitted to dispense, administer or conduct research with respect to a controlled substance in the course of a licensed professional practice . . . .” N.Y. Pub. Health Law section 3302(27).
                    </P>
                </FTNT>
                <P>
                    In the current matter, the Agency agrees with the ALJ's analysis that Respondent repeatedly issued controlled substance prescriptions outside the usual course of professional practice and not for a legitimate medical purpose because, as detailed above, Respondent failed to adequately examine, evaluate, and diagnose the UC to medically justify prescribing him controlled substances, and failed to address red flags of abuse and/or diversion before issuing the prescriptions. RD, at 27-28. Further, Respondent repeatedly and egregiously falsified the UC's medical records, documenting physical examinations, compliance measures, and patient-doctor discussions that did not occur. 
                    <E T="03">Id.</E>
                     As Respondent's conduct displays clear violations of the federal and state regulations described above, the Agency agrees with the ALJ and hereby finds that Respondent repeatedly violated federal and state law relating to controlled substances. RD, at 41. Accordingly, the Agency agrees with the ALJ and finds that Factors B and D weigh in favor of revocation of Respondent's registration and thus finds Respondent's continued registration to be inconsistent with the public interest in balancing the factors of 21 U.S.C. 823(g)(1).
                </P>
                <HD SOURCE="HD1">III. Sanction</HD>
                <P>
                    Where, as here, the Government has established sufficient grounds to revoke Respondent's registration, the burden shifts to the registrant to show why he can be entrusted with the responsibility carried by a registration. 
                    <E T="03">Garret Howard Smith, M.D.,</E>
                     83 FR 18882, 18904 (2018). When a registrant has committed acts inconsistent with the public interest, he must both accept responsibility and demonstrate that he has undertaken corrective measures. 
                    <E T="03">Holiday CVS, L.L.C., dba CVS Pharmacy Nos 219 and 5195,</E>
                     77 FR 62316, 62339 (2012). Trust is necessarily a fact-dependent determination based on individual circumstances; therefore, the Agency looks at factors such as the acceptance of responsibility, the credibility of that acceptance as it relates to the probability of repeat violations or behavior, the nature of the misconduct that forms the basis for sanction, and the Agency's interest in deterring similar acts. 
                    <E T="03">See, e.g.,</E>
                      
                    <E T="03">Robert Wayne Locklear, M.D.,</E>
                     86 FR 33738, 33746 (2021).
                </P>
                <P>Here, although Respondent requested a hearing and submitted a prehearing statement, Respondent ultimately offered no testimony or documentary evidence and did not present a case-in-chief. Respondent's failure to demonstrate any remorse for his actions or offer any assurances about his future compliance weigh strongly against continued registration because his conduct did much to diminish his credibility with the Agency.</P>
                <P>
                    In addition to acceptance of responsibility, the Agency considers both specific and general deterrence when determining an appropriate sanction. 
                    <E T="03">Daniel A. Glick, D.D.S.,</E>
                     80 FR 74800, at 74810 (2015). In this case, the Agency agrees with the ALJ that the interests of specific deterrence weigh in favor of revoking Respondent's registration. RD, at 44; GX 1-17. Further, the Agency agrees with the ALJ that the interests of general deterrence also support revocation, as a lack of sanction in the current matter would send a message to the registrant community that prescribing controlled substances without conducting and documenting even the most basic treatment-related evaluations and examinations can be overlooked or excused. RD, at 44.
                </P>
                <P>
                    Moreover, the Agency agrees with the ALJ that Respondent's actions were egregious. 
                    <E T="03">Id.</E>
                     at 43-44. Not only did Respondent fail to complete all of the necessary components of a proper medical examination to justify the prescribing of opioids, he flagrantly falsified the UC's medical record presumably to evade government scrutiny. Notably, Respondent documented a detailed evaluation and examination of the UC that did not occur. 
                    <E T="03">Id.</E>
                     at 44. This indicates that Respondent was well acquainted with his professional and legal obligations, yet chose to disregard them, despite the serious dangers the prescribed controlled substances posed to the UC, an admitted abuser, and the community. Further, Respondent fabricated diagnoses that were neither tied to the UC's initial complaint nor supported by any imaging that would be necessary to reach such diagnoses. In this case, the Agency believes that revocation of Respondent's registration would deter Respondent and encourage the general registrant community to take caution when prescribing controlled substances and ensure that their medical records are thorough and accurate.
                </P>
                <P>In sum, Respondent has not offered any credible evidence on the record to rebut the Government's case for revocation of his registration and Respondent has not demonstrated that he can be entrusted with the responsibility of registration. RD, at 45. Accordingly, the Agency will order that Respondent's registration be revoked.</P>
                <HD SOURCE="HD1">Order</HD>
                <P>
                    Pursuant to 28 CFR 0.100(b) and the authority vested in me by 21 U.S.C. 824(a), I hereby revoke DEA Certificate of Registration No. MG1185277 issued 
                    <PRTPAGE P="54051"/>
                    to Michael Gore, P.A. Further, pursuant to 28 CFR 0.100(b) and the authority vested in me by 21 U.S.C. 823(g)(1), I hereby deny any pending applications of Michael Gore, P.A., to renew or modify this registration, as well as any other pending application of Michael Gore, P.A., for additional registration in New York. This Order is effective July 29, 2024.
                </P>
                <HD SOURCE="HD1">Signing Authority</HD>
                <P>
                    This document of the Drug Enforcement Administration was signed on June 21, 2024, by Administrator Anne Milgram. That document with the original signature and date is maintained by DEA. For administrative purposes only, and in compliance with requirements of the Office of the Federal Register, the undersigned DEA Federal Register Liaison Officer has been authorized to sign and submit the document in electronic format for publication, as an official document of DEA. This administrative process in no way alters the legal effect of this document upon publication in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <NAME>Heather Achbach, </NAME>
                    <TITLE>Federal Register Liaison Officer, Drug Enforcement Administration.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14195 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Drug Enforcement Administration</SUBAGY>
                <SUBJECT>Lisa Jones, N.P.; Decision and Order</SUBJECT>
                <P>
                    On July 18, 2023, the Drug Enforcement Administration (DEA or Government) issued an Order to Show Cause (OSC) to Lisa Jones, N.P. (Registrant). Request for Final Agency Action (RFAA), Exhibit (RFAAX) 2, at 1, 3. The OSC proposed the revocation of Registrant's Certificate of Registration No. MJ7465289 in Wilkesboro, NC 28659. 
                    <E T="03">Id.</E>
                     at 1. The OSC alleged that Registrant's registration should be revoked because Registrant is “currently without authority to prescribe, administer, dispense, or otherwise handle controlled substances in the State of North Carolina, the state in which [she is] registered with DEA.” 
                    <E T="03">Id.</E>
                     at 2 (citing 21 U.S.C. 824(a)(3)).
                </P>
                <P>
                    The OSC notified Registrant of her right to file with DEA a written request for hearing, and that if she failed to file such a request, she would be deemed to have waived her right to a hearing and be in default. 
                    <E T="03">Id.</E>
                     (citing 21 CFR 1301.43). Here, Registrant did not request a hearing. RFAA, at 2.
                    <SU>1</SU>
                    <FTREF/>
                     “A default, unless excused, shall be deemed to constitute a waiver of the [registrant's] right to a hearing and an admission of the factual allegations of the [OSC].” 21 CFR 1301.43(e).
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         Based on the Government's submissions in its RFAA dated September 21, 2023, the Agency finds that service of the OSC on Registrant was adequate. Specifically, the Government's included Notice of Service of Order to Show Cause asserts that Registrant was personally served with the OSC on July 27, 2023. RFAAX 1, at 1. The Government notes that “[Registrant] did not agree to sign a Form DEA-12 acknowledging receipt of the [OSC].” 
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Further, “[i]n the event that a registrant . . . is deemed to be in default . . . DEA may then file a request for final agency action with the Administrator, along with a record to support its request. In such circumstances, the Administrator may enter a default final order pursuant to [21 CFR] §  1316.67.” 
                    <E T="03">Id.</E>
                     § 1301.43(f)(1). Here, the Government has requested final agency action based on Registrant's default pursuant to 21 CFR 1301.43(c), (f), 1301.46. RFAA, at 1; 
                    <E T="03">see also</E>
                     21 CFR 1316.67.
                </P>
                <HD SOURCE="HD1">Findings of Fact</HD>
                <P>
                    The Agency finds that, in light of Registrant's default, the factual allegations in the OSC are admitted. According to the OSC, effective March 13, 2023, the North Carolina Board of Nursing inactivated Respondent's nurse practitioner license. RFAAX 2, at 1. According to North Carolina online records, of which the Agency takes official notice, Registrant's nurse practitioner license is under an “Inactive” status.
                    <SU>2</SU>
                    <FTREF/>
                     North Carolina Board of Nursing License Verification Search, 
                    <E T="03">https://portal.ncbon.com/licenseverification/search.aspx</E>
                     (last visited date of signature of this Order). Accordingly, the Agency finds that Registrant is not licensed as a nurse practitioner in North Carolina, the state in which she is registered with DEA.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         Under the Administrative Procedure Act, an agency “may take official notice of facts at any stage in a proceeding—even in the final decision.” United States Department of Justice, Attorney General's Manual on the Administrative Procedure Act 80 (1947) (Wm. W. Gaunt &amp; Sons, Inc., Reprint 1979). Pursuant to 5 U.S.C. 556(e), “[w]hen an agency decision rests on official notice of a material fact not appearing in the evidence in the record, a party is entitled, on timely request, to an opportunity to show the contrary.” Accordingly, Registrant may dispute the Agency's finding by filing a properly supported motion for reconsideration of findings of fact within fifteen calendar days of the date of this Order. Any such motion and response shall be filed and served by email to the other party and to the DEA Office of the Administrator, Drug Enforcement Administration at 
                        <E T="03">dea.addo.attorneys@dea.gov.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Discussion</HD>
                <P>
                    Pursuant to 21 U.S.C. 824(a)(3), the Attorney General is authorized to suspend or revoke a registration issued under 21 U.S.C. 823 “upon a finding that the registrant . . . has had his State license or registration suspended . . . [or] revoked . . . by competent State authority and is no longer authorized by State law to engage in the . . . dispensing of controlled substances.” With respect to a practitioner, DEA has also long held that the possession of authority to dispense controlled substances under the laws of the state in which a practitioner engages in professional practice is a fundamental condition for obtaining and maintaining a practitioner's registration. 
                    <E T="03">See, e.g.,</E>
                      
                    <E T="03">James L. Hooper, D.O.,</E>
                     76 FR 71371, 71372 (2011), 
                    <E T="03">pet. for rev. denied,</E>
                     481 F. App'x 826 (4th Cir. 2012); 
                    <E T="03">Frederick Marsh Blanton, D.O.,</E>
                     43 FR 27616, 27617 (1978).
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         This rule derives from the text of two provisions of the Controlled Substances Act (CSA). First, Congress defined the term “practitioner” to mean “a physician . . . or other person licensed, registered, or otherwise permitted, by . . . the jurisdiction in which he practices . . . , to distribute, dispense, . . . [or] administer . . . a controlled substance in the course of professional practice.” 21 U.S.C. 802(21). Second, in setting the requirements for obtaining a practitioner's registration, Congress directed that “[t]he Attorney General shall register practitioners . . . if the applicant is authorized to dispense . . . controlled substances under the laws of the State in which he practices.” 21 U.S.C. 823(g)(1). Because Congress has clearly mandated that a practitioner possess state authority in order to be deemed a practitioner under the CSA, DEA has held repeatedly that revocation of a practitioner's registration is the appropriate sanction whenever he is no longer authorized to dispense controlled substances under the laws of the state in which he practices. 
                        <E T="03">See, e.g.,</E>
                          
                        <E T="03">James L. Hooper,</E>
                         76 FR 71371-72; 
                        <E T="03">Sheran Arden Yeates, D.O.,</E>
                         71 FR 39130, 39131 (2006); 
                        <E T="03">Dominick A. Ricci, D.O.,</E>
                         58 FR 51104, 51105 (1993); 
                        <E T="03">Bobby Watts, D.O.,</E>
                         53 FR 11919, 11920 (1988); 
                        <E T="03">Frederick Marsh Blanton,</E>
                         43 FR 27617.
                    </P>
                </FTNT>
                <P>
                    According to North Carolina statute, “dispense” means “to deliver a controlled substance to an ultimate user or research subject by or pursuant to the lawful order of a practitioner, including the prescribing, administering, packaging, labeling, or compounding necessary to prepare the substance for that delivery.” N.C. Gen. Stat. Ann. section 90-87(8) (West 2023). Further, a “practitioner” means a “physician . . . or other person licensed, registered or otherwise permitted to distribute, dispense, conduct research with respect to or to administer a controlled substance so long as such activity is within the normal course of professional practice or research in this State.” 
                    <E T="03">Id.</E>
                     at section 90-87(22)(a).
                </P>
                <P>
                    Here, the undisputed evidence in the record is that Registrant lacks authority to practice as a nurse practitioner in North Carolina. As discussed above, an individual must be a licensed practitioner to dispense a controlled 
                    <PRTPAGE P="54052"/>
                    substance in North Carolina. Thus, because Registrant lacks authority to practice as a nurse practitioner in North Carolina and, therefore, is not authorized to handle controlled substances in North Carolina, Registrant is not eligible to maintain a DEA registration. Accordingly, the Agency will order that Registrant's DEA registration be revoked.
                </P>
                <HD SOURCE="HD1">Order</HD>
                <P>Pursuant to 28 CFR 0.100(b) and the authority vested in me by 21 U.S.C. 824(a), I hereby revoke DEA Certificate of Registration No. MJ7465289 issued to Lisa Jones, N.P. Further, pursuant to 28 CFR 0.100(b) and the authority vested in me by 21 U.S.C. 823(g)(1), I hereby deny any pending applications of Lisa Jones N.P., to renew or modify this registration, as well as any other pending application of Lisa Jones N.P., for additional registration in North Carolina. This Order is effective July 29, 2024.</P>
                <HD SOURCE="HD1">Signing Authority</HD>
                <P>
                    This document of the Drug Enforcement Administration was signed on June 21, 2024, by Administrator Anne Milgram. That document with the original signature and date is maintained by DEA. For administrative purposes only, and in compliance with requirements of the Office of the Federal Register, the undersigned DEA Federal Register Liaison Officer has been authorized to sign and submit the document in electronic format for publication, as an official document of DEA. This administrative process in no way alters the legal effect of this document upon publication in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <NAME>Heather Achbach, </NAME>
                    <TITLE>Federal Register Liaison Officer, Drug Enforcement Administration.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14200 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Drug Enforcement Administration</SUBAGY>
                <DEPDOC>[Docket No. 23-29]</DEPDOC>
                <SUBJECT>Jeffrey Pollock, P.A.; Decision and Order</SUBJECT>
                <P>
                    On February 6, 2023, the Drug Enforcement Administration (DEA or Government) issued an Order to Show Cause and Immediate Suspension of Registration (OSC/ISO) to Jeffrey Pollock, P.A., (Respondent) of Midvale, Utah. OSC/ISO, at 1. The OSC/ISO informed Respondent of the immediate suspension of his DEA Certificate of Registration, Control No. MP2900935, pursuant to 21 U.S.C. 824(d), alleging that Respondent's continued registration constitutes “‘an imminent danger to the public health or safety.'” 
                    <E T="03">Id.</E>
                     (quoting 21 U.S.C. 824(d)). The OSC/ISO also proposed the revocation of Respondent's registration, alleging that Respondent's continued registration is inconsistent with the public interest. 
                    <E T="03">Id.</E>
                     (citing 21 U.S.C. 823(g)(1), 824(a)(4)).
                </P>
                <P>
                    A hearing was held before DEA Administrative Law Judge Paul E. Soeffing (the ALJ), who, on July 28, 2023, issued his Recommended Rulings, Findings of Fact, Conclusions of Law, and Decision (Recommended Decision or RD), which recommended revocation of Respondent's registration. RD, at 54. Following the ALJ's Recommended Decision, Respondent filed Exceptions. Having reviewed the entire record, the Agency adopts and hereby incorporates by reference the entirety of the ALJ's rulings, credibility findings,
                    <SU>1</SU>
                    <FTREF/>
                     findings of fact, conclusions of law, sanctions analysis, and recommended sanction as found in the RD.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         The Agency adopts the ALJ's summary of each of the witnesses' testimonies as well as the ALJ's assessment of each of the witnesses' credibility. 
                        <E T="03">See</E>
                         RD, at 2-31. The Agency agrees with the ALJ that the testimony from the DEA Diversion Investigator (DI), which was primarily focused on the introduction of the Government's documentary evidence, the subpoenas the DI issued to obtain documents, and the DI's involvement with the case, was generally consistent without indication of any animosity towards Respondent and thus was fully credible and warranted substantial weight. RD, at 8. The Agency also agrees with the ALJ that the testimony from the Government's expert witness, Dr. Phillip Engen, M.D., which was focused on the Utah standard of care and Respondent's prescribing to Patient J.M., presented an objective analysis that was internally consistent and logically persuasive and thus was credible, reliable, and warranted significant weight. 
                        <E T="03">Id.</E>
                         at 21. Finally, the Agency agrees with the ALJ that the testimony from Respondent, which was focused on his background and his treatment of Patient J.M., was genuine and generally consistent. 
                        <E T="03">Id.</E>
                         at 31. However, as noted by the ALJ, there was minimal evidence offered to corroborate Respondent's testimony and neither the supervising physician nor the pharmacist, both of whom Respondent claims were partners with him in coordinating Patient J.M.'s care, were called as witnesses. 
                        <E T="03">Id.</E>
                         Further, Respondent has a significant personal interest in the outcome of the proceedings that was also considered when weighing the testimony in relation to other evidence presented during the hearing. 
                        <E T="03">Id.</E>
                         Overall, however, the ALJ found, and the Agency agrees, that Respondent's testimony was generally credible. 
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">I. Findings of Fact</HD>
                <HD SOURCE="HD2">1. Utah Standard of Care</HD>
                <P>
                    Dr. Phillip Engen, M.D., testified for the Government as an expert in the area of pain management and the standard of care in the prescribing of controlled substances, specifically oxycodone. RD, at 9; Tr. 86-87. Dr. Engen is an anesthesiologist licensed to practice medicine in Colorado since 1993 and is Board certified in anesthesia, pain medicine, and hospice and palliative medicine.
                    <SU>2</SU>
                    <FTREF/>
                     RD, at 8; Tr. 75; Government Exhibit (GX) 14, at 2-3.
                    <SU>3</SU>
                    <FTREF/>
                     Dr. Engen testified that he has direct experience prescribing opioids for pain, including to patients with addiction issues, and is familiar with the risks associated with prescribing opioids. RD, at 8; Tr. 77, 79, 95.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         For Dr. Engen's full qualifications, 
                        <E T="03">see</E>
                         GX 14; RD, at 8-9.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Dr. Engen testified that he has not seen patients in a clinical setting since the onset of the coronavirus pandemic in March 2020 and that he currently practices predominately forensic medicine, which he described as “[n]ot necessarily” distinct from clinical work; Dr. Engen explained that forensic work “entails looking at patient data. Patient data with patients that are alive—their records when they [are] alive—patient[ ] data when patients are expired, and clinically evaluating the signs and symptoms of opioid overdose-related deaths, or adverse effects.” RD, at 8, 9; Tr. 71, 147-48.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         Dr. Engen asserted that although he currently practices in Colorado, he familiarized himself with Utah state law in preparation for the current matter, including by visiting the Utah Division of Professional Licensing (DOPL) website where he found links and information relating to the Utah Medical Practice Act, Utah's opioid prescribing guidelines, and other Utah state law relating to prescribing opioids. RD, at 9; Tr.78-83. Dr. Engen also testified that he is familiar with the CDC opioid guidelines, which the Utah opioid prescribing guidelines reference. RD, at 9 n.13; Tr. 83.
                    </P>
                </FTNT>
                <P>
                    Regarding the Utah standard of care for a patient inherited from another provider, Dr. Engen testified that the inheriting provider must first evaluate the patient and determine if the patient is within the scope of his or her practice, including by obtaining informed consent and conducting a physical exam. RD, at 21; Tr. 139-40. If the patient is not within the scope of the provider's practice, then the provider must refer the patient out to a qualified specialist. RD, at 21; Tr.139-140. A physician treating a patient for pain is then required to complete a comprehensive evaluation of the patient. RD, at 10; Tr. 89-90.
                    <SU>5</SU>
                    <FTREF/>
                     Further, Dr. Engen testified that the physician must conduct a physical examination of the patient “directed specifically to the nature of the pain history.” RD, at 10; Tr. 90. Prior to prescribing opioids, the physician must query the controlled substance database (CSD) as well as attempt to retrieve records from the previous prescriber if the patient was inherited. RD, at 10; Tr. 90. The physician must also enter into an informed consent and opioid agreement 
                    <PRTPAGE P="54053"/>
                    with the patient establishing the clear functional goals of the opioid therapy and informing the patient of the risks of breaking the agreement. RD, at 10; Tr. 90-91. Dr. Engen testified that after opioid treatment has begun, the patient must be closely monitored, and each follow-up visit with the patient requires the same physical, risk, and functional improvement evaluations as during the initial visit as well as assessment of any adverse effects and aberrant behaviors. RD, at 8 n.12, 10; Tr. 91-92. Dr. Engen testified that signs of aberrant behavior indicative of controlled substance abuse are called “red flags” and that if a red flag is noticed, the red flag must be documented and the prescriber must follow up with, consult, or generate a differential diagnosis for the patient, any/all of which must also be documented. RD, at 13-14; Tr. 99-101. Further, any red flags highlighted in an opioid treatment agreement must be addressed and investigated. RD, at 12; Tr. 191. Dr. Engen explained that urine drug screens are required when prescribing opioids for a prolonged period to make sure that the patients are taking the medications as well as not taking any other unprescribed opioids or illicit substances. RD, at 13; Tr. 98. According to Dr. Engen, if a prescriber finds illicit substances or unprescribed opioids in a patient's urine drug screen, the prescriber must immediately call the patient in because “that's a red flag for misuse and abuse”; during the visit, the prescriber would need to generate a differential diagnosis that either accounts for the improper substance or highlights the suspected abuse. RD, at 13; Tr. 98-99.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Such comprehensive evaluation includes risk assessment, opioid risk assessment, review of history of opioid use, and “documentation of the character of the pain, onset, location, duration, exacerbating factors, relieving factors[,] and all of the items that identify a specific pain complaint.” RD, at 10 (quoting Tr. 90); Tr. 89-90.
                    </P>
                </FTNT>
                <P>
                    Finally, Dr. Engen testified that completing all of these steps, as well as documenting all of these steps, is necessary to protect the patient, provider, and community from the potentially harmful effects of opioids.
                    <SU>6</SU>
                    <FTREF/>
                     RD, at 10-11; Tr. 92-93. Dr. Engen reiterated that a provider in the context of “chronic opioid therapy” is required to document the comprehensive evaluation, risk assessment, physical examination, informed consent and opioid agreement, functional goals, assessment of the functional goals, review of the Prescription Drug Monitoring Program (PDMP) or CSD, and a proper diagnosis. RD, at 11; Tr. 93. Dr. Engen testified that in the context of opioid therapy, “if you don't document it, it did not happen.” RD, at 11 (quoting Tr. 187).
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Such harmful effects can include sleep disorder breathing, hypogonadism, hypoadrenalism, and osteoporosis with long-term opioid use and death as a potential effect of ingesting a high strength opioid. RD, at 11 n.15; Tr. 95-96.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">2. Respondent's Prescribing to Patient J.M.</HD>
                <P>
                    Dr. Engen reviewed CSD prescribing data, medical records, and prescriptions relating to Respondent's prescribing of oxycodone to Patient J.M. from April 21, 2021, through October 4, 2022. RD, at 14; Tr. 101. Respondent is licensed as a Physician Assistant (P.A.) in the state of Utah and has approximately twenty-five years of experience. RD, at 2 (Stip. 4), 22; Tr. 210. Respondent is a hormone and thyroid specialist who does not regularly prescribe opioids 
                    <SU>7</SU>
                    <FTREF/>
                     and has worked under a supervising physician, Dr. K.M., since moving to Utah.
                    <SU>8</SU>
                    <FTREF/>
                     RD, at 3 (Stip. 5), 22, 23; Tr. 210, 216-17. Between April 21, 2021, and September 6, 2022, Respondent issued at least 140 prescriptions for oxycodone, a schedule II controlled substance, in dosages of 20 mg and 30 mg to Patient J.M. RD, at 3-6 (Stips. 6-7).
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Respondent testified that after his graduation in 1998, he worked in occupational and sports medicine for the first seven years of his career, during which he prescribed opioids on a near daily basis while working under the supervision of a physician. RD, at 22; Tr. 203-06. According to Respondent, prior to treating Patient J.M., the last time he prescribed opioids was between 2005 and 2006, when he briefly practiced pain management. RD, at 22; Tr. 208-209. Dr. Engen testified that pain management is not within Respondent's usual course of professional practice as he prescribes mostly testosterone, anabolic steroids, and growth hormones, and does not have 4,000 hours of experience treating patients or working with providers who have a chronic pain certification. RD, at 11; Tr. 188-89; 
                        <E T="03">see also</E>
                         Tr. 336-37. Respondent testified that in his current practice, 99% of the controlled substance prescriptions that he writes are for testosterone; further, aside from initial consultations, he sees most of his hormone therapy patients via telehealth. RD, at 22; Tr. 211-12.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Respondent testified that he and Dr. K.M. entered into a written “delegation of services of agreement,” which is a physician supervision agreement that defines the scope of a P.A.'s practice and is required for all P.A.s in Utah until they have completed a certain number of hours of practice experience. RD, at 23; Tr. 217-20; 
                        <E T="03">see also</E>
                         Respondent Exhibit (RX) 5. According to Respondent, supervising physicians are “ultimately responsible” for their P.A.'s practice and P.A.s check everything that they do with their supervising physicians. RD, at 23; Tr. 221. Respondent testified that he consulted Dr. K.M. in all medical decision-making and trusted Dr. K.M.'s judgment; Respondent also testified that Dr. K.M. is directly responsible for Respondent's patients and that treatment decisions are Dr. K.M.'s to make “because [they] ultimately fall[] on him.” RD, at 23; Tr. 221-22. On cross-examination, Respondent agreed that the delegation of services agreement that he entered into with Dr. K.M. states that Respondent will mostly prescribe controlled substances related to hormones and weight loss and that Dr. K.M. must cosign “any medical chart record of a prescription of a Schedule 2 or Schedule 3 controlled substance made by [Respondent].” RD, at 23; Tr. 341-42; RX 5, at 2. Further, the agreement provides that “situations or areas outside of [Respondent's] scope of practice will be referred to the appropriate specialist,” to which Respondent agreed that Dr. K.M. should have signed off on every opioid prescription that Respondent wrote for Patient J.M. and should have referred Patient J.M. to a pain management specialist. RD, at 23; Tr. 342-43; RX 5, at 2.
                    </P>
                </FTNT>
                <P>
                    Respondent testified that he first met with Patient J.M. in March 2021 
                    <SU>9</SU>
                    <FTREF/>
                     and initially observed Patient J.M. to be in poor health; Patient J.M. reported back pain and told Respondent that he had been taking opioids to treat his back pain. RD, at 24; Tr. 222-25; 345-46. According to Respondent, the first visit by Patient J.M. involved discussion of a rehabilitative treatment plan not including opioids. RD, at 24; Tr. 225. Respondent testified that during a later visit, Patient J.M. told him that the provider who had been prescribing him opioids was moving and so he was looking for someone else to prescribe him the medication; 
                    <SU>10</SU>
                    <FTREF/>
                     when Patient J.M. asked if he could continue care and discussed the opioids, Respondent “turned [Patient J.M.] down.” RD, at 24; Tr. 226-27, 346. Respondent testified that after “an emotional plea from [Patient J.M.] who was desperate and talking about how he [felt] so tied to his pain medications,” Respondent consulted Dr. K.M. RD, at 24; Tr. 228-29.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Respondent testified that Patient J.M. initially sought out hormone therapy and to “have somebody available to talk to” and “order a test if needed” as Patient J.M. was a “hypochondriac.” RD, at 24; Tr. 224, 226.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Respondent testified that Patient J.M. requested help in weaning off of opioids to “have a better quality or life or at least a more basic dosing.” RD, at 25; Tr. 229.
                    </P>
                </FTNT>
                <P>
                    Respondent testified that he completed a “full targeted exam on [Patient J.M.]'s back,” the pain of which was related to an ATV rollover incident; Respondent also testified that he conducted multiple examinations throughout the course of his treatment of Patient J.M. but admitted they were not well-documented. RD, at 25; Tr. 231-34. According to Respondent, he requested Patient J.M.'s records from Patient J.M.'s previous providers, and although Patient J.M. said he would provide these records, he never did. RD, at 25; Tr. 234-35, 247.
                    <SU>11</SU>
                    <FTREF/>
                     Respondent also asserted that he would not have gotten to this point if Dr. K.M. had not been “on board” with treating Patient J.M. RD, at 25; Tr. 238. According to 
                    <PRTPAGE P="54054"/>
                    Respondent, he conducted an examination of Patient J.M. with Dr. K.M. and had a “larger visit” that involved Patient J.M., Dr. K.M., and a pharmacist (none of whom were pain specialists). RD, at 25-26, 26 n.26; Tr. 229-30, 239-40, 350. Respondent testified that during the meeting, he checked the CSD database to confirm that Patient J.M. was getting the prescriptions at the dosages and frequencies that he was reporting and to look for red flags. RD, at 26; Tr. 240-42.
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The only records from prior treatment that Patient J.M. provided to Respondent were MRI results from 2017. RD, at 25; Tr. 235, 238; 
                        <E T="03">see also</E>
                         GX 12, at 90-96. Dr. Engen opined that these MRI results were insufficient to substantiate a conclusion that Patient J.M. was experiencing pain and Respondent should have conducted a pain-directed physical examination; however, based on the documentation present in Patient J.M.'s patient file, Dr. Engen could not say definitively whether Respondent had conducted such an exam. RD, at 12; Tr. 165-70, 173; GX 12, at 90-96.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Respondent also testified that the pharmacist sent Respondent a copy of the prescription fill history for Patient J.M. at that pharmacy, and these records gave Respondent a “level of comfort” because there was no indication of opioid abuse. RD, at 26, 26 n.27; Tr. 242-44; 
                        <E T="03">see also</E>
                         GX 12, at 53-75.
                    </P>
                </FTNT>
                <P>
                    According to Dr. Engen, there was no “proper” diagnosis noted in Patient J.M.'s medical records during the first four months of his treatment by Respondent.
                    <SU>13</SU>
                    <FTREF/>
                     RD, at 14; Tr. 102. Nonetheless, Patient J.M. received weekly prescriptions for 150 tablets of oxycodone 20 mg and 200 tablets of oxycodone 30 mg, a dosage of “almost twice the [morphine milligram equivalent (MMS)] of the previous prescriber.” 
                    <SU>14</SU>
                    <FTREF/>
                     RD, at 14; Tr. 103; GX 12, at 53-62. Further, in Dr. Engen's opinion, this frequency and dosage was inappropriate for the conditions noted in Patient J.M.'s medical file. RD, at 14; Tr. 103-04. Dr. Engen noted that the opioid treatment agreement signed by Respondent and Patient J.M. included some of the risks associated with opioid use such as addiction, physical dependence, and potential for withdrawal symptoms.
                    <SU>15</SU>
                    <FTREF/>
                     RD, at 11; Tr. 156-60; 174-75; GX 12, at 51. Further, Dr. Engen noted that he observed indicators that were suggestive of addiction in Patient J.M.'s patient file.
                    <SU>16</SU>
                    <FTREF/>
                     RD, at 12; Tr. 175. More than a year into treatment, Respondent began tapering the opioids for Patient J.M. which Dr. Engen agreed was appropriate; however, Dr. Engen opined that the tapering should have begun earlier than it did as tapering had been an initial goal of the treatment. RD, at 12; Tr. 178.
                    <SU>17</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         Dr. Engen testified that he noticed general notes in the “history of present illness” section of Patient J.M.'s medical records after four months of treatment; however, Dr. Engen did not find any “proper assessment[s] [or] planned diagnoses” in the “assessment and plan” section nor anywhere else in Patient J.M.'s medical file and had to assume diagnoses based on the notes that he saw in the “history of present illness” section. RD, at 14; Tr. 102-03. Dr. Engen also noticed an ICD-10 code for cancer written on the prescriptions at issue in the current matter, but found no substantive documentation noting or supporting this diagnosis. RD, at 14; Tr. 103; GX 11, at 2, 4, 6. Regarding the cancer diagnosis code, Respondent testified that during his meeting with Dr. K.M. and the pharmacist, the pharmacist told Respondent that he needed a diagnosis code for all controlled substance prescriptions; Respondent testified that the pharmacist provided him with the cancer diagnosis code “that the previous provider used.” RD, at 30; Tr. 316; 
                        <E T="03">see, e.g.,</E>
                         GX 11, at 2, 4, 6. Respondent testified that because he thought the diagnosis codes were “just for insurance billing purposes” and he knew that Patient J.M. was not using insurance, he “didn't look into it” and “just documented . . . the ones that he gave me.” RD, at 30; Tr. 316-17.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         Dr. Engen testified that Patient J.M. had previously been prescribed approximately 683 MMEs of opioids per day. RD, at 11; Tr. 160-62; GX 12, at 67. Dr. Engen explained that MMEs—morphine milligram equivalents—are a uniform measurement of the strength of opioids and are utilized to determine opioid-related overdose or death; the higher the MMEs of an opioid dosage, the more likely it is to be associated with an opioid overdose or related death. RD, at 13; Tr. 96. According to Dr. Engen, the CDC opioid prescribing guidelines recommend limiting MME to 50 mg a day and having “extensive conversations with the patient if you want to go to 90 MME.” RD, at 13; Tr. 96-97. Dr. Engen opined that if a patient is being prescribed over 90 MME per day, the provider should have “specific discussions regarding the increased risk of opioid overdose and death” with the patient. RD, at 13; Tr. 97. Further, Dr. Engen testified that the Utah opioid guidelines specifically state that patients taking more than 80 mg of oxycodone a day should be referred to a pain specialist. RD, at 13; Tr. 97.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         Dr. Engen opined, however, that although withdrawal would have been an important consideration for Respondent if Patient J.M. had been an established patient receiving a high dose of opioids, because Patient J.M. was inherited from another provider, Respondent should have referred Patient J.M. to a specialist. RD, at 11-12; Tr. 163-64. Regarding the opioid treatment agreement signed by Respondent and Patient J.M., 
                        <E T="03">see</E>
                         GX 12, at 51-52, Respondent testified that he and Dr. K.M. had discussed its contents and Dr. K.M. had reviewed the final draft. RD, at 28; Tr. 252-53. On cross-examination, Respondent agreed that violation of the opioid treatment agreement should have resulted in the safe discontinuation of his care of Patient J.M. RD, at 29; Tr. 351.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         Dr. Engen also opined that it is “medically probable” that the erectile dysfunction, low testosterone, and delirium experienced by Patient J.M. as noted in his patient file were caused by long-term opioid use at an “egregiously large,” “toxic” dosage. RD, at 12; Tr. 175-78. Respondent testified that erectile dysfunction had been a longstanding issue for Patient J.M. and was only included in the notes because Patient J.M. expressed interest in trying a new “shockwave therapy” treatment. RD, at 29; Tr. 259, 261; 
                        <E T="03">see also</E>
                         GX 12, at 40.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         Dr. Engen noted that the tapering of opioids for Patient J.M. did not begin until nearly eight months after a delirium incident in September 2021 that resulted in Patient J.M. visiting an emergency room. RD, at 12 n.17; Tr. 189-90; GX 12, at 41. Regarding this incident, Respondent testified that the episode was not opioid-related and so he decided to not “follow through with much.” RD, at 29; Tr. 256-67. Even so, Respondent acknowledged and agreed with Dr. Engen that his documentation was “way subpar, especially for this.” RD, at 29; Tr. 258.
                    </P>
                </FTNT>
                <P>
                    Respondent testified that the amount of medication he prescribed to Patient J.M. was related to a discussion with the pharmacist about Patient J.M.'s tolerance to opioids; further, Dr. K.M. was “on board” with the amounts prescribed. RD, at 26; Tr. 244-45. Respondent testified that the goal of treatment was to wean Patient J.M. off of opioids but after the ATV accident, they “decided to just not wean, but to give him some pain relief . . . ”; Respondent also testified that his attempts to wean Patient J.M. off of opioids were “met with a lot of resistance.” RD, at 27; Tr. 245-46, 253.
                    <SU>18</SU>
                    <FTREF/>
                     RD, at 27; Tr. 245-46. Further, Respondent testified that Dr. K.M. “played a big part” in his continuing to prescribe opioids to Patient J.M. and that he would “just kind of do what [Dr. K.M.] ask[ed] for the most part.” RD, at 27; Tr. 249-50.
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         Regarding steps he took to refer Patient J.M. to a specialist, Respondent testified that he told Patient J.M. that he did not feel qualified or comfortable continuing prescribing him opioids; further, Respondent testified that he documented this conversation and Patient J.M. agreed to look for another provider. RD, at 27; Tr. 369-70. Respondent testified that he never issued an official written referral, but did provide names of suggested practitioners; these practitioners were pain management specialists, not addiction specialists. RD, at 27; Tr. 370-71.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         Respondent testified that he had in-person visits with Patient J.M. every two weeks and was not concerned about Patient J.M. diverting his medication because Patient J.M. was wealthy; moreover, Respondent witnessed Patient J.M. take his medication when his watch timer went off, as well as concluded that someone taking so much medication would not give his or her medication away. RD, at 26-27; Tr. 233, 246-47, 250-51.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">3. Improper Documentation</HD>
                <P>
                    Dr. Engen noted that although the opioid agreement signed by Respondent and Patient J.M. was dated April 21, 2021, and the first opioid prescription Respondent wrote for Patient J.M. was dated April 21, 2021, the first documented visit from Patient J.M. was nearly four months later on August 2, 2021. RD, at 14-15; Tr. 104-05; GX 12, at 49, 51. Notably, Patient J.M. had been prescribed approximately 5,000 oxycodone tablets without proper documentation in the medical record. RD, at 15; Tr. 105; GX 11, at 1; GX 13, at 1. Further, Dr. Engen opined that the medical records for Patient J.M.'s August 2, 2021 visit do not contain sufficient information to support any medical diagnoses and were entirely inadequate for either an initial or follow-up visit. RD, at 15; Tr. 106-08.
                    <SU>20</SU>
                    <FTREF/>
                     Specifically, Dr. Engen observed that no history, physical exam, assessment, functional evaluation, or attempts to assess aberrant behavior or adverse effects of medications were documented 
                    <PRTPAGE P="54055"/>
                    from this visit. RD, at 15; Tr. 105; GX 12, at 49. The records for the August 25, 2021 visit were similarly inadequate 
                    <SU>21</SU>
                    <FTREF/>
                     and insufficient to justify the high amount of oxycodone prescribed (350 tablets a week). RD, at 16; Tr.111.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         Dr. Engen testified that if this had been a first office visit by Patient J.M., there should have been documentation of a comprehensive evaluation, a pain-directed physical examination, a “proper diagnosis,” and a diagnosis and functional goals assessment plan; if this had been a follow-up visit, there should have been documentation of a proper diagnosis, a pain-directed physical examination and diagnosis, and an assessment of adverse effects, aberrant behaviors, and progress towards therapeutic goals. RD, at 15; Tr. 107-08.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         Dr. Engen testified that the only notes present for the August 25, 2021 visit indicate that Patient J.M. was “doing ok, no new problems . . . [s]ome increased pain recently due to extra effort put into opening new store”; further, Respondent wrote Patient J.M. an early refill because he would be on vacation. RD, at 16; Tr. 110; GX 12, at 46.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         Respondent repeatedly wrote Patient J.M. a prescription for oxycodone 30 mg, four to five tablets every four hours, 200 tablets per week, and a prescription for oxycodone 20 mg, three to four tablets every four hours, 150 tablets per week. RD, at 16; Tr. 110; GX 12, at 46.
                    </P>
                </FTNT>
                <P>
                    Moreover, the records for all of the following visits were inadequate and insufficient to justify the high amount of oxycodone prescribed: 1) Patient J.M.'s September 7, 2021 visit, in which Dr. Engen observed no notes at all despite CSD data showing that Respondent wrote a prescription for 150 tablets of oxycodone 20 mg for Patient J.M. and Patient J.M. filled the prescription; 2) Patient J.M.'s March 16, 2022 visit, in which Dr. Engen observed no notes other than an indication that Respondent again wrote prescriptions for Patient J.M. for 200 tablets of oxycodone 30 mg and 150 tablets of oxycodone 20 mg; and 3) Patient J.M's April 21, 2022 visit, in which Dr. Engen noted that while Respondent included notes indicative of a physical examination, the documentation was still insufficient to justify the opioid prescriptions as the notes were not thorough enough, the notes lacked a plan or assessment, and the type of pain noted (muscle pain) was not an indication for opioid treatment. RD, at 16, 19, 20; Tr. 112, 127-28, 133; GX 12, at 20, 25, 45; GX 13, at 1.
                    <SU>23</SU>
                    <FTREF/>
                     Respondent also admitted that he had made after-hours visits to Patient J.M.'s home to conduct medical evaluations, though Respondent neither created nor kept medical records for these visits. RD, at 26 n.28; Tr. 361, 363-64.
                    <SU>24</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         Regarding blank patient notes in Patient J.M.'s medical records, Respondent testified that there had been occasions when he opened a note during a visit but found that “there was really nothing that needed to be documented . . . .” RD, at 28-29; Tr. 254-55; 
                        <E T="03">see, e.g.,</E>
                         GX 12, at 45.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         Respondent testified that despite visiting Patient J.M.'s house numerous times and sharing his personal cell phone number with Patient J.M., he did not have a personal relationship with Patient J.M. RD, at 26 n.28; Tr. 328, 347-48.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">4. Failure To Properly Address Red Flags of Abuse/Diversion</HD>
                <P>
                    Dr. Engen highlighted a note from the August 2, 2021 visit that indicated that Patient J.M. had lost prescriptions and was given replacement prescriptions during this visit; Dr. Engen opined that the loss and replacement of opioid prescriptions caused him concern for two reasons. RD, at 15; Tr. 105, 108; GX 12, at 49. One reason was that Patient J.M., who has an opioid use disorder, could have been taking more opioids than prescribed. RD, at 15; Tr. 108. The second reason was that the authorities were not notified of a high-dose, large quantity oxycodone prescription that might be found and filled by someone else. RD, at 15; Tr. 109. Dr. Engen opined that this red flag of a lost prescription was not properly addressed because there was no documented differential diagnosis, no documentation that local authorities were contacted, and no documented urine drug screen ordered to determine the medications present in Patient J.M.'s system. RD, at 15-16; Tr. 109.
                    <SU>25</SU>
                    <FTREF/>
                     Similarly, with regard to the February 9, 2022 visit, Dr. Engen said the record indicated that Patient J.M. was in the process of moving and had misplaced prescriptions. RD, at 17; Tr. 122; GX 12, at 28. On this occasion, Respondent reissued prescriptions for oxycodone 20 mg and 30 mg, noting that he “checked CSD and last fill was [February] 3.” RD, at 17-18; Tr. 122-23; GX 12, at 28.
                    <SU>26</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         Regarding the issue of lost prescriptions, Respondent testified that Patient J.M. lost his prescriptions on two or three separate occasions; Respondent testified that Patient J.M. was able to locate the missing prescriptions and return them to Respondent for disposal on one occasion, and on another occasion, Patient J.M. destroyed a missing prescription over video call with Respondent. RD, at 29-30; Tr. 260, 358, 360; 
                        <E T="03">see also</E>
                         GX 12, at 28, 49. Respondent also testified that he monitored the CSD to ensure that the missing prescriptions “didn't surface” and were not filled. RD, at 30; Tr. 359. On cross-examination, Respondent testified that he never conducted a pill count of Patient J.M. despite the lost prescriptions and early refill requests by Patient J.M. RD, at 30; Tr. 353-54.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         Dr. Engen noted that during the August 2, 2021 visit, Respondent noted in the medical file that he would no longer offer replacement prescriptions. RD, at 18; Tr. 123; GX 12, at 49. Dr. Engen reiterated that missing prescriptions warranted a differential diagnosis and Respondent should have contacted local authorities to track the prescriptions; moreover, all of these required actions needed to be documented. RD, at 18; Tr. 123; GX 12, at 28.
                    </P>
                </FTNT>
                <P>
                    In addition to Patient J.M.'s instances of missing prescriptions, Dr. Engen also highlighted that notes from Patient J.M.'s March 3, 2022, and April 21, 2022 visits indicated that urine drug screens of Patient J.M. had tested positive for hydrocodone, a non-prescribed opioid. RD, at 18, 19; Tr. 124-25, 130; GX 12, at 20, 26. Dr. Engen explained that a non-prescribed opioid present in a urine drug screen is a red flag that needed to be addressed; specifically, Respondent should have created a differential diagnosis and discussed medication-assisted addiction treatment with Patient J.M. as well as documented this resolution. RD, at 18, 19; Tr. 125, 130-31. Instead, Respondent in both instances prescribed Patient J.M. 200 tablets of oxycodone 30 mg and 150 tablets of oxycodone 20 mg without documenting that any such action had been taken. RD, at 18, 20; Tr. 125-26, 132-33; GX 12, at 20, 26.
                    <SU>27</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         Respondent testified that he used urine drug screens in his treatment of Patient J.M. because Patient J.M. was receiving a high dose of medication and he wanted to make sure that Patient J.M. was not getting additional medication elsewhere that could elevate risks; Respondent testified that he ordered urine drug screens for Patient J.M. “pretty regularly” and Patient J.M. always complied. RD, at 29; Tr. 258-59. Regarding the note reporting hydrocodone in Patient J.M.'s urine drug screen, Respondent testified that the note was a typo and that the tests he used for Patient J.M. did not test for hydrocodone. RD, at 29; Tr. 266-67, 354-55; 
                        <E T="03">see also</E>
                         GX 12, at 20. Dr. Engen opined that Respondent's actions were insufficient and opined that the positive result on this test should have resulted in Respondent ordering a more precise “confirmatory” test. RD, at 19 n.19; Tr.131-32; 
                        <E T="03">see also</E>
                         GX 12, at 20. Even so, based on Patient J.M.'s patient file note from the April 21, 2022 visit indicating a positive result for “opiates/hydrocodone,” Dr. Engen testified that he would assume that the test that Respondent used was sensitive enough to detect and differentiate oxycodone (as an opiate) and hydrocodone. RD, at 19 n.19; Tr. 131-32; 
                        <E T="03">see also</E>
                         GX 12, at 20.
                    </P>
                </FTNT>
                <P>Finally, Dr. Engen opined that an early refill given to Patient J.M. during his August 15, 2022 visit due to travel was a red flag that was not properly addressed or documented by Respondent. RD, at 20; Tr. 134-136; GX 12, at 5.</P>
                <HD SOURCE="HD2">5. Failure To Address Signs of Adverse Effects</HD>
                <P>
                    Dr. Engen highlighted a note from Patient J.M.'s September 27, 2021 visit that indicated Patient J.M. had been feeling “groggy”—which Dr. Engen explained can be indicative of delirium, an “acute toxic effect” of opioids—and had visited the emergency room. RD, at 16-17; Tr. 113; GX 12, at 41. Dr. Engen opined that this instance of delirium was particularly concerning to him because the opioid doses prescribed to Patient J.M. were “clearly” in the range that could cause death. RD, at 17; Tr. 113. According to Dr. Engen, this incident should have resulted in a differential diagnosis and face-to-face physical examination to determine if it was related to the prescribed opioids. RD, at 17; Tr. 113-14. Dr. Engen testified that following this incident, Patient J.M. should have been referred to a pain medicine and/or addiction medicine specialist to consider medication-assisted treatment or a switch away from opioids, but instead, Respondent wrote Patient J.M. two more 
                    <PRTPAGE P="54056"/>
                    prescriptions for oxycodone. RD, at 17; Tr. 114-15; GX 12, at 41.
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         Dr. Engen noted the sleep disordered breathing mentioned throughout Patient J.M.'s medical file and opined that Patient J.M.'s oxygenation was likely affected by the opioids that he was prescribed; Dr. Engen testified that a safety net needed to be created to prevent unintended overdose. RD, at 17; Tr. 113. Dr. Engen also testified that erectile dysfunction was an additional adverse effect of opioids noted during the September 27, 2021 visit; Dr. Engen explained that long-term opioid use can cause low testosterone and can affect the parasympathetic nervous system, either of which could result in erectile dysfunction, and opined that soundwave therapy, which Respondent noted as his recommended treatment, is not appropriate and does not address the opioid-related causes of erectile dysfunction. RD, at 17; Tr. 115-16; GX 12, at 40.
                    </P>
                </FTNT>
                <P>
                    Regarding Patient J.M.'s March 3, 2022 visit, Dr. Engen highlighted notes that Patient J.M. visited the ER once more for gastrointestinal issues such as vomiting blood and inability to swallow 
                    <SU>29</SU>
                    <FTREF/>
                     and a lab result indicated low testosterone. RD, at 18; Tr. 124; GX 12, at 26. Dr. Engen explained that opioids can cause such effects and again opined that a differential diagnosis to account for these adverse effects should have been considered and documented. RD, at 18; Tr. 124-25; GX 12, at 26. Finally, during Patient J.M.'s August 15, 2022 visit, Patient J.M. reported various adverse effects such as stomach problems, brain fog, and memory issues, but Respondent again failed to properly address and document these adverse effects. RD, at 20; Tr. 134-36; GX 12, at 5.
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         Regarding this ER visit, Respondent testified that this occurrence did not cause him concern because Patient J.M. “overreacts sometimes to certain things”; according to Respondent, the cause turned out to be gastroesophageal reflux that was “corrected by acid lowering medications.” RD, at 29; Tr. 260-61.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">6. Weaning Off Patient J.M. From Opioids</HD>
                <P>
                    In the medical file for Patient J.M.'s April 25, 2022 visit, Respondent's notes indicate that he and Patient J.M. discussed the long-term risks of opioid treatment and Patient J.M. stated that he wished to wean off in a safe manner; the initial goal was to lower Patient J.M.'s opioid dosage below 90 MME. RD, at 19; Tr. 128; GX 12, at 22.
                    <SU>30</SU>
                    <FTREF/>
                     Dr. Engen pointed out that Patient J.M.'s opioid therapy had begun nearly a year before this visit and opined that this discussion should have taken place on the first day. RD, at 19; Tr. 128-29
                    <E T="03">; see</E>
                     GX 12, at 51; GX 13, at 1. However, Dr. Engen credited Respondent for recognizing the importance of lowering the dose from the “massive” 1900 MME per day that it had reached, and noted that Respondent did taper the dose by approximately 10% about one month after the April 5, 2022 visit. RD, at 19; Tr. 129. Even with the reduction, Dr. Engen noted that there was still insufficient documentation of a proper diagnosis, treatment plan, assessment, or functional evaluation to justify the dosage. RD, at 19; Tr. 129-30. Respondent continued to lower Patient J.M.'s dose by about 10% during each of Patient J.M.'s visits on July 6, 2022,
                    <SU>31</SU>
                    <FTREF/>
                     August 15, 2022, and September 13, 2022. RD, at 20, 28; Tr. 133-35, 270-71, 329; GX 12, at 2, 5, 11.
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         According to Respondent, this discussion was inspired by Patient J.M.'s reluctance to wean off of opioids and the fact that Patient J.M. had “been on pain meds for so long.” RD, at 27-28; Tr. 264. Respondent testified that after his discussion with Dr. K.M. and realizing that he had been prescribing opioids to Patient J.M. for a year, he was tired of “excuses” to delay Patient J.M.'s weaning off; Respondent felt he needed to “make it happen” because he “just was kind of done with it.” RD, at 28; Tr. 264-65. According to Respondent, he told Dr. K.M. that he felt “locked in” to which Dr. K.M. told Respondent to “make a demand” and start lowering the dosage to Patient J.M. by 10% per month until it reached a “more manageable dose.” RD, at 28; Tr. 265. Respondent noted that he “learned a lot about . . . how this works” and agreed that Patient J.M. should have been referred to a specialist. RD, at 28 n.30; Tr. 266.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         Regarding this visit, Respondent testified that this was the point at which he believed he was beginning to make progress with Patient J.M. because Patient J.M. was being more compliant and the decrease in dosage did not result in increased pain; Respondent believed that Patient J.M. responded positively to their “frank discussion” and there were no more excuses to delay decreasing the dosage. RD, at 28; Tr. 269-70. Though recognizing progress had been made, Dr. Engen opined that Respondent still failed to include sufficient documentation in the patient file to support the still “massive” doses. RD, at 20; Tr. 134.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">7. Respondent's Prescribing to Patient J.M. Was Beneath the Standard of Care</HD>
                <P>
                    Dr. Engen concluded that each of the prescriptions issued by Respondent to Patient J.M. from April 2021 to at least September 2022 was issued outside the usual course of professional practice. RD, at 21; Tr. 142. Specifically, Dr. Engen opined that the amount of opioids prescribed to Patient J.M. was “egregiously excessive,” and that there was no clinical justification for the “nearly 1,000 MME per day increase” from April 21, 2021, to April 28, 2021, and from a previous dose that was already “extremely high.” RD, at 21; Tr. 143. Moreover, Dr. Engen again highlighted that there was insufficient documentation to support a diagnosis that would justify Respondent's prescribing of an “egregious, massive dose” of opioids to Patient J.M. RD, at 21; Tr. 143, 193-94. Dr. Engen opined that Respondent needed to conduct a comprehensive evaluation and develop a comprehensive treatment plan for Patient J.M. that, in light of the documented instances of likely opioid misuse, should have resulted in referral of Patient J.M. to medication-assisted addiction treatment. RD, at 21; Tr. 141-42. Dr. Engen ultimately emphasized that Patient J.M. was likely in a toxic range of oxycodone and oxycodone metabolites, that Respondent's care of Patient J.M. was “grossly negligent” and caused Patient J.M. harm, and that Respondent's care was outside the scope of Respondent's practice and fell below the Utah standard of care. RD, at 21; Tr. 143-44.
                    <SU>32</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         Following an investigation by the Utah DOPL regarding Respondent's care of Patient J.M., Respondent entered into a stipulation with the DOPL that puts Respondent on probation for a period of five years, requires Respondent to have a supervising physician that is in good standing with the DOPL, and prohibits Respondent from prescribing opioids. RD, at 28; Tr. 318-320, 322-324; RX 7. In the stipulation, Respondent admits to making insufficient notations or diagnoses in the medical record to justify his prescribing of oxycodone to Patient J.M. and admits that his treatment of Patient J.M. constituted “unprofessional” conduct under Utah law. RD, at 28; Tr. 356-357; RX 7. Ultimately, Respondent wishes to relinquish his ability to prescribe opioids in the future; Respondent stated that he only needs to be able to handle and prescribe testosterone to be able to keep his practice open. RD, at 31; Tr. 335, 371-372.
                    </P>
                </FTNT>
                <P>
                    Ultimately, the ALJ found, and the Agency agrees, that Respondent's prescribing was outside the usual course of professional practice and in violation of the Utah standard of care. RD, at 43. As described above, Respondent repeatedly failed to conduct and document proper physical examinations of Patient J.M.; repeatedly failed to document diagnoses justifying his continued prescribing of controlled substances to Patient J.M.; repeatedly failed to adequately address and document the risks of Patient J.M.'s continued use of controlled substances; and repeatedly failed to establish and document a proper treatment plan while continually writing Patient J.M. prescriptions for controlled substances at dangerously high dosages. 
                    <E T="03">Id.</E>
                </P>
                <HD SOURCE="HD1">II. Discussion</HD>
                <HD SOURCE="HD1">A. The Five Public Interest Factors</HD>
                <P>
                    Under the Controlled Substances Act (CSA), “[a] registration . . . to . . . dispense a controlled substance . . . may be suspended or revoked by the Attorney General upon a finding that the registrant . . . has committed such acts as would render his registration under section 823 of this title inconsistent with the public interest as determined under such section.” 21 U.S.C. 824(a). In making the public interest determination, the CSA requires consideration of the following factors:
                    <PRTPAGE P="54057"/>
                </P>
                <P>(A) The recommendation of the appropriate State licensing board or professional disciplinary authority.</P>
                <P>(B) The [registrant's] experience in dispensing, or conducting research with respect to controlled substances.</P>
                <P>(C) The [registrant's] conviction record under Federal or State laws relating to the manufacture, distribution, or dispensing of controlled substances.</P>
                <P>(D) Compliance with applicable State, Federal, or local laws relating to controlled substances.</P>
                <P>(E) Such other conduct which may threaten the public health and safety.</P>
                <FP>21 U.S.C. 823(g)(1).</FP>
                <P>
                    The Agency considers these public interest factors in the disjunctive. 
                    <E T="03">Robert A. Leslie, M.D.,</E>
                     68 FR 15227, 15230 (2003). Each factor is weighed on a case-by-case basis. 
                    <E T="03">Morall</E>
                     v. 
                    <E T="03">Drug Enf't Admin.,</E>
                     412 F.3d 165, 173-74 (D.C. Cir. 2005). Any one factor, or combination of factors, may be decisive. 
                    <E T="03">David H. Gillis, M.D.,</E>
                     58 FR 37507, 37508 (1993).
                </P>
                <P>
                    The Government has the burden of proof in this proceeding. 21 CFR 1301.44. While the Agency has considered all of the public interest factors in 21 U.S.C. 823(g)(1), the Government's evidence in support of its 
                    <E T="03">prima facie</E>
                     case for revocation of Respondent's registration is confined to Factors B and D.
                    <SU>33</SU>
                    <FTREF/>
                     RD, at 34; 
                    <E T="03">see also id.</E>
                     at 34 n.34 (finding that for Factor A, while there was an indirect recommendation from the Division of Professional Licensing of the Department of Commerce of the State of Utah, in the form of a stipulation and order related to Respondent's state license to practice as a physician assistant and to administer and prescribe controlled substances, such a recommendation has not historically been a case-dispositive issue under the Agency's precedent, and that Factors C and E do not weigh for or against revocation).
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         Effective December 2, 2022, the Medical Marijuana and Cannabidiol Research Expansion Act, Pub. L. 117-215, 136 Stat. 2257 (2022) (Marijuana Research Amendments or MRA), amended the CSA and other statutes. Relevant to this matter, the MRA redesignated 21 U.S.C. 823(f) as 21 U.S.C. 823(g)(1). When discussing the public interest factors, the RD refers to their former numerical designations (
                        <E T="03">i.e.,</E>
                         1-5) under 21 U.S.C. 823(f).
                    </P>
                </FTNT>
                <P>
                    Having reviewed the record and the RD, the Agency agrees with the ALJ, adopts the ALJ's analysis, and finds that the Government's evidence satisfies its 
                    <E T="03">prima facie</E>
                     burden of showing that Respondent's continued registration would be “inconsistent with the public interest.” 21 U.S.C. 824(a)(4); RD, at 31-48.
                </P>
                <HD SOURCE="HD2">B. Factors B and D</HD>
                <P>
                    Evidence is considered under Public Interest Factors B and D when it reflects compliance (or non-compliance) with laws related to controlled substances and experience dispensing controlled substances. 
                    <E T="03">See Sualeh Ashraf, M.D.,</E>
                     88 FR 1095, 1097 (2023); 
                    <E T="03">Kareem Hubbard, M.D.,</E>
                     87 FR 21156, 21162 (2022). In the current matter, the Government has alleged that Respondent violated numerous federal and state laws regulating controlled substances. OSC/ISO, at 1-3. Specifically, federal law requires that “[a] prescription for a controlled substance to be effective must be issued for a legitimate medical purpose by an individual practitioner acting in the usual course of his professional practice.” 21 CFR 1306.04(a). As for state law, Utah regulations prohibit issuing a prescription for a controlled substance “without first obtaining information in the usual course of professional practice, that is sufficient to establish a diagnosis, to identify conditions, and to identify contraindications to the proposed treatment.” Utah Code Ann. section 58-1-501(2)(m)(i); 
                    <SU>34</SU>
                    <FTREF/>
                      
                    <E T="03">see also id.</E>
                     section 58-37-6(7)(i) (a practitioner may not prescribe controlled substances in excess of medically recognized quantities necessary to treat the ailment, malady, or condition). Further, Utah regulations require that prior to issuing a prescription for opiates, a practitioner must discuss with the patient: “(a) the risks of addiction and overdose associated with opiate drugs; (b) the dangers of taking opiates with alcohol, benzodiazepines, and other central nervous system depressants; (c) the reasons why the prescription is necessary; (d) alternative treatments that may be available; and (e) other risks associated with the use of drugs being prescribed.” 
                    <E T="03">Id.</E>
                     section 58-37-19(2)(a)-(e). Finally, Utah regulations require that prescribing practitioners keep accurate records for each patient reflecting examination, evaluation, and treatment. Utah Admin. Code r. 156-37-602(b). Patient medical records shall: “(i) accurately reflect the prescription or administration of controlled substances in the treatment of the patient; (ii) the purpose for which the controlled substance is utilized; and (iii) information upon which the diagnosis is based.” Utah Admin. Code r. 156-37-602(c).
                    <SU>35</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         Since the issuance of the OSC/ISO, this statute has been redesignated (with the language unchanged) as Utah Code Ann. section 58-1-501(2)(xiii)(A). 
                        <E T="03">See</E>
                         RD, at 36 n.35.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         Utah regulations also require that a “physician assistant who wishes to change specialties to another specialty . . . shall engage in collaboration for a minimum of 4,000 hours with a physician who is trained and experienced in the specialty to which the physician assistant is changing.” Utah Code Ann. section 58-70a-307(4).
                    </P>
                </FTNT>
                <P>
                    In the current matter, the Agency agrees with the ALJ's analysis that Respondent repeatedly issued controlled substance prescriptions to Patient J.M. in violation of the Utah standard of care—and thus outside of the usual course of professional practice—because, as detailed above, Respondent repeatedly failed to conduct and document proper physical examinations of Patient J.M., repeatedly failed to document a diagnosis justifying the prescribing of controlled substances to Patient J.M., repeatedly failed to adequately address and document the risks of prolonged use of controlled substances with Patient J.M., and repeatedly prescribed dangerously high dosages of opioids to Patient J.M. without establishing and documenting a proper treatment plan; further, Respondent lacked the requisite training and experience to issue the prescriptions that he issued to Patient J.M. RD, at 43-48.
                    <SU>36</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         The Agency also agrees with the ALJ's conclusion that none of Respondent's arguments to the contrary, as detailed above, refute this analysis. 
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    As Respondent's conduct displays clear violations of the federal and state regulations described above, 
                    <E T="03">see supra</E>
                     I.7, the Agency agrees with the ALJ and hereby finds that Respondent repeatedly violated federal and state law relating to controlled substances. 
                    <E T="03">Id.</E>
                     at 48. Accordingly, the Agency agrees with the ALJ and finds that Factors B and D weigh in favor of revocation of Respondent's registration and thus finds Respondent's continued registration to be inconsistent with the public interest in balancing the factors of 21 U.S.C. 823(g)(1). 
                    <E T="03">Id.</E>
                </P>
                <HD SOURCE="HD1">III. Sanction</HD>
                <P>
                    Where, as here, the Government has established sufficient grounds to revoke Respondent's registration, the burden shifts to the registrant to show why he can be entrusted with the responsibility carried by a registration. 
                    <E T="03">Garret Howard Smith, M.D.,</E>
                     83 FR 18882, 18910 (2018). When a registrant has committed acts inconsistent with the public interest, he must both accept responsibility and demonstrate that he has undertaken corrective measures. 
                    <E T="03">Holiday CVS, L.L.C., dba CVS Pharmacy Nos 219 and 5195,</E>
                     77 FR 62316, 62339 (2012). Trust is necessarily a fact-dependent determination based on individual circumstances; therefore, the Agency looks at factors such as the acceptance 
                    <PRTPAGE P="54058"/>
                    of responsibility, the credibility of that acceptance as it relates to the probability of repeat violations or behavior, the nature of the misconduct that forms the basis for sanction, and the Agency's interest in deterring similar acts. 
                    <E T="03">See, e.g.,</E>
                      
                    <E T="03">Robert Wayne Locklear, M.D.,</E>
                     86 FR 33738, 33746 (2021).
                </P>
                <P>
                    Here, and as noted by the ALJ, Respondent did admit some fault and accept some responsibility for his misconduct such as admitting and accepting his documentation failures. RD, at 50; Tr. 258. However, as noted by the ALJ, Respondent repeatedly shifted the blame for his misconduct to others. RD, at 51. In particular, Respondent blamed his supervising physician, Dr. K.M., who Respondent testified was “ultimately responsible” for the P.A.'s practice; Respondent also emphasized that he would “just kind of do what [Dr. K.M.] ask[ed] for the most part.” RD, at 50-51; Tr. 221-22, 238, 224-50, 334-35. Therefore, the ALJ concluded, and the Agency agrees, that Respondent has not demonstrated unequivocal acceptance of responsibility for his actions.
                    <SU>37</SU>
                    <FTREF/>
                     RD, at 51 (citing 
                    <E T="03">Jones Total Health Care Pharmacy, L.L.C. &amp; SND Health Care, L.L.C.,</E>
                     81 FR 79188, 79201-02 (2016)).
                    <SU>38</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         In his Exceptions, Respondent argues that other statements he made demonstrate that he “clearly accepted responsibility for his actions.” Exceptions, at 2-4. For example, Respondent stated: “I wrote the prescriptions, and I'm totally responsible for that. It's not [Dr. K.M.]'s fault. It's not [Patient J.M.]'s fault. It's mine;” and “[t]here's a lot of regrets there. I realize the mistakes I made.” Exceptions, at 2-3; Tr. 334, 362-63. In the case cited by Respondent in his Exceptions, the practitioner explained his misconduct, but ultimately took full responsibility and did not shift any of the blame or responsibility to others for his own actions and decisions. Exceptions, at 5 (citing 
                        <E T="03">Wesley G. Harline, M.D., Continuation of Registration With Restrictions,</E>
                         65 5665, 5669 (2000)). In contrast, in the current matter, Respondent has made various statements essentially arguing that he was just doing what he was told to do by his supervising physician, as described above, and in contradiction to his other statements expressing a total acceptance of responsibility. RD, at 50-51; Tr. 221-22, 238, 224-50, 334-35. Therefore, the Agency does not find Respondent's acceptance of responsibility to be fully sincere and unequivocal; Respondent continually shifted between taking total responsibility himself and assigning blame to others.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         In his Exceptions, Respondent argues that he will change his behavior and that “his stipulation with the Utah [DOPL] provides a structure for him to avoid making similar mistakes in the future.” Exceptions, at 2, 5-7. When a registrant fails to make the threshold showing of acceptance of responsibility, the Agency need not address the registrant's remedial measures. 
                        <E T="03">Ajay S. Ahuja, M.D.,</E>
                         84 FR 5479, 5498 n.33 (2019) (citing 
                        <E T="03">Jones Total Health Care Pharmacy,</E>
                         81 FR 79202-03); 
                        <E T="03">Daniel A. Glick, D.D.S.,</E>
                         80 74800, 74801, 74810 (2015). Even so, in the current matter, the ALJ noted, and the Agency has considered, that Respondent testified that he will not “prescribe an opioid again or anything of a real addictive nature of any sort,” as well as that he is less “willing to go along with what people want” and has “tightened up everything” going forward, though Respondent did not offer any further explanation of the latter statement. RD, at 51 n.44; Tr. 373-74. Notably, the stipulation order that Respondent entered into with the Utah DOPL puts Respondent on probation for five years, requires Respondent to have a supervising physician that is in good standing with the Utah DOPL, and prohibits Respondent from prescribing opioids. RD, at 51; Tr. 318-20; 322-24; RX 7. In light of Respondent's failure to unequivocally accept responsibility and due to the egregiousness of his actions and need for deterrence, the Agency does not find that the offered remedial measures are sufficient for it to trust the Respondent with his registration.
                    </P>
                </FTNT>
                <P>
                    In addition to acceptance of responsibility, the Agency considers both specific and general deterrence when determining an appropriate sanction. 
                    <E T="03">Daniel A. Glick, D.D.S.,</E>
                     80 FR 74810. In this case, the Agency agrees with the ALJ that given that Respondent was the sole prescriber that issued all of the prescriptions at issue in the current matter, the interests of specific deterrence weigh in favor of revocation of Respondent's registration. RD, at 53; Tr. 227-238; GX 11-13. Further, the Agency agrees with the ALJ that the interests of general deterrence also support revocation, as a lack of sanction in the current matter would send a message to the registrant community that failure “to complete and document even the most basic treatment-related evaluations and examinations, or document any information related to treatment decisions” can be overlooked or excused. RD, at 53.
                </P>
                <P>
                    Moreover, the Agency agrees with the ALJ that Respondent's actions were egregious. 
                    <E T="03">Id.</E>
                     at 51-53. As stated by the ALJ, “Respondent issued many controlled substance[ ] prescriptions over a one-year period without any regard for his obligations to conduct and document adequate examination and evaluation to justify treatment.” RD, at 51-52.
                    <SU>39</SU>
                    <FTREF/>
                     The ALJ also highlighted that “Respondent's heavy reliance on, and deferral to, Dr. K.M., the pharmacist, and even Patient J.M. himself,
                    <SU>40</SU>
                    <FTREF/>
                     appears to have resulted in an almost complete abdication of Respondent's own role and responsibilities for the proper medical treatment of Patient J.M.” RD, at 52.
                    <SU>41</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         In his Exceptions, Respondent argues that his prescribing did not cause Patient J.M. harm. Exceptions, at 12. Agency precedent is clear that proof of actual, subsequent harm is not required when a registrant has acted inconsistently with the public interest. 
                        <E T="03">Melanie Baker, N.P.,</E>
                         86 FR 23998, 24009 (2021); 
                        <E T="03">Larry C. Daniels, M.D.,</E>
                         86 FR 61630, 61660-61 (2021); 
                        <E T="03">Jeanne E. Germeil, M.D.,</E>
                         85 FR 73786, 73799 n.32 (2020). Even so, the Agency gives substantial weight to the opinion of the Government's expert witness that Respondent's prescribing did cause harm to Patient J.M., with the amount of opioids prescribed to Patient J.M. being “egregiously excessive” and lacking documented clinical justification. Tr. 142-44; 
                        <E T="03">see also</E>
                         RD, at 52.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         The ALJ was particularly concerned “by the instances of notes in Respondent's patient file that were entirely self-reported by Patient J.M., as well as the instances of Patient J.M. essentially treating himself with the capitulation of Respondent.” RD, at 52.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         In his Exceptions, Respondent argues for a limited revocation of his registration, asserting that there is no “rational connection” between his wrongful conduct and a full revocation of his registration because he primarily practices hormone therapy, for which he is fully qualified, and he has never had any issues with respect to prescribing testosterone. Exceptions, at 7-8 (emphasis omitted) (quoting 
                        <E T="03">Hoxie</E>
                         v. 
                        <E T="03">Drug Enf't Admin.,</E>
                         419 F.3d 477, 482 (6th Cir. 2005)) (citing 21 U.S.C. 824(b); 21 CFR 1301.36(c); Tr. 210-13, 215). Respondent also emphasized that he has treated thousands of patients and has never previously been the subject of any other complaints regarding controlled substances. Exceptions, at 8-9 (citing 
                        <E T="03">Krishna-Iyer</E>
                         v. 
                        <E T="03">Drug Enf't Admin.,</E>
                         249 Fed. Appx. 159, 160 (11th Cir. 2007)); Tr. 211, 215. However, in 
                        <E T="03">Jayam Krishna-Iyer, M.D.,</E>
                         74 FR 459 (2009), the Agency stated that “even where the Government proves only a few instances of illegal prescribing in the `entire corpus' of a practitioner's experience, the Government has nonetheless made out a 
                        <E T="03">prima facie</E>
                         case and thus shifted the burden to the registrant to show why he should be entrusted with a [new or continued] registration.” 
                        <E T="03">Jayam Krishna-Iyer,</E>
                         74 FR 464. In the current matter, given the particular egregiousness of Respondent's misconduct as well as Respondent's lack of unequivocal acceptance of responsibility, the Agency finds that considerations of the rest of Respondent's positive experience as a practitioner do not sway the Agency's findings that the Government has made a 
                        <E T="03">prima facie</E>
                         case for revocation of Respondent's registration and Respondent has failed to unequivocally accept responsibility for his actions. As for Respondent's argument of a lack of rational connection between his actions and his primary practice of prescribing testosterone such that full revocation of his registration is unwarranted, the Agency finds that Respondent's misconduct—such as his continuous documentation failures and his continuing to treat a patient while lacking the requisite qualifications and experience—does not speak only to his prescribing of opioids but to his prescribing practices as a whole. Accordingly, the Agency finds that there is undoubtedly a rational connection such that full revocation of his registration is warranted.
                    </P>
                </FTNT>
                <P>In sum, Respondent has not offered any credible evidence on the record to rebut the Government's case for revocation of his registration and Respondent has not demonstrated that he can be entrusted with the responsibility of registration. RD, at 54. Accordingly, the Agency will order that Respondent's registration be revoked.</P>
                <HD SOURCE="HD1">Order</HD>
                <P>
                    Pursuant to 28 CFR 0.100(b) and the authority vested in me by 21 U.S.C. 824(a), I hereby revoke DEA Certificate of Registration No. MP2900935 issued to Jeffrey Pollock, P.A. Further, pursuant to 28 CFR 0.100(b) and the authority vested in me by 21 U.S.C. 823(g)(1), I hereby deny any pending applications of Jeffrey Pollock, P.A., to renew or modify this registration, as well as any other pending application of Jeffrey Pollock, P.A., for additional registration in Utah. This Order is effective July 29, 2024.
                    <PRTPAGE P="54059"/>
                </P>
                <HD SOURCE="HD1">Signing Authority</HD>
                <P>
                    This document of the Drug Enforcement Administration was signed on June 21, 2024, by Administrator Anne Milgram. That document with the original signature and date is maintained by DEA. For administrative purposes only, and in compliance with requirements of the Office of the Federal Register, the undersigned DEA Federal Register Liaison Officer has been authorized to sign and submit the document in electronic format for publication, as an official document of DEA. This administrative process in no way alters the legal effect of this document upon publication in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <NAME>Heather Achbach, </NAME>
                    <TITLE>Federal Register Liaison Officer, Drug Enforcement Administration.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14199 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Drug Enforcement Administration</SUBAGY>
                <DEPDOC>[Docket No. 24-18]</DEPDOC>
                <SUBJECT>Abdul Naushad, M.D.; Decision and Order</SUBJECT>
                <HD SOURCE="HD1">I. Introduction</HD>
                <P>
                    On November 8, 2023, the Drug Enforcement Administration (DEA or Government) issued an Order to Show Cause (OSC) to Abdul Naushad, M.D. (Respondent) of Poplar Bluff, Missouri. OSC, at 1. The OSC proposes the revocation of Respondent's DEA Certificate of Registration (registration) No. BN7853864 on the ground that he has “no state authority to handle controlled substances.” 
                    <SU>1</SU>
                    <FTREF/>
                      
                    <E T="03">Id.</E>
                     (citing 21 U.S.C. 824(a)(3)).
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         “A jury found . . . [Respondent] guilty of health care fraud in 2022. . . . He is currently serving a prison sentence in connection with the crime. Since he cannot practice medicine before his release, he let his Missouri controlled substance license expire on August 31, 2023, and he let his . . . [registration] expire on October 31, 2023.” Respondent's Memorandum of Law in Opposition to the Government's Motion for Summary Disposition and to the Order to Show Cause dated December 18, 2023 (Respondent Opposition), at 2.
                    </P>
                </FTNT>
                <P>
                    By letter dated November 30, 2023, Respondent requested a hearing. The Government requested summary disposition in its “Submission of Evidence and Motion for Summary Disposition” dated December 7, 2023 (Government Summary Disposition Motion). Respondent opposed summary disposition arguing, among other things, that Respondent's registration expired before the OSC was filed, Respondent “has not attempted to renew” it, and, “[s]ince there is nothing to revoke,” summary disposition should be denied and the OSC should be dismissed. (Respondent Opposition), at 1-6. The Chief Administrative Law Judge, John J. Mulrooney II, denied the Government's Motion, “
                    <E T="03">sua sponte”</E>
                     granted summary disposition for Respondent, and recommended that the OSC “be dismissed based on the Agency's lack of jurisdiction over the registration.” Order Denying the Government's Motion for Summary Disposition, Granting a Summary Disposition on Behalf of the Respondent, and Recommending Dismissal of the Order to Show Cause dated January 4, 2024 (RD), at 6.
                </P>
                <P>
                    After considering the entirety of the record, the Agency revokes Respondent's registration because of his undisputed loss of authority to dispense controlled substances in Missouri, the state where he is registered. 21 U.S.C. 824(a)(3); 
                    <E T="03">infra</E>
                     section III; Respondent Opposition, at 1; Government Motion, at 4; RD, at 2.
                </P>
                <HD SOURCE="HD1">
                    II. The Agency's Jurisdiction 
                    <E T="51">2</E>
                    <FTREF/>
                </HD>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         RD, at 6 (“[I]t is herein recommended that the Order to Show Cause dated November 8, 2023, be dismissed based on the Agency's lack of jurisdiction over the registration.”).
                    </P>
                </FTNT>
                <P>
                    To effectuate the goals of combating the international and interstate traffic in illicit drugs, conquering drug abuse, and controlling the legitimate and illegitimate traffic in controlled substances, “Congress devised a closed regulatory system making it unlawful to . . . dispense . . . any controlled substance except in a manner authorized by the C[ontrolled] S[ubstances] A[ct]” (CSA). 
                    <E T="03">Gonzales</E>
                     v. 
                    <E T="03">Raich,</E>
                     545 U.S. 1, 12-13 (2005). Among the responsibilities and prerogatives that the CSA assigns to the Attorney General are to register practitioners to dispense controlled substances, and to de-register them. 
                    <E T="03">E.g.,</E>
                     21 U.S.C. 823(g)(1) and 824(a). The Attorney General delegated these responsibilities to the DEA Administrator. 28 CFR 0.100.
                </P>
                <P>
                    The CSA provides that the Administrator “shall register practitioners . . . to dispense . . . controlled substances . . . if the applicant is authorized to dispense . . . controlled substances under the laws of the State in which he practices.” 21 U.S.C. 823(g)(1). In 21 U.S.C. 824(a), the CSA also provides that the Administrator may suspend or revoke a registration for several reasons, including upon a finding that the registrant “has had his State license or registration suspended, revoked, or denied by competent State authority and is no longer authorized by State law to engage in the . . . dispensing of controlled substances.” 21 U.S.C. 824(a)(3). The CSA does not place a time restriction or constraint on the Administrator's administrative law enforcement investigations, findings, or actions regarding a registrant that may culminate in the suspension or revocation of the registrant's registration, nor is there anything in the record transmitted to the Agency that posits that it does.
                    <SU>3</SU>
                    <FTREF/>
                      
                    <E T="03">Id.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Respondent argues that, as Respondent's registration “expired before the DEA filed an Order to Show Cause, seeking to revoke,” the “Tribunal should deny the [revocation] request . . . [s]ince there is nothing to revoke.” Respondent Opposition, at 1. The RD relies heavily on 21 CFR 1306.36(i) which concerns registrants' options for renewing their DEA registrations. The terms of subsection (i) do not resolve this matter.
                    </P>
                </FTNT>
                <PRTPAGE P="54060"/>
                <P>
                    The CSA's law enforcement provisions, such as 21 U.S.C. 824(a), including the publication of an Agency Decision and Order in the 
                    <E T="04">Federal Register</E>
                    , 21 U.S.C. 877, record and memorialize a 
                    <E T="03">registrant's, not the associated registration's,</E>
                     history under, and compliance with, the CSA, as well as afford the registrant the opportunity to seek judicial review of that Agency Decision and Order, among other things.
                    <SU>4</SU>
                    <FTREF/>
                     Put another way, one way that the Administrator carries out the CSA is by investigating and administratively adjudicating 
                    <E T="03">a registrant's</E>
                     CSA-relevant actions and inactions. When the registrant's actions or inactions call for it, the sanction may be suspension or revocation of the registrant's registration. 21 U.S.C. 824(a). While the sanction involves the registration, the sanction is levied on the registrant and remains in the record throughout the rest of the registrant-Agency relationship, regardless of whether that relationship is either continuous or intermittent. There is good reason for this: otherwise, a registrant who has committed misconduct could thwart law enforcement and avoid accountability simply by not renewing his registration.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         The brief of Respondent and the RD posit that the Administrator is precluded from carrying out the CSA responsibilities that the Attorney General delegated to her because the OSC was issued after the expiration date assigned to Respondent's registration. 
                        <E T="03">See, e.g.,</E>
                         RD, at 3 (“The issue in this case and on these facts is whether the Government's OSC legally warrants a sanction against the . . . [registration] that the Respondent previously held where the charging document was issued after the . . . [registration's] expiration (it does not).”). This position views the Administrator's CSA responsibilities as “sanction[ing]” a 
                        <E T="03">registration</E>
                         as opposed to investigating and administratively adjudicating 
                        <E T="03">a registrant's</E>
                         CSA-relevant actions and inactions pursuant to 21 U.S.C. 824(a).
                    </P>
                </FTNT>
                <P>
                    The particular instant record facts, such as the date that the OSC was issued and the expiration date assigned to Respondent's registration, do not distinguish this matter from the Agency's constitutional and federal common law analyses in 
                    <E T="03">Jeffrey D. Olsen, M.D.</E>
                    <SU>5</SU>
                    <FTREF/>
                     84 FR 68474, 68475-479 (2019); 
                    <E T="03">contra</E>
                     Respondent's Opposition, at 4 and RD, at 5-6 (arguing that 
                    <E T="03">Jeffrey D. Olsen, M.D.</E>
                     should be distinguished from the instant case). In that watershed Decision revoking a respondent's registration, the Agency rejected the Government's argument that the matter was “moot” and should be dismissed because the registrant's registration had expired during the pendency of the proceedings and before a final Decision and Order had been issued. Instead, the Agency adjudicated the matter to finality following its analysis of the constitutional origins of administrative agencies, applicable legal authority, and sound law enforcement policy. Among other things, the Agency discussed differences between Article III courts and adjudications that are not bound by Article III “case or controversy” limitations, such as DEA administrative agency adjudications.
                    <SU>6</SU>
                    <FTREF/>
                      
                    <E T="03">Id.</E>
                     at 84 FR at 68478-79. Those analyses continue to apply.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         In 
                        <E T="03">Jeffrey D. Olsen, M.D.,</E>
                         the doctor did not renew his registration during the Agency's adjudication process. 84 FR 68474-75. The Agency's published Decision is dated just shy of one year after the expiration date assigned to the doctor's registration, rejects the suggestion of mootness, and adjudicates the matter to finality. 
                        <E T="03">Id.</E>
                         at 68474, 68489.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The Agency recognized, in 
                        <E T="03">Jeffrey D. Olsen, M.D.,</E>
                         that it has the discretion to adopt so-called “case or controversy” limitations. 84 FR 68478-79.
                    </P>
                </FTNT>
                <P>
                    As with 
                    <E T="03">Jeffrey D. Olsen, M.D.,</E>
                     the Agency finds that adjudicating this matter to finality supports future interactions between the Agency and Respondent, should they occur, informs current and prospective members of the registrant community about the Agency's expectations of them, provides continuing education to all DEA personnel, helps coordinate law enforcement efforts, and informs stakeholders, such as legislators and the public, about the Agency's work and allows them to provide feedback to the Agency, thereby helping shape how the Agency carries out its CSA responsibilities. 
                    <E T="03">Id.</E>
                     at 68,475-79; 
                    <E T="03">Steven Kotsonis, M.D.,</E>
                     85 FR 85667, 85668-69 (2020). Specifically for Respondent, his filings state that “he cannot practice medicine before his release,” indicating that he may resume the practice of medicine after his release. Respondent Opposition, at 1.
                </P>
                <P>
                    Accordingly, the Agency finds that the benefits of adjudicating this matter to finality include memorializing for the Agency's records the circumstances surrounding Respondent's loss of state authority, Respondent's conviction and incarceration, and Respondent's transparency in his communications with the Agency. Additionally, as this investigation and its adjudication to finality are not particularly complex, it is also an efficient and effective use of Agency resources to issue a final Decision and Order to inform Respondent and the current and prospective members of the registrant community about the significant legal principles it implicates. 
                    <E T="03">Jeffrey D. Olsen, M.D.,</E>
                     84 FR 68475-79; 
                    <E T="03">Steven Kotsonis, M.D.,</E>
                     85 FR 85668-69.
                </P>
                <HD SOURCE="HD1">III. Findings of Fact</HD>
                <P>The Agency finds uncontroverted record evidence that registration number BN7853864 is assigned to Respondent at his registered address in Poplar Bluff, Missouri. Respondent Opposition, at 1; GX 1, at 1. The Agency further finds uncontroverted record evidence that Respondent's Missouri controlled substance registration expired on August 31, 2023. Respondent Opposition, at 1.</P>
                <P>
                    According to Missouri online records, of which the Agency takes official notice, Respondent's Missouri controlled substance registration remains expired.
                    <SU>7</SU>
                    <FTREF/>
                     Primary Source Verification for Missouri Controlled Substance Registrations, 
                    <E T="03">https://healthapps.dhss.mo.gov/mohworxsearch/RegistrantSearch.aspx</E>
                     (last visited date of signature of this Order).
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Further, the Missouri “non-active” medical license look-up shows the status of Respondent's Missouri Medical Physician &amp; Surgeon license (2002024819) as “lapsed.” Missouri Division of Professional Registration, 
                        <E T="03">https://pr.mo.gov/licensee-search-nonactive.asp</E>
                         (last visited date of signature of this Order).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Under the Administrative Procedure Act, an agency “may take official notice of facts at any stage in a proceeding—even in the final decision.” United States Department of Justice, Attorney General's Manual on the Administrative Procedure Act 80 (1947) (Wm. W. Gaunt &amp; Sons, Inc., Reprint 1979). Pursuant to 5 U.S.C. 556(e), “[w]hen an agency decision rests on official notice of a material fact not appearing in the evidence in the record, a party is entitled, on timely request, to an opportunity to show the contrary.” Accordingly, Respondent may dispute the Agency's finding by filing a properly supported motion for reconsideration of findings of fact within fifteen calendar days of the date of this Order. Any such motion and response shall be filed and served by email to the other party and to Office of the Administrator, Drug Enforcement Administration at 
                        <E T="03">dea.addo.attorneys@dea.gov.</E>
                    </P>
                </FTNT>
                <P>
                    Accordingly, the Agency finds uncontroverted record evidence that Respondent is not authorized to handle controlled substances in Missouri, the state in which he is registered with DEA, and has not been since August 31, 2023. 
                    <E T="03">Id.</E>
                </P>
                <HD SOURCE="HD1">IV. Discussion</HD>
                <P>
                    Pursuant to 21 U.S.C. 824(a)(3), the Attorney General is authorized to suspend or revoke a registration issued under section 823 of the CSA “upon a finding that the registrant . . . has had his State license or registration suspended . . . [or] revoked . . . by competent State authority and is no longer authorized by State law to engage in the . . . dispensing of controlled substances.” With respect to a practitioner, the Agency has also long held that authority to dispense controlled substances under the laws of the state in which a practitioner engages in professional practice is a fundamental condition for obtaining and maintaining a practitioner's 
                    <PRTPAGE P="54061"/>
                    registration.
                    <SU>9</SU>
                    <FTREF/>
                      
                    <E T="03">See, e.g., James L. Hooper, M.D.,</E>
                     76 FR 71371, 71372 (2011), 
                    <E T="03">pet. for rev. denied,</E>
                     481 F. App'x 826 (4th Cir. 2012); 
                    <E T="03">Frederick Marsh Blanton, M.D.,</E>
                     43 FR 27616, 27617 (1978).
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         This rule derives from the text of two provisions of the CSA. First, Congress defined the term “practitioner” to mean “a physician . . . or other person licensed, registered, or otherwise permitted, by . . . the jurisdiction in which he practices . . . , to distribute, dispense, . . . [or] administer . . . a controlled substance in the course of professional practice.” 21 U.S.C. 802(21). Second, in setting the requirements for obtaining a practitioner's registration, Congress directed that “[t]he Attorney General shall register practitioners . . . if the applicant is authorized to dispense . . . controlled substances under the laws of the State in which he practices.” 21 U.S.C. 823(g)(1). Because Congress has clearly mandated that a practitioner possess state authority in order to be deemed a practitioner under the CSA, the Agency has held repeatedly that revocation of a practitioner's registration is the appropriate sanction whenever he is no longer authorized to dispense controlled substances under the laws of the state in which he practices. 
                        <E T="03">See, e.g., James L. Hooper,</E>
                         76 FR 71371-72; 
                        <E T="03">Sheran Arden Yeates, M.D.,</E>
                         71 FR 39130, 39131 (2006); 
                        <E T="03">Dominick A. Ricci, M.D.,</E>
                         58 FR 51104, 51105 (1993); 
                        <E T="03">Bobby Watts, M.D.,</E>
                         53 FR 11919, 11920 (1988); 
                        <E T="03">Frederick Marsh Blanton, M.D.,</E>
                         43 FR 27617.
                    </P>
                </FTNT>
                <P>
                    According to Missouri statute, “dispense” means “to deliver a narcotic or controlled dangerous drug to an ultimate user or research subject by or pursuant to the lawful order of a practitioner including the prescribing, administering, packaging, labeling, or compounding necessary to prepare the substance for such delivery.” Mo. Rev. Stat. section 195.010 (12) (2018). Under the same Missouri statute, “practitioner” means a “physician . . . or other person licensed, registered or otherwise permitted by this state to distribute, dispense, conduct research with respect to or administer . . . a controlled substance in the course of professional practice . . . in this state.” 
                    <E T="03">Id.</E>
                     section 195.010 (39). Further, in Missouri, “[n]o person shall . . . dispense . . . any controlled substance . . . without having first obtained a registration issued by the department of health and senior services.” 
                    <E T="03">Id.</E>
                     section 195.030 (2); 
                    <E T="03">see also id.</E>
                     section 195.030 (3) (“Persons registered by the department of health and senior services pursuant to this chapter to . . . dispense . . . controlled substances are authorized to . . . dispense such substances . . . to the extent authorized by their registration and in conformity with other provisions of this chapter and chapter 579.”).
                </P>
                <P>
                    Here, the undisputed record evidence is that, as of August 31, 2023, and continuing to the present, Respondent is not registered in Missouri to dispense controlled substances. 
                    <E T="03">Supra</E>
                     section III. As explained above, a physician in Missouri must be registered with the state to dispense controlled substances. 
                    <E T="03">Supra.</E>
                     Thus, because Respondent lacks authority to dispense controlled substances in Missouri, Respondent is not eligible to maintain his DEA registration addressed in that State. 
                    <E T="03">Supra; see also</E>
                     RD, at 3. Accordingly, the Agency orders that Respondent's registration be revoked.
                </P>
                <HD SOURCE="HD1">Order</HD>
                <P>Pursuant to 28 CFR 0.100(b) and the authority vested in me by 21 U.S.C. 824(a), I hereby revoke DEA Certificate of Registration No. BN7853864 issued to Abdul Naushad, M.D. Further, pursuant to 28 CFR 0.100(b) and the authority vested in me by 21 U.S.C. 823(g)(1), I hereby deny any pending applications of Abdul Naushad, M.D., to renew or modify this registration, as well as any other pending application of Abdul Naushad, M.D., for additional registration in Missouri. This Order is effective July 29, 2024.</P>
                <HD SOURCE="HD1">Signing Authority</HD>
                <P>
                    This document of the Drug Enforcement Administration was signed on June 21, 2024, by Administrator Anne Milgram. That document with the original signature and date is maintained by DEA. For administrative purposes only, and in compliance with requirements of the Office of the Federal Register, the undersigned DEA Federal Register Liaison Officer has been authorized to sign and submit the document in electronic format for publication, as an official document of DEA. This administrative process in no way alters the legal effect of this document upon publication in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <NAME>Heather Achbach, </NAME>
                    <TITLE>Federal Register Liaison Officer, Drug Enforcement Administration.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14207 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBAGY>Drug Enforcement Administration</SUBAGY>
                <DEPDOC>[Docket No. 23-14]</DEPDOC>
                <SUBJECT>Arash M. Padidar, M.D.; Decision and Order</SUBJECT>
                <P>
                    On December 5, 2022, the Drug Enforcement Administration (DEA or Government) issued an Order to Show Cause (OSC) to Arash M. Padidar, M.D. (Applicant) of San Jose, California. OSC, at 1, 3. The OSC proposed the denial of Applicant's application for a DEA Certificate of Registration (COR or registration), Control No. W22106685C, alleging that Applicant materially falsified his application for registration. 
                    <E T="03">Id.</E>
                     at 1 (citing 21 U.S.C. 824(a)(1)).
                </P>
                <P>
                    A hearing was held before DEA Administrative Law Judge Teresa A. Wallbaum (the ALJ), who on May 24, 2023, issued her Recommended Rulings, Findings of Fact, Conclusions of Law, and Decision (RD). The RD recommended denial of Applicant's application for registration. RD, at 26. Applicant did not file exceptions to the RD. Having reviewed the entire record, the Agency adopts and hereby incorporates by reference the entirety of the ALJ's rulings, credibility findings,
                    <SU>1</SU>
                    <FTREF/>
                     findings of fact, conclusions of law, sanctions analysis, and recommended sanction as found in the RD and as summarized herein. 
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         The Agency adopts the ALJ's summary of each of the witnesses' testimonies as well as the ALJ's assessment of each of the witnesses' credibility. 
                        <E T="03">See</E>
                         RD, at 3-14. The Agency agrees with the ALJ that the Diversion Investigator (DI) “presented as an objective witness, with no motive to fabricate”; however, as noted by the ALJ, the DI was unable to recall some details regarding the relevant events and at times gave inconsistent answers. The ALJ found, and the Agency agrees, that the DI “was consistent on key issues and her core testimony was corroborated by the documentary evidence and, in many respects, by [Applicant] himself.” 
                        <E T="03">Id.</E>
                         at 4-5. Accordingly, the Agency agrees with the ALJ that the DI was credible and her testimony warrants full weight on the key, corroborated issues. 
                        <E T="03">Id.</E>
                         at 5. Regarding Applicant, the ALJ found, and the Agency agrees, that Applicant's testimony was acceptable to the extent that it was corroborated by the DI's testimony and documentary evidence; however, the ALJ also found, and the Agency agrees, that Applicant's testimony as to his mental state during the relevant events was self-serving and internally inconsistent. 
                        <E T="03">Id.</E>
                         at 7. Specifically, the ALJ noted that Applicant's recollection of events tended to be either extremely clear or extremely murky depending on which better suited a particular purpose, and Applicant's various explanations for his false application answer were inconsistent to each other as well as inconsistent to Applicant's other statements and actions. 
                        <E T="03">Id.</E>
                         at 7-8. Accordingly, the Agency agrees with the ALJ that Applicant's testimony that is consistent with the DI's testimony or documentary evidence warrants acceptance, while Applicant's testimony regarding his mental state during the relevant events warrants only limited weight. 
                        <E T="03">Id.</E>
                         at 8.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Findings of Fact</HD>
                <HD SOURCE="HD2">Search of Applicant's Residence and Surrender of Applicant's Previous COR</HD>
                <P>
                    On October 7, 2020, at approximately 7:00 a.m., DEA and local law enforcement executed a search of Applicant's residence based on a criminal search warrant.
                    <SU>2</SU>
                    <FTREF/>
                     RD, at 8; Tr. 
                    <PRTPAGE P="54062"/>
                    30, 93, 145.
                    <SU>3</SU>
                    <FTREF/>
                     According to Applicant, law enforcement entered the house, handcuffed both Applicant, who was unclothed, and his wife, and took Applicant downstairs to the kitchen. RD, at 8; Tr. 148-49, 152. According to Applicant, he remained in the kitchen with an unarmed Diversion Program Manager (DPM), mostly alone, until 1:00 p.m. RD, at 9; Tr. 150-52. Applicant testified that the DPM showed him the search warrant while other law enforcement officers began searching the house. RD, at 9; Tr. 155.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         Applicant testified that law enforcement began investigating him after a former employee alleged Applicant was writing codeine prescriptions for himself; Applicant testified that he had been addicted to codeine, which he took to treat pain from knee injuries, but denied ever selling codeine to third parties. RD, at 6; Tr. 145, 211-13, 215. Applicant asserted that the execution of the search warrant was a “wake-up call” and the next day he voluntarily entered a treatment program. RD, at 6; Tr. 212-13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Applicant testified that his memory of the execution of the search warrant “was extremely vivid,” and the experience was “scary”; however, his memory of the interview was weaker and because he was so scared, he “couldn't even think straight.” RD, at 6; Tr. 145, 148, 161, 164, 257, 260. Applicant testified that the police had flashlights, wore military clothing, and had weapons with lasers attached. Applicant also testified that he saw two police cars outside as well as a SWAT van and estimated that there were eighteen officers on his property (including outside), with the majority of the officers carrying weapons. RD, at 8; Tr. 147, 149-50.
                    </P>
                </FTNT>
                <P>
                    Testifying for the Government, the Diversion Investigator (DI) recalled that she waited in her car when law enforcement first entered the house but that she entered and began participating in the search at around 7:20. RD, at 9, 18; Tr. 30-31, 66-67, 75-78.
                    <SU>4</SU>
                    <FTREF/>
                     Sometime between 1:00 p.m. and 2:00 p.m., DEA personnel spoke with Applicant in the living room; there were five DEA personnel present, including the DI, a second Diversion Investigator (DI2), a Group Supervisor (GS), the DPM, and a Task Force Officer (TFO). RD, at 10; Tr. 31-32, 61, 88, 151-53, 156, 165. DI2 and the TFO conducted the interview of Applicant. RD, at 10; Tr. 32-33, 162. According to the DI, DI2 presented Applicant with a Form DEA-104, which is titled “SURRENDER FOR CAUSE OF DEA CERTIFICATE OF REGISTRATION,” (emphasis in original) and allows registrants to surrender their DEA registration for cause and immediately terminates their registration. RD, at 10-11; Tr. 34, 36; Government Exhibit (GX) 2, at 1.
                    <SU>5</SU>
                    <FTREF/>
                     Applicant had been given his 
                    <E T="03">Miranda</E>
                     rights and was not in handcuffs during the interview. RD, at 11; Tr. 81, 98-99, 162-63, 170, 194. The DI testified that it appeared to her that Applicant “read the form a little bit and then eventually signed the form”; she did not recall Applicant asking any questions or refusing to sign the form, nor did she recall DI2 explaining the word “cause” to Applicant. RD, at 11; Tr. 35, 38, 69, 78, 80, 82, 85, 100. According to Applicant, he was told repeatedly that the surrender was voluntary and he “could apply again.” RD, at 10 n.8; Tr. 164. According to Applicant, he had the opportunity to read the form but did not do so, though he confirmed looking over the form “quickly”; Applicant testified, “all I remember it was such a blur because my hands were shaking. I looked where my signature area [was]. I signed it and they asked me to date it.” RD, at 11; Tr. 163-165, 262. Nonetheless, Applicant acknowledged that he did sign the form and did not challenge the surrender of his registration as being under duress. RD, at 10 n.8; Tr. 161, 258, 261. DEA did not leave Applicant a copy of the Form DEA-104 (consistent with DEA practice) nor did DEA explain the meaning of “for cause” to Applicant. RD, at 11; Tr. 42, 69-70, 83, 85, 164. According to the DI, at the end of the interview, the DPM and DI2 both provided their business cards to Applicant, and then the DI and the others moved on to execute the search warrant at Applicant's clinic. RD, at 11; Tr. 41-42.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         By the time the DI entered the house, she saw two police vehicles and was not sure how many officers were surrounding the house or inside the house. RD, at 9; Tr. 75-77. The DI testified that some of the officers did have weapons but she could not recall if they were holstered. RD, at 9; Tr. 75-76.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Paragraph one of the Form DEA-104 signed by Applicant on October 7, 2020, reads: “In view of my alleged failure to comply with the Federal requirements pertaining to controlled substances or listed 1 chemicals and as an indication of my good faith in desiring to remedy any incorrect or unlawful practices on my part, I hereby surrender for cause my Drug Enforcement Administration (DEA) Certificate of Registration”; paragraph two reads: “I understand that submission of this document to DEA, including any employee of DEA, shall result in the immediate termination of my registration.” RD, at 11; Tr. 40-41; GX 2, at 1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Applicant initially testified that only the DPM provided a business card, but later acknowledged that he also had DI2's “name” from the search; Applicant also emailed DI2 directly at her email address, suggesting that he had her business card. RD, at 11-12; Tr. 163, 196; Respondent (Applicant) Exhibit (RX) 6.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">Applicant's August 12, 2022 Application</HD>
                <P>
                    According to Applicant, when he read the application, he “saw certain questions that became very concerning, [ ] especially the same question that we're here for” (referring to Liability Question 2) 
                    <SU>7</SU>
                    <FTREF/>
                     and he tried to obtain a copy of the Form DEA-104 to resolve his concerns. RD, at 12; Tr. 172-73, 200. Applicant testified that he called DEA multiple times to get the form but was never able to reach anyone.
                    <SU>8</SU>
                    <FTREF/>
                     Applicant also tried to find the form online (both before and after completing the application) and found what he thought was an older form with the title “voluntary surrender.” RD, at 12; Tr. 173-74, 176-78. On August 10, 2022, Applicant emailed DI2, who forwarded the email to the DI. RD, at 12; Tr. 45. Applicant's email read: “It has been almost two years since you asked me to surrender my DEA [COR] and c[a]me to my office. I would like to ask if you have concluded your investigation or closed it? Any word you can give me would be appreciated.” RD, at 12; RX 6.
                    <SU>9</SU>
                    <FTREF/>
                     On August 11, 2022, the DI responded 
                    <SU>10</SU>
                    <FTREF/>
                     with the following email: “Please apply for a new DEA Registration. A new registration is required because the previous registration was surrendered and is no longer valid. The application forms can be found at Registration (
                    <E T="03">usdoj.gov</E>
                    ) under `New Application.' ” RD, at 12-13; Tr. 45, 265; RX 6. Applicant testified that he emailed DEA before filling out his application because he “wanted to clarify, and get copies of what [he] had signed” but he admitted that he did not ask whether his registration had been surrendered for cause nor did he ask for a copy of his signed Form DEA-104. RD, at 13; Tr. 266-67; RX 6.
                    <SU>11</SU>
                    <FTREF/>
                     According to Applicant, he interpreted the DI's reply email as an “invitation” to apply and noted that it only said “surrendered,” not “surrendered for cause.” RD, at 13; Tr. 197, 203; RX 6.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         The application contains four “liability questions,” which require a “yes” or “no” answer and ask an applicant whether he: (1) has a criminal background; (2) has previously surrendered a registration for cause; (3) has any issues with his state licenses; or (4) has any affiliations with any entities or corporations that have criminal histories. RD, at 13; Tr. 46-47. If an applicant answers “yes” to any of these questions, the application provides a box that allows the applicant to explain his answer. RD, at 13; Tr. 47; GX 3, at 1. If an applicant has any other questions, he may contact the registration support section at the phone number or email address provided on the DEA Diversion website homepage. RD, at 13; Tr. 47-48.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         According to the DI, the first time she knew of Applicant attempting to contact DEA was July 2022 when Applicant emailed the DPM. RD, at 12; Tr. 43-45. When asked whether anyone from DEA replied to Applicant's email, the DI stated “[n]ot that I know of.” Tr. 44-45.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Applicant's exhibit does not include the date of the email, but Applicant testified that he sent the email in August before submitting his application. RD, at 12; Tr. 265.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         The DI responded to Applicant's email using the general San Jose Resident Office email. RD, at 12; Tr. 45; RX 6.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         Applicant also admitted that he never reached out to DEA to challenge the surrender of his COR. RD, at 13; Tr. 264-67.
                    </P>
                </FTNT>
                <P>
                    On August 12, 2022, Applicant electronically signed and submitted an application for a new DEA registration through the DEA website. RD, at 13; Tr. 51-53; GX 3.
                    <SU>12</SU>
                    <FTREF/>
                     Liability Question 2 on 
                    <PRTPAGE P="54063"/>
                    the application asks: “Has the applicant ever surrendered for cause or had a federal controlled substance registration revoked, suspended, restricted or denied or is any such action pending? ” RD, at 13; Tr. 53; GX 3, at 1. On his application, Applicant answered Liability Question 2 with “N” for “no.” RD, at 13; Tr. 53; GX 3, at 1. Additionally, the bottom of the application reads: “By typing my full name in the space below, I hereby certify the foregoing information furnished on this electronic DEA application is true and correct and understand that this constitutes an electronic signature,” and Applicant's name, as an e-signature, is at the bottom of his application. RD, at 13; Tr. 54; GX 3, at 2.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         The Registration Specialist assigned to review Applicant's application knew that Applicant had previously surrendered his registration for cause, so she informed the GS of the application and the GS assigned the investigation to the DI. RD, at 13; Tr. 48, 50.
                    </P>
                </FTNT>
                <P>
                    Here, the ALJ found, and the Agency agrees, that “it is beyond dispute that [Applicant] surrendered his registration for cause and [thus] falsely answered Liability Question 2 on his application for a new COR.” RD, at 14.
                    <SU>13</SU>
                    <FTREF/>
                     Regarding his false answer, Applicant asserted that he did not intentionally submit a false statement and that it was instead a misunderstanding resulting from multiple factors. Tr. 209, 254. According to Applicant, he misunderstood because: (1) DEA did not provide him with a copy of the Form DEA-104 and he could not reach anyone by phone to ask about it so he was going by memory (Tr. 163, 172-73, 194-96, 202, 255-56); (2) he searched on Google and found a form stating that surrender was voluntary (Tr. 173, 177-78, 268-69); (3) he considered voluntary surrender “for cause” to be an oxymoron, problematic, and to not make sense (Tr. 201, 255, 256); (4) his experience from medical disciplinary boards led him to believe that voluntary surrender would not be “for cause” (Tr. 177-178, 201-202, 272-73); 
                    <SU>14</SU>
                    <FTREF/>
                     (5) he thought that DEA would already have the information about his surrender because DEA was the body that he surrendered to (Tr. 204); (6) English is his second language so he sometimes interprets things incorrectly (Tr. 209); and (7) he surrendered his registration under duress after an excessive search and had he obtained advice, he would not have surrendered (Tr. 161, 258, 261). RD, at 6. Applicant asserted that he did not understand that when he surrendered his registration he was surrendering for cause and testified, “[u]ntil [now], I would have still answered it no. But now that I understand what is meant in your world, I would answer very differently.” 
                    <E T="03">Id.;</E>
                     Tr. 203, 211.
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         Regarding the phrase “for cause,” as noted by the ALJ, “[w]hile the phrase `for cause' is not defined by federal regulations, Agency decisions have held that a [registrant] surrendered for cause when he voluntarily surrendered in the wake of allegations of misconduct or after the execution of a criminal search warrant.” RD, at 16 (citing 
                        <E T="03">JM Pharmacy Grp., Inc.,</E>
                         80 FR 28667, 28668-69 (2015); 
                        <E T="03">Shannon L. Gallentine, D.P.M.,</E>
                         76 FR 45864, 45866 (2011)). “Moreover, in this case, the Form DEA-104 [Applicant] signed specifically use[d] the phrase `for cause.'” 
                        <E T="03">Id.;</E>
                         GX 2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         Applicant testified that in the “medical staff world,” “for cause” means “an individual has caused some act . . . that they shouldn't have,” and the disciplinary authority “would revoke that privilege for that cause.” RD, at 6 n.5; Tr. 201. Applicant testified, “[i]f a physician wants to voluntarily surrender their privilege just to leave, and it wasn't being revoked for a reason, that would be a voluntary surrender.” 
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         Applicant also noted that he cannot practice medicine without a registration and that his practice provides an important service to the community. RD, at 7; Tr. 206-208, 214.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Discussion</HD>
                <P>
                    The Administrator is authorized to revoke a registration or deny an application if the registrant/applicant has materially falsified an application for registration. 21 U.S.C. 824(a)(1); 
                    <E T="03">Farmacia Yani,</E>
                     80 FR 29053, 29058 (2015) (“[J]ust as materially falsifying an application provides a basis for revoking an existing registration without proof of any other misconduct . . . it also provides an independent and adequate ground for denying an application.”).
                    <SU>16</SU>
                    <FTREF/>
                     Agency decisions have repeatedly held that false responses to the liability questions on an application for registration are material. 
                    <E T="03">Kevin J. Dobi, APRN,</E>
                     87 FR 38184, 38184 (2022) (collecting cases).
                    <SU>17</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See also</E>
                         RD, at 14 n.12 (explaining that the grounds for revocation of a registration under 21 U.S.C. 824(a) can also be grounds for denying an application for registration under 21 U.S.C. 823).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         Even so, the Agency agrees with the ALJ's conclusion rejecting Applicant's arguments that his false statement was not material. 
                        <E T="03">See</E>
                         RD, at 20-21. Applicant argues that his false statement was not material because in reviewing his application, the Agency would have checked his history with DEA anyway, and the Registration Specialist who processed Applicant's application knew that Applicant had surrendered his previous registration. RD, at 20. However, as noted by the ALJ, the standard regarding materiality “does not require proof that the Government 
                        <E T="03">actually</E>
                         relied on or believed the false statement; it is sufficient that the false statement 
                        <E T="03">could have</E>
                         influenced the decisionmaker.” 
                        <E T="03">Id.</E>
                         at 20-21. Further, “the mere fact that someone caught [Applicant's] misstatement does not make it immaterial.” 
                        <E T="03">Id.</E>
                         at 21; 
                        <E T="03">see Narciso A. Reyes, M.D.,</E>
                         83 FR 61678, 61680 (2018).
                    </P>
                </FTNT>
                <P>
                    Regarding proof of material falsification, Agency precedent has found that the Government must prove an allegation of material falsification “by evidence that is clear, unequivocal, and convincing.” 
                    <E T="03">Richard J. Settles, D.O.,</E>
                     81 FR 64940, 64946 (2016) (quoting 
                    <E T="03">Kungys</E>
                     v. 
                    <E T="03">United States,</E>
                     485 U.S. 759, 772 (1998)). Agency precedent has also established that the Government need not show that an applicant 
                    <E T="03">actually knew</E>
                     that his response to a liability question was false. Rather, it is sufficient that the Government shows that an applicant 
                    <E T="03">should have known</E>
                     that his response to a liability question was false. 
                    <E T="03">Reyes,</E>
                     83 FR 61680 (citing 
                    <E T="03">Samuel S. Jackson, D.D.S.,</E>
                     72 FR 23848, 23852 (2007)). When the Government has made such a showing, 
                    <E T="03">i.e.,</E>
                     that an applicant should have known that his response to a liability question was false, an applicant's claim that he actually misunderstood a liability question, or otherwise inadvertently provided a false answer to a liability question, is not a defense. 
                    <E T="03">Id.</E>
                     (citing 
                    <E T="03">Alvin Darby, M.D.,</E>
                     75 FR 26993, 26999 (2010)). Indeed, the applicant bears the responsibility to carefully read the liability questions and to answer them honestly; “[a]llegedly misunderstanding or misinterpreting liability questions does not relieve the applicant of this responsibility.” 
                    <E T="03">Zelideh I. Cordova-Velazco, M.D.,</E>
                     83 FR 62902, 62906 (2018) (internal citations omitted).
                </P>
                <P>
                    Here, the ALJ found, and the Agency agrees, that the Government has met its burden of proving by clear, unequivocal, and convincing evidence that Applicant surrendered his previous registration for cause, that Applicant should have known that the surrender was for cause, and thus that Applicant's answer to a liability question (Liability Question 2) was false. RD, at 16; Tr. 40; GX 2, at 1. The ALJ found, and the Agency agrees, that Applicant knew or should have known that his answer was incorrect because the Form DEA-104 that he signed on October 7, 2020, clearly stated in multiple places that he was surrendering his registration for cause and because Applicant surrendered his registration amidst what he knew or should have known, by his own testimony and submitted evidence, was a criminal investigation against him. RD, at 16-18; Tr. 40, 155, 162-63, 170, 194; GX 2, at 1; RX 6.
                    <SU>18</SU>
                    <FTREF/>
                     Regarding any 
                    <PRTPAGE P="54064"/>
                    purported confusion on Applicant's part, the ALJ found, and the Agency agrees, that “Applicant had ample opportunity to ask questions and clarify his confusion” but did not do so; moreover, as discussed above, misunderstanding a liability question is not a defense when the Government has established that the applicant knew or should have known that his answer was false.
                    <SU>19</SU>
                    <FTREF/>
                     RD, at 19.
                    <SU>20</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         The RD also noted, and the Agency agrees, that Applicant's own testimony establishes that he knew or should have known during the application process that he had surrendered his previous registration for cause because Applicant recognized a potential issue for himself concerning Liability Question 2; he testified that he called DEA to ask for a copy of the Form DEA-104 and even searched the form on Google in an attempt to clarify its terminology, suggesting that Applicant at the very least suspected that he may have surrendered his previous registration for cause. RD, at 18; Tr. 163, 173, 194-196, 202, 255-256, 269. The RD adds, “[e]ven if it was merely a suspicion at that point, [Applicant] could have easily asked DEA whether he had surrendered for cause, but he did not do so.” RD, at 18; RX 6. “[A]n applicant has an obligation to clarify any confusion[] if he has an opportunity to speak with DEA.” RD, at 16 (citing 
                        <E T="03">Ester Mark, M.D.,</E>
                         88 FR 7,106, 7,108 n.8 (2023)). Here, “when 
                        <PRTPAGE/>
                        presented with a clear opportunity to resolve his confusion” via his email exchange with the DI, Applicant failed to initiate clarification. RD, at 18; RX 6. As such, the ALJ also found, and the Agency agrees, that Applicant's arguments regarding DI's “minimalist responsive email” are unpersuasive. RD, at 18-19.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         The ALJ also noted that Applicant's claims of confusion themselves were contradictory and implausible, such as how Applicant claimed to be confused about Liability Question 2 but did not seek clarification when given a clear opportunity, and how Applicant claimed to have incorrectly thought that he had surrendered his previous registration “voluntarily” (purportedly as opposed to “for cause”), while also arguing that he had surrendered his previous registration under duress. RD, at 19-20; 
                        <E T="03">see also id.</E>
                         at 21.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         Applicant also argues that his application should be granted due to the benefit to society of allowing him to continue prescribing controlled substances as part of his medical practice. RD, at 22; Tr. 206-208, 214. As noted by the RD, “such `community impact' evidence has been rejected as irrelevant by the Agency.” RD, at 22 (citing 
                        <E T="03">Heavenly Care Pharmacy,</E>
                         85 FR 53402, 53420 (2020); 
                        <E T="03">Linda Sue Cheek, M.D.,</E>
                         76 FR 66972, 66972-73 (2011)).
                    </P>
                </FTNT>
                <P>
                    Having read and analyzed the record, the Agency finds from clear, unequivocal, convincing, and unrebutted evidence that Applicant's application for a new registration, submitted on August 12, 2022, contains a material falsification because Applicant gave a false answer to a liability question when he knew or should have known that his answer was false. Moreover, even if it is true that Applicant's false answer to Liability Question 2 was actually caused by confusion or was otherwise inadvertent, it is inconsequential under the facts of this case, as Applicant failed to take reasonable care to ensure he answered the liability questions honestly. 
                    <E T="03">See</E>
                     Reyes, 83 FR 61680. Accordingly, the Agency finds that the Government has established a 
                    <E T="03">prima facie</E>
                     case for denial of Applicant's application pursuant to 21 U.S.C. 824(a)(1).
                </P>
                <HD SOURCE="HD1">III. Sanction</HD>
                <P>
                    Where, as here, the Government has established sufficient grounds to deny Applicant's application, the burden shifts to Applicant to show why he can be entrusted with the responsibility carried by a registration. 
                    <E T="03">Garret Howard Smith, M.D.,</E>
                     83 FR 18882, 18910 (2018). When a respondent (Applicant) has committed acts inconsistent with the public interest, he must both accept responsibility and demonstrate that he has undertaken corrective measures. 
                    <E T="03">Holiday CVS, L.L.C., dba CVS Pharmacy Nos 219 and 5195,</E>
                     77 FR 62316, 62339 (2012) (internal quotations omitted). Trust is necessarily a fact-dependent determination based on individual circumstances; therefore, the Agency looks at factors such as the acceptance of responsibility, the credibility of that acceptance as it relates to the probability of repeat violations or behavior, the nature of the misconduct that forms the basis for sanction, and the Agency's interest in deterring similar acts. 
                    <E T="03">See, e.g.,</E>
                      
                    <E T="03">Robert Wayne Locklear, M.D.,</E>
                     86 FR 33738, 33746 (2021).
                </P>
                <P>
                    In the current matter, the Agency agrees with the ALJ that Applicant failed to unequivocally accept responsibility. RD, at 23. While Applicant said multiple times that he accepted responsibility (Tr. 208-09, 254), “his other testimony made it very clear that he had a series of reasons why he did not, in fact, think he was to blame,” such as that DEA did not give him proper guidance, he surrendered his registration under duress, and his false statement did not matter anyway. RD, at 23; Tr. 161, 172-73, 194-96, 202, 204, 258, 261. As noted by the ALJ, “Agency precedent requires that a respondent [ ] 
                    <E T="03">unequivocally</E>
                     accept responsibility for 
                    <E T="03">all</E>
                     of his misconduct.” RD, at 22 (citing 
                    <E T="03">Jeffrey Stein, M.D.,</E>
                     84 FR 46968, 46972-73 (2019); 
                    <E T="03">Mohammed Asgar, M.D.,</E>
                     83 FR 29569, 29572 (2018); 
                    <E T="03">Lon F. Alexander,</E>
                     82 FR 49704, 49728 (2017)). Here, Applicant's statements went beyond explaining his actions and were instead “an attempt to shift blame that undermines an unequivocal acceptance of responsibility.” RD, at 23.
                    <SU>21</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         When a respondent (Applicant) fails to make the threshold showing of acceptance of responsibility, the Agency need not address the respondent's remedial measures. 
                        <E T="03">Ajay S. Ahuja, M.D.,</E>
                         84 FR 5479, 5498 n.33 (2019) (citing 
                        <E T="03">Jones Total Health Care Pharmacy, L.L.C. &amp; SND Health Care, L.L.C.,</E>
                         81 FR 79188, 79202-03 (2016)); 
                        <E T="03">Daniel A. Glick, D.D.S.,</E>
                         80 FR 74800, 74801, 74,810 (2015). Even so, in the current matter, Applicant offered no testimony or evidence of any remedial measures, other than stating that he now understands the meaning of “for cause” and will not make the same mistake again. RD, at 24; Tr. 203. Because Applicant has not offered evidence of any additional measures that he has taken to ensure that he will correctly answer any liability questions in the future—such as promising to clarify any future misunderstandings before submitting a signed document to a federal agency—Applicant has not sufficiently demonstrated that he is ready to be entrusted with the responsibility of registration. RD, at 24.
                    </P>
                </FTNT>
                <P>
                    In addition to acceptance of responsibility, the Agency considers both specific and general deterrence when determining an appropriate sanction. 
                    <E T="03">Daniel A. Glick, D.D.S.,</E>
                     80 FR 74810. In this case, the Agency agrees with the ALJ that denial of Applicant's application would deter Applicant and the general registrant community from failing to meet their obligations to provide accurate and truthful responses on an application for a DEA registration and to seek clarification when needed prior to submitting an application. 
                    <E T="03">Kareem Hubbard, M.D.,</E>
                     87 FR 21156, 21164 (2022); RD, at 25.
                </P>
                <P>
                    As noted by the ALJ, “[m]aking a false statement on the registration application goes `to the heart of the CSA.'” RD, at 24 (quoting 
                    <E T="03">Crosby Pharmacy and Wellness,</E>
                     87 FR 21,212, 21,215 (2022)). “[T]he liability questions are critical to the closed system of distribution, as the Agency must rely upon the candor of its applicants and registrants.” 
                    <E T="03">Id.</E>
                     (citing 
                    <E T="03">The Lawsons, Inc.,</E>
                     72 FR 74334, 74377 (2007); 
                    <E T="03">Kuen H. Chen, M.D.,</E>
                     58 FR 65401, 65402 (1993); 
                    <E T="03">Bobby Watts, M.D.,</E>
                     58 FR 46995, 46995 (1993)). And even if Applicant's claim that his incident was inadvertent and the result of a misunderstanding was true, “[Applicant's] actions were at the very least negligent and careless”; he had clear reasons to know that he had surrendered his previous registration for cause and had various opportunities-which he did not take—to clarify any lingering confusion that may have remained. RD, at 24-25.
                </P>
                <P>In sum, Applicant has not offered any credible evidence on the record to rebut the Government's case for denial of his application and Applicant has not demonstrated that he can be entrusted with the responsibility of registration. RD, at 26. Accordingly, the Agency will order that Applicant's application for registration be denied.</P>
                <HD SOURCE="HD1">Order</HD>
                <P>Pursuant to 28 CFR 0.100(b) and the authority vested in me by 21 U.S.C. 823(g)(1), I hereby deny the pending application for a Certificate of Registration, Control Number W22106685C, submitted by Arash M. Padidar, M.D., as well as any other pending application of Arash M. Padidar, M.D., for additional registration in California. This Order is effective July 29, 2024.</P>
                <HD SOURCE="HD1">Signing Authority</HD>
                <P>
                    This document of the Drug Enforcement Administration was signed on June 21, 2024, by Administrator Anne Milgram. That document with the original signature and date is maintained by DEA. For administrative purposes only, and in compliance with requirements of the Office of the Federal Register, the undersigned DEA 
                    <E T="04">
                        Federal 
                        <PRTPAGE P="54065"/>
                        Register
                    </E>
                     Liaison Officer has been authorized to sign and submit the document in electronic format for publication, as an official document of DEA. This administrative process in no way alters the legal effect of this document upon publication in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <NAME>Heather Achbach,</NAME>
                    <TITLE>Federal Register Liaison Officer, Drug Enforcement Administration.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14201 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <DEPDOC>[OMB Number 1122-0007]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Proposed eCollection eComments Requested; Extension of a Previously Approved Collection; Semi-Annual Progress Report for the Legal Assistance for Victims Program (LAV Program)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office on Violence Against Women, Department of Justice.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Office on Violence Against Women, Department of Justice (DOJ), will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are encouraged and will be accepted for 60 days until August 27, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have additional comments especially on the estimated public burden or associated response time, suggestions, or need a copy of the proposed information collection instrument with instructions or additional information, please contact Catherine Poston, Office on Violence Against Women, at 202-514-5430 or 
                        <E T="03">Catherine.poston@usdoj.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Written comments and suggestions from the public and affected agencies concerning the proposed collection of information are encouraged. Your comments should address one or more of the following four points:</P>
                <FP SOURCE="FP-1">—Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Bureau of Justice Statistics, including whether the information will have practical utility;</FP>
                <FP SOURCE="FP-1">—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;</FP>
                <FP SOURCE="FP-1">—Evaluate whether and if so how the quality, utility, and clarity of the information to be collected can be enhanced; and</FP>
                <FP SOURCE="FP-1">
                    —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 T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </FP>
                <P>
                    <E T="03">Abstract:</E>
                     Authorized by 34 U.S.C. 20121, the Legal Assistance for Victims (LAV) Grant Program is intended to increase the availability of civil and criminal legal assistance needed to effectively aid victims (ages 11 and older) of domestic violence, dating violence, sexual assault, and stalking by providing funds for comprehensive direct legal services to victims in legal matters relating to or arising out of that abuse or violence. “Legal assistance” includes assistance to victims of domestic violence, dating violence, sexual assault, and stalking in: (a) family, tribal, territorial, immigration, employment, administrative agency, housing matters, campus administrative, or protection or stay away order proceedings, and other similar matters; (b) criminal justice investigations, prosecutions, and post-trial matters (including sentencing, parole, and probation) that impact the victim's safety and privacy; (c) alternative dispute resolution, restorative practices, or other processes intended to promote victim safety, privacy, and autonomy; and (d) post-conviction relief proceedings in state, local, Tribal, or territorial court where the conviction of a victim is related to or arising from domestic violence, dating violence, sexual assault, stalking, or sex trafficking. 34 U.S.C. 12291(a)(24)(C) and (D).
                </P>
                <HD SOURCE="HD1">Overview of This Information Collection</HD>
                <P>
                    1. 
                    <E T="03">Type of Information Collection:</E>
                     Extension of a previously approved collection.
                </P>
                <P>
                    2. 
                    <E T="03">The Title of the Form/Collection:</E>
                     Semi-Annual Progress Report for Grantees of the Legal Assistance for Victims Grant Program.
                </P>
                <P>3. The agency form number, if any, and the applicable component of the Department sponsoring the collection: 1122-0007.</P>
                <P>Affected public who will be asked or required to respond, as well as the obligation to respond: The affected public includes the approximately 200 grantees of the LAV Program whose eligibility is determined by statute. The LAV Program awards grants to law school legal clinics, legal aid or legal services programs, domestic violence victims shelters, bar associations, sexual assault programs, private nonprofit entities, and Indian tribal governments. The obligation to respond is required to obtain/retain a benefit.</P>
                <P>4. An estimate of the total number of respondents and the amount of time estimated for an average respondent to respond: It is estimated that it will take the approximately 200 respondents (LAV Program grantees) approximately one hour to complete a semi-annual progress report. The semi-annual progress report is divided into sections that pertain to the different types of activities in which grantees may engage. An LAV Program grantee will only be required to complete the sections of the form that pertain to its own specific activities.</P>
                <P>5. An estimate of the total annual burden (in hours) associated with the collection: It is estimated that it will take the approximately 200 respondents (LAV Program grantees) approximately one hour to complete a semi-annual progress report. The semi-annual progress report is divided into sections that pertain to the different types of activities in which grantees may engage. An LAV grantee will only be required to complete the sections of the form that pertain to its own specific activities.</P>
                <P>6. The total annual hour burden to complete the data collection forms is 400 hours, that is 200 grantees completing a form twice a year with an estimated completion time for the form being one hour.</P>
                <P>7. An estimate of the total annual cost burden associated with the collection, if applicable: The annualized costs to the Federal Government resulting from the OVW staff review of the progress reports submitted by grantees are estimated to be $22,400.</P>
                <P>
                    8.
                    <PRTPAGE P="54066"/>
                </P>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,12,xs60,12,12,12">
                    <TTITLE>Total Burden Hours</TTITLE>
                    <BOXHD>
                        <CHED H="1">Activity</CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">Frequency</CHED>
                        <CHED H="1">
                            Total annual
                            <LI>responses</LI>
                        </CHED>
                        <CHED H="1">
                            Time per
                            <LI>response</LI>
                            <LI>(hours)</LI>
                        </CHED>
                        <CHED H="1">
                            Total annual
                            <LI>burden</LI>
                            <LI>(hours)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW RUL="n,s">
                        <ENT I="01">Progress Report Form</ENT>
                        <ENT>200</ENT>
                        <ENT>2/semiannually</ENT>
                        <ENT>400</ENT>
                        <ENT>1 </ENT>
                        <ENT>400</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Unduplicated Totals</ENT>
                        <ENT>200</ENT>
                        <ENT/>
                        <ENT>400</ENT>
                        <ENT/>
                        <ENT>400</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">If additional information is required contact:</E>
                     Darwin Arceo, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE, 4W-218, Washington, DC.
                </P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Darwin Arceo,</NAME>
                    <TITLE>Department Clearance Officer for PRA, U.S. Department of Justice.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14192 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-FX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <DEPDOC>[OMB Number 1110-0074]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Proposed eCollection eComments Requested; Hazardous Devices School (HDS) Application</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Bureau of Investigation, Department of Justice.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Federal Bureau of Investigation (FBI), Department of Justice (DOJ), will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are encouraged and will be accepted for 30 days until July 29, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have comments especially on the estimated public burden or associated response time, suggestions, or need a copy of the proposed information collection instrument with instructions or additional information, please contact: Mark Wall, Hazardous Devices School, 
                        <E T="03">mhwall@fbi.gov</E>
                         or 
                        <E T="03">HDS_DIRECTOR@fbi.gov,</E>
                         703-906-2317.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The proposed information collection was previously published in the 
                    <E T="04">Federal Register</E>
                     on April 29, 2024 allowing a 60-day comment period. Written comments and suggestions from the public and affected agencies concerning the proposed collection of information are encouraged. Your comments should address one or more of the following four points:
                </P>
                <FP SOURCE="FP-1">—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;</FP>
                <FP SOURCE="FP-1">—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;</FP>
                <FP SOURCE="FP-1">—Enhance the quality, utility, and clarity of the information to be collected; and/or</FP>
                <FP SOURCE="FP-1">
                    —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 T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </FP>
                <P>
                    Written comments and recommendations for this information collection should be submitted within 30 days of the publication of this notice on the following website 
                    <E T="03">www.reginfo.gov/public/do/</E>
                    PRAMain. Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function and entering either the title of the information collection or the OMB Control Number 1110-0074. This information collection request may be viewed at 
                    <E T="03">www.reginfo.gov.</E>
                     Follow the instructions to view Department of Justice, information collections currently under review by OMB.
                </P>
                <P>DOJ seeks PRA authorization for this information collection for three (3) years. OMB authorization for an ICR cannot be for more than three (3) years without renewal. The DOJ notes that information collection requirements submitted to the OMB for existing ICRs receive a month-to-month extension while they undergo review.</P>
                <HD SOURCE="HD1">Overview of This Information Collection</HD>
                <P>
                    1. 
                    <E T="03">Type of Information Collection:</E>
                     Extension of a previously approved collection.
                </P>
                <P>
                    2. 
                    <E T="03">Title of the Form/Collection:</E>
                     Hazardous Devices School Application.
                </P>
                <P>
                    3. 
                    <E T="03">Agency form number, if any, and the applicable component of the Department of Justice sponsoring the collection:</E>
                     FD-731, Hazardous Devices School.
                </P>
                <P>
                    4. 
                    <E T="03">Affected public who will be asked or required to respond, as well as a brief abstract:</E>
                     Affected Public: State, local, and federal government.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     Collect information to be entered into the Critical Incident Response Group (CIRG) CIMS database for course enrollment and tracking of individual training and certification expiration dates.
                </P>
                <P>
                    5. 
                    <E T="03">Obligation to Respond:</E>
                     Required to enroll in HDS course.
                </P>
                <P>
                    6. 
                    <E T="03">Total Estimated Number of Respondents:</E>
                     Approximately 100 annually.
                </P>
                <P>
                    7. 
                    <E T="03">Estimated Time per Respondent:</E>
                     45 minutes.
                </P>
                <P>
                    8. 
                    <E T="03">Frequency:</E>
                     As needed.
                </P>
                <P>
                    9. 
                    <E T="03">Total Estimated Annual Time Burden:</E>
                     750 hours.
                </P>
                <P>
                    10. 
                    <E T="03">Total Estimated Annual Other Costs Burden:</E>
                     $0.
                </P>
                <P>If additional information is required, contact: Darwin Arceo, Department Clearance Officer, Policy and Planning Staff, Justice Management Division, United States Department of Justice, Two Constitution Square, 145 N Street NE, 4W-218 Washington, DC 20530.</P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Darwin Arceo,</NAME>
                    <TITLE>Department Clearance Officer for PRA, U.S. Department of Justice.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14191 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <SUBJECT>Notice of Lodging of Proposed Consent Decree Under the Safe Drinking Water Act</SUBJECT>
                <P>
                    On June 24, 2024, the Department of Justice lodged a proposed consent decree with the United States District 
                    <PRTPAGE P="54067"/>
                    Court for the Southern District of New York in the lawsuit entitled 
                    <E T="03">United States</E>
                     v. 
                    <E T="03">Westchester Joint Water Works, et al.,</E>
                     Civil Action No. 24 Civ. 4783.
                </P>
                <P>The United States filed this lawsuit seeking injunctive relief and civil penalties for violations of the Safe Drinking Water Act against defendants Westchester Joint Water Works, the Town/Village of Harrison, the Village of Mamaroneck, and the Town of Mamaroneck, for violations of the maximum contaminant level set by the United States Environmental Protection Agency (“EPA”) for certain disinfectant byproducts in drinking water, and violations of a related EPA administrative order requiring the construction of a water filtration plant by specified deadlines.</P>
                <P>The consent decree requires the defendants to build and commence operation of a drinking water filtration plant by July 1, 2029; to continue to implement measures to ensure the safety of its water supply until the filtration plant is operational; to pay a $600,000 civil penalty to the United States; and to spend at least $900,000 on a Supplemental Environmental Project to improve source water quality. The consent decree also resolves claims by the State of New York to enforce a previous state court judgment against Westchester Joint Water Works for violating separate regulations requiring the implementation of filtration. In addition to the construction of the filtration plant, the consent decree requires defendants to pay a $650,000 civil penalty to New York and to spend at least $6,800,000 on two state water quality benefit projects.</P>
                <P>
                    The publication of this notice opens a period for public comment on the consent decree. Comments should be addressed to the Assistant Attorney General, Environment and Natural Resources Division, and should refer to 
                    <E T="03">United States</E>
                     v. 
                    <E T="03">Westchester Joint Water Works, et al.,</E>
                     D.J. Ref. No. 90-5-1-1-12441. All comments must be submitted no later than thirty (30) days after the publication date of this notice. Comments may be submitted either by email or by mail:
                </P>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="xs50,r50">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1" O="L">
                            <E T="03">To submit comments:</E>
                        </CHED>
                        <CHED H="1" O="L">
                            <E T="03">Send them to:</E>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">By email</ENT>
                        <ENT>
                            <E T="03">pubcomment-ees.enrd@usdoj.gov</E>
                            .
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">By mail</ENT>
                        <ENT>Assistant Attorney General, U.S. DOJ—ENRD, P.O. Box 7611, Washington, D.C. 20044-7611</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Any comments submitted in writing may be filed by the United States in whole or in part on the public court docket without notice to the commenter.</P>
                <P>
                    During the public comment period, the consent decree may be examined and downloaded at this Justice Department website: 
                    <E T="03">http://www.justice.gov/enrd/consent-decrees</E>
                    . If you require assistance accessing the consent decree, you may request assistance by email or by mail to the addresses provided above for submitting comments.
                </P>
                <SIG>
                    <NAME>Henry S. Friedman,</NAME>
                    <TITLE>Assistant Section Chief, Environmental Enforcement Section, Environment and Natural Resources Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14287 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <DEPDOC>[OMB Number 1110-0046]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Proposed eCollection eComments Requested; Revision of a Currently Approved Collection; Friction Ridge Cards: Arrest and Institution FD-249; Applicant FD-258; Identity History Summary Request FD-1164; FBI Standard Palm Print FD-884; Supplemental Finger and Palm Print FD-884a; Voluntary Appeal File Fingerprint FD-1212; Firearm-Related Challenge Fingerprint FD-1211</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Criminal Justice Information Services (CJIS) Division, Federal Bureau of Investigation (FBI), Department of Justice (DOJ).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The CJIS Division, FBI, DOJ, will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are encouraged and will be accepted for 60 days until August 27, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have additional comments especially on the estimated public burden or associated response time, suggestions, or need a copy of the proposed information collection instrument with instructions or additional information, please contact: Brian A. Cain, Management and Program Analyst, FBI, CJIS, Criminal History Information and Policy Unit, BTC-3, 1000 Custer Hollow Road, Clarksburg, WV 26306; phone: 304-625-5590 or email 
                        <E T="03">bcain@fbi.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Written comments and suggestions from the public and affected agencies concerning the proposed collection of information are encouraged. Your comments should address one or more of the following four points:</P>
                <FP SOURCE="FP-1">—Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Bureau of Justice Statistics, including whether the information will have practical utility;</FP>
                <FP SOURCE="FP-1">—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;</FP>
                <FP SOURCE="FP-1">—Evaluate whether and if so how the quality, utility, and clarity of the information to be collected can be enhanced; and</FP>
                <FP SOURCE="FP-1">
                    —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 T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </FP>
                <P>
                    <E T="03">Abstract:</E>
                     Title 28, United States Code, section 534, allows the FBI to acquire, collect, classify, and preserve identification/information, criminal identification, crime, and other records. The FBI permits such exchange of records and information with, and for the official use of, authorized officials of the Federal Government, including the United States Sentencing Commission; the States and cities; and penal and other institutions. It is essential that standard friction ridge cards be utilized for the FBI, CJIS Division to provide maximum service to all law enforcement and governmental agencies.
                </P>
                <HD SOURCE="HD1">Overview of This Information Collection</HD>
                <P>
                    1. 
                    <E T="03">Type of Information Collection:</E>
                     Revision of a previously approved collection.
                </P>
                <P>
                    2. 
                    <E T="03">The Title of the Form/Collection:</E>
                     Friction Ridge Cards.
                </P>
                <P>
                    3. 
                    <E T="03">The agency form number, if any, and the applicable component of the Department sponsoring the collection:</E>
                     Forms FD-249 (Arrest and Institution), FD-258 (Applicant), and FD-1164 (Identity History Summary Request); FD-884 (FBI Standard Palm Print); FD-884a (Supplemental Finger and Palm Print); FD-1212 (Voluntary Appeal File Fingerprint); FD-1211 (Firearm-Related Challenge Fingerprint) encompassed under OMB 1110-0046; DOJ, FBI, CJIS Division.
                </P>
                <P>
                    4. 
                    <E T="03">
                        Affected public who will be asked or required to respond, as well as the 
                        <PRTPAGE P="54068"/>
                        obligation to respond:
                    </E>
                     Primary: City, county, state, federal and tribal law enforcement agencies; civil entities requesting security clearance and background checks. This collection is needed to collect information on individuals requesting background checks, security clearance, or those individuals who have been arrested for or accused of criminal activities. Acceptable data is stored as part of the Next Generation Identification System (NGI) of the FBI.
                </P>
                <P>
                    5. 
                    <E T="03">An estimate of the total number of respondents and the amount of time estimated for an average respondent to respond:</E>
                     459,238 annual respondents/10 minutes.
                </P>
                <P>
                    6. 
                    <E T="03">An estimate of the total annual burden (in hours) associated with the collection:</E>
                     The total annual burden hours for this collection is 12.4 million hours.
                </P>
                <P>
                    7. 
                    <E T="03">An estimate of the total annual cost burden associated with the collection, if applicable:</E>
                     $0
                </P>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,12,r25,12,12,r25">
                    <TTITLE>1. Total Burden Hours</TTITLE>
                    <TDESC> </TDESC>
                    <BOXHD>
                        <CHED H="1">Activity</CHED>
                        <CHED H="1">
                            Number of 
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">Frequency</CHED>
                        <CHED H="1">Total annual responses (million)</CHED>
                        <CHED H="1">
                            Time per 
                            <LI>response </LI>
                            <LI>(min)</LI>
                        </CHED>
                        <CHED H="1">Total annual burden (hours)</CHED>
                    </BOXHD>
                    <ROW RUL="n,s">
                        <ENT I="01">Ex: Form</ENT>
                        <ENT>459,238</ENT>
                        <ENT>Annually</ENT>
                        <ENT>74.2 </ENT>
                        <ENT>10 </ENT>
                        <ENT>12.4 million.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Unduplicated Totals</ENT>
                        <ENT>459,238</ENT>
                        <ENT/>
                        <ENT>74.2</ENT>
                        <ENT/>
                        <ENT>12.4 million.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>If additional information is required contact: Darwin Arceo, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE, 4W-218, Washington, DC.</P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Darwin Arceo,</NAME>
                    <TITLE>Department Clearance Officer for PRA, U.S. Department of Justice.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14270 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <DEPDOC>[OMB Number 1122-0016]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Proposed eCollection eComments Requested; Extension of a Previously Approved Collection; Semi-Annual Progress Report for Grantees of the Transitional Housing Assistance Grant Program)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office on Violence Against Women, Department of Justice.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Office on Violence Against Women, Department of Justice (DOJ), will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are encouraged and will be accepted for 60 days until August 27, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have additional comments especially on the estimated public burden or associated response time, suggestions, or need a copy of the proposed information collection instrument with instructions or additional information, please contact Catherine Poston, Office on Violence Against Women, at 202-514-5430 or 
                        <E T="03">Catherine.poston@usdoj.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Written comments and suggestions from the public and affected agencies concerning the proposed collection of information are encouraged. Your comments should address one or more of the following four points:</P>
                <FP SOURCE="FP-1">—Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Bureau of Justice Statistics, including whether the information will have practical utility;</FP>
                <FP SOURCE="FP-1">—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;</FP>
                <FP SOURCE="FP-1">—Evaluate whether and if so how the quality, utility, and clarity of the information to be collected can be enhanced; and</FP>
                <FP SOURCE="FP-1">
                    —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 T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </FP>
                <P>
                    <E T="03">Abstract:</E>
                     Authorized by 34 U.S.C. 12351, the Transitional Housing Assistance Grants for Victims of Domestic Violence, Dating Violence, Sexual Assault and Stalking Program (Transitional Housing Program) supports programs that provide 6-24 months of transitional housing with support services for victims who are homeless or in need of transitional housing or other housing assistance, as a result of a situation of domestic violence, dating violence, sexual assault or stalking; and for whom emergency shelter services or other crisis intervention services are unavailable or insufficient.
                </P>
                <HD SOURCE="HD1">Overview of This Information Collection</HD>
                <P>
                    1. 
                    <E T="03">Type of Information Collection:</E>
                     Extension of a previously approved collection.
                </P>
                <P>
                    2. 
                    <E T="03">The Title of the Form/Collection:</E>
                     Semi-Annual Progress Report for Grantees of the Transitional Housing Assistance Grant Program.
                </P>
                <P>
                    3. 
                    <E T="03">The agency form number, if any, and the applicable component of the Department sponsoring the collection:</E>
                     1122-0016.
                </P>
                <P>
                    <E T="03">Affected public who will be asked or required to respond, as well as the obligation to respond:</E>
                     The affected public includes the approximately 120 grantees of the Transitional Housing Program whose eligibility is determined by statute. This discretionary grant program provides transitional housing, short-term housing assistance, and related support services for individuals who are homeless, or in need of transitional housing or other housing assistance, as a result of fleeing a situation of domestic violence, dating violence, sexual assault, or stalking, and for whom emergency shelter services or other crisis intervention services are unavailable or insufficient. Eligible applicants are States, units of local government, Indian tribal governments, and other organizations, including domestic violence and sexual assault victim services providers, domestic violence or sexual assault coalitions, other nonprofit, nongovernmental organizations, or community-based and 
                    <PRTPAGE P="54069"/>
                    culturally specific organizations, that have a documented history of effective work concerning domestic violence, dating violence, sexual assault, or stalking. The obligation to respond is required to obtain/retain a benefit.
                </P>
                <P>
                    4. 
                    <E T="03">An estimate of the total number of respondents and the amount of time estimated for an average respondent to respond:</E>
                     It is estimated that it will take the approximately 120 respondents (Transitional Housing Program grantees) approximately one hour to complete a semi-annual progress report. The semi-annual progress report is divided into sections that pertain to the different types of activities in which grantees may engage. A Transitional Housing Program grantee will only be required to complete the sections of the form that pertain to its own specific activities.
                </P>
                <P>
                    5. 
                    <E T="03">An estimate of the total annual burden (in hours) associated with the collection:</E>
                     It is estimated that it will take the approximately 120 respondents (Transitional Housing Program grantees) approximately one hour to complete a semi-annual progress report. The semi-annual progress report is divided into sections that pertain to the different types of activities in which grantees may engage. A Transitional Housing Program grantee will only be required to complete the sections of the form that pertain to its own specific activities.
                </P>
                <P>6. The total annual hour burden to complete the data collection forms is 240 hours, that is 120 grantees completing a form twice a year with an estimated completion time for the form being one hour.</P>
                <P>
                    7. 
                    <E T="03">An estimate of the total annual cost burden associated with the collection, if applicable:</E>
                     The annualized costs to the Federal Government resulting from the OVW staff review of the progress reports submitted by grantees are estimated to be $13,440.
                </P>
                <P>8.</P>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,12,xs68,12,12,12">
                    <TTITLE>Total Burden Hours</TTITLE>
                    <BOXHD>
                        <CHED H="1">Activity</CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">Frequency</CHED>
                        <CHED H="1">
                            Total
                            <LI>annual</LI>
                            <LI>responses</LI>
                        </CHED>
                        <CHED H="1">
                            Time per
                            <LI>response</LI>
                            <LI>(hours)</LI>
                        </CHED>
                        <CHED H="1">
                            Total annual
                            <LI>burden</LI>
                            <LI>(hours)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW RUL="n,s">
                        <ENT I="01">Progress Report Form</ENT>
                        <ENT>120</ENT>
                        <ENT>2/semiannually</ENT>
                        <ENT>240</ENT>
                        <ENT>1</ENT>
                        <ENT>240</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Unduplicated Totals</ENT>
                        <ENT>120</ENT>
                        <ENT/>
                        <ENT>240</ENT>
                        <ENT/>
                        <ENT>240</ENT>
                    </ROW>
                </GPOTABLE>
                <P>If additional information is required contact: Darwin Arceo, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE, 4W-218, Washington, DC.</P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Darwin Arceo,</NAME>
                    <TITLE>Department Clearance Officer for PRA, U.S. Department of Justice.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14189 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-FX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF LABOR</AGENCY>
                <SUBJECT>Agency Information Collection Activities; Submission for OMB Review; Comment Request; Employee Retirement Income Security Act Section 408(b)(2) Regulation</SUBJECT>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of availability; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of Labor (DOL) is submitting this Employee Benefits Security Administration (EBSA)-sponsored information collection request (ICR) to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995 (PRA). Public comments on the ICR are invited.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The OMB will consider all written comments that the agency receives on or before July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Michael Howell by telephone at 202-693-6782, or by email at 
                        <E T="03">DOL_PRA_PUBLIC@dol.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The prohibited transaction described in section 406(a)(1)(C) of ERISA generally prohibits the furnishing of goods, services, or facilities between a plan and a party in interest to the plan. Because ERISA defines any person furnishing services to the plan as a “party in interest” to the plan, a service relationship between a plan and a service provider would constitute a prohibited transaction under section 406(a)(1)(C) in the absence of relief. Section 408(b)(2) of ERISA provides relief, however, for service contracts or arrangements if the contract or arrangement is “reasonable,” if the services are necessary for the establishment or operation of the plan, and if no more than “reasonable” compensation is paid for the services. The Department's final rule under ERISA section 408(b)(2) (29 CFR 2550.408b-2) requires reasonable contracts or arrangements between employee pension benefit plans and certain providers of services to such plans include specified information to assist plan fiduciaries in assessing the reasonableness of the compensation paid for services and the conflicts of interest that may affect a service provider's performance of services.</P>
                <P>
                    The Department also issued a class prohibited transaction exemption as part of the final rule. The class exemption grants plan fiduciaries relief from liability for a prohibited transaction resulting from the service provider's failure to comply with the regulation's disclosure requirements. The Department recognizes that a plan fiduciary may on occasion unknowingly enter into a contract or arrangement that does not meet the requirements of the regulation for relief under ERISA section 408(b)(2), in the reasonable belief that the service provider has divulged the requisite information. If the requirements of the rule are not satisfied, a prohibited transaction occurs for both the service provider and the plan fiduciary, but for the availability of the class exemption. For additional substantive information about this ICR, see the related notice published in the 
                    <E T="04">Federal Register</E>
                     on February 5, 2024 (89 FR 7732).
                </P>
                <P>
                    Comments are invited on: (1) whether the collection of information is necessary for the proper performance of the functions of the Department, including whether the information will have practical utility; (2) the accuracy of the agency's estimates of the burden and cost of the collection of information, 
                    <PRTPAGE P="54070"/>
                    including the validity of the methodology and assumptions used; (3) ways to enhance the quality, utility and clarity of the information collection; and (4) ways to minimize the burden of the collection of information on those who are to respond, including the use of automated collection techniques or other forms of information technology.
                </P>
                <P>
                    This information collection is subject to the PRA. A Federal agency generally cannot conduct or sponsor a collection of information, and the public is generally not required to respond to an information collection, unless the OMB approves it and displays a currently valid OMB Control Number. In addition, notwithstanding any other provisions of law, no person shall generally be subject to penalty for failing to comply with a collection of information that does not display a valid OMB Control Number. 
                    <E T="03">See</E>
                     5 CFR 1320.5(a) and 1320.6.
                </P>
                <P>DOL seeks PRA authorization for this information collection for three (3) years. OMB authorization for an ICR cannot be for more than three (3) years without renewal. The DOL notes that information collection requirements submitted to the OMB for existing ICRs receive a month-to-month extension while they undergo review.</P>
                <P>
                    <E T="03">Agency:</E>
                     DOL-EBSA.
                </P>
                <P>
                    <E T="03">Title of Collection:</E>
                     Employee Retirement Income Security Act Section 408(b)(2) Regulation.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1210-0133.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Private sector, Business or other for profits.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Respondents:</E>
                     119,686.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Responses:</E>
                     1,877,576.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Time Burden:</E>
                     1,281,731 hours.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Other Costs Burden:</E>
                     $183,826.
                </P>
                <EXTRACT>
                    <FP>(Authority: 44 U.S.C. 3507(a)(1)(D))</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Michael Howell,</NAME>
                    <TITLE>Senior Paperwork Reduction Act Analyst.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14249 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4510-29-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">NATIONAL AERONAUTICS AND SPACE ADMINISTRATION</AGENCY>
                <DEPDOC>[NASA Document Number: 24-041; NASA Docket Number: NASA-2024-0004]</DEPDOC>
                <SUBJECT>Name of Information Collection: Survey of the Use of NASA Earth Observation Data by States, Tribes, and Territories</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Aeronautics and Space Administration (NASA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>NASA, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995 (PRA).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are due by July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for this information collection should be sent within 30 days of publication of this notice at 
                        <E T="03">www.reginfo.gov/public/do/PRAMain</E>
                         and search for NASA Docket NASA-2024-0004.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Requests for additional information or copies of the information collection instrument(s) and instructions should be directed to NASA PRA Clearance Officer, Stayce Hoult, NASA Headquarters, 300 E Street SW, JC0000, Washington, DC 20546, phone 256-714-8575, or email 
                        <E T="03">hq-ocio-pra-program@mail.nasa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Abstract</HD>
                <P>As part of a requirement from the CHIPS and Science Act of 2022 (Pub. L. 117-167, div. B, title VII, sec. 10824, Aug. 9, 2022, 136 Stat. 1742) the NASA Administrator shall arrange for the conduct of a survey of the use of NASA Earth observation data by States, Tribal organizations, and territories. The collection of this information will enable the agency to understand how Earth observation data is used, how it might impact decision making, and where any gaps might exist.</P>
                <HD SOURCE="HD1">II. Methods of Collection</HD>
                <P>Electronic, virtual focus groups, and in-person focus groups.</P>
                <HD SOURCE="HD1">III. Data</HD>
                <P>
                    <E T="03">Title:</E>
                     Survey of the Use of NASA Earth Observation Data by States, Tribes, and Territories.
                </P>
                <P>
                    <E T="03">OMB Number:</E>
                     2700-new.
                </P>
                <P>
                    <E T="03">Type of review:</E>
                     New collection.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Officials representing states, tribes, and territories.
                </P>
                <P>
                    <E T="03">Estimated Annual Number of Activities:</E>
                     2.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents per Activity:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     2,000.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     1.25 hours (focus group + quantitative survey).
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     2,500.
                </P>
                <HD SOURCE="HD1">IV. Request for Comments</HD>
                <P>Comments are invited on: (1) Whether the proposed collection of information is necessary for the proper performance of the functions of NASA, including whether the information collected has practical utility; (2) the accuracy of NASA's estimate of the burden (including hours and cost) of the proposed collection of information; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on respondents, including automated collection techniques or the use of other forms of information technology.</P>
                <P>Comments submitted in response to this notice will be summarized and included in the request for OMB approval of this information collection. They will also become a matter of public record.</P>
                <SIG>
                    <NAME>Stayce Hoult,</NAME>
                    <TITLE>NASA PRA Clearance Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14240 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7510-13-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">NATIONAL AERONAUTICS AND SPACE ADMINISTRATION</AGENCY>
                <DEPDOC>[NASA Document No: NASA-24-040; NASA Docket No: NASA-24-0003]</DEPDOC>
                <SUBJECT>Request for Comments: Biosketch and Current and Pending Support Disclosure Policy</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Aeronautics and Space Administration.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>National Aeronautics and Space Administration's (NASA) Grants Policy and Compliance (GPC) in the Office of Procurement is soliciting public comment on the Agency's forthcoming policy on disclosures made in grant applications and annual certifications.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received by July 30, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for this information collection should be sent within 30 days of publication of this notice. We encourage respondents to submit comments electronically to ensure timely receipt. You may send comments, identified by NASA Docket Number NASA-24-0003 to the Federal e-Rulemaking Portal: 
                        <E T="03">https://www.regulations.gov.</E>
                         Follow the online instructions for submitting comments. We encourage you to submit comments electronically through the Federal eRulemaking Portal at 
                        <E T="03">http://www.regulations.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <PRTPAGE P="54071"/>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Requests for additional information should be directed to Senior Policy Analyst, Laila Ouhamou, NASA Headquarters, 300 E Street SW, Rm. 6O87, Washington, DC 20546, phone 202-993-5942, or email 
                        <E T="03">laila.ouhamou@nasa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Section 4(b) of National Security Presidential Memorandum-33 (NSPM-33) directs that “research funding agencies shall require the disclosure of information related to potential conflicts of interest and commitment from participants in the federally funded R&amp;D enterprise . . . The appropriate disclosure requirement varies depending on the individual's role in the United States R&amp;D enterprise.” Section 4(b)(vi) directs that “agencies should standardize forms for initial disclosures as well as annual updates, . . . and should provide clear instructions to accompany these forms and to minimize any associated administrative burden.”</P>
                <P>The NSTC Research Security Subcommittee worked to develop consistent disclosure requirements from senior personnel, as well as to develop proposed common disclosure forms for the Biographical Sketch and Current and Pending (Other) Support sections of an application for Federal grants or cooperative agreements. The purpose of the Biographical Sketch is to assess how well qualified the individual, team, or organization is to conduct the proposed activities. The purpose of Current and Pending (Other) Support is to assess the capacity of the individual to carry out the research as proposed and to help identify any potential scientific and budgetary overlap/duplication, as well as overcommitment with the project being proposed. These forms were approved and rolled out by the Office of Science and Technology Policy (OSTP) on February 14, 2024, and NASA plans to implement these new forms starting on October 1, 2024. NASA plans to amend grant guidance materials to incorporate the mandatory use of these forms as outlined at the end of this notice.</P>
                <P>
                    These common forms are intended to clarify what is expected of senior personnel applying for NASA grants and cooperative agreements and NASA plans to alter guidance documents to require the use of these forms for senior/key personnel listed in NASA grant applications. For information on what these forms will look like (with minor deviations), interested parties can visit 
                    <E T="03">https://www.nsf.gov/bfa/dias/policy/nstc_disclosure.jsp.</E>
                     When finalized, NASA will post the NASA-approved forms on the NASA website for applicants to download, fill out, certify, and submit within their NASA grant application. After an entity receives an award, entities shall disclose new current and pending support activities that have arisen since application in their regular Research Performance Progress Report submission.
                </P>
                <P>NASA also intends on ensuring compliance with the CHIPS and Science Act of 2022, Section 10632, which requires certifications that senior/key personnel are not a party to a malign foreign talent recruitment program, which will have to be recertified annually during the grant award's period of performance. These requirements will also be incorporated into the NASA grant guidance documents as outlined below:</P>
                <P>The policy below will be incorporated into the NASA's grant policy documents during the next revision cycle in 2024.</P>
                <HD SOURCE="HD1">1. Biographical Sketch Disclosures</HD>
                <P>
                    (a) 
                    <E T="03">Purpose.</E>
                     A biographical sketch documents an individual's qualifications and professional experience, and the information is used to assess how well qualified an individual is to conduct proposed award activities. Each senior/key person listed on a NASA grant or cooperative agreement proposal is required to submit biographical sketch disclosures with their application.
                </P>
                <P>
                    (b) 
                    <E T="03">Senior/key persons.</E>
                     Per National Security Presidential Memorandum 33 (NSPM-33), a “senior/key person” is defined as an individual who (a) contributes in a substantive, meaningful way to the scientific development or execution of a research and development project proposed to be carried out with a research and development award from a Federal research agency; and (b) is designated as a covered individual by the Federal research agency concerned. NASA will designate as a senior/key person all Principal Investigators (PIs), all co-Principal Investigators (CoPIs), and co-Investigators (Co-Is) proposing to spend 10 percent or more of their time in any given year on a NASA-funded grant or cooperative agreement. NASA program offices may designate additional personnel categories as a senior/key person on a project-by-project basis, and these designations must be explicitly stated in all Notices of Funding Opportunities (NOFO).
                </P>
                <P>
                    (c) 
                    <E T="03">Submission.</E>
                     Each senior/key person is responsible for preparing, signing, and submitting a biographical sketch form as part of their proposal. The form is available on the NASA Grants Policy and Compliance website as well as the NASA Shared Services Center website. There is no page limit to the biographical sketch form, and all data elements marked as required shall be submitted to NASA using the form. Senior/key personnel have the option to provide their Persistent Identifier in the “Persistent Identifier (PID) of the Senior/Key Person” section of the form.
                </P>
                <P>i. Applicants are encouraged to digitally sign their disclosure forms. However, if a form with a digital signature is submitted to NASA via the NASA Solicitation and Proposal Integrated Review and Evaluation System (NSPIRES), the system will remove the certification data associated with that digital signature. The signature will still be legible, but NASA will not be able to view any certification data embedded in the form. As such, award recipients shall maintain original forms with digital signatures and make them accessible to NASA in accordance with 2 CFR 200.334, Retention requirements for records, and 200.337, Access to records.</P>
                <P>
                    (d) 
                    <E T="03">Disclosure table.</E>
                     A table entitled 
                    <E T="03">NASA Pre-award and Post-award Disclosure Requirements</E>
                     provides helpful reference information regarding pre-award and post-award disclosures. The table includes the types of activities to be reported, where such activities must be reported in the application, as well as when updates are required in the application and award lifecycle. A final column identifies activities that are not required to be reported.
                </P>
                <HD SOURCE="HD1">2. Current and Pending Support Disclosures</HD>
                <P>
                    (a) 
                    <E T="03">Purpose.</E>
                     Current and pending support information is used to assess the capacity of senior/key personnel to carry out proposed award activities and helps NASA assess any potential scientific and budgetary overlap or duplication, as well as conflicts of commitment, with the proposed project. Each senior/key person listed on a NASA grant or cooperative agreement proposal is required to submit current and pending support disclosures with their application.
                </P>
                <P>
                    (b) 
                    <E T="03">Senior/key persons.</E>
                     Per NSPM-33, a “senior/key person” is defined as an individual who (a) contributes in a substantive, meaningful way to the scientific development or execution of a research and development project proposed to be carried out with a research and development award from a Federal research agency; and (b) is designated as a covered individual by the Federal research agency concerned. NASA will designate as a senior/key person all Principal Investigators (PIs), all Co-Principal Investigators (CoPIs), 
                    <PRTPAGE P="54072"/>
                    and Co-Investigators (Co-Is) proposing to spend 10 percent or more of their time in any given year on a NASA-funded grant or cooperative agreement. NASA program offices are authorized to designate additional personnel categories as a senior/key person on a project-by-project basis, and these designations must be explicitly stated in all Notices of Funding Opportunity (NOFOs).
                </P>
                <P>
                    (c) 
                    <E T="03">Submission.</E>
                     Each senior/key person is responsible preparing, signing, and submitting a current and pending support form as part of their proposal. The form is available on the NASA Grants Policy and Compliance website as well as the NASA Shared Services Center website. There is no page limit to the current and pending support form, and all data elements marked as required shall be submitted to NASA using the form. Senior/key personnel have the option to provide their Persistent Identifier in the “Persistent Identifier (PID) of the Senior/Key Person” section of the form.
                </P>
                <P>i. Applicants are encouraged to digitally sign their disclosure forms. However, if a form with a digital signature is submitted to NASA via NSPIRES, the system will remove the certification data associated with that digital signature. The signature will still be legible, but NASA will not be able to view any certification data embedded in the form. As such, award recipients shall maintain original forms with digital signatures and make them accessible to NASA in accordance with 2 CFR 200.334, Retention requirements for records, and 200.337, Access to records.</P>
                <P>
                    (d) 
                    <E T="03">Disclosure table.</E>
                     A table entitled 
                    <E T="03">NASA Pre-award and Post-award Disclosure Requirements</E>
                     provides helpful reference information regarding pre-award and post-award disclosures. The table includes the types of activities to be reported, where such activities must be reported in the application, as well as when updates are required in the application and award lifecycle. A final column identifies activities that are not required to be reported.
                </P>
                <P>
                    (e) 
                    <E T="03">Post-award disclosures.</E>
                     After an entity receives an award, entities shall disclose new current and pending support activities that have arisen since submission of the proposal. Entities shall indicate that there are new current and pending support disclosures in the first Research Performance Progress Report (RPPR) that is due to NASA after the new current and pending support has been disclosed to the entity. Entities shall indicate that new current and pending support has been identified in the “Participants &amp; Other Collaborating Organizations” section of the RPPR. If there are new disclosures, senior/key persons must prepare, certify, and submit a revised current and pending support form along with the RPPR. The 
                    <E T="03">NASA Pre-award and Post-award Disclosure Requirements</E>
                     table describes which new support requires disclosure as part of performance reports.
                </P>
                <P>
                    (f) 
                    <E T="03">Failure to disclose.</E>
                     If an entity discovers that a senior/key person has failed to disclose reportable information in accordance with this section, then the entity shall notify NASA within 30 calendar days per their award's terms and conditions. Upon receipt of the information, NASA will consult with the entity as necessary and take appropriate action.
                </P>
                <HD SOURCE="HD1">3. Facilities, Equipment, &amp; Other Resources</HD>
                <P>(a) Applicants are required to submit a technical narrative for facilities, equipment, and other resources (F&amp;E) that describes any special F&amp;E that are required for the applicant to complete the proposed project. This section of the proposal shall:</P>
                <P>i. Describe any required existing F&amp;E for the proposed work effort and whether the recipient already has access to items that are in good working order, or if such items need to be repaired, upgraded, or acquired (see letters of resource support for facilities and equipment not controlled by a member of the proposal team in section X.X of the GCAM);</P>
                <P>
                    ii. Disclose the following per the 
                    <E T="03">NASA Pre-award and Post-award Disclosure Requirements</E>
                     table:
                </P>
                <P>A. In-kind contributions that support the research activity for use on the project/proposal being proposed, and</P>
                <P>B. Postdoctoral scholars, students, or visiting scholars who are supported by an external entity, and whose research activities are intended for use on the project/proposal being proposed; and</P>
                <P>
                    iii. Not include any text that belongs in the page-limited Scientific/Technical/Management Plan (
                    <E T="03">e.g.,</E>
                     description of the work plan, justifications for perceived impact of the work, descriptions of proposal team roles and responsibilities).
                </P>
                <P>
                    (b) Proposals submitted via 
                    <E T="03">Grants.gov</E>
                     shall include F&amp;E as a separate PDF document to be uploaded to the 
                    <E T="03">Grants.gov</E>
                     application and titled “Facilities, Equipment, and Other Resources.”
                </P>
                <HD SOURCE="HD1">4. Malign Foreign Talent Recruitment Programs</HD>
                <P>
                    (a) In accordance with the 
                    <E T="03">CHIPS and Science Act of 2022,</E>
                     Section 10632 (42 U.S.C. 19232), individuals who are a party to a malign foreign talent recruitment program (MFTRP) shall not serve as senior/key personnel on a NASA grant or cooperative agreement. The definition of MFTRP can be found at 42 U.S.C. 19237(4), and all Principal Investigators (PIs), all Co-Principal Investigators (CoPIs), and Co-Investigators (Co-Is) proposing to spend 10 percent or more of their time in any given year on a NASA-funded grant or cooperative agreement are designated as senior/key personnel.
                </P>
                <P>(b) Upon completing a biographical sketch and current and pending support form, senior/key personnel will be required to sign a certification statement reading “I also certify that, at the time of submission, I am not a party to a malign foreign talent recruitment program.”</P>
                <P>i. 42 U.S.C. 19232(a)(1) requires that covered individuals submit a certification stating that they are not a party to a MFTRP annually after proposal submission for the duration of the award. As such, all NASA award recipients shall ensure that senior/key personnel have signed a certification annually stating that they are not a party to a MFTRP. These annual certifications do not have to be submitted to NASA, but award recipients must maintain them in their grant files and make them available to NASA upon request in accordance with 2 CFR 200.334, Retention requirements for records, and 200.337, Access to records.</P>
                <P>(c) Upon submitting a proposal in NSPIRES, entities' Authorized Organizational Representatives (AOR) will be required to certify that all senior/key personnel associated with the proposal have been made aware of and have complied with their responsibility under 42 U.S.C. 19232 to certify that they are not a party to a malign foreign talent recruitment program.</P>
                <HD SOURCE="HD1">5. Consequences for Violation of Disclosure Requirements</HD>
                <P>(a) If it is determined that a senior/key person failed to disclose required information, NASA may take one or more of the following actions:</P>
                <P>i. Reject a proposal;</P>
                <P>ii. Suspend or terminate an award;</P>
                <P>iii. Temporarily or permanently discontinue any or all funding for the individual or entity;</P>
                <P>iv. Preserve an award, but require or otherwise ensure that a senior/key person does not perform work under the award;</P>
                <P>
                    v. Suspend or debar recipients as appropriate and consistent with 2 CFR part 180, OMB Guidelines to Agencies on Governmentwide Debarment and 
                    <PRTPAGE P="54073"/>
                    Suspension (Nonprocurement) as adopted by NASA at 2 CFR part 1880, Nonprocurement Debarment and Suspension;
                </P>
                <P>vi. Refer the failure to disclose to the NASA Office of Inspector General for further investigation or to Federal law enforcement authorities to determine whether any criminal or civil laws were violated;</P>
                <P>
                    vii. Report the individual or entity in 
                    <E T="03">SAM.gov</E>
                     to alert other Federal agencies to the noncompliance;
                </P>
                <P>viii. Take one or more of the actions described in 2 CFR 200.339, Remedies for noncompliance; or</P>
                <P>ix. Take such other actions against the senior/key person or entity as authorized under applicable law or regulations.</P>
                <P>(b) If action is necessary, NASA will adhere to the regulations in 2 CFR 200.340, Termination; 2 CFR 200.341, Notification of termination requirement; and 2 CFR 200.342, Opportunities to object, hearings, and appeals. Additionally, NASA will adhere to the policies in GCAM section 7.13, Appealing a Suspended or Terminated Award, as necessary.</P>
                <P>
                    (c) In accordance with the 
                    <E T="03">William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021,</E>
                     Section 223(c)(3) (42 U.S.C. 6605), in the event a senior/key person fails to comply with the NASA's current and pending support disclosure requirements, no enforcement action as identified in 42 U.S.C. 6605(c)(2) for such failure shall be applied to the entity that submitted a proposal unless:
                </P>
                <P>i. The entity did not meet the requirements of 42 U.S.C. 6605(a)(2);</P>
                <P>ii. The entity knew that a senior/key person failed to disclose information under 42 U.S.C. 6605(a)(1), and the entity did not take steps to remedy such nondisclosure before the proposal was submitted; or</P>
                <P>iii. The NASA Administrator determines that:</P>
                <P>A. The entity is owned, controlled, or substantially influenced by a senior/key person; and</P>
                <P>B. Such senior/key person knowingly failed to disclose information under 42 U.S.C. 6605(a)(1).</P>
                <HD SOURCE="HD1">6. Certifications, Assurances, and Representations, Are Revised as Follows</HD>
                <P>
                    C5. Certification Regarding Disclosure Requirements in the 
                    <E T="03">William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021,</E>
                     Section 223(a)(1) (42 U.S.C. 6605(a)(1)).
                </P>
                <P>
                    By submission of its proposal, the proposing entity's Authorized Organizational Representative certifies that the entity is in compliance with the 
                    <E T="03">William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021,</E>
                     Section 223(a)(1) (42 U.S.C. 6605(a)(1)), and that each senior/key person that is employed by the entity and listed on the application has been made aware of the requirements under Section 223(a)(1). Section 223(a)(1) provides that “each covered individual listed on the application—(A) disclose the amount, type, and source of all current and pending research support received by, or expected to be received by, the individual as of the time of the disclosure; (B) certify that the disclosure is current, accurate, and complete; and (C) agree to update such disclosure at the request of the agency prior to the award of support and at any subsequent time the agency determines appropriate during the term of the award.”
                </P>
                <P>
                    C6. Certification Regarding Malign Foreign Talent Recruitment Programs per the 
                    <E T="03">CHIPS and Science Act of 2022,</E>
                     Section 10632 (42 U.S.C. 19232).
                </P>
                <P>Per Section 10632 of the CHIPS and Science Act of 2022 (42 U.S.C. 19232), the entity's Authorized Organizational Representative certifies that each senior/key person that is employed by the entity and listed on the application has been made aware of and has complied with their responsibility under that section to certify that they are not a party to a malign foreign talent recruitment program.</P>
                <HD SOURCE="HD1">7. Award Terms and Conditions, Are Revised as Follows</HD>
                <HD SOURCE="HD2">D40. Current and Pending Support Disclosure Requirements</HD>
                <P>
                    (a) All NASA grant and cooperative agreement recipients shall comply with the current and pending support disclosure requirements in section 2, Current and Pending Support Disclosures, of this document. Per section 2, senior/key personnel shall make new disclosures by submitting an updated current and pending support form as part of their performance reports. See the 
                    <E T="03">NASA Pre-award and Post-award Disclosure Requirements</E>
                     table for more information on which new activities must be reported as part of performance reports.
                </P>
                <P>(b) If an entity discovers that a senior/key person has failed to disclose reportable information in accordance with section 2, Current and Pending Support Disclosures, then the entity shall notify NASA within 30 calendar days of the discovery. Authorized Organizational Representatives, or a delegate, shall submit a current and pending support form that includes information for the undisclosed activity only, and the form shall be submitted to the cognizant NASA Grant Officer(s). AORs or their delegates are not required to sign the certification on the current and pending support form as that certification is intended only for senior/key personnel.</P>
                <HD SOURCE="HD2">D41. Malign Foreign Talent Recruitment Programs</HD>
                <P>(a) All NASA grant and cooperative agreement recipients shall comply with the malign foreign talent recruitment program (MFTRP) prohibitions described in section 4, Malign Foreign Talent Recruitment Programs, of this document. Per section 4, individuals who are a party to a MFTRP shall not serve as senior/key personnel on a NASA grant or cooperative agreement. The definition of MFTRP can be found at 42 U.S.C. 19237(4). All Principal Investigators (PIs), all Co-Principal Investigators (CoPIs), and Co-Investigators (Co-Is) proposing to spend 10 percent or more of their time in any given year on a NASA-funded grant or cooperative agreement are designated as senior/key personnel.</P>
                <P>(b) 42 U.S.C. 19232(a)(1) requires senior/key personnel listed in proposals to certify annually for the duration of a Federal award that each such individual is not a party to a MFTRP. As such, all NASA award recipients shall ensure that senior/key personnel have signed annually a certification stating that they are not a party to a MFTRP. These annual certifications do not have to be submitted to NASA, but award recipients shall maintain them in their grant files and make them available to NASA upon request in accordance with 2 CFR 200.334, Retention requirements for records, and 200.337, Access to records.</P>
                <SIG>
                    <NAME>Laila Ouhamou,</NAME>
                    <TITLE>Senior Policy Analyst, National Aeronautics and Space Administration.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14170 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7510-13-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES</AGENCY>
                <SUBAGY>Institute of Museum and Library Services</SUBAGY>
                <SUBJECT>76th Committee Meeting of the President's Committee on the Arts and the Humanities</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>President's Committee on The Arts and the Humanities, Institute of Museum and Library Services (IMLS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of meeting.</P>
                </ACT>
                <SUM>
                    <PRTPAGE P="54074"/>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Pursuant to the Federal Advisory Committee Act, notice is hereby given that the President's Committee on the Arts and the Humanities will meet to consider a subcommittee proposal.</P>
                </SUM>
                <PREAMHD>
                    <HD SOURCE="HED">DATES AND TIME:</HD>
                    <P> The meeting will be held virtually on July 11, 2024 at 3:00 p.m. ET.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">PLACE:</HD>
                    <P>The meeting will convene in a virtual format.</P>
                </PREAMHD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Jasmine Jennings, Assistant General Counsel and Alternate Designated Federal Officer, Institute of Museum and Library Services, Suite 4000, 955 L'Enfant Plaza North SW, Washington, DC 20024; (202) 653-4653; 
                        <E T="03">jjennings@imls.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The President's Committee on the Arts and the Humanities is meeting pursuant Executive Order 14084 and the Federal Advisory Committee Act (FACA), as amended, 5 U.S.C. App. The 76th Meeting of the President's Committee on the Arts and Humanities will convene on July 11, 2024, at 3:00 p.m. ET. This meeting will be open to the public.</P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and consider a subcommittee proposal regarding a campaign to combat the epidemic of loneliness and isolation identified by United States Surgeon General Dr. Vivek Murthy.
                </P>
                <P>
                    <E T="03">Further Information:</E>
                     On July 11, 2024, at 3:00pm ET the Committee will meet to deliberate on a recommendation for agency action. Any interested persons may attend as observers, subject to limited seating availability. Individuals wishing to attend are advised to contact Alexandra Piper of the Institute of Museum and Library Services seven (7) working days in advance of the July 11, 2024 meeting at 
                    <E T="03">apiper@imls.gov</E>
                     or write to the Committee at 
                    <E T="03">info@pcah.gov,</E>
                     955 L'Enfant Plaza SW, Suite 4000, Washington, DC 20024.
                </P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Brianna Ingram,</NAME>
                    <TITLE>Paralegal Specialist.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14278 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7036-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">OFFICE OF THE DIRECTOR OF NATIONAL INTELLIGENCE</AGENCY>
                <SUBJECT>Privacy Act of 1974; System of Records</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Director of National Intelligence (ODNI).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of a revised system of records.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Pursuant to the Privacy Act of 1974 (hereafter Privacy Act) and Office of Management and Budget (OMB) Circular No. A-108, notice is hereby given that the Office of Civil Liberties, Privacy, and Transparency (CLPT), an office within the Office of the Director of National Intelligence (ODNI), is revising the system of records titled “Civil Liberties and Privacy Office Complaint Records (ODNI-14).” This revision accounts for requirements pursuant to Executive Order 14086, 
                        <E T="03">Enhancing Safeguards for United States Signals Intelligence Activities,</E>
                         to include updating text related to covered individuals, routine uses, authorities, and records sources. It further adds an update to the CLPT office name to reflect its transparency mission.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>In accordance with 5 U.S.C. 552a(e)(4) and (11), this notice is effective upon publication, subject to a 30-day period in which to comment on the routine uses, described below. Please submit any comments by July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal Rulemaking Portal: http://www.regulations.gov.</E>
                    </P>
                    <P>
                        • 
                        <E T="03">Email: transparency@dni.gov.</E>
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Director, Information Management Office, Chief Operating Officer, ODNI, Washington, DC 20511.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Director, Information Management Office, Chief Operating Officer, Office of the Director of National Intelligence, at the addresses provided above.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The ODNI Civil Liberties Protection Officer (CLPO) leads CLPT, which is responsible for ODNI-14. ODNI-14 enables authorized CLPT personnel to track, review, and, as appropriate, investigate complaints of civil liberties or privacy violations in the conduct of programs and activities by ODNI or Intelligence Community (IC) elements. ODNI-14 provides notice on the maintenance of records relevant to CLPT's duties under section 103D of the National Security Act of 1947, as amended, 50 U.S.C. 103D, 401-442; Section 1062 of the Intelligence Reform and Terrorism Prevention Act (IRTPA) of 2004; Executive Order 12333, as amended (73 FR 45325); Executive Order 12958, as amended (68 FR 15315); Executive Order 12968, as amended (73 FR 38103); and Executive Order 14086 (87 FR 62283).</P>
                <P>With this notice, CLPT revises ODNI-14 to include CLPO obligations under Executive Order 14086. Executive Order 14086, published on 7 October 2022, establishes a redress mechanism that authorizes the CLPO to investigate, review, and, as necessary, order appropriate remediation for qualifying complaints transmitted by an appropriate public authority in a qualifying state concerning United States signals intelligence activities for any covered violation of United States law.</P>
                <P>Executive Order 14086 defines a “qualifying complaint” as a complaint, submitted in writing, that alleges a covered violation has occurred that pertains to personal information of or about the complainant, a natural person, reasonably believed to have been transferred to the United States from a qualifying state. Complaints must be filed through the appropriate public authority in a “qualifying state,” which is a country or regional economic integration organization designated as a qualifying state by the Attorney General under section 3(f) of Executive Order 14086.</P>
                <P>
                    Executive Order 14086 requires that the CLPO review information necessary to investigate a qualifying complaint. Intelligence Community Directive (ICD) 126, 
                    <E T="03">Implementation Procedures for the Signals Intelligence Redress Mechanism under Executive Order 14086,</E>
                     requires the CLPO to conduct an initial review of the complaint to assess whether the complaint meets the criteria to be a qualifying complaint, including that the appropriate public authority in a qualifying state verified the identity of the complainant. While the CLPO shall rely on the appropriate public authority's verification, ICD 126 states that the CLPO may request additional information from the appropriate public authority. ICD 126 requires the CLPO to provide written notification to the appropriate public authority as to the CLPO's determination whether that the complaint was qualifying or not. ICD 126 requires the CLPO to provide the Department of Commerce and the Data Protection Review Court (DPRC), as established by the Attorney General, an unclassified record regarding each qualifying complaint that provides only the identity of the complainant, the appropriate public authority that transmitted the qualifying complaint, and the date when the qualifying complaint was transmitted to the CLPO.
                </P>
                <P>To investigate and review a qualifying complaint, Executive Order 14086 requires elements of the IC to provide the CLPO with access to information necessary to conduct the required review. IC elements' privacy and civil liberties officials shall also support the CLPO as the CLPO performs its reviews.</P>
                <P>
                    Executive Order 14086 further requires that the CLPO provide a classified report on information 
                    <PRTPAGE P="54075"/>
                    indicating a violation of any authority subject to the oversight of the Foreign Intelligence Surveillance Court to the Assistant Attorney General for National Security. Additionally, the CLPO shall maintain appropriate documentation of its review of the qualifying complaint; produce a classified determination explaining the basis for its factual findings, whether a covered violation occurred, and the appropriate remediation in the event of a violation, consistent with statutory and delegated authority; and prepare a classified ex parte record of review consisting of the appropriate documentation of its review and the classified decision.
                </P>
                <P>Executive Order 14086 requires that, after completing the review, the CLPO inform the complainant, through the appropriate public authority in a qualifying state and without confirming or denying that the complainant was subject to United States signals intelligence activities, that:</P>
                <P>(1) the review either did not identify any covered violations or the CLPO issued a determination requiring appropriate remediation;</P>
                <P>(2) the complainant or an IC element may apply for review of the CLPO's determinations by the DPRC; and</P>
                <P>(3) if either the complainant or an IC element applies for review by the DPRC, a special advocate will be selected by the DPRC to advocate regarding the complainant's interest in the matter.</P>
                <P>The CLPO is further required to provide any necessary support to the DPRC. Executive Order 14086 also requires elements of the IC to provide the CLPO with access to information necessary to respond to a request from the DPRC for information to conduct its review of the CLPO's determination.</P>
                <P>Executive Order 14086 requires the Department of Commerce to contact elements of the IC regarding whether information relating to the CLPO's and the DPRC's reviews of qualifying complaints has been declassified; the CLPO will engage with the Department of Commerce to facilitate its declassification inquiry.</P>
                <P>Executive Order 14086 encourages, consistent with applicable law, the Privacy and Civil Liberties Oversight Board (PCLOB) to conduct an annual review of the processing of qualifying complaints by the CLPO and DPRC. The CLPO and elements of the IC are required to provide the PCLOB with access to information necessary to conduct the PCLOB's review.</P>
                <PRIACT>
                    <HD SOURCE="HD2">SYSTEM NAME AND NUMBER:</HD>
                    <P>Office of Civil Liberties, Privacy, and Transparency Complaint Records (ODNI-14).</P>
                    <HD SOURCE="HD2">SECURITY CLASSIFICATION:</HD>
                    <P>The classification of records in this system can range from UNCLASSIFIED to TOP SECRET.</P>
                    <HD SOURCE="HD2">SYSTEM LOCATION:</HD>
                    <P>Office of Civil Liberties, Privacy, and Transparency, Office of the Director of National Intelligence, Washington, DC 20511.</P>
                    <HD SOURCE="HD2">SYSTEM MANAGER(S):</HD>
                    <P>Civil Liberties Protection Officer c/o Director, Information Management, Office of the Director of National Intelligence, Washington, DC 20511.</P>
                    <HD SOURCE="HD2">AUTHORITY FOR MAINTENANCE OF THE SYSTEM:</HD>
                    <P>The National Security Act of 1947, as amended, 50 U.S.C. 401-442; the Intelligence Reform and Terrorism Prevention Act (IRTPA) of 2004, 42 U.S.C 2000ee-1; Executive Order 12333, as amended (73 FR 45325); Executive Order 12958, as amended (68 FR 15315); Executive Order 12968, as amended (73 FR 38103); and Executive Order 14086 (87 FR 62283).</P>
                    <HD SOURCE="HD2">PURPOSES OF THE SYSTEM:</HD>
                    <P>Records in this system are used by authorized personnel of the Office of Civil Liberties, Privacy, and Transparency (CLPT) within the Office of the Director of National Intelligence (ODNI) to track, review, and, as appropriate, investigate complaints of civil liberties or privacy violations in the conduct of programs and activities by ODNI or IC elements. This includes complaints submitted pursuant to the Executive Order 14086 redress mechanism to the CLPO and to the Data Protection Review Court for review. Records in this system are also used, as appropriate, to:</P>
                    <P>(1) Manage general correspondence to and from CLPT, including correspondence or reports expressing opinions or complaints, raising questions or concerns, or providing other information;</P>
                    <P>(2) Track and report data, conduct research and statistical analysis, and evaluate program effectiveness; and</P>
                    <P>(3) Maintain records for oversight and auditing purposes and to ensure appropriate handling and management as required by law and policy.</P>
                    <HD SOURCE="HD2">CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:</HD>
                    <P>• Current and former ODNI staff and staff of the IC elements, including military and civilian personnel detailed to ODNI or IC elements; contract employees, including personal services independent contractors and industrial contractors; and members of the public who allege violations of civil liberties or privacy arising from the programs and activities of ODNI or IC elements, including under Executive Order 14086.</P>
                    <P>• Individuals who may be relevant to or have information relevant to the allegation of a violation of civil liberties or privacy.</P>
                    <P>• Staff of the Department of Justice, including the Office of Privacy and Civil Liberties and the National Security Division; the DPRC; the Department of Commerce; the PCLOB; and the appropriate public authorities in a qualifying state related to the redress process pursuant to Executive Order 14086.</P>
                    <HD SOURCE="HD2">CATEGORIES OF RECORDS IN THE SYSTEM:</HD>
                    <P>Records alleging violations of civil liberties or privacy arising from the programs and activities of ODNI or IC elements, and records of review, investigation, acknowledgment or disposition of allegations received. This also includes records to facilitate the Executive Order 14086 redress mechanism, such as: (i) personal information received from individual complainants; (ii) a record of determination whether the complaint is qualifying for investigation under Executive Order 14086 or other authority; (iii) information received from IC elements relating to complaints; (iv) information regarding communications between the CLPO, IC elements, and relevant personnel, to include those of the Department of Justice, the DPRC, Department of Commerce, the PCLOB, and the appropriate public authorities in a qualifying state.</P>
                    <HD SOURCE="HD2">RECORD SOURCE CATEGORIES:</HD>
                    <P>Records will be obtained from individuals submitting complaints either directly to CLPT or through an appropriate public authority; relevant records from IC elements; records developed by CLPT during the review and investigation process; and records developed by the DPRC, the Department of Justice, and the Department of Commerce.</P>
                    <HD SOURCE="HD2">ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND THE PURPOSES OF SUCH USES:</HD>
                    <P>In addition to those disclosures generally permitted under 5 U.S.C. 552a(b) of the Privacy Act, all or a portion of the records or information contained in this system may be disclosed outside ODNI as a routine use pursuant to 5 U.S.C. 552a(b)(3) as follows:</P>
                    <P>
                        A. To an appropriate federal, state, territorial, tribal, or local law enforcement authority, foreign 
                        <PRTPAGE P="54076"/>
                        government or international law enforcement authority, or to an appropriate regulatory body charged with investigating, enforcing, or prosecuting such violations when a record on its face or in conjunction with other information indicates or relates to a violation or potential violation of law, whether civil, criminal, administrative or regulatory in nature, and whether arising by general statute, particular program statute, regulation, rule or order issued pursuant thereto.
                    </P>
                    <P>B. To an administrative law judge, or to the presiding official of an administrative board, panel or other administrative body when a record is required to be presented in the course of proceedings or as evidence and with appropriate protections for further disclosure in place.</P>
                    <P>C. To any component of the Department of Justice or any other entity responsible for representing the interests of ODNI in connection with potential or actual civil, criminal, administrative, judicial or legislative proceedings or hearings, for the purpose of representing or providing advice to: ODNI; any staff of ODNI in their official capacity; any staff of ODNI in their individual capacity where the staff has submitted a request for representation by the United States or for reimbursement of expenses associated with retaining counsel; or the United States or another federal agency, when the United States or the agency is a party to such proceeding and the record is relevant and necessary to such proceeding.</P>
                    <P>D. In a proceeding before a court, magistrate, special master, or adjudicative body when any of the following is a party to litigation or has an interest in such litigation, and the ODNI, Office of General Counsel, determines that use of such records is relevant and necessary to the litigation: ODNI; any staff of ODNI in their official capacity; any staff of ODNI in their individual capacity where the Department of Justice has agreed to represent the staff or has agreed to provide counsel at government expense; or the United States or another federal agency, where the ODNI, Office of General Counsel, determines that litigation is likely to affect ODNI.</P>
                    <P>E. To Department of Justice and other U.S. Government entities, to the extent necessary to obtain advice on any matter within the official responsibilities of such representatives and the responsibilities of ODNI and determined by ODNI to be relevant and necessary to the request for advice.</P>
                    <P>F. To a Member of Congress or congressional staffer in response to an inquiry from that Member of Congress or congressional staffer made at the written request of the individual who is the subject of the record.</P>
                    <P>G. To any agency, organization, or individual for authorized audit operations, and for meeting related reporting requirements, including disclosure to the National Archives and Records Administration for records management inspections and such other purposes conducted under the authority of 44 U.S.C. 2904 and 2906, or successor provisions.</P>
                    <P>H. To the President's Intelligence Advisory Board, the President's Intelligence Oversight Board, to any successor organizations, and to any intelligence oversight entity established by the President, and to the PCLOB when the Office of the General Counsel or the Office of the Inspector General determines that disclosure is necessary for such entities to perform their oversight functions and that such disclosure is otherwise lawful.</P>
                    <P>I. To contractors, grantees, experts, consultants, students, or others performing or working on a contract, service, grant, cooperative agreement, or other assignment for ODNI when access to the record is necessary to perform the function or service for which they have been engaged by ODNI.</P>
                    <P>J. To former staff of ODNI for the purposes of responding to an official inquiry by a federal, state, or local government entity or professional licensing authority or facilitating communications with a former staff of ODNI that may be necessary for personnel-related or other official purposes when ODNI requires information or consultation assistance, or both, from the former staff regarding a matter within that person's former area of responsibility.</P>
                    <P>K. To foreign, international or multinational security, investigatory, law enforcement, or administrative authorities in order to comply with requirements imposed by, or to claim rights conferred in, formal agreements and arrangements.</P>
                    <P>L. To a federal, state, local, tribal, territorial, foreign, or multinational government agency or entity, or to other authorized entities or individuals, but only if such disclosure is undertaken in furtherance of responsibilities conferred by, and in a manner consistent with, the National Security Act of 1947, as amended; the Counterintelligence Enhancement Act of 2002, as amended; Executive Order 12333 or any successor order together with its implementing procedures approved by the Attorney General; and other provisions of law, Executive Order, or directive relating to national intelligence or otherwise applicable to ODNI. This routine use is not intended to supplant the other routine uses published by ODNI.</P>
                    <P>M. To IC elements when a record is related to the redress function under Executive Order 14086, but only if such disclosure is undertaken in furtherance of responsibilities conferred by, and in a manner consistent with, that redress function.</P>
                    <P>N. To the Department of Justice, the Data Protection Review Court, and the Department of Commerce when a record is related to the redress function under Executive Order 14086 and the ODNI CLPO has determined the record is necessary and relevant in furtherance of responsibilities conferred by, and in a manner consistent with, that redress function.</P>
                    <P>O. To the PCLOB when a record is related to the redress function under Executive Order 14086 and the ODNI CLPO has determined the record is necessary and relevant in furtherance of responsibilities conferred by, and in a manner consistent with, that redress function.</P>
                    <P>P. To the appropriate public authorities in a qualifying state when a record is related to the redress function under Executive Order 14086 and the ODNI CLPO has determined the record is necessary and relevant in furtherance of responsibilities conferred by, and in a manner consistent with, that redress function.</P>
                    <P>Q. A record from this system of records may be disclosed as a routine use to appropriate agencies, entities, and persons when: (1) ODNI suspects or has confirmed that there has been a breach of the system of records; (2) ODNI has determined that as a result of the suspected or confirmed breach there is a risk of harm to individuals, ODNI (including its information systems, programs, and operations), the federal government, or national security, and; (3) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with the Department's efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm.</P>
                    <P>
                        R. A record from this system of records may be disclosed as a routine use to another Federal agency or Federal entity, when ODNI determines that information from this system ofrecords is reasonably necessary to assist the recipient agency or entity in (1) responding to a suspected or confirmed breach or (2) preventing, minimizing, or remedying the risk ofharm to individuals, the recipient agency or entity (including its information 
                        <PRTPAGE P="54077"/>
                        systems, programs, and operations), the Federal Government, or national security, resulting from a suspected or confirmed breach.
                    </P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR STORAGE OF RECORDS:</HD>
                    <P>Paper and other hard-copy records are stored in secured areas within CLPT offices. Electronic records are stored in secure file-servers on secure private cloud-based systems that are connected only to a government network.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:</HD>
                    <P>Records may be retrieved by name or case number. Information may be retrieved from this system of records by automated or hand search based on existing indices and automated capabilities utilized in the normal course of business. All searches of this system of records will be performed in accordance with Executive Order 14086.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:</HD>
                    <P>Pursuant to 44 U.S.C. 3303a(d) and 36 CFR chapter 12, subchapter B, part 1226—Implementing Disposition, records will be disposed of according to the National Archives and Records Administration's General Records Schedule item 4.2 065, Privacy Complaint Records.</P>
                    <HD SOURCE="HD2">ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:</HD>
                    <P>Information in this system is safeguarded in accordance with prescribed administrative, physical, and technical safeguards. Records are maintained in a secure government facility with access to the facility limited to authorized personnel and authorized, escorted visitors. Physical security protections include guards who review individual's badges prior to their entry being permitted into the facility and locked individual offices requiring badges for entry and the use of access codes to open and close the offices daily. Records are accessed only by authorized government personnel using passwords that must meet strict security protocols and who hold appropriate security clearances, whose official duties require access to the records, and who have had ODNI's required annual training to obtain access to the computer systems, including privacy training and computer security training. Communications are encrypted where required and other safeguards are in place to monitor and audit access and to detect intrusions. System backup is maintained separately.</P>
                    <HD SOURCE="HD2">RECORD ACCESS PROCEDURES:</HD>
                    <P>Particular records in this system have been exempted from certain notification, access, and amendment procedures. A request for access to non-exempt records shall be made in writing with the envelope and letter clearly marked “Privacy Act Request.” Each request must provide the requester's full name and complete address. The requester must sign the request and have it verified by a notary public. Alternately, the request may be submitted under 28 U.S.C. 1746, certifying the requester's identity and acknowledging that obtaining records under false pretenses constitutes a criminal offense. Requests for access to information must be addressed to the Director, Information Management, Office of the Director of National Intelligence, Washington, DC 20511. Regulations governing access to one's records or for appealing an initial determination concerning access to records are contained in the ODNI regulation implementing the Privacy Act.</P>
                    <P>More information regarding ODNI's procedures for accessing records in accordance with the Privacy Act can be found at 28 CFR part 16 Subpart D, “Access to and Amendment of Individual Records Pursuant to the Privacy Act of 1974, and Other Privacy Protections.”</P>
                    <HD SOURCE="HD2">CONTESTING RECORD PROCEDURES:</HD>
                    <P>Certain records in this system are exempt from certain notification, access, and amendment procedures. Individuals seeking to correct or amend non-exempt records should address their requests to ODNI at the address and according to the requirements set forth above under the heading “Record Access Procedures.” Regulations governing access to and amendment of one's records or for appealing an initial determination concerning access or amendment of records are contained in the ODNI regulation implementing the Privacy Act, 32 CFR part 1701 (73 FR 16531).</P>
                    <HD SOURCE="HD2">NOTIFICATION PROCEDURES:</HD>
                    <P>Certain records in this system are exempt from certain notification, access, and amendment procedures. Individuals seeking to learn whether this system contains non-exempt information about them should address their inquiries to ODNI at the address and according to the requirements set forth above under the heading “Record Access Procedures.”</P>
                    <HD SOURCE="HD2">EXEMPTIONS CLAIMED FOR THE SYSTEM:</HD>
                    <P>Records alleging violations of civil liberties or privacy arising from the programs and activities of ODNI or IC elements, including those records generated pursuant to the processes of Executive Order 14086's redress mechanism, retain their existing exemption from the requirements of subsections (c)(3);(d)(1), (2), (3), (4); (e)(1) and (e)(4)(G), (H), (I); and (f) of the Privacy Act pursuant to 5 U.S.C. 552a(k)(1), (k)(2), and (k)(5). Records may be exempted from these subsections or additionally from the requirements of subsections (c)(4); (e)(2), (3), (5), (8), (12); and (g) of the Privacy Act consistent with any exemptions claimed under 5 U.S.C. 552a(j) or (k) by the originator of the record, provided the reason for the exemption remains valid and necessary.</P>
                    <HD SOURCE="HD2">HISTORY:</HD>
                    <P>This is a revision to the existing ODNI/Civil Liberties and Privacy Office Complaint Records (ODNI-14), 75 FR 16866 (April 2, 2010).</P>
                    <P>In accordance with 5 U.S.C. 552a(r), ODNI has provided a report of this revised system of records to the Office of Management and Budget and to Congress.</P>
                </PRIACT>
                <SIG>
                    <NAME>Rebecca J. Richards,</NAME>
                    <TITLE>Civil Liberties Protection Officer, Chief, Civil Liberties, Privacy, and Transparency Office, Office of the Director of National Intelligence.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14290 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9500-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">OFFICE OF THE DIRECTOR OF NATIONAL INTELLIGENCE</AGENCY>
                <SUBJECT>Privacy Act of 1974; System of Records</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Director of National Intelligence (ODNI), National Counterintelligence and Security Center (NCSC).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of a modified system of records.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        ODNI provides notice of a modified Privacy Act system of records at the NCSC. This notice modifies the system of records ODNI/NCSC-003, Continuous Evaluation Records. This modified notice is necessary to inform the public of revisions to the notice summary; supplementary information; system management; authority for maintenance of the system; purpose of the system; categories of individuals covered by the system; categories of records in the system; record source categories; routine uses of records maintained in the system; policies and 
                        <PRTPAGE P="54078"/>
                        practices for storage of records; policies and practices for retrieval of records; and policies and practices for retention and disposal of records. This modified notice for ODNI/NCSC-003, Continuous Evaluation Records, incorporates requirements established by Executive Order (E.O.) 13467, as amended. These updates to this notice complement efforts of Continuous Vetting (CV), a program under the E.O. which entails reviewing the background of a covered individual at any time to determine whether that individual continues to meet applicable requirements. Continuous Evaluation (CE) was developed to reduce risk by using automated records checks to generate alerts of potential security concerns on an individual between periodic reinvestigations. CV is a more robust approach that builds upon the automated records checks of CE and adds other agency-specific information and investigative activity as necessary.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Comments on this proposed modified system of records must be submitted by July 25, 2024. This modified System of Records Notice will go into effect thirty days after the date of publication in the 
                        <E T="04">Federal Register</E>
                        , unless changes are required as a result of public comment, per OMB A-108, Section 6(e).
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments by any of the following methods:</P>
                    <P>
                        <E T="03">Federal eRulemaking Portal: http://www.regulations.gov</E>
                        .
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Director, Information Management Office, Chief Operating Officer, Office of the Director of National Intelligence (ODNI), Washington, DC 20511.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Rebecca J. Richards, Civil Liberties Protection Officer, Office of the Director of National Intelligence, (301) 243-0210, at the addresses provided above.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Updates to ODNI/NCSC-003, Continuous Evaluation Records, include (1) expanding the population of individuals covered by the system to encompass all covered individuals as defined by E.O. 13467, as amended; (2) adding personnel vetting surveys as a data source for enrollees; and (3) adding a new routine use for disclosure of records for oversight purposes to the Suitability and Credentialing Executive Agent programs, or successor programs, in the Office of Personnel Management. This SORN also includes select routine uses published in the ODNI rule implementing the Privacy Act subpart C of ODNI's Privacy Act Regulation published at 32 CFR part 1701 (73 FR 16531, 16541).</P>
                <P>E.O. 13467, as amended, requires all covered individuals to be subject to CV under standards as determined by the Security Executive Agent and the Suitability and Credentialing Executive Agent. The E.O. also requires alignment using consistent standards, to the extent possible, of executive branch vetting policies and procedures relating to (1) eligibility for access to classified information; (2) eligibility to hold a sensitive position; (3) suitability; (4) contractor or Federal employee fitness; and (5) authorization to be issued a Federal credential for access to federally controlled facilities and information systems.</P>
                <P>Previously, the categories of individuals covered by the system only included executive branch employees, detailees, contractors, and other sponsored individuals determined to be eligible for access to classified information; eligible to hold a sensitive position; and applicants seeking employment with the executive branch in a position that requires a determination of eligibility for access to classified information or to hold a sensitive position. Individuals who held or applied for non-sensitive positions in the executive branch completed an initial vetting process and were subject to periodic reinvestigations, where applicable, but did not undergo CV. With the issuance of this SORN revision, the category of individuals covered by ODNI/NCSC-003, Continuous Evaluation Records, has been expanded to include individuals who hold or who applied for non-sensitive positions in the executive branch.</P>
                <P>
                    E.O. 13467, as amended, defines covered individual as “a person who performs, or who seeks to perform, work for or on behalf of the executive branch (
                    <E T="03">e.g.,</E>
                     Federal employee, military member, or contractor), or otherwise interacts with the executive branch such that the individual must undergo vetting, but does not include: (i) the President or (except to the extent otherwise directed by the President) employees of the President under section 105 or 107 of Title 3, United States Code; or (ii) the Vice President or (except to the extent otherwise directed by the Vice President) employees of the Vice President under section 106 of Title 3 or annual legislative branch appropriations acts.” The inclusion of all covered individuals, as defined by E.O. 13467, as amended, in the category of individuals covered by ODNI/NCSC-003, Continuous Evaluation Records, permits the use of automated records checks available through the system to fulfill the requirements of CV established by the Federal Personnel Vetting Investigative Standards. Additionally, the inclusion of all covered individuals, as defined by E.O. 13467, as amended, in the category of individuals covered by the system enhances national security, promotes greater mobility amongst the trusted workforce, and ensures department and agency (D/A) compliance with applicable laws and vetting-related policies.
                </P>
                <P>ODNI/NCSC-003, Continuous Evaluation Records, retains the covered individual's enrollment information, which includes personal identifiers provided by the subscribing agency to facilitate ongoing automated records checks for enrollees, as well as other personnel vetting status information, previous investigative products, and records documenting suitability evaluations and decisions. This revised notice adds as a records source personnel vetting surveys required by the Federal Personnel Vetting Investigative Standards. Applicants do not complete a personnel vetting survey. Personnel vetting surveys are periodic information collections from the covered individual and his/her supervisor(s) to inform ongoing consideration of potential risk, promote timely detection of behaviors of concern, and address potential issues or provide assistance before risks escalate. Employment applicants receive one-time checks of security-relevant information, are not enrolled for ongoing record checks, and personal identifiers and records returned for applicants are retained in the system only for the duration of their initial vetting. Records of applicants who are not hired will not be kept beyond the initial vetting process. Records returned from checks for any enrollee will be retained in accordance with an approved record control schedule. Data necessary to implement business rules, to perform program assessments, and to satisfy auditing requirements will be retained. D/As using ODNI/NCSC-003, Continuous Evaluations Records, must adhere to the principles articulated in the Federal Personnel Vetting Guidelines, the Federal Personnel Vetting Investigative Standards, subsequent implementation guidance, Security Executive Agent Issuances (when applicable), and other policy issuances. The modified routine uses will be effective 30 days after publication, unless they need to be changed as a result of public comment, per OMB A-108, Section 6(e).</P>
                <P>
                    The system provides the technical capability to conduct automated record checks pursuant to the National 
                    <PRTPAGE P="54079"/>
                    Security Act of 1947, as amended; The National Defense Authorization Act for Fiscal Year 2018, section 925, Public Law 115-91; 5 U.S.C. 11001 (
                    <E T="03">Enhanced Personnel Security Programs</E>
                    ); 5 U.S.C. 1104 (
                    <E T="03">Delegation of Authority for Personnel Management</E>
                    ); 5 U.S.C. 3301 (
                    <E T="03">Civil Service; Generally</E>
                    ); Executive Order 10577, as amended (
                    <E T="03">Amending the Civil Service Rules and Authorizing a New Appointment System for the Competitive Service</E>
                    ); Executive Order 12333, as amended (
                    <E T="03">United States Intelligence Activities</E>
                    ); Executive Order 12968, as amended (
                    <E T="03">Access to Classified Information</E>
                    ); Executive Order 13467, as amended, (
                    <E T="03">Reforming Processes Related to Suitability for Government Employment, Fitness for Contractor Employees, and Eligibility for Access to Classified National Security Information</E>
                    ); Executive Order 13764 (
                    <E T="03">Amending the Civil Service Rules, Executive Order 13488, and Executive Order 13467 to Modernize the Executive Branch-Wide Governance Structure and Processes for Security Clearances, Suitability and Fitness for Employment, and Credentialing, and Related Matters</E>
                    ); Executive Order 13488, as amended (
                    <E T="03">Granting Reciprocity on Excepted Service and Federal Contractor Employee Fitness and Reinvestigating Individuals in Positions of Public Trust</E>
                    ); and Executive Order 13869 (
                    <E T="03">Transferring Responsibility for Background Investigations to the Department of Defense</E>
                    ).
                </P>
                <P>To protect classified and sensitive personnel or law enforcement information covered by this system of records, the Director of National Intelligence (DNI) has exempted this system from certain requirements of the Privacy Act where necessary, as permitted by law. By previously established rule, the DNI may exempt records contained in this system of records from the requirements of subsections (c)(3), (d)(1), (d)(2), (d)(3), (d)(4), (e)(1), (e)(4)(G), (H), (I), and (f) of the Privacy Act pursuant to 5 U.S.C. 552a(k)(1), (k)(2) and (k)(5). Additionally, the DNI may exercise derivative exemption authority by preserving the exempt status of records received from providing agencies when the reason for exemption remains valid. See 32 CFR part 1701.20(a)(2) (73 FR 16531, 16537).</P>
                <PRIACT>
                    <HD SOURCE="HD2">SYSTEM NAME AND NUMBER:</HD>
                    <P>ODNI/NCSC-003, Continuous Evaluation Records.</P>
                    <HD SOURCE="HD2">SECURITY CLASSIFICATION:</HD>
                    <P>The classification of records in this system ranges from UNCLASSIFIED to TOP SECRET.</P>
                    <HD SOURCE="HD2">SYSTEM LOCATION:</HD>
                    <P>Office of the Director of National Intelligence (ODNI), National Counterintelligence and Security Center (NCSC), Washington, DC 20511.</P>
                    <HD SOURCE="HD2">SYSTEM MANAGER(S):</HD>
                    <P>Assistant Director, Mission Capabilities Directorate, ODNI/NCSC, Washington, DC 20511.</P>
                    <HD SOURCE="HD2">AUTHORITY FOR MAINTENANCE OF THE SYSTEM:</HD>
                    <P>
                        The Intelligence Reform and Terrorism Prevention Act of 2004, Public Law 108-458, 118 Stat. 3638; the National Security Act of 1947, 50 U.S.C. 3023 
                        <E T="03">et seq.,</E>
                         as amended; the Counterintelligence Enhancement Act of 2002, 50 U.S.C. 3382, as amended; 5 U.S.C. 1104; 5 U.S.C. 3301; 5 U.S.C 11001; The National Defense Authorization Act for Fiscal Year 2018, Section 925, Public Law 115-91; Executive Order 10577, as amended; Executive Order 12333, as amended; Executive Order 12968, as amended; Executive Order 13467, as amended; Executive Order 13549; Executive Order 13764; Executive Order 13488, as amended; and Executive Order 13869.
                    </P>
                    <HD SOURCE="HD2">PURPOSE(S) OF THE SYSTEM:</HD>
                    <P>
                        Records in this system of records are collected for the purpose of performing initial vetting of applicants and continuous vetting of enrollees. Vetting is accomplished by electronically comparing an individual's identifying data against U.S. Government databases (
                        <E T="03">e.g.,</E>
                         financial, law enforcement, terrorism, foreign travel, and clearance status) and commercial public records databases (
                        <E T="03">e.g.,</E>
                         civil, criminal, and tax information), as well as reviewing credit bureau data (
                        <E T="03">e.g.,</E>
                         credit reports) and background investigative records collected as part of personnel vetting (
                        <E T="03">e.g.,</E>
                         personnel vetting surveys). These comparisons and reviews serve to identify personnel vetting-relevant conduct, practices, activities, or incidents that personnel vetting officials use to evaluate an employment applicant's initial and an enrollee's continued eligibility to perform work for or on behalf of the executive branch. Evaluations by personnel vetting officials include determinations of suitability for Federal government employment; eligibility for logical and physical access to facilities and networks; eligibility for access to classified information; eligibility to hold a sensitive position; and fitness to perform work for or on behalf of the Federal government as a contractor employee.
                    </P>
                    <HD SOURCE="HD2">CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:</HD>
                    <P>
                        Individuals covered by the system include “covered individuals” as defined in E.O. 13467, as amended. A covered individual is “a person who performs, or who seeks to perform, work for or on behalf of the executive branch (
                        <E T="03">e.g.,</E>
                         Federal employee, military member, or contractor), or otherwise interacts with the executive branch such that the individual must undergo vetting, but does not include: (i) the President or (except to the extent otherwise directed by the President) employees of the President under section 105 or 107 of Title 3, United States Code; or (ii) the Vice President or (except to the extent otherwise directed by the Vice President) employees of the Vice President under section 106 of Title 3 or annual legislative branch appropriations acts.”
                    </P>
                    <HD SOURCE="HD2">CATEGORIES OF RECORDS IN THE SYSTEM:</HD>
                    <P>This system maintains: (i) Biographic enrollment data including name, date and place of birth, Social Security number, gender, current address, other first or last names, prior address(es), personal email address(es), personal phone numbers, passport information, employment type (contractor/government) or other status, and; (ii) data returned from or about the automated record checks conducted against current clearance status information and against financial, law enforcement, credit, terrorism, foreign travel, and commercial databases; and (iii) personnel vetting surveys as required by CV.</P>
                    <HD SOURCE="HD2">RECORD SOURCE CATEGORIES:</HD>
                    <P>Record source categories include department and agency enrollment information about covered individuals under E.O. 13467, as amended; government-owned databases; credit and commercial entities; and providers of aggregated public source data.</P>
                    <HD SOURCE="HD2">ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND PURPOSES OF SUCH USES:</HD>
                    <P>In addition to those disclosures generally permitted under 5 U.S.C. 552a(b) of the Privacy Act of 1974, as amended, these records may specifically be disclosed outside ODNI as a routine use pursuant to 5 U.S.C. 552a(b)(3) and in accordance with the following routine uses, including select routine uses published in the ODNI rule implementing the Privacy Act Subpart C of ODNI's Privacy Act Regulation published at 32 CFR part 1701 (73 FR 16531, 16541):</P>
                    <P>
                        (a) Except as noted on Standard Forms 85, 85P and 86 or the successor 
                        <PRTPAGE P="54080"/>
                        personnel vetting questionnaire and supplemental forms thereto (questionnaires for employment within the Federal government), a record that on its face or in conjunction with other information indicates or relates to a violation or potential violation of law, whether civil, criminal, administrative, or regulatory in nature, and whether arising by general statute, particular program statute, regulation, rule, or order issued pursuant thereto, may be disclosed as a routine use to an appropriate federal, state, territorial, tribal, local law enforcement authority, foreign government, or international law enforcement authority, or to an appropriate regulatory body charged with investigating, enforcing, or prosecuting such violations.
                    </P>
                    <P>(b) A record from a system of records maintained by ODNI may be disclosed as a routine use, subject to appropriate protections for further disclosure, in the course of presenting information or evidence to an administrative law judge or to the presiding official of an administrative board, panel or other administrative body.</P>
                    <P>(c) A record from a system of records maintained by ODNI may be disclosed as a routine use to representatives of the Department of Justice or any other entity responsible for representing the interests of ODNI in connection with potential or actual civil, criminal, administrative, judicial or legislative proceedings or hearings, for the purpose of representing or providing advice to: (1) ODNI, or any component thereof; (2) any employee of ODNI in his or her official capacity; (3) any employee of ODNI in his or her individual capacity where the employee has submitted a request for representation by the United States or for reimbursement of expenses associated with retaining counsel, or; (4) the United States or another Federal agency, when the United States or the agency is a party to such proceeding and the record is relevant and necessary to such proceeding; provided, however, that in each case, the agency determines that disclosure of the records to the Department of Justice is a use of the information contained in the records that is compatible with the purpose for which the records were collected.</P>
                    <P>(d) A record from this system of records may be disclosed as a routine use in a proceeding before a court, magistrate, special master, or adjudicative body when any of the following is a party to litigation or has an interest in such litigation, and ODNI, Office of General Counsel, determines that use of such records is relevant and necessary to the litigation: ODNI; any staff of ODNI in his or her official capacity; any staff of ODNI in his or her individual capacity where the Department of Justice has agreed to represent the staff or has agreed to provide counsel at government expense; or the United States or another D/A, where ODNI, Office of General Counsel, determines that litigation is likely to affect ODNI.</P>
                    <P>(e) A record from this system of records may be disclosed as a routine use to representatives of the Department of Justice and other U.S. Government entities, to the extent necessary to obtain advice on any matter within the official responsibilities of such representatives and the responsibilities of ODNI.</P>
                    <P>(f) A record from this system of records may be disclosed as a routine use to a Federal, state or local agency or other appropriate entities or individuals from which/whom information may be sought relevant to: a decision concerning the hiring or retention of an employee or other personnel action; the issuing or retention of a security clearance or special access, contract, grant, license, or other benefit; or the conduct of an authorized investigation or inquiry, to the extent necessary to identify the individual, inform the source of the nature and purpose of the inquiry, and identify the type of information requested.</P>
                    <P>(g) A record from this system of records may be disclosed as a routine use to any Federal, state, local, tribal or other public authority, or to a legitimate agency of a foreign government or international authority to the extent the record is relevant and necessary to the other entity's decision regarding the hiring or retention of an employee or other personnel action; the issuing or retention of a security clearance or special access, contract, grant, license, or other benefit; or the conduct of an authorized inquiry or investigation.</P>
                    <P>(h) A record from this system of records may be disclosed to the Office of Management and Budget in connection with the review of private relief legislation, as set forth in Office of Management and Budget Circular No. A-19, at any stage of the legislative coordination and clearance process as set forth in the Circular.</P>
                    <P>(i) A record from this system of records may be disclosed as a routine use to any agency, organization, or individual for authorized audit operations, and for meeting related reporting requirements, including disclosure to the National Archives and Records Administration for records management inspections and such other purposes conducted under the authority of 44 U.S.C. 2904 and 2906, or successor provisions.</P>
                    <P>(j) A record from this system of records may be disclosed as a routine use pursuant to Executive Order to the President's Foreign Intelligence Advisory Board, the President's Intelligence Oversight Board, to any successor organizations, and to any intelligence oversight entity established by the President, when the Office of the General Counsel or the Office of the Inspector General determines that disclosure will assist such entities in performing their oversight functions and that such disclosure is otherwise lawful.</P>
                    <P>(k) A record from this system of records may be disclosed as a routine use to contractors, grantees, experts, consultants, or others when access to the record is necessary to perform the function or service for which they have been engaged by ODNI.</P>
                    <P>(l) A record from this system of records may be disclosed as a routine use to legitimate foreign, international, or multinational security, investigatory, law enforcement or administrative authorities in order to comply with requirements imposed by, or to claim rights conferred in, formal agreements and arrangements to include those regulating the stationing and status in foreign countries of Department of Defense military and civilian personnel.</P>
                    <P>(m) A record from this system of records may be disclosed as a routine use to any Federal D/A when documents or other information obtained from that D/A are used in compiling the record and the record is relevant to the official responsibilities of that D/A, provided that disclosure of the recompiled or enhanced record to the source agency is otherwise authorized and lawful.</P>
                    <P>
                        (n) A record from this system of records may be disclosed as a routine use to appropriate agencies, entities, and persons when: the security or confidentiality of information in the system of records has or may have been compromised; and the comprise may result in economic or material harmto individuals (
                        <E T="03">e.g.,</E>
                         identify theft or fraud) or harm to the security or integrity of the affected information or information technology systemsor programs(whether or not belonging to ODNI) they rely upon the compromised information; and disclosure is necessary to enable ODNI to address te cause(s) of the compromise and to prevent, minimize, or remedy potential harm resulting from the compromise.
                    </P>
                    <P>
                        (o) A record from this system of records may be disclosed as a routine use for the purpose of conducting or supporting authorized 
                        <PRTPAGE P="54081"/>
                        counterintelligence activities as defined by section 3003(3) of the National Security Act of 1947, as amended, to elements of the Intelligence Community, as defined by section 3003(4) of the National Security Act of 1947, as amended; to the head of any Federal D/A; and to selected counterintelligence officers within the Federal government.
                    </P>
                    <P>(p) A record from this system of records may be disclosed as a routine use to a Federal, state, local, tribal, territorial, foreign, or multinational government agency or entity, or to other authorized entities or individuals, but only if such disclosure is undertaken in furtherance of responsibilities conferred by, and in a manner consistent with, the National Security Act of 1947, as amended; the Counterintelligence Enhancement Act of 2002, as amended; Executive Order 12333 or any successor order together with its implementing procedures approved by the Attorney General; and other provisions of law, Executive Order or directive relating to national intelligence or otherwise applicable to ODNI. This routine use is not intended to supplant the other routine uses published by ODNI.</P>
                    <P>(q) A record from this system of records may be disclosed as a routine use to any Federal D/A that has provided enrollment data for employees or applicants to ODNI for purposes of conducting personnel vetting when records obtained by ODNI are relevant to the subscribing D/A's adjudication of the covered individual's eligibility to perform work for or on behalf of the executive branch.</P>
                    <P>(r) A record from this system of records may be disclosed as a routine use to appropriate agencies, entities, and persons when: (1) ODNI suspects or has confirmed that there has been a breach of the system of records; (2) ODNI has determined that as a result of the suspected or confirmed breach there is a risk of harm to individuals, ODNI (including its information systems, programs, and operations), the federal government, or national security, and; (3) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with the Department's efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm.</P>
                    <P>(s) A record from this system of records may be disclosed as a routine use to another Federal agency or Federal entity, when ODNI determines that information from this system of records is reasonably necessary to assist the recipient agency or entity in (1) responding to a suspected or confirmed breach or (2) preventing, minimizing, or remedying the risk ofharm to individuals, the recipient agency or entity (including its information systems, programs, and operations), the Federal Government, or national security, resulting from a suspected or confirmed breach.</P>
                    <P>(t) A record from this system of records may be disclosed for oversight purposes as a routine use to the Suitability and Credentialing Executive Agent programs, or successor programs, in the Office of Personnel Management. Records disclosed pursuant to this routine use must be narrowly focused to encompass only information pertaining to automated records checks in support of authorized Investigative Service Providers conducting personnel vetting activities.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR STORAGE OF RECORDS:</HD>
                    <P>Electronic records are stored in secure fileservers located in government-managed facilities on secure private cloud-based systems that are connected only to a government network. Paper records are stored in secured areas of facilities within the control of the federal government.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:</HD>
                    <P>The records in this system are retrieved by name, Social Security number, or other unique identifier. Information may be retrieved from this system of records by automated capabilities used in the normal course of business. All searches of this system of records are performed by authorized executive branch vetting personnel.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:</HD>
                    <P>Pursuant to 44 U.S.C. 3303a(d) and 36 CFR chapter 12, subchapter B—Records Management, records in ODNI/NCSC-003, Continuous Evaluation Records are covered by the National Archives and Records Administration (NARA) General Records Schedule (GRS) 5.6, Security Records. All records in ODNI/NCSC-003, Continuous Evaluation Records will be retained and disposed of according to the applicable NARA GRS provisions. Personal identifiers and records returned for applicants are retained in the system for the duration of their initial vetting. Biographic data and data about protecting and accessing information will be retained consistent with the Privacy Act of 1974, 5 U.S.C. 552a, and GRS 4.2, Information Access and Protection Records. Records about security data and information systems are listed in GRS 3.2, Information Systems Security Records.</P>
                    <HD SOURCE="HD2">ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:</HD>
                    <P>Information in this system is safeguarded in accordance with recommended and/or prescribed administrative, physical, and technical safeguards. Records are maintained in secure government-managed facilities with access limited to authorized personnel. Physical security protections include guards and locked facilities requiring badges and passwords for access.</P>
                    <P>Records are accessed only by current government-authorized personnel whose official duties require access to the records. Electronic authorization and authentication of users is required at all points before any system information can be accessed. Communications are encrypted where required and other safeguards are in place to monitor and audit access, and to detect intrusions. System backup is maintained separately.</P>
                    <HD SOURCE="HD2">RECORD ACCESS PROCEDURES:</HD>
                    <P>As specified below, records in this system have been exempted from certain notification, access, and amendment procedures. A request for access shall be made in writing with the envelope and letter clearly marked “Privacy Act Request.” Requesters shall provide their full name and complete address. The requester must sign the request and have it verified by a notary public. Alternately, the request may be submitted under 28 U.S.C. 1746, certifying the requester's identity and understanding that obtaining a record under false pretenses constitutes a criminal offense. Requests for access to information must be addressed to the Director, Information Management Office, Chief Operating Officer, Office of the Director of National Intelligence, Washington, DC 20511. Regulations governing access to one's records or for appealing an initial determination concerning access to records are contained in the ODNI regulation implementing the Privacy Act, 32 CFR part 1701 (73 FR 16531).</P>
                    <HD SOURCE="HD2">CONTESTING RECORD PROCEDURES:</HD>
                    <P>
                        As specified below, records in this system are exempt from certain notification, access, and amendment procedures. Individuals seeking to correct or amend non-exempt records should address their requests to ODNI at the address and according to the requirements set forth above under the heading “Record Access Procedures.” Regulations governing access to and amendment of one's records or for appealing an initial determination concerning access or amendment of 
                        <PRTPAGE P="54082"/>
                        records are contained in the ODNI regulation implementing the Privacy Act, 32 CFR part 1701 (73 FR 16531).
                    </P>
                    <HD SOURCE="HD2">NOTIFICATION PROCEDURES:</HD>
                    <P>As specified below, records in this system are exempt from certain notification, access, and amendment procedures. Individuals seeking to learn whether this system contains non- exempt information about them should address inquiries to ODNI at the address and according to the requirements set forth above under the heading “Record Access Procedures.”</P>
                    <HD SOURCE="HD2">EXEMPTIONS PROMULGATED FOR THE SYSTEM:</HD>
                    <P>The Privacy Act authorizes ODNI to exempt records contained in this system of records from the requirements of subsections (c)(3), (d)(1), (d)(2), (d)(3), (d)(4), (e)(1), (e)(4)(G), (H), (I), and (f) of the Privacy Act pursuant to 5 U.S.C. 552a(k)(1), (k)(2) and (k)(5). In addition, pursuant to published rule, ODNI may derivatively exempt records from other agencies in this system from the requirements of the subsections listed above, as well as subsections (c)(4), (e)(2), (e)(3), (e)(5), (e)(8), (e)(12), and (g) of the Privacy Act consistent with any exemptions claimed under 5 U.S.C. 552a(j) or (k) by the originator of the record, provided the reason for the exemption remains valid and necessary.</P>
                    <HD SOURCE="HD2">HISTORY:</HD>
                    <P>This is a revision to an existing ODNI/NCSC system of records, ODNI/NCSC-003, Continuous Evaluation Records, 86 FR 61325 (Nov. 05, 2021). In accordance with 5 U.S.C. 552(r), ODNI has provided a report of this revision to the Office of Management and Budget and to Congress.</P>
                </PRIACT>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Rebecca (“Becky”) Richards,</NAME>
                    <TITLE>Civil Liberties Protection Officer, Office of the Director of National Intelligence.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14297 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9500-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">NUCLEAR REGULATORY COMMISSION</AGENCY>
                <DEPDOC>[Docket Nos. 50-456 and 50-457; NRC-2024-0112]</DEPDOC>
                <SUBJECT>Constellation Energy Generation, LLC; Braidwood Station, Units 1 and 2; License Amendment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Nuclear Regulatory Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Opportunity to comment, request a hearing, and petition for leave to intervene.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Nuclear Regulatory Commission (NRC) is considering issuance of an amendment to Renewed Facility Operating License Nos. NPF-72 and NPF-77, issued to Constellation Energy Generation, LLC, for the operation of Braidwood Station, Units 1 and 2 (Docket Nos. 50-456 and 50-457, respectively). The proposed amendment would change Technical Specification (TS) Surveillance Requirement (SR) 3.7.9.2 to allow an Ultimate Heat Sink (UHS) temperature of less than or equal to 102.8 °F until September 30, 2024. The change is requested to support operation during the summer months of 2024.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit comments by July 29, 2024. Comments received after this date will be considered if it is practical to do so, but the NRC is able to ensure consideration only for comments received on or before this date. Requests for a hearing or petition for leave to intervene must be filed by August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments by any of the following methods; however, the NRC encourages electronic comment submission through the Federal rulemaking website.</P>
                    <P>
                        • 
                        <E T="03">Federal rulemaking website:</E>
                         Go to 
                        <E T="03">https://www.regulations.gov</E>
                         and search for Docket ID NRC-2024-0112. Address questions about Docket IDs in 
                        <E T="03">Regulations.gov</E>
                         to Stacy Schumann; telephone: 301-415-0624; email: 
                        <E T="03">Stacy.Schumann@nrc.gov.</E>
                         For technical questions, contact the individual listed in the 
                        <E T="02">For Further Information Contact</E>
                         section of this document.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail comments to:</E>
                         Office of Administration, Mail Stop: TWFN-7-A60M, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, ATTN: Program Management, Announcements and Editing Staff.
                    </P>
                    <P>
                        For additional direction on obtaining information and submitting comments, see “Obtaining Information and Submitting Comments” in the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section of this document.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Joel S. Wiebe, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, telephone: 301-415-6606; email: 
                        <E T="03">Joel.Wiebe@nrc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Obtaining Information and Submitting Comments</HD>
                <HD SOURCE="HD2">A. Obtaining Information</HD>
                <P>Please refer to Docket ID NRC-2024-0112 when contacting the NRC about the availability of information for this action. You may obtain publicly available information related to this action by any of the following methods:</P>
                <P>
                    • 
                    <E T="03">Federal Rulemaking Website:</E>
                     Go to 
                    <E T="03">https://www.regulations.gov</E>
                     and search for Docket ID NRC-2024-0112.
                </P>
                <P>
                    • 
                    <E T="03">NRC's Agencywide Documents Access and Management System (ADAMS):</E>
                     You may obtain publicly available documents online in the ADAMS Public Documents collection at 
                    <E T="03">https://www.nrc.gov/reading-rm/adams.html.</E>
                     To begin the search, select “Begin Web-based ADAMS Search.” For problems with ADAMS, please contact the NRC's Public Document Room (PDR) reference staff at 1-800-397-4209, at 301-415-4737, or by email to 
                    <E T="03">PDR.Resource@nrc.gov.</E>
                     The license amendment request is available in ADAMS under Accession No. ML24156A245.
                </P>
                <P>
                    • 
                    <E T="03">NRC's PDR:</E>
                     The PDR, where you may examine and order copies of publicly available documents, is open by appointment. To make an appointment to visit the PDR, please send an email to 
                    <E T="03">PDR.Resource@nrc.gov</E>
                     or call 1-800-397-4209 or 301-415-4737, between 8 a.m. and 4 p.m. eastern time (ET), Monday through Friday, except Federal holidays.
                </P>
                <HD SOURCE="HD2">B. Submitting Comments</HD>
                <P>
                    The NRC encourages electronic comment submission through the Federal rulemaking website (
                    <E T="03">https://www.regulations.gov</E>
                    ). Please include Docket ID NRC-2024-0112 in your comment submission.
                </P>
                <P>
                    The NRC cautions you not to include identifying or contact information that you do not want to be publicly disclosed in your comment submission. The NRC will post all comment submissions at 
                    <E T="03">https://www.regulations.gov</E>
                     as well as enter the comment submissions into ADAMS. The NRC does not routinely edit comment submissions to remove identifying or contact information.
                </P>
                <P>If you are requesting or aggregating comments from other persons for submission to the NRC, then you should inform those persons not to include identifying or contact information that they do not want to be publicly disclosed in their comment submission. Your request should state that the NRC does not routinely edit comment submissions to remove such information before making the comment submissions available to the public or entering the comment into ADAMS.</P>
                <HD SOURCE="HD1">II. Introduction</HD>
                <P>
                    The NRC is considering issuance of an amendment to Renewed Facility Operating License Nos. NPF-72 and 
                    <PRTPAGE P="54083"/>
                    NPF-77, issued to Constellation Energy Generation, LLC, for the operation of Braidwood Station, Units 1 and 2 (Docket Nos. 50-456 and 50-457, respectively), located in Will County, IL. The proposed amendment would change TS SR 3.7.9.2 to allow a UHS temperature of less than or equal to 102.8 °F until September 30, 2024.
                </P>
                <P>Historical meteorological and atmospheric conditions have resulted in the UHS temperature approaching the TS limit. These conditions include elevated air temperatures, high humidity, and low wind speed. Specifically, the summer of 2020 brought hot weather and drought conditions to the northern Illinois area resulting in sustained elevated UHS temperatures. In anticipation of these conditions occurring during the summer months of 2024, this license amendment request would change the UHS temperature TS limit until September 30, 2024.</P>
                <P>Before issuance of the proposed license amendment, the NRC will need to make the findings required by the Atomic Energy Act of 1954, as amended (the Act), and NRC's regulations.</P>
                <P>
                    The NRC has made a proposed determination that the license amendment request involves no significant hazards consideration. Under the NRC's regulations in section 50.92 of title 10 of the 
                    <E T="03">Code of Federal Regulations</E>
                     (10 CFR), “Issuance of amendment,” this means that operation of the facility in accordance with the proposed amendment would not (1) involve a significant increase in the probability or consequences of an accident previously evaluated; or (2) create the possibility of a new or different kind of accident from any accident previously evaluated; or (3) involve a significant reduction in a margin of safety. As required by 10 CFR 50.91(a), the licensee has provided its analysis of the issue of no significant hazards consideration, which is presented as follows:
                </P>
                <P>1. Does the proposed amendment involve a significant increase in the probability or consequences of an accident previously evaluated?</P>
                <P>
                    <E T="03">Response:</E>
                     No.
                </P>
                <P>The likelihood of a malfunction of any systems, structures, or components (SSCs) supported by the UHS is not significantly increased by increasing the allowable UHS temperature from less than or equal to 102 °F to less than or equal to 102.8 °F. The UHS provides a heat sink for process and operating heat from safety related components during a transient or accident, as well as during normal operation. The proposed change does not make any physical changes to any plant SSCs, nor does it alter any of the assumptions or conditions upon which the UHS is designed. The UHS is not an initiator of any analyzed accident. All equipment supported by the UHS has been evaluated to demonstrate that their performance and operation remains as described in the Updated Final Safety Analysis Report (UFSAR) with no increase in probability of failure or malfunction.</P>
                <P>The SSCs credited to mitigate the consequences of postulated design basis accidents remain capable of performing their design basis function. The change in maximum UHS temperature has been evaluated using the UFSAR described methods to demonstrate that the UHS remains capable of removing normal operating and post-accident heat. The change in UHS temperature and resulting containment response following a postulated design basis accident has been demonstrated to not be impacted. Additionally, all the UHS supported equipment, credited in the accident analysis to mitigate an accident, has been shown to continue to perform their design function as described in the UFSAR.</P>
                <P>Therefore, the proposed change does not involve a significant increase in the probability or consequences of an accident previously evaluated.</P>
                <P>2. Does the proposed amendment create the possibility of a new or different kind of accident from any accident previously evaluated?</P>
                <P>
                    <E T="03">Response:</E>
                     No.
                </P>
                <P>The proposed change does not create the possibility of a new or different kind of accident from any accident previously evaluated. The proposed change does not introduce any new modes of plant operation, change the design function of any SSC, or change the mode of operation of any SSC. There are no new equipment failure modes or malfunctions created as affected SSCs continue to operate in the same manner as previously evaluated and have been evaluated to perform as designed at the increased UHS temperature and as assumed in the accident analysis. Additionally, accident initiators remain as described in the UFSAR and no new accident initiators are postulated as a result of the increase in UHS temperature.</P>
                <P>Therefore, the proposed change does not create the possibility of a new or different kind of accident from any previously evaluated.</P>
                <P>3. Does the proposed amendment involve a significant reduction in a margin of safety?</P>
                <P>
                    <E T="03">Response:</E>
                     No.
                </P>
                <P>The proposed change continues to ensure that the maximum temperature of the cooling water supplied to the plant SSCs during a UHS design basis event remains within the evaluated equipment limits and capabilities assumed in the accident analysis. The proposed change does not result in any changes to plant equipment function, including setpoints and actuations. All equipment will function as designed in the plant safety analysis without any physical modifications. The proposed change does not alter a limiting condition for operation, limiting safety system setting, or safety limit specified in the Technical Specifications.</P>
                <P>The proposed change does not adversely impact the UHS inventory required to be available for the UFSAR described design basis accident involving the worst case 30-day period including losses for evaporation and seepage to support safe shutdown and cooldown of both Braidwood Station units. Additionally, the structural integrity of the UHS is not impacted and remains acceptable following the change, thereby ensuring that the assumptions for both UHS temperature and inventory remain valid.</P>
                <P>Therefore, since there is no adverse impact of this proposed change on the Braidwood Station safety analysis, there is no reduction in the margin of safety of the plant.</P>
                <P>The NRC staff has reviewed the licensee's analysis and, based on this review, it appears that the three standards of 10 CFR 50.92(c) are satisfied. Therefore, the NRC staff proposes to determine that the license amendment request involves no significant hazards consideration.</P>
                <P>The NRC is seeking public comments on this proposed determination that the license amendment request involves no significant hazards consideration. Any comments received within 30 days after the date of publication of this notice will be considered in making any final determination.</P>
                <P>
                    Normally, the Commission will not issue the amendment until the expiration of 60 days after the date of publication of this notice. The Commission may issue the license amendment before expiration of the 60-day notice period if the Commission concludes the amendment involves no significant hazards consideration. In addition, the Commission may issue the amendment prior to the expiration of the 30-day comment period if circumstances change during the 30-day comment period such that failure to act in a timely way would result, for example, in derating or shutdown of the facility. If the Commission takes action prior to the expiration of either the comment period or the notice period, it 
                    <PRTPAGE P="54084"/>
                    will publish in the 
                    <E T="04">Federal Register</E>
                     a notice of issuance. If the Commission makes a final no significant hazards consideration determination, any hearing will take place after issuance. The Commission expects that the need to take this action will occur very infrequently.
                </P>
                <HD SOURCE="HD1">III. Opportunity To Request a Hearing and Petition for Leave To Intervene</HD>
                <P>Within 60 days after the date of publication of this notice, any person (petitioner) whose interest may be affected by this action may file a request for a hearing and petition for leave to intervene (petition) with respect to the action. Petitions shall be filed in accordance with the Commission's “Agency Rules of Practice and Procedure” in 10 CFR part 2. Interested persons should consult 10 CFR 2.309. If a petition is filed, the presiding officer will rule on the petition and, if appropriate, a notice of a hearing will be issued.</P>
                <P>Petitions must be filed no later than 60 days from the date of publication of this notice in accordance with the filing instructions in the “Electronic Submissions (E-Filing)” section of this document. Petitions and motions for leave to file new or amended contentions that are filed after the deadline will not be entertained absent a determination by the presiding officer that the filing demonstrates good cause by satisfying the three factors in 10 CFR 2.309(c)(1)(i) through (iii).</P>
                <P>If a hearing is requested and the Commission has not made a final determination on the issue of no significant hazards consideration, the Commission will make a final determination on the issue of no significant hazards consideration, which will serve to establish when the hearing is held. If the final determination is that the amendment request involves no significant hazards consideration, the Commission may issue the amendment and make it immediately effective, notwithstanding the request for a hearing. Any hearing would take place after issuance of the amendment. If the final determination is that the amendment request involves a significant hazards consideration, then any hearing held would take place before the issuance of the amendment unless the Commission finds an imminent danger to the health or safety of the public, in which case it will issue an appropriate order or rule under 10 CFR part 2.</P>
                <P>A State, local governmental body, Federally recognized Indian Tribe, or designated agency thereof, may submit a petition to the Commission to participate as a party under 10 CFR 2.309(h) no later than 60 days from the date of publication of this notice. Alternatively, a State, local governmental body, Federally recognized Indian Tribe, or designated agency thereof may participate as a non-party under 10 CFR 2.315(c).</P>
                <P>
                    For information about filing a petition and about participation by a person not a party under 10 CFR 2.315, see ADAMS Accession No. ML20340A053. (
                    <E T="03">https://adamswebsearch2.nrc.gov/webSearch2/main.jsp?AccessionNumber=ML20340A053</E>
                    ) and on the NRC's public website at 
                    <E T="03">https://www.nrc.gov/about-nrc/regulatory/adjudicatory/hearing.html#participate.</E>
                </P>
                <HD SOURCE="HD1">IV. Electronic Submissions and E-Filing</HD>
                <P>
                    All documents filed in NRC adjudicatory proceedings, including documents filed by an interested State, local governmental body, Federally recognized Indian Tribe, or designated agency thereof that requests to participate under 10 CFR 2.315(c), must be filed in accordance with 10 CFR 2.302. The E-Filing process requires participants to submit and serve all adjudicatory documents over the internet, or in some cases, to mail copies on electronic storage media, unless an exemption permitting an alternative filing method, as further discussed, is granted. Detailed guidance on electronic submissions is located in the “Guidance for Electronic Submissions to the NRC” (ADAMS Accession No. ML13031A056) and on the NRC's public website at 
                    <E T="03">https://www.nrc.gov/site-help/e-submittals.html.</E>
                </P>
                <P>
                    To comply with the procedural requirements of E-Filing, at least 10 days prior to the filing deadline, the participant should contact the Office of the Secretary by email at 
                    <E T="03">Hearing.Docket@nrc.gov,</E>
                     or by telephone at 301-415-1677, to (1) request a digital identification (ID) certificate, which allows the participant (or its counsel or representative) to digitally sign submissions and access the E-Filing system for any proceeding in which it is participating; and (2) advise the Secretary that the participant will be submitting a petition or other adjudicatory document (even in instances in which the participant, or its counsel or representative, already holds an NRC-issued digital ID certificate). Based upon this information, the Secretary will establish an electronic docket for the proceeding if the Secretary has not already established an electronic docket.
                </P>
                <P>
                    Information about applying for a digital ID certificate is available on the NRC's public website at 
                    <E T="03">https://www.nrc.gov/site-help/e-submittals/getting-started.html.</E>
                     After a digital ID certificate is obtained and a docket created, the participant must submit adjudicatory documents in Portable Document Format. Guidance on submissions is available on the NRC's public website at 
                    <E T="03">https://www.nrc.gov/site-help/electronic-sub-ref-mat.html.</E>
                     A filing is considered complete at the time the document is submitted through the NRC's E-Filing system. To be timely, an electronic filing must be submitted to the E-Filing system no later than 11:59 p.m. ET on the due date. Upon receipt of a transmission, the E-Filing system time-stamps the document and sends the submitter an email confirming receipt of the document. The E-Filing system also distributes an email that provides access to the document to the NRC's Office of the General Counsel and any others who have advised the Office of the Secretary that they wish to participate in the proceeding, so that the filer need not serve the document on those participants separately. Therefore, applicants and other participants (or their counsel or representative) must apply for and receive a digital ID certificate before adjudicatory documents are filed to obtain access to the documents via the E-Filing system.
                </P>
                <P>
                    A person filing electronically using the NRC's adjudicatory E-Filing system may seek assistance by contacting the NRC's Electronic Filing Help Desk through the “Contact Us” link located on the NRC's public website at 
                    <E T="03">https://www.nrc.gov/site-help/e-submittals.html,</E>
                     by email to 
                    <E T="03">MSHD.Resource@nrc.gov,</E>
                     or by a toll-free call at 1-866-672-7640. The NRC Electronic Filing Help Desk is available between 9 a.m. and 6 p.m., ET, Monday through Friday, except Federal holidays.
                </P>
                <P>Participants who believe that they have good cause for not submitting documents electronically must file an exemption request, in accordance with 10 CFR 2.302(g), with their initial paper filing stating why there is good cause for not filing electronically and requesting authorization to continue to submit documents in paper format. Such filings must be submitted in accordance with 10 CFR 2.302(b)-(d). Participants filing adjudicatory documents in this manner are responsible for serving their documents on all other participants. Participants granted an exemption under 10 CFR 2.302(g)(2) must still meet the electronic formatting requirement in 10 CFR 2.302(g)(1), unless the participant also seeks and is granted an exemption from 10 CFR 2.302(g)(1).</P>
                <P>
                    Documents submitted in adjudicatory proceedings will appear in the NRC's electronic hearing docket, which is 
                    <PRTPAGE P="54085"/>
                    publicly available at 
                    <E T="03">https://adams.nrc.gov/ehd,</E>
                     unless excluded pursuant to an order of the presiding officer. If you do not have an NRC-issued digital ID certificate as previously described, click “cancel” when the link requests certificates and you will be automatically directed to the NRC's electronic hearing docket where you will be able to access any publicly available documents in a particular hearing docket. Participants are requested not to include personal privacy information such as social security numbers, home addresses, or personal phone numbers in their filings unless an NRC regulation or other law requires submission of such information. With respect to copyrighted works, except for limited excerpts that serve the purpose of the adjudicatory filings and would constitute a Fair Use application, participants should not include copyrighted materials in their submission.
                </P>
                <P>For further details with respect to this action, see the application for license amendment dated June 4, 2024 (ADAMS Accession No. ML24156A245).</P>
                <P>
                    <E T="03">Attorney for licensee:</E>
                     Jason Zorn, Associate General Counsel, Constellation Energy Generation, LLC, 4300 Linfield Road, Warrenville, IL, 60555.
                </P>
                <P>
                    <E T="03">NRC Branch Chief:</E>
                     Jeff Whited.
                </P>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <P>For the Nuclear Regulatory Commission.</P>
                    <NAME>Joel S. Wiebe,</NAME>
                    <TITLE>Senior Project Manager, Licensing Projects Branch III, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14344 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7590-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">OFFICE OF PERSONNEL MANAGEMENT</AGENCY>
                <DEPDOC>[Docket ID: OPM-2024-0007]</DEPDOC>
                <SUBJECT>Submission for Review: Survivor Annuity Election for a Spouse, RI 20-63; Cover Letter Giving Information About the Cost To Elect Less Than the Maximum Survivor Annuity, RI 20-116; Cover Letter Giving Information About the Cost To Elect the Maximum Survivor Annuity, RI 20-117</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Personnel Management.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Paperwork Reduction Act of 1995, the Office of Personnel Management (OPM) is proposing an extension to a currently approved information collection, OMB Control Number 3206-0174: Survivor Annuity Election for a Spouse, RI 20-63; Cover Letter Giving Information About the Cost to Elect Less Than the Maximum Survivor Annuity, RI 20-116; Cover Letter Giving Information About the Cost to Elect the Maximum Survivor Annuity, RI 20-117.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are encouraged and will be accepted until July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for this proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">http://www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection request by selecting “Office of Personnel Management” under “Currently Under Review,” then check “Only Show ICR for Public Comment” checkbox.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For specific questions related to this information collection activities, please contact: Retirement Services Publications Team, Office of Personnel Management, 1900 E Street NW, Room 3316-L, Washington, DC 20415, Attention: Cyrus S. Benson, or sent via electronic mail to 
                        <E T="03">RSPublicationsTeam@opm.gov</E>
                         or faxed to (202) 606-0910 or via telephone at (202) 936-0401.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    OPM, in accordance with the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)), provides the public with an opportunity to comment on proposed, revised, and continuing collections of information. This helps the Agency assess the impact of its information collection requirements and minimize the public's reporting burden. It also helps the public understand the Agency's information collection requirements and provide the requested data in the desired format. This information collection (OMB Control No. 3206-0174) was previously published in the 
                    <E T="04">Federal Register</E>
                     on March 25, 2024, at 89 FR 20711, allowing for a 60-day public comment period. No comments were received for this collection.
                </P>
                <P>The purpose of this notice is to notify the public that OPM is submitting the information collection to the Office of Management and Budget (OMB) for review and to allow an additional 30 days for public comments. OPM is soliciting comments on the proposed information collection request (ICR) that is described below. OMB is especially interested in public comment addressing the following issues: (1) whether this collection is necessary to the proper functions of OPM; (2) whether this information will be processed and used in a timely manner; (3) the accuracy of the burden estimate; (4) ways in which OPM may enhance the quality, utility, and clarity of the information to be collected; and (5) ways in which OPM may minimize the burden of this collection on the respondents, including through the use of information technology. Written comments received in response to this notice will be considered public records.</P>
                <P>RI 20-63 is used by annuitants to elect a reduced annuity with a survivor annuity for their spouse. RI 20-116 is a cover letter for RI 20-63 giving information about the cost to elect less than the maximum survivor annuity. This letter is used to supply the information requested by the annuitant about the cost of electing less than the maximum annuity. RI 20-117 is a cover letter for RI 20-63 giving information about the cost to elect the maximum survivor annuity.</P>
                <HD SOURCE="HD1">Analysis</HD>
                <P>
                    <E T="03">Agency:</E>
                     Retirement Operations, Retirement Services, Office of Personnel Management.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Survivor Annuity Election for a Spouse; Cover Letter Giving Information about the Cost to Elect Less Than the Maximum Survivor Annuity; Cover Letter Giving Information about the Cost to Elect the Maximum Survivor Annuity.
                </P>
                <P>
                    <E T="03">OMB Number:</E>
                     3206-0174.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or Households.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     RI 20-63 = 2,400; RI 20-116 &amp; RI 20-117 = 200.
                </P>
                <P>
                    <E T="03">Estimated Time per Respondent:</E>
                     55 Minutes [RI 20-63 = 45 minutes; RI 20-116 or  RI 20-117 = 10 minutes].
                </P>
                <P>
                    <E T="03">Total Burden Hours:</E>
                     1,834.
                </P>
                <SIG>
                    <FP>Office of Personnel Management.</FP>
                    <NAME>Kayyonne Marston,</NAME>
                    <TITLE>Federal Register Liaison.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14183 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6325-38-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">OFFICE OF PERSONNEL MANAGEMENT</AGENCY>
                <DEPDOC>[Docket ID: OPM-2024-0015]</DEPDOC>
                <SUBJECT>Submission for Review: 3206-0033, Marital Status Certification, RI 25-7</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Personnel Management.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day notice and request for comments.</P>
                </ACT>
                <SUM>
                    <PRTPAGE P="54086"/>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Office of Personnel Management (OPM), Retirement Services, offers the general public and other Federal agencies the opportunity to comment on the review of an expiring information collection request (ICR) without change, Marital Status Certification, RI 25-7.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are encouraged and will be accepted until August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number and title, by the following method:</P>
                    <P>
                        • 
                        <E T="03">Federal Rulemaking Portal:</E>
                          
                        <E T="03">https://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        All submissions received must include the agency name and docket number for this document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing at 
                        <E T="03">https://www.regulations.gov</E>
                         without change, including any personal identifiers or contact information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        A copy of this ICR with applicable supporting documentation may be obtained by contacting the Retirement Services Publications Team, Office of Personnel Management, 1900 E Street NW, Room 3316-L, Washington, DC 20415, Attention: Cyrus S. Benson, by email at 
                        <E T="03">RSPublicationsTeam@opm.gov,</E>
                         by fax at (202) 606-0910, or via telephone at (202) 936-0401.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>OPM uses the information collected through the RI 25-7 form to determine whether widows, widowers, and former spouses receiving survivor annuities from OPM have remarried before reaching age 55 and, thus, are no longer eligible for benefits. OPM sends out RI 25-7 forms once each year to survivor annuitants who were not age 55 on the date the previous survey ended.</P>
                <P>As required by the Paperwork Reduction Act of 1995 (Pub. L. 104-13) as amended (44 U.S.C. chapter 35), OPM is soliciting comments for this collection (OMB No. 3206-0033). The Office of Personnel Management is particularly interested in comments that:</P>
                <P>(1) Evaluate whether the proposed collection of information is necessary for the proper performance of functions of the agency, including whether the information will have practical utility;</P>
                <P>(2) 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;</P>
                <P>(3) Enhance the quality, utility, and clarity of the information to be collected; and</P>
                <P>
                    (4) 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 T="03">e.g.,</E>
                     permitting electronic submissions of responses.
                </P>
                <HD SOURCE="HD1">Analysis</HD>
                <P>
                    <E T="03">Agency:</E>
                     Office of Personnel Management, Retirement Services.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Marital Status Certification.
                </P>
                <P>
                    <E T="03">OMB Number:</E>
                     3206-0033.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Annually.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or Households.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     24,000.
                </P>
                <P>
                    <E T="03">Estimated Time per Respondent:</E>
                     15 minutes.
                </P>
                <P>
                    <E T="03">Total Burden Hours:</E>
                     6,000.
                </P>
                <SIG>
                    <FP>Office of Personnel Management.</FP>
                    <NAME>Kayyonne Marston,</NAME>
                    <TITLE>Federal Register Liaison.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14185 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6325-38-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-100413; File No. SR-CboeEDGA-2024-016]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Its Rules Relating to the Continuing Education for Registered Persons as Provided Under Exchange Rule 2.16.01</SUBJECT>
                <DATE>June 24, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on June 12, 2024, Cboe EDGA Exchange, Inc. (the “Exchange” or “EDGA”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe EDGA, Inc. (the “Exchange” or “EDGA”) proposes to amend its rules relating to the Continuing Education for Registered Persons as provided under Exchange Rule 2.16.01. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/edga/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The proposed rule change amends Exchange Rule 2.16.01 to reopen the period by which certain participants in the Maintaining Qualifications Program (“MQP”) will be able to complete their prescribed 2022 and 2023 continuing education content.</P>
                <P>
                    In 2021, the Financial Industry Regulatory Authority, Inc. (“FINRA”) implemented rule changes, which amended FINRA's Continuing Education (“CE”) Program requirements to, among other things, provide eligible individuals who terminate any of their representative or principal registration categories the option of maintaining their qualification for any terminated registration categories by completing annual CE through a new program, the MQP.
                    <SU>5</SU>
                    <FTREF/>
                     Under FINRA Rule 1240.01, the 
                    <PRTPAGE P="54087"/>
                    MQP designated a look-back provision that, subject to specified conditions, extended the option to participate in the MQP to individuals who: (1) were registered as a representative or principal within two years immediately prior to March 15, 2022 (the implementation date of the MQP); and (2) individuals who were participating in the Financial Services Affiliate Waiver Program (“FSAWP”) 
                    <SU>6</SU>
                    <FTREF/>
                     under FINRA Rule 1210.09 (Waiver of Examinations for Individuals Working for a Financial Services Industry Affiliate of a Member) immediately prior to March 15, 2022 (collectively, “Look-Back Individuals”).
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 93097 (September 21, 2021), 86 FR 53358 (September 27, 2021) (Order Approving File No. SR-FINRA-2021-015). Other exchanges, including EDGA, subsequently filed copycat rule filings to align their continuing education rules with those of FINRA. 
                        <PRTPAGE/>
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 94526 (March 28, 2022), 87 FR 19153 (April 1, 2022), (SR-CboeEDGA-2022-005).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The FSAWP is a waiver program for eligible individuals who have left a member firm to work for a foreign or domestic financial services affiliate of a member firm. FINRA stopped accepting new participants for the FSAWP beginning on March 15, 2022; however, individuals who were already participating in the FSAWP prior to that date had the option of continuing in the FSAWP.
                    </P>
                </FTNT>
                <P>
                    In 2023, FINRA amended FINRA Rule 1240.01, to provide Look-Back Individuals a second opportunity to elect to participate in the MQP (the “FINRA Second Enrollment Period”).
                    <SU>7</SU>
                    <FTREF/>
                     The proposed rule change required that Look-Back Individuals who elect to participate in the MQP during the FINRA Second Enrollment Period complete any prescribed 2022 and 2023 MQP content by March 31, 2024. Look-Back Individuals who are enrolled in the MQP, similar to other MQP participants, are able to complete any prescribed CE and renew their annual MQP participation through their FINRA Financial Professional Gateway (“FinPro”) accounts.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 97184 (March 22, 2023), 88 FR 18359 (March 28, 2023) (SR-FINRA-2023-005).
                    </P>
                </FTNT>
                <P>
                    In response to FINRA's rule changes and to facilitate compliance with the Exchange's CE Program requirements by members of multiple exchanges, the Exchange implemented rule changes to align with FINRA's CE Program.
                    <SU>8</SU>
                    <FTREF/>
                     Such rules, among other things, provide eligible individuals who terminate any of their representative or principal registrations the option of maintaining their qualification for any of the terminated registrations by completing CE through the MQP. Further, Exchange Rule 2.16.01 includes a look-back provision that, subject to specified conditions, extends the option for maintaining qualifications following a registration category termination to (i) individuals who have been registered as a representative or principal within two years immediately preceding March 15, 2022, and (ii) individuals who have been participants of the FSAWP immediately preceding March 15, 2022 implementation (
                    <E T="03">i.e.,</E>
                     Look-Back Individuals). Exchange Rule 2.16.01 also provided Look-Back Individuals with a second enrollment period, between October 19, 2023, and December 31, 2023 (the “Exchange Second Enrollment Period”). Exchange Rule 2.16.01 requires that Look-Back Individuals who elect to participate in the MQP during the Exchange Second Enrollment Period complete any prescribed 2022 and 2023 MQP content by March 31, 2024.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Rules 2.16(c), 2.16.01, and 2.16.02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The Exchange determined to treat the individuals who enrolled during the first period (between January 31, 2022, and March 15, 2022) the same as those who enrolled during the second period (between October 19, 2023, and December 31, 2023) for purposes of the March 31, 2024, deadline for completion of prescribed 2022 and 2023 CE content. This is because those who had enrolled in the MQP during the first period satisfied all of the eligibility criteria for enrollment during the second period and would have been able to complete their prescribed CE content by March 31, 2024, had they chosen to enroll during the second period instead of enrolling during the first period.
                    </P>
                </FTNT>
                <P>
                    FINRA recently submitted a proposal related to its CE Program (the “FINRA Rule Change”).
                    <SU>10</SU>
                    <FTREF/>
                     The proposal set forth changes to FINRA Rule 1240.01, to provide Look-Back Individuals enrolled in the MQP in both 2022 and 2023 who did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, the opportunity to complete such content between May 22, 2024, and July 1, 2024, to be eligible to continue their participation in the MQP.
                    <SU>11</SU>
                    <FTREF/>
                     In addition, the proposed rule change provides that any such individuals who will have completed their prescribed 2022 and 2023 CE content between March 31, 2024, and May 22, 2024, will be deemed to have completed such content by July 1, 2024, for purposes of the rule.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100067 (May 6, 2024), 89 FR 40520 (May 10, 2024) (SR-FINRA-2024-006).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         This would include any Look-Back Individuals who were still in the process of completing their prescribed CE content as of March 31, 2024.
                    </P>
                </FTNT>
                <P>
                    In the FINRA Rule Change, FINRA noted that FINRA sent multiple reminders, including a March 16, 2024 email, to Look-Back Individuals who had enrolled in the MQP but had not completed their prescribed CE to remind them of the March 31, 2024 deadline. In the FINRA Rule Change, FINRA further noted that in the week leading up to the deadline, FINRA noticed that several thousand of those individuals were renewing their participation in the MQP for 2024 instead of completing their prescribed CE.
                    <SU>12</SU>
                    <FTREF/>
                     Per the FINRA Rule Change, FINRA believes that some of those individuals may have been confused by the layout of their FinPro accounts. Specifically, if they selected the 2024 renewal banner, which was prominently displayed on their FinPro accounts, and completed the renewal process, they would not have been automatically redirected to complete any prescribed CE. Therefore, individuals may have inadvertently assumed that completion of the renewal process alone would have satisfied all of the necessary requirements to continue their participation in the MQP.
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Look-Back Individuals who enrolled in the MQP have until December 31, 2024, to renew their participation in the MQP for 2024, provided that they complete their prescribed CE by the stated deadline.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         According to FINRA, a number of these individuals contacted FINRA to confirm whether they were required to satisfy any additional requirements other than completing the 2024 renewal. To provide FINRA with additional time to assess the situation, FINRA temporarily changed the March 31, 2024, due date for CE completion in its systems. This may have compounded the confusion because any Look-Back Individual who may have logged into their FinPro account during this time would have seen an interim CE completion date and would have been able to complete their prescribed CE content based on that interim CE completion date.
                    </P>
                </FTNT>
                <P>
                    For similar reasons and to facilitate compliance with the Exchange's CE Program requirements by members of multiple exchanges, the Exchange is also proposing to amend its rules (
                    <E T="03">i.e.,</E>
                     Exchange Rule 2.16.01) to provide Look-Back Individuals enrolled in the MQP in both 2022 and 2023 who did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, the opportunity to complete such content between the effective date of this filing, and July 1, 2024, to be eligible to continue their participation in the MQP.
                    <SU>14</SU>
                    <FTREF/>
                     In addition, the proposed rule change provides that any such individuals who will have completed their prescribed 2022 and 2023 CE content between March 31, 2024, and the effective date of this filing, will be deemed to have completed such content by July 1, 2024, for purposes of the rule.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         This would include any Look-Back Individuals who were still in the process of completing their prescribed CE content as of March 31, 2024.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>15</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 
                    <PRTPAGE P="54088"/>
                    6(b)(5) 
                    <SU>16</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be 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 regulating, clearing, settling, processing information with respect to, and 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. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>17</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>The Exchange believes that reopening the period by which Look-Back Individuals will be able to complete their prescribed 2022 and 2023 CE content is appropriate under the circumstances. As FINRA noted in the FINRA Rule Change, Look-Back Individuals who had enrolled in the MQP in 2022 and 2023 but had not completed their prescribed 2022 and 2023 CE content by the March 31, 2024 deadline may have been confused, as described above. The Exchange believes that participation in the MQP reduces unnecessary impediments to requalification for these individuals without diminishing investor protection. In addition, the proposed rule change is consistent with other goals, such as the promotion of diversity and inclusion in the securities industry by attracting and retaining a broader and diverse group of professionals. The MQP also allows the industry to retain expertise from skilled individuals, providing investors with the advantage of greater experience among the individuals working in the industry. The Exchange believes that reopening the CE completion period, as proposed, will further these goals and objectives.</P>
                <P>Further, the Exchange believes the proposed amendments reduce the possibility of a regulatory gap between Exchange and FINRA rules, providing more uniform standards across the securities industry. The Exchange believes that the proposed rule change will bring consistency and uniformity with FINRA's recently amended CE Program, which will, in turn, assist members and their associated persons in complying with these rules and improve regulatory efficiency. The proposed rule changes make ministerial changes to the Exchange's CE rules to align them with the CE rules of FINRA, in order to prevent unnecessary regulatory burdens and to promote efficient administration of the rules.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>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 purposes of the Act. The Exchange believes that the proposed rule changes which are, in all material respects, based upon and substantially similar to, recent rule changes adopted by FINRA, will reduce the regulatory burden placed on market participants engaged in trading activities across different markets. The Exchange believes that the harmonization of the CE Program requirements across the various markets will reduce burdens on competition by removing impediments to participation in the national market system and promoting competition among participants across the multiple national securities exchanges.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    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 
                    <SU>18</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         15 U.S.C. 78s(b)(3)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 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.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>20</SU>
                    <FTREF/>
                     normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>21</SU>
                    <FTREF/>
                     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 so that the proposed rule change may become operative upon filing. The Exchange, like FINRA, requests that the proposed rule change become operative as quickly as possible so FINRA, on behalf of the Exchange, can communicate the rule change to impacted individuals in a timely manner. Waiver of the operative delay would allow the Exchange to implement the proposed changes to its CE rules without delay, thereby eliminating the possibility of a significant regulatory gap between the FINRA and the Exchange rules, providing more uniform standards across the securities industry, and helping to avoid confusion for Exchange members that are also FINRA members. For these reasons, the Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>
                    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. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) 
                    <SU>23</SU>
                    <FTREF/>
                     of the Act to determine whether the proposed rule change should be approved or disapproved.
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         15 U.S.C. 78s(b)(2)(B).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeEDGA-2024-016 on the subject line.
                    <PRTPAGE P="54089"/>
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeEDGA-2024-016. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection.
                </FP>
                <P>All submissions should refer to file number SR-CboeEDGA-2024-016 and should be submitted on or before July 19, 2024.</P>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>24</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Vanessa A. Countryman,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14215 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-100405; File No. SR-Phlx-2024-25]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 7, Sections 4 and 9</SUBJECT>
                <DATE>June 24, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on June 12, 2024, Nasdaq PHLX LLC (“Phlx” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The Exchange proposes to amend Options 7, Sections 4 and 9.
                    <SU>3</SU>
                    <FTREF/>
                     The Exchange proposes to sunset the amendments to Options 7, Section 4 on July 1, 2024. The proposed maximum SQF Port Fee proposed herein in Options 7, Section 4 will remain in effect through the month of June 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange initially filed the proposed pricing changes on November 28, 2023 (SR-Phlx-2023-52) to be effective on December 1, 2023. On December 5, 2023, the Exchange withdrew SR-Phlx-2023-52 and replaced it with SR-Phlx-2023-56. On January 16, 2023, the Exchange withdrew SR-Phlx-2023-56 and submitted SR-Phlx-2024-02. On March 7, 2024, the Exchange withdrew SR-Phlx-2024-02 and submitted SR-Phlx-2024-10. On May 1, 2024, the Exchange withdrew SR-Phlx-2024-10 and submitted SR-Phlx-2024-21. On June 12, 2024, the Exchange withdrew SR-Phlx-2024-21 and submitted this filing.
                    </P>
                </FTNT>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://listingcenter.nasdaq.com/rulebook/phlx/rules,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The Exchange proposes to amend Options 7, Section 4, Multiply Listed Options Fees (Includes options overlying equities, ETFs, ETNs and indexes which are Multiply Listed) (Excludes SPY and broad-based index options symbols listed within Options 7, Section 5.A). The Exchange also proposes a technical amendment to Options 7, Section 9, B. The Exchange proposes to sunset the amendments to Options 7, Section 4 on July 1, 2024. The proposed maximum SQF Port Fee proposed herein in Options 7, Section 4 will remain in effect through the month of June 2024.</P>
                <P>
                    Today, Lead Market Makers and Market Makers are subject to a “Monthly Market Maker Cap” of $500,000 for: (i) electronic Option Transaction Charges, excluding surcharges and excluding options overlying broad-based index options symbols listed within Options 7, Section 5.A; and (ii) QCC Transaction Fees (as defined in Exchange Options 3, Section 12 and Floor QCC Orders, as defined in Options 8, Section 30(e)).
                    <SU>4</SU>
                    <FTREF/>
                     All dividend, merger, short stock interest, reversal and conversion, jelly roll and box spread strategy executions (as defined in this Options 7, Section 4) are excluded from the Monthly Market Maker Cap. Lead Market Makers or Market Makers that (i) are on the contra-side of an electronically-delivered and executed Customer order, excluding responses to a PIXL auction; and (ii) have reached the Monthly Market Maker Cap are assessed fees $0.05 per contract Fee for Adding Liquidity in Penny Symbols, $0.18 per contract Fee for Removing Liquidity in Penny Symbols, $0.18 per contract in Non-Penny Symbols, and $0.18 per contract in a non-Complex electronic auction, including the Quote Exhaust auction and, for purposes of this fee, the opening process.
                    <SU>5</SU>
                    <FTREF/>
                     Today, the Monthly 
                    <PRTPAGE P="54090"/>
                    Market Maker Cap offers Lead Market Makers and Market Makers the ability to lower their costs provided they execute a certain amount of orders on Phlx.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         The trading activity of separate Lead Market Maker and Market Maker member organizations is aggregated in calculating the Monthly Market Maker Cap if there is Common Ownership between the member organizations.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         A Complex electronic auction includes, but is not limited to, the Complex Order Live Auction 
                        <PRTPAGE/>
                        (“COLA”). Transactions which execute against an order for which the Exchange broadcast an order exposure alert in an electronic auction will be subject to this fee.
                    </P>
                </FTNT>
                <P>
                    At this time, the Exchange proposes to establish an increased SQF Fee Cap to Lead Market Makers and Market Makers that do not provide a minimum amount of liquidity on Phlx. This proposed increased SQF Fee Cap is intended to incentivize Lead Market Makers and Market Makers to add liquidity on Phlx for the benefit of other market participants in order to lower their fees. Phlx proposes to increase the SQF Port Fees cap to $50,000 a month if a Lead Market Maker or Market Maker does not transact 0.20% of Total Customer Volume in electronic simple orders that adds liquidity in a month.
                    <SU>6</SU>
                    <FTREF/>
                     Today, Phlx assesses $1,250 per port, per month up to a maximum of $42,000 per month for an SQF Port that receives inbound quotes at any time within that month.
                    <SU>7</SU>
                    <FTREF/>
                     With this proposal, the Exchange would not assess Lead Market Makers and Market Makers an SQF Port Fee beyond the monthly cap of $50,000, instead of $42,000, once the member organization has exceeded the proposed port cap for the respective month. Lead Market Makers and Market Makers who transacts 0.20% of Total Customer Volume in electronic simple orders that adds liquidity in a month will continue to be subject to the $42,000 SQF Fee Cap. The Exchange believes that Lead Market Makers and Market Makers will add liquidity to Phlx in order to decrease their costs of doing business on the Exchange by obtaining the benefits of the lower SQF Fee Cap similar to the manner in which Lead Market Maker and Market Makers today transact a certain quantity of orders to achieve the Monthly Market Maker Cap.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         For purposes of this cap, “Total Customer Volume” shall be defined as a percentage of all cleared customer volume at The Options Clearing Corporation in Multiply Listed Equity Options and Exchange-Traded Products (“TCV”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         An active port shall mean that the port was utilized to submit a quote to the System during a given month. 
                        <E T="03">See</E>
                         Options 7, Section 9, B. The Exchange proposes to add the words “active port” in parenthesis at the end of the description of SQF Port Fee in Options 7, Section 9, B to tie the definition of an active port to the description for the port. The Exchange also proposes a technical amendment to add a comma between “per port” and “per month” for the SQF Port Fee in Options 7, Section 9, B. Today, member organizations are not assessed an active SQF Port Fee for additional ports acquired for ten business days for the purpose of transitioning technology. The member organization is required to provide the Exchange with written notification of the transition and all additional ports, provided at no cost, will be removed at the end of the ten business days. 
                        <E T="03">See</E>
                         Options 7, Section 9, B.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Options 3, Section 7(a)(i)(B), Market Makers may only enter quotes into SQF in their assigned options series to add liquidity on Phlx. Pursuant to Options 3, Section 7(a)(i)(B), the SQF interface allows Market Makers to connect, send, and receive messages related to quotes, Immediate-or-Cancel Orders, and auction responses to the Exchange. While a Phlx Market Maker may elect to obtain multiple SQF Ports to organize its business,
                    <SU>8</SU>
                    <FTREF/>
                     only one SQF Port is necessary for a Phlx Market Maker to fulfill its regulatory quoting obligations.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         For example, a Phlx Market Maker may desire to utilize multiple SQF Ports for accounting purposes, to measure performance, for regulatory reasons or other determinations that are specific to that member organization.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Phlx Market Makers have various regulatory requirements as provided for in Options 2, Section 4. Additionally, Phlx Market Makers have certain quoting requirements with respect to their assigned options series as provided in Options 2, Section 5. SQF Ports are the only quoting protocol available on Phlx and only Market Makers may utilize SQF Ports.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
                    <SU>10</SU>
                    <FTREF/>
                     in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,
                    <SU>11</SU>
                    <FTREF/>
                     in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         15 U.S.C. 78f(b)(4) and (5).
                    </P>
                </FTNT>
                <P>
                    The proposed pricing change to increase the SQF Fee Cap for Lead Market Makers and Market Makers to $50,000 a month if Lead Market Makers or Market Makers do not transact 0.20% of Total Customer Volume in electronic simple orders that adds liquidity in a month is reasonable because it will incentivize Lead Market Makers and Market Makers to add liquidity on Phlx to lower their costs. The Exchange believes that the total volume required to achieve the cap is reasonable as the Exchange has limited the volume to simple orders, as not all Market Makers transact complex orders. Additionally, the Exchange has limited the trading volume to electronic volume, as not all Market Makers transact business in open outcry and Floor Market Makers may enter orders verbally in the trading crowd. Further, 0.20% of Total Customer Volume in electronic simple orders that adds liquidity in a month is an achievable number for Market Makers who currently add volume to the Exchange. Additionally, the Exchange believes that an SQF Fee cap of $50,000, in lieu of $42,000, is reasonable because Lead Market Makers and Market Makers are obligated, among other things, to maintain a two-sided market in those options in which the Market Maker is registered to trade, in a manner that enhances the depth, liquidity and competitiveness of the market and compete with other electronic Market Makers in all options in all capacities in which the electronic Market Maker is registered to trade.
                    <SU>12</SU>
                    <FTREF/>
                     The Exchange believes that it is reasonable to increase the SQF Port Fee Cap to $50,000 for Lead Market Makers and Market Makers that do not transact 0.20% of Total Customer Volume in electronic simple orders that adds liquidity in a month because the Exchange believes that Lead Market Makers and Market Makers that do not contribute a minimum amount of liquidity on Phlx should not be subject to the same opportunities to lower their costs as those Lead Market Makers and Market Makers that do contribute to liquidity and therefore provide the ability for other market participants to engage with that order flow. The Exchange believes that the increase is modest and would serve to encourage Lead Market Makers and Market Makers to submit order flow to Phlx in order to lower their cost and would result in additional order competition, which also benefits market participants. The Exchange believes this proposal promotes liquidity, quote competition, and trading opportunities.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 5(a)(1) and (3).
                    </P>
                </FTNT>
                <P>
                    SQF Ports are utilized by Lead Market Makers and Market Makers to quote on Phlx. The SQF Port is the only protocol available for quoting. A Phlx Market Maker may submit all quotes through one SQF Port and SQF Ports are only utilized in the Market Maker's assigned options series. While a Phlx Market Maker may elect to obtain multiple SQF Ports to organize its business,
                    <SU>13</SU>
                    <FTREF/>
                     only one SQF Port is necessary for a Phlx Market Maker to fulfill its regulatory quoting obligations.
                    <SU>14</SU>
                    <FTREF/>
                     For those Market Makers 
                    <PRTPAGE P="54091"/>
                    that elect to organize themselves by obtaining a greater number of SQF Ports, they will be subject to a cap.
                    <SU>15</SU>
                    <FTREF/>
                     For Market Makers that only take 1 SQF Port or only a few SQF Ports, their costs would be far below the $42,000 or $50,000 threshold for the cap.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         For example, a Phlx Market Maker may desire to utilize multiple SQF Ports for accounting purposes, to measure performance, for regulatory reasons or other determinations that are specific to that member organization.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         Phlx Market Makers have various regulatory requirements as provided for in Options 2, Section 4. Additionally, Phlx Market Makers have certain quoting requirements with respect to their assigned options series as provided in Options 2, Section 5. SQF Ports are the only quoting protocol available on Phlx and only Market Makers may utilize SQF Ports.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         The number of ports that member organizations choose to purchase varies widely. Today, on Phlx, 2 Market Makers have 1 SQF Port, 5 Market Makers have 2-5 SQF Ports, 4 Market Makers have between 6-10 SQF Ports, and 11 Market Makers have more than 10 SQF Ports. Additionally, today, on Nasdaq GEMX, LLC no Market Makers have 1 SQF Port/SQF Purge Port, 1 Market Maker has 2-5 SQF Ports/SQF Purge Ports, 4 Market Makers have between 6-10 SQF Ports/SQF Purge Ports, and 8 Market Makers have more than 10 SQF Ports/SQF Purge Ports. Finally, on Nasdaq MRX LLC (“MRX”), 2 Market Makers have 1 SQF Ports/SQF Purge Ports, no Market Makers have 2-5 SQF Ports/SQF Purge Ports, 2 Market Makers have between 6-10 SQF Ports/SQF Purge Ports, and 6 Market Makers have more than 10 SQF Ports/SQF Purge Ports.
                    </P>
                </FTNT>
                <P>
                    The proposed pricing change to increase the SQF Fee Cap for Lead Market Makers and Market Makers to $50,000 a month if Lead Market Makers or Market Makers do not transact 0.20% of Total Customer Volume in electronic simple orders that adds liquidity in a month is equitable and not unfairly discriminatory as all Lead Market Makers and Market Makers would be able to cap their SQF Port costs at $42,000, provided they transacted the requisite volume, otherwise Lead Market Makers and Market Makers would be uniformly subject to the $50,000 SQF Fee Cap. The Exchange notes that unlike other market participants, Lead Market Makers are obligated to quote in the Opening Process and intra-day.
                    <SU>16</SU>
                    <FTREF/>
                     Additionally, Market Makers may enter quotes in the Opening Process to open an option series and they are required to quote intra-day.
                    <SU>17</SU>
                    <FTREF/>
                     Further, unlike other market participants, Lead Market Makers and Market Makers have obligations to the market to maintain a two-sided market in those options in which the Market Maker is registered to trade, in a manner that enhances the depth, liquidity and competitiveness of the market and compete with other electronic Market Makers in all options in all capacities in which the electronic Market Maker is registered to trade, among other obligations.
                    <SU>18</SU>
                    <FTREF/>
                     Finally, unlike other market participants, Lead Market Makers and Market Makers incur other costs related to their quoting obligations in addition to other fees paid by other market participants. Phlx assesses Streaming Quote Trader 
                    <SU>19</SU>
                    <FTREF/>
                     Fees based on the number of option class assignments to Lead Market Makers and Market Makers.
                    <SU>20</SU>
                    <FTREF/>
                     Additionally, Phlx assesses Remote Market Maker 
                    <SU>21</SU>
                    <FTREF/>
                     Organization Fees and Remote Lead Market Maker Fees.
                    <SU>22</SU>
                    <FTREF/>
                     These liquidity providers are critical market participants in that they are the only market participants that provide liquidity to Phlx and are necessary for opening the market. Allowing Lead Market Makers and Market Makers to manage their costs by capping SQF Ports in addition to transaction fees enables these essential market participants to manage their business model more effectively and better allocate resources to other technologies that are necessary to manage risk and capacity to ensure that these market participants continue to compete effectively on Phlx. The following chart represents the classification of Phlx members and the percentage of Market Makers.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Options 3, Section 8 and Options 2, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 5(a)(1) and (3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         A “Streaming Quote Trader” or “SQT” means a Market Maker who has received permission from the Exchange to generate and submit option quotations electronically in options to which such SQT is assigned. An SQT may only submit such quotations while such SQT is physically present on the trading floor of the Exchange. An SQT may only submit quotes in classes of options in which the SQT is assigned. 
                        <E T="03">See</E>
                         Options 1, Section 1(b)(54).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 8, B.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         A “Remote Streaming Quote Trader” or “RSQT” means a Market Maker that is a member affiliated with a Remote Streaming Quote Trader Organization with no physical trading floor presence who has received permission from the Exchange to generate and submit option quotations electronically in options to which such RSQT has been assigned. A qualified RSQT may function as a Remote Lead Market Maker upon Exchange approval. An RSQT is also known as a Remote Market Maker (“RMM”) pursuant to Options 2, Section 11. A Remote Streaming Quote Organization (“RSQTO”) or Remote Market Maker Organization (“RMO”) are Exchange member organizations that have qualified pursuant to Options 2, Section 1. 
                        <E T="03">See</E>
                         Options 1, Section 1(b)(49).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 8, C and D.
                    </P>
                </FTNT>
                <GPH SPAN="3" DEEP="235">
                    <GID>EN28JN24.020</GID>
                </GPH>
                <PRTPAGE P="54092"/>
                <P>Phlx believes Lead Market Makers and Market Makers should be eligible for certain incentives because they fulfill a unique role on the Exchange and are the only market participants required to submit quotes to the Exchange. The proposed SQF Port Cap is designed to ensure that Lead Market Makers and Market Makers add a certain amount of liquidity on Phlx in order to be able to cap their SQF Fees at the lower cap of $42,000 as compared to the increased cap of $50,000. The Exchange would apply the criteria uniformly when applying the SQF Fee Cap to Lead Market Makers and Market Makers.</P>
                <P>Finally, Phlx believes the proposed SQF cap is constrained by competitive forces and reasonably designed in consideration of the competitive environment in which the Exchange operates. This fee structure incents Lead Market Makers and Market Makers to support increased liquidity, quote competition, and trading opportunities on the Exchange, for the benefit of all market participants.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.</P>
                <HD SOURCE="HD3">Intermarket Competition</HD>
                <P>The proposal does not impose an undue burden on intermarket competition. The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. The chart below shows the February 2024 market share for multiply listed options by exchange. Of the 17 operating options exchanges, none currently has more than a 17.6% market share. Customers widely distribute their transactions across exchanges according to their business needs and the ability of each exchange to meet those needs through technology, liquidity and functionality.</P>
                <GPH SPAN="3" DEEP="246">
                    <GID>EN28JN24.021</GID>
                </GPH>
                <P>Market share is the percentage of volume on a particular exchange relative to the total volume across all exchanges and indicates the amount of order flow directed to that exchange. High levels of market share enhance the value of trading and ports. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges. Because competitors are free to modify their own fees in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited.</P>
                <HD SOURCE="HD3">Intramarket Competition</HD>
                <P>
                    The proposed pricing change to increase the SQF Fee Cap for Lead Market Makers and Market Makers to $50,000 a month if Lead Market Makers or Market Makers do not transact 0.20% of Total Customer Volume in electronic simple orders that adds liquidity in a month does not impose an undue burden on competition as all Lead Market Makers and Market Makers would be able to cap their SQF Port costs at $42,000, provided they transacted the requisite volume, otherwise Lead Market Makers and Market Makers would be uniformly subject to the $50,000 SQF Fee Cap. The Exchange notes that unlike other market participants, Lead Market Makers are obligated to quote in the Opening Process and intra-day.
                    <SU>23</SU>
                    <FTREF/>
                     Additionally, Market Makers may enter quotes in the Opening Process to open an option series and they are required to quote intra-day.
                    <SU>24</SU>
                    <FTREF/>
                     Further, unlike other market participants, Lead Market Makers and Market Makers have obligations to the market to maintain a two-sided market in those options in which the Market Maker is registered to trade, in a manner that enhances the depth, liquidity and competitiveness of the market and compete with other electronic Market Makers in all options in all capacities in which the electronic Market Maker is registered to trade, among other 
                    <PRTPAGE P="54093"/>
                    obligations.
                    <SU>25</SU>
                    <FTREF/>
                     Finally, unlike other market participants, Lead Market Makers and Market Makers incur other costs related to their quoting obligations in addition to other fees paid by other market participants. Phlx assesses Streaming Quote Trader 
                    <SU>26</SU>
                    <FTREF/>
                     Fees based on the number of option class assignments to Lead Market Makers and Market Makers.
                    <SU>27</SU>
                    <FTREF/>
                     Additionally, Phlx assesses Remote Market Maker 
                    <SU>28</SU>
                    <FTREF/>
                     Organization Fees and Remote Lead Market Maker Fees.
                    <SU>29</SU>
                    <FTREF/>
                     These liquidity providers are critical market participants in that they are the only market participants that provide liquidity to Phlx and are necessary for opening the market. Allowing Lead Market Makers and Market Makers to manage their costs by capping SQF Ports in addition to transaction fees enables these essential market participants to manage their business model more effectively and better allocate resources to other technologies that are necessary to manage risk and capacity to ensure that these market participants continue to compete effectively on Phlx. The Exchange believes that Lead Market Makers and Market Makers should be eligible for certain incentives because they fulfill a unique role on the Exchange and are the only market participants required to submit quotes to the Exchange. The proposed SQF Port Cap is designed to ensure that Lead Market Makers and Market Makers add a certain amount of liquidity on Phlx in order to be able to cap their SQF Fees at the lower cap of $42,000 as compared to the increased cap of $50,000. The Exchange would apply the SQF Fee Cap criteria uniformly to Lead Market Makers and Market Makers.
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Options 3, Section 8 and Options 2, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 5(a)(1) and (3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         A “Streaming Quote Trader” or “SQT” means a Market Maker who has received permission from the Exchange to generate and submit option quotations electronically in options to which such SQT is assigned. An SQT may only submit such quotations while such SQT is physically present on the trading floor of the Exchange. An SQT may only submit quotes in classes of options in which the SQT is assigned. 
                        <E T="03">See</E>
                         Options 1, Section 1(b)(54).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 8, B.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         A “Remote Streaming Quote Trader” or “RSQT” means a Market Maker that is a member affiliated with a Remote Streaming Quote Trader Organization with no physical trading floor presence who has received permission from the Exchange to generate and submit option quotations electronically in options to which such RSQT has been assigned. A qualified RSQT may function as a Remote Lead Market Maker upon Exchange approval. An RSQT is also known as a Remote Market Maker (“RMM”) pursuant to Options 2, Section 11. A Remote Streaming Quote Organization (“RSQTO”) or Remote Market Maker Organization (“RMO”) are Exchange member organizations that have qualified pursuant to Options 2, Section 1. 
                        <E T="03">See</E>
                         Options 1, Section 1(b)(49).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 8, C and D.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were either solicited or received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.
                    <SU>30</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         15 U.S.C. 78s(b)(3)(A)(ii).
                    </P>
                </FTNT>
                <P>At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-Phlx-2024-25 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-Phlx-2024-25. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-Phlx-2024-25 and should be submitted on or before July 19, 2024.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>31</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Vanessa A. Countryman,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14208 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-100411; File No. SR-CboeBYX-2024-016]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend its Rules Relating to the Continuing Education for Registered Persons as Provided Under Exchange Rule 2.16.01</SUBJECT>
                <DATE>June 24, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on June 12, 2024, Cboe BYX Exchange, Inc. (the “Exchange” or “BYX”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and 
                    <PRTPAGE P="54094"/>
                    Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe BYX, Inc. (the “Exchange” or “BYX”) proposes to amend its rules relating to the Continuing Education for Registered Persons as provided under Exchange Rule 2.16.01. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/byx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The proposed rule change amends Exchange Rule 2.16.01 to reopen the period by which certain participants in the Maintaining Qualifications Program (“MQP”) will be able to complete their prescribed 2022 and 2023 continuing education content.</P>
                <P>
                    In 2021, the Financial Industry Regulatory Authority, Inc. (“FINRA”) implemented rule changes, which amended FINRA's Continuing Education (“CE”) Program requirements to, among other things, provide eligible individuals who terminate any of their representative or principal registration categories the option of maintaining their qualification for any terminated registration categories by completing annual CE through a new program, the MQP.
                    <SU>5</SU>
                    <FTREF/>
                     Under FINRA Rule 1240.01, the MQP designated a look-back provision that, subject to specified conditions, extended the option to participate in the MQP to individuals who: (1) were registered as a representative or principal within two years immediately prior to March 15, 2022 (the implementation date of the MQP); and (2) individuals who were participating in the Financial Services Affiliate Waiver Program (“FSAWP”) 
                    <SU>6</SU>
                    <FTREF/>
                     under FINRA Rule 1210.09 (Waiver of Examinations for Individuals Working for a Financial Services Industry Affiliate of a Member) immediately prior to March 15, 2022 (collectively, “Look-Back Individuals”).
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 93097 (September 21, 2021), 86 FR 53358 (September 27, 2021) (Order Approving File No. SR-FINRA-2021-015). Other exchanges, including BYX, subsequently filed copycat rule filings to align their continuing education rules with those of FINRA. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 94532 (March 28, 2022), 87 FR 19159 (April 1, 2022), (SR-CboeBYX-2022-006).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The FSAWP is a waiver program for eligible individuals who have left a member firm to work for a foreign or domestic financial services affiliate of a member firm. FINRA stopped accepting new participants for the FSAWP beginning on March 15, 2022; however, individuals who were already participating in the FSAWP prior to that date had the option of continuing in the FSAWP.
                    </P>
                </FTNT>
                <P>
                    In 2023, FINRA amended FINRA Rule 1240.01, to provide Look-Back Individuals a second opportunity to elect to participate in the MQP (the “FINRA Second Enrollment Period”).
                    <SU>7</SU>
                    <FTREF/>
                     The proposed rule change required that Look-Back Individuals who elect to participate in the MQP during the FINRA Second Enrollment Period complete any prescribed 2022 and 2023 MQP content by March 31, 2024. Look-Back Individuals who are enrolled in the MQP, similar to other MQP participants, are able to complete any prescribed CE and renew their annual MQP participation through their FINRA Financial Professional Gateway (“FinPro”) accounts.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 97184 (March 22, 2023), 88 FR 18359 (March 28, 2023) (SR-FINRA-2023-005).
                    </P>
                </FTNT>
                <P>
                    In response to FINRA's rule changes and to facilitate compliance with the Exchange's CE Program requirements by members of multiple exchanges, the Exchange implemented rule changes to align with FINRA's CE Program.
                    <SU>8</SU>
                    <FTREF/>
                     Such rules, among other things, provide eligible individuals who terminate any of their representative or principal registrations the option of maintaining their qualification for any of the terminated registrations by completing CE through the MQP. Further, Exchange Rule 2.16.01 includes a look-back provision that, subject to specified conditions, extends the option for maintaining qualifications following a registration category termination to (i) individuals who have been registered as a representative or principal within two years immediately preceding March 15, 2022, and (ii) individuals who have been participants of the FSAWP immediately preceding March 15, 2022 implementation (
                    <E T="03">i.e.,</E>
                     Look-Back Individuals). Exchange Rule 2.16.01 also provided Look-Back Individuals with a second enrollment period, between October 19, 2023, and December 31, 2023 (the “Exchange Second Enrollment Period”). Exchange Rule 2.16.01 requires that Look-Back Individuals who elect to participate in the MQP during the Exchange Second Enrollment Period complete any prescribed 2022 and 2023 MQP content by March 31, 2024.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Rules 2.16(c), 2.16.01, and 2.16.02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The Exchange determined to treat the individuals who enrolled during the first period (between January 31, 2022, and March 15, 2022) the same as those who enrolled during the second period (between October 19, 2023, and December 31, 2023) for purposes of the March 31, 2024, deadline for completion of prescribed 2022 and 2023 CE content. This is because those who had enrolled in the MQP during the first period satisfied all of the eligibility criteria for enrollment during the second period and would have been able to complete their prescribed CE content by March 31, 2024, had they chosen to enroll during the second period instead of enrolling during the first period.
                    </P>
                </FTNT>
                <P>
                    FINRA recently submitted a proposal related to its CE Program (the “FINRA Rule Change”).
                    <SU>10</SU>
                    <FTREF/>
                     The proposal set forth changes to FINRA Rule 1240.01, to provide Look-Back Individuals enrolled in the MQP in both 2022 and 2023 who did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, the opportunity to complete such content between May 22, 2024, and July 1, 2024, to be eligible to continue their participation in the MQP.
                    <SU>11</SU>
                    <FTREF/>
                     In addition, the proposed rule change provides that any such individuals who will have completed their prescribed 2022 and 2023 CE content between March 31, 2024, and May 22, 2024, will be deemed to have completed such content by July 1, 2024, for purposes of the rule.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100067 (May 6, 2024), 89 FR 40520 (May 10, 2024) (SR-FINRA-2024-006).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         This would include any Look-Back Individuals who were still in the process of completing their prescribed CE content as of March 31, 2024.
                    </P>
                </FTNT>
                <P>
                    In the FINRA Rule Change, FINRA noted that FINRA sent multiple reminders, including a March 16, 2024 email, to Look-Back Individuals who had enrolled in the MQP but had not completed their prescribed CE to remind them of the March 31, 2024 deadline. In the FINRA Rule Change, FINRA further noted that in the week leading up to the deadline, FINRA noticed that several thousand of those individuals were renewing their 
                    <PRTPAGE P="54095"/>
                    participation in the MQP for 2024 instead of completing their prescribed CE.
                    <SU>12</SU>
                    <FTREF/>
                     Per the FINRA Rule Change, FINRA believes that some of those individuals may have been confused by the layout of their FinPro accounts. Specifically, if they selected the 2024 renewal banner, which was prominently displayed on their FinPro accounts, and completed the renewal process, they would not have been automatically redirected to complete any prescribed CE. Therefore, individuals may have inadvertently assumed that completion of the renewal process alone would have satisfied all of the necessary requirements to continue their participation in the MQP.
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Look-Back Individuals who enrolled in the MQP have until December 31, 2024, to renew their participation in the MQP for 2024, provided that they complete their prescribed CE by the stated deadline.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         According to FINRA, a number of these individuals contacted FINRA to confirm whether they were required to satisfy any additional requirements other than completing the 2024 renewal. To provide FINRA with additional time to assess the situation, FINRA temporarily changed the March 31, 2024, due date for CE completion in its systems. This may have compounded the confusion because any Look-Back Individual who may have logged into their FinPro account during this time would have seen an interim CE completion date and would have been able to complete their prescribed CE content based on that interim CE completion date.
                    </P>
                </FTNT>
                <P>
                    For similar reasons and to facilitate compliance with the Exchange's CE Program requirements by members of multiple exchanges, the Exchange is also proposing to amend its rules (
                    <E T="03">i.e.,</E>
                     Exchange Rule 2.16.01) to provide Look-Back Individuals enrolled in the MQP in both 2022 and 2023 who did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, the opportunity to complete such content between the effective date of this filing, and July 1, 2024, to be eligible to continue their participation in the MQP.
                    <SU>14</SU>
                    <FTREF/>
                     In addition, the proposed rule change provides that any such individuals who will have completed their prescribed 2022 and 2023 CE content between March 31, 2024, and the effective date of this filing, will be deemed to have completed such content by July 1, 2024, for purposes of the rule.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         This would include any Look-Back Individuals who were still in the process of completing their prescribed CE content as of March 31, 2024.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>15</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>16</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be 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 regulating, clearing, settling, processing information with respect to, and 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. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>17</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>The Exchange believes that reopening the period by which Look-Back Individuals will be able to complete their prescribed 2022 and 2023 CE content is appropriate under the circumstances. As FINRA noted in the FINRA Rule Change, Look-Back Individuals who had enrolled in the MQP in 2022 and 2023 but had not completed their prescribed 2022 and 2023 CE content by the March 31, 2024 deadline may have been confused, as described above. The Exchange believes that participation in the MQP reduces unnecessary impediments to requalification for these individuals without diminishing investor protection. In addition, the proposed rule change is consistent with other goals, such as the promotion of diversity and inclusion in the securities industry by attracting and retaining a broader and diverse group of professionals. The MQP also allows the industry to retain expertise from skilled individuals, providing investors with the advantage of greater experience among the individuals working in the industry. The Exchange believes that reopening the CE completion period, as proposed, will further these goals and objectives.</P>
                <P>Further, the Exchange believes the proposed amendments reduce the possibility of a regulatory gap between Exchange and FINRA rules, providing more uniform standards across the securities industry. The Exchange believes that the proposed rule change will bring consistency and uniformity with FINRA's recently amended CE Program, which will, in turn, assist members and their associated persons in complying with these rules and improve regulatory efficiency. The proposed rule changes make ministerial changes to the Exchange's CE rules to align them with the CE rules of FINRA, in order to prevent unnecessary regulatory burdens and to promote efficient administration of the rules.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>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 purposes of the Act. The Exchange believes that the proposed rule changes which are, in all material respects, based upon and substantially similar to, recent rule changes adopted by FINRA, will reduce the regulatory burden placed on market participants engaged in trading activities across different markets. The Exchange believes that the harmonization of the CE Program requirements across the various markets will reduce burdens on competition by removing impediments to participation in the national market system and promoting competition among participants across the multiple national securities exchanges.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    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 
                    <SU>18</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         15 U.S.C. 78s(b)(3)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 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.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>20</SU>
                    <FTREF/>
                     normally does not become operative prior to 30 days after the date of the filing. However, pursuant 
                    <PRTPAGE P="54096"/>
                    to Rule 19b4(f)(6)(iii),
                    <SU>21</SU>
                    <FTREF/>
                     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 so that the proposed rule change may become operative upon filing. The Exchange, like FINRA, requests that the proposed rule change become operative as quickly as possible so FINRA, on behalf of the Exchange, can communicate the rule change to impacted individuals in a timely manner. Waiver of the operative delay would allow the Exchange to implement the proposed changes to its CE rules without delay, thereby eliminating the possibility of a significant regulatory gap between the FINRA and the Exchange rules, providing more uniform standards across the securities industry, and helping to avoid confusion for Exchange members that are also FINRA members. For these reasons, the Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>
                    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. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) 
                    <SU>23</SU>
                    <FTREF/>
                     of the Act to determine whether the proposed rule change should be approved or disapproved.
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         15 U.S.C. 78s(b)(2)(B).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov</E>
                    . Please include file number SR-CboeBYX-2024-016 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeBYX-2024-016. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection.
                </FP>
                <P>All submissions should refer to file number SR-CboeBYX-2024-016 and should be submitted on or before July 19, 2024.</P>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>24</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Vanessa A. Countryman,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14213 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-100414; File No. SR-CboeEDGX-2024-027]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules Relating to the Continuing Education for Registered Persons as Provided Under Exchange Rule 2.16.01</SUBJECT>
                <DATE>June 24, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on June 12, 2024, Cboe EDGX Exchange, Inc. (the “Exchange” or “EDGX”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe EDGX, Inc. (the “Exchange” or “EDGX”) proposes to amend its rules relating to the Continuing Education for Registered Persons as provided under Exchange Rule 2.16.01. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/options/regulation/rule_filings/edgx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>
                    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 
                    <PRTPAGE P="54097"/>
                    forth in sections A, B, and C below, of the most significant aspects of such statements.
                </P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The proposed rule change amends Exchange Rule 2.16.01 to reopen the period by which certain participants in the Maintaining Qualifications Program (“MQP”) will be able to complete their prescribed 2022 and 2023 continuing education content.</P>
                <P>
                    In 2021, the Financial Industry Regulatory Authority, Inc. (“FINRA”) implemented rule changes, which amended FINRA's Continuing Education (“CE”) Program requirements to, among other things, provide eligible individuals who terminate any of their representative or principal registration categories the option of maintaining their qualification for any terminated registration categories by completing annual CE through a new program, the MQP.
                    <SU>5</SU>
                    <FTREF/>
                     Under FINRA Rule 1240.01, the MQP designated a look-back provision that, subject to specified conditions, extended the option to participate in the MQP to individuals who: (1) were registered as a representative or principal within two years immediately prior to March 15, 2022 (the implementation date of the MQP); and (2) individuals who were participating in the Financial Services Affiliate Waiver Program (“FSAWP”) 
                    <SU>6</SU>
                    <FTREF/>
                     under FINRA Rule 1210.09 (Waiver of Examinations for Individuals Working for a Financial Services Industry Affiliate of a Member) immediately prior to March 15, 2022 (collectively, “Look-Back Individuals”).
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 93097 (September 21, 2021), 86 FR 53358 (September 27, 2021) (Order Approving File No. SR-FINRA-2021-015). Other exchanges, including EDGX, subsequently filed copycat rule filings to align their continuing education rules with those of FINRA. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 94527 (March 28, 2022), 87 FR 18825 (March 31, 2022), (SR-CboeEDGX-2022-017).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The FSAWP is a waiver program for eligible individuals who have left a member firm to work for a foreign or domestic financial services affiliate of a member firm. FINRA stopped accepting new participants for the FSAWP beginning on March 15, 2022; however, individuals who were already participating in the FSAWP prior to that date had the option of continuing in the FSAWP.
                    </P>
                </FTNT>
                <P>
                    In 2023, FINRA amended FINRA Rule 1240.01, to provide Look-Back Individuals a second opportunity to elect to participate in the MQP (the “FINRA Second Enrollment Period”).
                    <SU>7</SU>
                    <FTREF/>
                     The proposed rule change required that Look-Back Individuals who elect to participate in the MQP during the FINRA Second Enrollment Period complete any prescribed 2022 and 2023 MQP content by March 31, 2024. Look-Back Individuals who are enrolled in the MQP, similar to other MQP participants, are able to complete any prescribed CE and renew their annual MQP participation through their FINRA Financial Professional Gateway (“FinPro”) accounts.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 97184 (March 22, 2023), 88 FR 18359 (March 28, 2023) (SR-FINRA-2023-005).
                    </P>
                </FTNT>
                <P>
                    In response to FINRA's rule changes and to facilitate compliance with the Exchange's CE Program requirements by members of multiple exchanges, the Exchange implemented rule changes to align with FINRA's CE Program.
                    <SU>8</SU>
                    <FTREF/>
                     Such rules, among other things, provide eligible individuals who terminate any of their representative or principal registrations the option of maintaining their qualification for any of the terminated registrations by completing CE through the MQP. Further, Exchange Rule 2.16.01 includes a look-back provision that, subject to specified conditions, extends the option for maintaining qualifications following a registration category termination to (i) individuals who have been registered as a representative or principal within two years immediately preceding March 15, 2022, and (ii) individuals who have been participants of the FSAWP immediately preceding March 15, 2022 implementation (
                    <E T="03">i.e.,</E>
                     Look-Back Individuals). Exchange Rule 2.16.01 also provided Look-Back Individuals with a second enrollment period, between October 19, 2023, and December 31, 2023 (the “Exchange Second Enrollment Period”). Exchange Rule 2.16.01 requires that Look-Back Individuals who elect to participate in the MQP during the Exchange Second Enrollment Period complete any prescribed 2022 and 2023 MQP content by March 31, 2024.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Rules 2.16(c), 2.16.01, and 2.16.02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The Exchange determined to treat the individuals who enrolled during the first period (between January 31, 2022, and March 15, 2022) the same as those who enrolled during the second period (between October 19, 2023, and December 31, 2023) for purposes of the March 31, 2024, deadline for completion of prescribed 2022 and 2023 CE content. This is because those who had enrolled in the MQP during the first period satisfied all of the eligibility criteria for enrollment during the second period and would have been able to complete their prescribed CE content by March 31, 2024, had they chosen to enroll during the second period instead of enrolling during the first period.
                    </P>
                </FTNT>
                <P>
                    FINRA recently submitted a proposal related to its CE Program (the “FINRA Rule Change”).
                    <SU>10</SU>
                    <FTREF/>
                     The proposal set forth changes to FINRA Rule 1240.01, to provide Look-Back Individuals enrolled in the MQP in both 2022 and 2023 who did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, the opportunity to complete such content between May 22, 2024, and July 1, 2024, to be eligible to continue their participation in the MQP.
                    <SU>11</SU>
                    <FTREF/>
                     In addition, the proposed rule change provides that any such individuals who will have completed their prescribed 2022 and 2023 CE content between March 31, 2024, and May 22, 2024, will be deemed to have completed such content by July 1, 2024, for purposes of the rule.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100067 (May 6, 2024), 89 FR 40520 (May 10, 2024) (SR-FINRA-2024-006).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         This would include any Look-Back Individuals who were still in the process of completing their prescribed CE content as of March 31, 2024.
                    </P>
                </FTNT>
                <P>
                    In the FINRA Rule Change, FINRA noted that FINRA sent multiple reminders, including a March 16, 2024 email, to Look-Back Individuals who had enrolled in the MQP but had not completed their prescribed CE to remind them of the March 31, 2024 deadline. In the FINRA Rule Change, FINRA further noted that in the week leading up to the deadline, FINRA noticed that several thousand of those individuals were renewing their participation in the MQP for 2024 instead of completing their prescribed CE.
                    <SU>12</SU>
                    <FTREF/>
                     Per the FINRA Rule Change, FINRA believes that some of those individuals may have been confused by the layout of their FinPro accounts. Specifically, if they selected the 2024 renewal banner, which was prominently displayed on their FinPro accounts, and completed the renewal process, they would not have been automatically redirected to complete any prescribed CE. Therefore, individuals may have inadvertently assumed that completion of the renewal process alone would have satisfied all of the necessary requirements to continue their participation in the MQP.
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Look-Back Individuals who enrolled in the MQP have until December 31, 2024, to renew their participation in the MQP for 2024, provided that they complete their prescribed CE by the stated deadline.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         According to FINRA, a number of these individuals contacted FINRA to confirm whether they were required to satisfy any additional requirements other than completing the 2024 renewal. To provide FINRA with additional time to assess the situation, FINRA temporarily changed the March 31, 2024, due date for CE completion in its systems. This may have compounded the confusion because any Look-Back Individual who may have logged into their FinPro account during this time would have seen an interim CE completion date and would have been able to complete their prescribed CE content based on that interim CE completion date.
                    </P>
                </FTNT>
                <P>
                    For similar reasons and to facilitate compliance with the Exchange's CE Program requirements by members of multiple exchanges, the Exchange is 
                    <PRTPAGE P="54098"/>
                    also proposing to amend its rules (
                    <E T="03">i.e.,</E>
                     Exchange Rule 2.16.01) to provide Look-Back Individuals enrolled in the MQP in both 2022 and 2023 who did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, the opportunity to complete such content between the effective date of this filing, and July 1, 2024, to be eligible to continue their participation in the MQP.
                    <SU>14</SU>
                    <FTREF/>
                     In addition, the proposed rule change provides that any such individuals who will have completed their prescribed 2022 and 2023 CE content between March 31, 2024, and the effective date of this filing, will be deemed to have completed such content by July 1, 2024, for purposes of the rule.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         This would include any Look-Back Individuals who were still in the process of completing their prescribed CE content as of March 31, 2024.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>15</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>16</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be 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 regulating, clearing, settling, processing information with respect to, and 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. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>17</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>The Exchange believes that reopening the period by which Look-Back Individuals will be able to complete their prescribed 2022 and 2023 CE content is appropriate under the circumstances. As FINRA noted in the FINRA Rule Change, Look-Back Individuals who had enrolled in the MQP in 2022 and 2023 but had not completed their prescribed 2022 and 2023 CE content by the March 31, 2024 deadline may have been confused, as described above. The Exchange believes that participation in the MQP reduces unnecessary impediments to requalification for these individuals without diminishing investor protection. In addition, the proposed rule change is consistent with other goals, such as the promotion of diversity and inclusion in the securities industry by attracting and retaining a broader and diverse group of professionals. The MQP also allows the industry to retain expertise from skilled individuals, providing investors with the advantage of greater experience among the individuals working in the industry. The Exchange believes that reopening the CE completion period, as proposed, will further these goals and objectives.</P>
                <P>Further, the Exchange believes the proposed amendments reduce the possibility of a regulatory gap between Exchange and FINRA rules, providing more uniform standards across the securities industry. The Exchange believes that the proposed rule change will bring consistency and uniformity with FINRA's recently amended CE Program, which will, in turn, assist members and their associated persons in complying with these rules and improve regulatory efficiency. The proposed rule changes make ministerial changes to the Exchange's CE rules to align them with the CE rules of FINRA, in order to prevent unnecessary regulatory burdens and to promote efficient administration of the rules.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>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 purposes of the Act. The Exchange believes that the proposed rule changes which are, in all material respects, based upon and substantially similar to, recent rule changes adopted by FINRA, will reduce the regulatory burden placed on market participants engaged in trading activities across different markets. The Exchange believes that the harmonization of the CE Program requirements across the various markets will reduce burdens on competition by removing impediments to participation in the national market system and promoting competition among participants across the multiple national securities exchanges.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    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 
                    <SU>18</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         15 U.S.C. 78s(b)(3)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 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.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>20</SU>
                    <FTREF/>
                     normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),
                    <SU>21</SU>
                    <FTREF/>
                     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 so that the proposed rule change may become operative upon filing. The Exchange, like FINRA, requests that the proposed rule change become operative as quickly as possible so FINRA, on behalf of the Exchange, can communicate the rule change to impacted individuals in a timely manner. Waiver of the operative delay would allow the Exchange to implement the proposed changes to its CE rules without delay, thereby eliminating the possibility of a significant regulatory gap between the FINRA and the Exchange rules, providing more uniform standards across the securities industry, and helping to avoid confusion for Exchange members that are also FINRA members. For these reasons, the Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>
                    At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if 
                    <PRTPAGE P="54099"/>
                    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. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) 
                    <SU>23</SU>
                    <FTREF/>
                     of the Act to determine whether the proposed rule change should be approved or disapproved.
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         15 U.S.C. 78s(b)(2)(B).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeEDGX-2024-027 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeEDGX-2024-027. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection.
                </FP>
                <P>All submissions should refer to file number SR-CboeEDGX-2024-027 and should be submitted on or before July 19, 2024.</P>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>24</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Vanessa A. Countryman,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14216 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[SEC File No. 270-541, OMB Control No. 3235-0620]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request; Extension: Rule 22c-2</SUBJECT>
                <FP SOURCE="FP-1">
                    <E T="03">Upon Written Request, Copies Available From:</E>
                     Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549-2736
                </FP>
                <P>
                    Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ) the Securities and Exchange Commission (the “Commission”) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval.
                </P>
                <P>Rule 22c-2 (17 CFR 270.22c-2) under the Investment Company Act of 1940 (15 U.S.C. 80a) (the “Investment Company Act”) requires the board of directors (including a majority of independent directors) of most registered open-end investment companies (“funds”) to either approve a redemption fee of up to two percent or determine that imposition of a redemption fee is not necessary or appropriate for the fund. Rule 22c-2 also requires a fund to enter into written agreements with their financial intermediaries (such as broker-dealers and retirement plan administrators) under which the fund, upon request, can obtain certain shareholder identity and trading information from the intermediaries. The written agreement must also allow the fund to direct the intermediary to prohibit further purchases or exchanges by specific shareholders that the fund has identified as being engaged in transactions that violate the fund's market timing policies. These requirements enable funds to obtain the information that they need to monitor the frequency of short-term trading in omnibus accounts and enforce their market timing policies.</P>
                <P>
                    The rule includes three “collections of information” within the meaning of the Paperwork Reduction Act of 1995 (“PRA”).
                    <SU>1</SU>
                    <FTREF/>
                     First, the rule requires boards to either approve a redemption fee of up to two percent or determine that imposition of a redemption fee is not necessary or appropriate for the fund. Second, funds must enter into information sharing agreements with all of their “financial intermediaries” 
                    <SU>2</SU>
                    <FTREF/>
                     and maintain a copy of the written information sharing agreement with each intermediary in an easily accessible place for six years. Third, pursuant to the information sharing agreements, funds must have systems that enable them to request frequent trading information upon demand from their intermediaries, and to enforce any restrictions on trading required by funds under the rule.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         44 U.S.C. 3501-3520.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         The rule defines a Financial Intermediary as: (i) Any broker, dealer, bank, or other person that holds securities issued by the fund in nominee name; (ii) a unit investment trust or fund that invests in the fund in reliance on section 12(d)(i)(E) of the Act; and (iii) in the case of a participant directed employee benefit plan that owns the securities issued by the fund, a retirement plan's administrator under section 316(A) of the Employee Retirement Security Act of 1974 (29 U.S.C. 1002(16)(A) or any person that maintains the plans' participant records; Financial Intermediary does not include any person that the fund treats as an individual investor with respect to the fund's policies established for the purpose of eliminating or reducing any dilution of the value of the outstanding securities issued by the fund; Rule 22c-2(c)(1).
                    </P>
                </FTNT>
                <P>The collections of information created by rule 22c-2 are necessary for funds to effectively assess redemption fees, enforce their policies in frequent trading, and monitor short-term trading, including market timing, in omnibus accounts. These collections of information are mandatory for funds that redeem shares within seven days of purchase. The collections of information also are necessary to allow Commission staff to fulfill its examination and oversight responsibilities.</P>
                <P>
                    Rule 22c-2(a)(1) requires the board of directors of all registered open-end management investment companies and series thereof (except for money market funds, ETFs, or funds that affirmatively permit short-term trading of its securities) to approve a redemption fee for the fund, or instead make a determination that a redemption fee is 
                    <PRTPAGE P="54100"/>
                    either not necessary or appropriate for the fund. Commission staff understands that the boards of all funds currently in operation have undertaken this process for the funds they currently oversee, and the rule does not require boards to review this determination periodically once it has been made. Accordingly, we expect that only boards of newly registered funds or newly created series thereof would undertake this determination. Commission staff estimates that 3 funds (excluding money market funds and ETFs) are newly formed each year and would need to make this determination.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         This estimate is based on the average number of registrants filing initial Form N-1A or N-3 from 2020 to 2022; this estimate does not carve out money market funds, ETFs, or funds that affirmatively permit short-term trading of their securities, so this estimate corresponds to the outer limit of the number of registrants that would have to make this determination.
                    </P>
                </FTNT>
                <P>
                    Commission staff estimates that it takes 2 hours of the board's time as a whole (at a rate of $4,770 per hour) to approve a redemption fee or make the required determination on behalf of all series of the fund. In addition, Commission staff estimates that it takes compliance personnel of the fund 8 hours (at a rate of $84 per hour) to prepare trading, compliance, and other information regarding the fund's operations to enable the board to make its determination, and takes an internal compliance attorney of the fund 3 hours (at a rate of $440 per hour) to review this information and present its recommendations to the board. Therefore, for each fund board that undertakes this determination process, Commission staff estimates it expends 13 hours 
                    <SU>4</SU>
                    <FTREF/>
                     at a cost of $11,532.
                    <SU>5</SU>
                    <FTREF/>
                     As a result, Commission staff estimates that the total time spent for all funds on this process is 416 hours at a cost of $369,024.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         This calculation is based on the following estimates: 2 hours of board time + 3 hours of internal compliance attorney time + 8 hours of compliance clerk time = 13 hours.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         This calculation is based on the following estimates: ($4,770 board time × 2 hours) + ($84 compliance time × 8 hours) + ($440 attorney time × 3 hours) = $11,532.
                    </P>
                    <P>The hourly wages used are from SIFMA's Management &amp; Professional Earnings in the Securities Industry 2013, modified by Commission staff to account for an 1800 hour work-year and inflation, and multiplied by 5.35 to account for bonuses, firm size, employee benefits, and overhead; the staff has estimated the average cost of board of director time as $4,770 per hour for the board as a whole, based on information received from funds and their counsel.</P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         This calculation is based on the following estimates: 13 hours × 32 funds = 416 hours; $11,532× 32 funds = $369,024.
                    </P>
                </FTNT>
                <P>
                    Rule 22c-2(a)(2) requires a fund to enter into information-sharing agreements with each of its financial intermediaries. Commission staff understands that all currently registered funds have already entered into such agreements with their intermediaries. Funds enter into new relationships with intermediaries from time to time, however, which requires them to enter into new information sharing agreements. Commission staff understands that, in general, funds enter into information-sharing agreement when they initially establish a relationship with an intermediary, which is typically executed as an addendum to the distribution agreement. The Commission staff understands that most shareholder information agreements are entered into by the fund group (a group of funds with a common investment adviser), and estimates that there are currently 797 currently active fund groups.
                    <SU>7</SU>
                    <FTREF/>
                     Commission staff estimates that, on average, each active fund group enters into relationships with 3 new intermediaries each year. Commission staff understands that funds generally use a standard information sharing agreement, drafted by the fund or an outside entity, and modifies that agreement according to the requirements of each intermediary. Commission staff estimates that negotiating the terms and entering into an information sharing agreement takes a total of 4 hours of attorney time (at a rate of $500 per hour) per intermediary. Accordingly, Commission staff estimates that it takes 12 hours at a cost of $6,000 annually for each fund group 
                    <SU>8</SU>
                    <FTREF/>
                     to enter into new information sharing agreements and, in the aggregate existing market participants incur a total of 9,564 hours at a cost of $4,782,000.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         ICI, 2024 Investment Company Fact Book at Fig 2.8 (2024) (
                        <E T="03">https://www.icifactbook.org/pdf/2024-factbook.pdf</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         This estimate is based on the following calculations: 4 hours × 3 new intermediaries = 12 hours; 12 hours × $500 = $6,000).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         This estimate is based on the following calculations: (12 hours × 797 fund groups = 9,564 hours); 9,564 hours × $500 = $4,782,000).
                    </P>
                </FTNT>
                <P>
                    In addition, newly created funds advised by new entrants (effectively new fund groups) must enter into information sharing agreements with all of their financial intermediaries. Commission staff estimates that there are 38 new fund groups that form each year that will have to enter into information sharing agreements with each of their intermediaries.
                    <SU>10</SU>
                    <FTREF/>
                     Commission staff estimates that fund groups formed by new advisers typically have relationships with significantly fewer intermediaries than existing fund groups, and estimates that new fund groups will typically enter into 100 information sharing agreements with their intermediaries when they begin operations.
                    <SU>11</SU>
                    <FTREF/>
                     As discussed previously, Commission staff estimates that it takes 4 hours of attorney time (at a rate of $500 per hour) per intermediary to enter into information sharing agreements. Therefore, Commission staff estimates that each newly formed fund group will incur 400 hours of attorney time at a cost of $200,000 
                    <SU>12</SU>
                    <FTREF/>
                     and that all newly formed fund groups will incur a total of 15,200 hours at a cost of $7,600,000 to enter into information sharing agreements with their intermediaries.
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         ICI, 2024 Investment Company Fact Book at Fig 2.8 (2024) (
                        <E T="03">https://www.icifactbook.org/pdf/2024-factbook.pdf</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         Commission staff understands that funds generally use a standard information sharing agreement, drafted by the fund or an outside entity, and then modifies that agreement according to the requirements of each intermediary.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         This estimate is based on the following calculations: 4 hours × 100 intermediaries = 400 hours; 400 hours × $500 = $200,000.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         This estimate is based on the following calculations: (38 fund groups × 400 hours = 15,200 hours) ($500 × 15,200 = 7,600,000).
                    </P>
                </FTNT>
                <P>
                    Rule 22c-2(a)(3) requires funds to maintain records of all information-sharing agreements for 6 years in an easily accessible place. Commission staff understands that most shareholder information agreements are stored at the fund group level and estimates that there are currently approximately 797 fund groups.
                    <SU>14</SU>
                    <FTREF/>
                     Commission staff understands that information-sharing agreements are generally included as addendums to distribution agreements between funds and their intermediaries, and that these agreements would be stored as required by the rule as a matter of ordinary business practice. Therefore, Commission staff estimates that maintaining records of information-sharing agreements requires 10 minutes of time spent by a general clerk (at a rate of $75 per hour) per fund, each year. Accordingly, Commission staff estimates that all funds will incur 133 hours at a cost of $9,975 
                    <SU>15</SU>
                    <FTREF/>
                     in complying with the recordkeeping requirement of rule 22c-2(a)(3). Therefore, Commission staff estimates that to comply with the information sharing agreement requirements of rule 22c-2(a)(2) and (3), it requires a total of 24,897 hours at a cost of $12,391,975.
                    <SU>16</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         ICI, 2024 Investment Company Fact Book at Fig 2.8 (2024) (
                        <E T="03">https://www.icifactbook.org/pdf/2024-factbook.pdf</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         This estimate is based on the following calculations: (10 minutes × 797 fund groups = 7,970 minutes); (7,970 minutes/60 = 133 hours); (133 hours × $75 = $9,975).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         This estimate is based on the following calculations: (9,564 hours + 15,200 hours + 133 hours = 24,897 hours); ($4,782,000 + $7,600,000 + $9,975 = $12,391,975).
                    </P>
                </FTNT>
                <P>
                    The Commission staff estimates that on average, each fund group requests 
                    <PRTPAGE P="54101"/>
                    shareholder information once a week, and gives instructions regarding the restriction of shareholder trades every day, for a total of 417 responses related to information sharing systems per fund group each year, and a total 331,552 responses for all fund groups annually.
                    <SU>17</SU>
                    <FTREF/>
                     In addition, as described above, the staff estimates that funds make 32 responses related to board determinations, 2,391 responses related to new intermediaries of existing fund groups, 3,800 responses related to new fund group information sharing agreements, and 797 responses related to recordkeeping, for a total of 7,020 responses related to the other requirements of rule 22c-2. Therefore, the Commission staff estimates that the total number of responses is 338,572 (331,552 + 7,020 = 338,572). The Commission staff estimates that the total hour burden for rule 22c-2 is 25,313 hours at a cost of $12,392,344.
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         This estimate is based on the following calculations: (52 + 365 = 417); (417 × 797 fund groups = 331,552).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         This estimate is based on the following calculations: 416 hours (board determination) + 24,897 hours (information sharing agreements) = 25,313 total hours; $369,024 (board determination) + $12,391,975 (information sharing agreements) = $12,392,344.
                    </P>
                </FTNT>
                <P>Responses provided to the Commission will be accorded the same level of confidentiality accorded to other responses provided to the Commission in the context of its examination and oversight program. Responses provided in the context of the Commission's examination and oversight program are generally kept confidential. Complying with the information collections of rule 22c-2 is mandatory for funds that redeem their shares within 7 days of purchase. 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 control number.</P>
                <P>Written comments are invited on: (a) whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; (b) the accuracy of the Commission's estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted by August 27, 2024.</P>
                <P>An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information under the PRA unless it displays a currently valid OMB control number.</P>
                <P>
                    Please direct your written comments to: David Bottom, Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street, NE Washington, DC 20549 or send an email to: 
                    <E T="03">PRA_Mailbox@sec.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Vanessa A. Countryman,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14223 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-100409; File No. SR-CBOE-2024-022]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules Relating to the Continuing Education for Registered Persons as Provided Under Exchange Rule 3.33.01</SUBJECT>
                <DATE>June 24, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on June 12, 2024, Cboe Exchange, Inc. (the “Exchange” or “Cboe Options”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe Exchange, Inc. (the “Exchange” or “Cboe Options”) proposes to amend its rules relating to the Continuing Education for Registered Persons as provided under Exchange Rule 3.33.01. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The proposed rule change amends Exchange Rule 3.33.01 to reopen the period by which certain participants in the Maintaining Qualifications Program (“MQP”) will be able to complete their prescribed 2022 and 2023 continuing education content.</P>
                <P>
                    In 2021, the Financial Industry Regulatory Authority, Inc. (“FINRA”) implemented rule changes, which amended FINRA's Continuing Education (“CE”) Program requirements to, among other things, provide eligible individuals who terminate any of their representative or principal registration categories the option of maintaining their qualification for any terminated registration categories by completing annual CE through a new program, the MQP.
                    <SU>5</SU>
                    <FTREF/>
                     Under FINRA Rule 1240.01, the MQP designated a look-back provision that, subject to specified conditions, extended the option to participate in the MQP to individuals who: (1) were registered as a representative or principal within two years immediately prior to March 15, 2022 (the implementation date of the MQP); and (2) individuals who were participating in the Financial Services Affiliate 
                    <PRTPAGE P="54102"/>
                    Waiver Program (“FSAWP”) 
                    <SU>6</SU>
                    <FTREF/>
                     under FINRA Rule 1210.09 (Waiver of Examinations for Individuals Working for a Financial Services Industry Affiliate of a Member) immediately prior to March 15, 2022 (collectively, “Look-Back Individuals”).
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 93097 (September 21, 2021), 86 FR 53358 (September 27, 2021) (Order Approving File No. SR-FINRA-2021-015). Other exchanges, including Cboe Options, subsequently filed copycat rule filings to align their CE rules with those of FINRA. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 94513 (March 24, 2022), 87 FR 18446 (March 30, 2022), (SR-CBOE-2022-012).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The FSAWP is a waiver program for eligible individuals who have left a member firm to work for a foreign or domestic financial services affiliate of a member firm. FINRA stopped accepting new participants for the FSAWP beginning on March 15, 2022; however, individuals who were already participating in the FSAWP prior to that date had the option of continuing in the FSAWP.
                    </P>
                </FTNT>
                <P>
                    In 2023, FINRA amended FINRA Rule 1240.01, to provide Look-Back Individuals a second opportunity to elect to participate in the MQP (the “FINRA Second Enrollment Period”).
                    <SU>7</SU>
                    <FTREF/>
                     The proposed rule change required that Look-Back Individuals who elect to participate in the MQP during the FINRA Second Enrollment Period complete any prescribed 2022 and 2023 MQP content by March 31, 2024. Look-Back Individuals who are enrolled in the MQP, similar to other MQP participants, are able to complete any prescribed CE and renew their annual MQP participation through their FINRA Financial Professional Gateway (“FinPro”) accounts.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 97184 (March 22, 2023), 88 FR 18359 (March 28, 2023) (SR-FINRA-2023-005).
                    </P>
                </FTNT>
                <P>
                    In response to FINRA's rule changes and to facilitate compliance with the Exchange's CE Program requirements by members of multiple exchanges, the Exchange implemented rule changes to align with FINRA's CE Program.
                    <SU>8</SU>
                    <FTREF/>
                     Such rules, among other things, provide eligible individuals who terminate any of their representative or principal registrations the option of maintaining their qualification for any of the terminated registrations by completing CE through the MQP. Further, Exchange Rule 3.33.01 includes a look-back provision that, subject to specified conditions, extends the option for maintaining qualifications following a registration category termination to (i) individuals who have been registered as a representative or principal within two years immediately preceding March 15, 2022, and (ii) individuals who have been participants of the FSAWP immediately preceding March 15, 2022 implementation (
                    <E T="03">i.e.,</E>
                     Look-Back Individuals). Exchange Rule 3.33.01 also provided Look-Back Individuals with a second enrollment period, between August 23, 2023, and December 31, 2023 (the “Exchange Second Enrollment Period”). Exchange Rule 3.33.01 requires that Look-Back Individuals who elect to participate in the MQP during the Exchange Second Enrollment Period complete any prescribed 2022 and 2023 MQP content by March 31, 2024.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Rules 3.33(c), 3.33.01, and 3.33.02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The Exchange determined to treat the individuals who enrolled during the first period (between January 31, 2022, and March 15, 2022) the same as those who enrolled during the second period (between August 23, 2023, and December 31, 2023) for purposes of the March 31, 2024, deadline for completion of prescribed 2022 and 2023 CE content. This is because those who had enrolled in the MQP during the first period satisfied all of the eligibility criteria for enrollment during the second period and would have been able to complete their prescribed CE content by March 31, 2024, had they chosen to enroll during the second period instead of enrolling during the first period.
                    </P>
                </FTNT>
                <P>
                    FINRA recently submitted a proposal related to its CE Program (the “FINRA Rule Change”).
                    <SU>10</SU>
                    <FTREF/>
                     The proposal set forth changes to FINRA Rule 1240.01, to provide Look-Back Individuals enrolled in the MQP in both 2022 and 2023 who did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, the opportunity to complete such content between May 22, 2024, and July 1, 2024, to be eligible to continue their participation in the MQP.
                    <SU>11</SU>
                    <FTREF/>
                     In addition, the proposed rule change provides that any such individuals who will have completed their prescribed 2022 and 2023 CE content between March 31, 2024, and May 22, 2024, will be deemed to have completed such content by July 1, 2024, for purposes of the rule.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100067 (May 6, 2024), 89 FR 40520 (May 10, 2024) (SR-FINRA-2024-006).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         This would include any Look-Back Individuals who were still in the process of completing their prescribed CE content as of March 31, 2024.
                    </P>
                </FTNT>
                <P>
                    In the FINRA Rule Change, FINRA noted that FINRA sent multiple reminders, including a March 16, 2024 email, to Look-Back Individuals who had enrolled in the MQP but had not completed their prescribed CE to remind them of the March 31, 2024 deadline. In the FINRA Rule Change, FINRA further noted that in the week leading up to the deadline, FINRA noticed that several thousand of those individuals were renewing their participation in the MQP for 2024 instead of completing their prescribed CE.
                    <SU>12</SU>
                    <FTREF/>
                     Per the FINRA Rule Change, FINRA believes that some of those individuals may have been confused by the layout of their FinPro accounts. Specifically, if they selected the 2024 renewal banner, which was prominently displayed on their FinPro accounts, and completed the renewal process, they would not have been automatically redirected to complete any prescribed CE. Therefore, individuals may have inadvertently assumed that completion of the renewal process alone would have satisfied all of the necessary requirements to continue their participation in the MQP.
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Look-Back Individuals who enrolled in the MQP have until December 31, 2024, to renew their participation in the MQP for 2024, provided that they complete their prescribed CE by the stated deadline.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         According to FINRA, a number of these individuals contacted FINRA to confirm whether they were required to satisfy any additional requirements other than completing the 2024 renewal. To provide FINRA with additional time to assess the situation, FINRA temporarily changed the March 31, 2024, due date for CE completion in its systems. This may have compounded the confusion because any Look-Back Individual who may have logged into their FinPro account during this time would have seen an interim CE completion date and would have been able to complete their prescribed CE content based on that interim CE completion date.
                    </P>
                </FTNT>
                <P>
                    For similar reasons and to facilitate compliance with the Exchange's CE Program requirements by members of multiple exchanges, the Exchange is also proposing to amend its rules (
                    <E T="03">i.e.,</E>
                     Exchange Rule 3.33.01) to provide Look-Back Individuals enrolled in the MQP in both 2022 and 2023 who did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, the opportunity to complete such content between the effective date of this filing, and July 1, 2024, to be eligible to continue their participation in the MQP.
                    <SU>14</SU>
                    <FTREF/>
                     In addition, the proposed rule change provides that any such individuals who will have completed their prescribed 2022 and 2023 CE content between March 31, 2024, and the effective date of this filing, will be deemed to have completed such content by July 1, 2024, for purposes of the rule.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         This would include any Look-Back Individuals who were still in the process of completing their prescribed CE content as of March 31, 2024.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>15</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>16</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be 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 regulating, clearing, settling, processing information with respect to, and 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 
                    <PRTPAGE P="54103"/>
                    investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>17</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>The Exchange believes that reopening the period by which Look-Back Individuals will be able to complete their prescribed 2022 and 2023 CE content is appropriate under the circumstances. As FINRA noted in the FINRA Rule Change, Look-Back Individuals who had enrolled in the MQP in 2022 and 2023 but had not completed their prescribed 2022 and 2023 CE content by the March 31, 2024 deadline may have been confused, as described above. The Exchange believes that participation in the MQP reduces unnecessary impediments to requalification for these individuals without diminishing investor protection. In addition, the proposed rule change is consistent with other goals, such as the promotion of diversity and inclusion in the securities industry by attracting and retaining a broader and diverse group of professionals. The MQP also allows the industry to retain expertise from skilled individuals, providing investors with the advantage of greater experience among the individuals working in the industry. The Exchange believes that reopening the CE completion period, as proposed, will further these goals and objectives.</P>
                <P>Further, the Exchange believes the proposed amendments reduce the possibility of a regulatory gap between Exchange and FINRA rules, providing more uniform standards across the securities industry. The Exchange believes that the proposed rule change will bring consistency and uniformity with FINRA's recently amended CE Program, which will, in turn, assist Trading Permit Holders and their associated persons in complying with these rules and improve regulatory efficiency. The proposed rule changes make ministerial changes to the Exchange's CE rules to align them with the CE rules of FINRA, in order to prevent unnecessary regulatory burdens and to promote efficient administration of the rules.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>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 purposes of the Act. The Exchange believes that the proposed rule changes which are, in all material respects, based upon and substantially similar to, recent rule changes adopted by FINRA, will reduce the regulatory burden placed on market participants engaged in trading activities across different markets. The Exchange believes that the harmonization of the CE Program requirements across the various markets will reduce burdens on competition by removing impediments to participation in the national market system and promoting competition among participants across the multiple national securities exchanges.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    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 
                    <SU>18</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         15 U.S.C. 78s(b)(3)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 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.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>20</SU>
                    <FTREF/>
                     normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-142244(f)(6)(iii),
                    <SU>21</SU>
                    <FTREF/>
                     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 so that the proposed rule change may become operative upon filing. The Exchange, like FINRA, requests that the proposed rule change become operative as quickly as possible so FINRA, on behalf of the Exchange, can communicate the rule change to impacted individuals in a timely manner. Waiver of the operative delay would allow the Exchange to implement the proposed changes to its CE rules without delay, thereby eliminating the possibility of a significant regulatory gap between the FINRA and the Exchange rules, providing more uniform standards across the securities industry, and helping to avoid confusion for Exchange members that are also FINRA members. For these reasons, the Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>
                    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. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) 
                    <SU>23</SU>
                    <FTREF/>
                     of the Act to determine whether the proposed rule change should be approved or disapproved.
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         15 U.S.C. 78s(b)(2)(B).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CBOE-2024-022 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CBOE-2024-022. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the 
                    <PRTPAGE P="54104"/>
                    submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection.
                </FP>
                <P>All submissions should refer to file number SR-CBOE-2024-022 and should be submitted on or before July 19, 2024.</P>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>24</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Vanessa A. Countryman,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14212 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[SEC File No. 270-269, OMB Control No. 3235-0276]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request; Extension: Rule 6c-7</SUBJECT>
                <FP SOURCE="FP-1">
                    <E T="03">Upon Written Request, Copies Available From:</E>
                     Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549-2736
                </FP>
                <P>
                    Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ), the Securities and Exchange Commission (the “Commission”) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval.
                </P>
                <P>
                    Rule 6c-7 (17 CFR 270.6c-7) under the Investment Company Act of 1940 (15 U.S.C. 80a-1 
                    <E T="03">et seq.</E>
                    ) (“1940 Act”) provides exemption from certain provisions of Sections 22(e) and 27 of the 1940 Act for registered separate accounts offering variable annuity contracts to certain employees of Texas institutions of higher education participating in the Texas Optional Retirement Program. There are approximately 129 registrants governed by Rule 6c-7. The burden of compliance with Rule 6c-7, in connection with the registrants obtaining from a purchaser, prior to or at the time of purchase, a signed document acknowledging the restrictions on redeemability imposed by Texas law, is estimated to be approximately 3 minutes of professional time per response for each of approximately 5,900 purchasers annually (at an estimated $84 per hour),
                    <SU>1</SU>
                    <FTREF/>
                     for a total annual burden of 295 hours (at a total annual cost of $24,780).
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         $84/hour figure for a Compliance Clerk is based on the Commission's estimates concerning the allocation of burden hours and the relevant wage rates from the Commission's consultations with industry representatives and on salary information for the securities industry compiled by the Securities Industry and Financial Markets Association's Office Salaries in the Securities Industry 2013; the estimated wage figures are modified by Commission staff to account for an 1800-hour work-year and multiplied by 2.93 to account for bonuses, firm size, employee benefits, overhead, and adjusted to account for the effects of inflation; 
                        <E T="03">see</E>
                         Securities Industry and Financial Markets Association, Report on Management &amp; Professional Earnings in the Securities Industry 2013.
                    </P>
                </FTNT>
                <P>The estimate of average burden hours is made solely for the purposes of the Paperwork Reduction Act, and is not derived from a comprehensive or even a representative survey or study of the costs of Commission rules or forms. The Commission does not include in the estimate of average burden hours the time preparing registration statements and sales literature disclosure regarding the restrictions on redeem ability imposed by Texas law. The estimate of burden hours for completing the relevant registration statements are reported on the separate PRA submissions for those statements. (See the separate PRA submissions for Form N-3 (17 CFR 274.11b) and Form N-4 (17 CFR 274.11c).)</P>
                <P>Written comments are invited on: (a) whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; (b) the accuracy of the Commission's estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted by August 27, 2024.</P>
                <P>An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information under the PRA unless it displays a currently valid OMB control number.</P>
                <P>
                    Please direct your written comments to: David Bottom, Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street, NE Washington, DC 20549 or send an email to: 
                    <E T="03">PRA_Mailbox@sec.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Vanessa A. Countryman,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14220 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-100408; File No. SR-NASDAQ-2024-025]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 7, Section 3</SUBJECT>
                <DATE>June 24, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on June 12, 2024, The Nasdaq Stock Market LLC (“Nasdaq” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The Exchange proposes to amend The Nasdaq Options Market LLC's (“NOM”) Rules at Options 7, Section 3, Nasdaq Options Market—Ports and Other Services.
                    <SU>3</SU>
                    <FTREF/>
                     The Exchange proposes to 
                    <PRTPAGE P="54105"/>
                    sunset the amendments to Options 7, Section 3 on July 1, 2024. The amendments to Options 7, Section 3 proposed herein will remain in effect through the month of June 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange initially filed the proposed pricing changes on November 28, 2023 (SR-NASDAQ-2023-050) to be effective on December 1, 2023. On December 5, 2023, the Exchange withdrew SR-NASDAQ-2023-050 and placed it with SR-NASDAQ-2023-054. On January 16, 2023, the Exchange withdrew SR-NASDAQ-2023-054 and 
                        <PRTPAGE/>
                        submitted SR-NASDAQ-2024-003. On March 7, 2024, the Exchange withdrew SR-NASDAQ-2024-003 and submitted SR-NASDAQ-2024-012. On May 1, 2024, the Exchange withdrew SR-NASDAQ-2024-012 and submitted SR-NASDAQ-2024-021. On June 12, 2024, the Exchange withdrew SR-NASDAQ-2024-021 and submitted this filing.
                    </P>
                </FTNT>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://listingcenter.nasdaq.com/rulebook/nasdaq/rules,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The Exchange proposes to amend Options 7, Section 3, Nasdaq Options Market—Ports and Other Services. The Exchange proposes to sunset the amendments to Options 7, Section 3 on July 1, 2024. The amendments to Options 7, Section 3 proposed herein will remain in effect through the month of June 2024.</P>
                <P>Today, NOM assesses SQF Ports and SQF Purge Ports a per port, per month fee based on a tiered fee schedule. Specifically, NOM assesses an SQF Port and an SQF Purge Port fee of $1,500 per port, per month for the first 5 ports (1-5), a $1,000 per port, per month fee for the next 15 ports (6-20), and a $500 per port, per month fee for all ports over 20 ports (21 and above).</P>
                <P>
                    At this time, the Exchange proposes to establish an increased fee for SQF Ports and SQF Ports above 20 ports (21 and above) that do not provide a minimum amount of liquidity on NOM. This increased fee is intended to incentivize Market Makers to add liquidity on NOM for the benefit of other market participants. Specifically, NOM proposes an SQF Port Fee and an SQF Purge Port Fee of $750 per port for all ports above 20 ports if a Market Maker did not transact 1.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month.
                    <SU>4</SU>
                    <FTREF/>
                     Market Makers who transact 1.50% of Total Customer Volume that adds liquidity in a month will continue to be assessed a $500 per port fee for SQF Ports and SQF Purge Ports for over 20 ports. The Exchange believes that Market Makers will add liquidity to NOM in order to decrease their costs of doing business on the Exchange by achieving the lower SQF Port Fee and SQF Purge Port Fee for more than 20 ports.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         For purposes of this cap, “Total Customer Volume” shall be defined as a percentage of all cleared customer volume at The Options Clearing Corporation in Multiply Listed Equity Options and Exchange-Traded Products (“TCV”).
                    </P>
                </FTNT>
                <P>
                    Pursuant to Options 3, Section 7(e)(1)(B), NOM Market Makers may only enter quotes into SQF in their assigned options series. Pursuant to Options 3, Section 7(e)(1)(B), the SQF interface allows NOM Market Makers to connect, send, and receive messages related to quotes, Immediate-or-Cancel Orders, and auction responses to the Exchange. An SQF Purge is a specific port for the SQF interface that only receives and notifies of purge requests from the Market Maker. A NOM Market Maker may submit all quotes through one SQF Port and utilize one SQF Purge Port to view its purge requests. While a NOM Market Maker may elect to obtain multiple SQF Ports and SQF Purge Ports to organize its business,
                    <SU>5</SU>
                    <FTREF/>
                     only one SQF Port and SQF Purge Port is necessary for a NOM Market Maker to fulfill its regulatory quoting obligations.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         For example, a NOM Market Maker may desire to utilize multiple SQF Ports for accounting purposes, to measure performance, for regulatory reasons or other determinations that are specific to that NOM Participant. The Exchange notes that 78% of NOM Market Makers pay the $1,000 per port, per month fee for 6-20 ports and 39% pay the proposed $750 per port, per month fee for over 20 ports.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         NOM Market Makers have various regulatory requirements as provided for in Options 2, Section 4. Additionally, NOM Market Makers have certain quoting requirements with respect to their assigned options series as provided in Options 2, Section 5. The Exchange notes that SQF Ports are the only quoting protocol available on NOM and only NOM Market Makers may utilize SQF Ports. The same is true for SQF Purge Ports.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
                    <SU>7</SU>
                    <FTREF/>
                     in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,
                    <SU>8</SU>
                    <FTREF/>
                     in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         15 U.S.C. 78f(b)(4) and (5).
                    </P>
                </FTNT>
                <P>
                    The proposed pricing change to increase the SQF Port Fee and SQF Purge Port Fee for above 20 ports to $750 per port if a Market Maker does not transact 1.50% of Total Customer Volume that adds liquidity in a month is reasonable because it will incentivize Market Makers to add liquidity on NOM to lower their costs. Further, 1.50% of Total Customer Volume that adds liquidity in a month is an achievable number for Market Makers who currently add volume to the Exchange. The Exchange believes that increasing the SQF Port Fee and SQF Purge Port Fee for above 20 ports from $500 to $750 per port is reasonable because Market Makers are obligated, among other things, to maintain a two-sided market in those options in which the Market Maker is registered to trade, in a manner that enhances the depth, liquidity and competitiveness of the market and compete with other Market Makers in all options in all capacities in which the Market Maker is registered to trade.
                    <SU>9</SU>
                    <FTREF/>
                     The Exchange believes that it is reasonable to increase the SQF Port Fee and SQF Purge Port Fee for above 20 ports from $500 to $750 per port for Market Makers that do not transact 1.50% of Total Customer Volume that adds liquidity in a month because the Exchange believes that Market Makers that do not contribute a minimum amount of liquidity on NOM should not be subject to the same opportunities to lower their costs as those Market Makers that do contribute to liquidity and therefore provide the ability for other market participants to engage with that order flow. The Exchange believes that the increase is modest and would serve to encourage Market Makers to submit order flow to NOM in order to lower their cost and would result in additional order competition. The Exchange believes this proposal promotes liquidity, quote competition, and trading opportunities.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 4(a)(1) and (3).
                    </P>
                </FTNT>
                <P>
                    A NOM Market Maker requires only one SQF Port to submit quotes in its assigned options series into NOM. A NOM Market Maker may submit all quotes through one SQF Port and utilize one SQF Purge Port to view its purge requests. While a NOM Market Maker may elect to obtain multiple SQF Ports 
                    <PRTPAGE P="54106"/>
                    and SQF Purge Ports to organize its business,
                    <SU>10</SU>
                    <FTREF/>
                     only one SQF Port and SQF Purge Port is necessary for a NOM Market Maker to fulfill its regulatory quoting obligations. For those Market Makers that elect to organize themselves by obtaining a greater number of SQF Ports and SQF Purge Ports they will be able to reduce their fees.
                    <SU>11</SU>
                    <FTREF/>
                     Participants may choose a greater number of SQF Ports or SQF Purge Ports, beyond one port, depending on that Participant's particular business model.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         For example, a NOM Market Maker may desire to utilize multiple SQF Ports for accounting purposes, to measure performance, for regulatory reasons or other determinations that are specific to that Participant.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The number of ports that member organizations choose to purchase varies widely. Today, on Phlx, 2 Market Makers have 1 SQF Port, 5 Market Makers have 2-5 SQF Ports, 4 Market Makers have between 6-10 SQF Ports, and 11 Market Makers have more than 10 SQF Ports. Additionally, today, on Nasdaq GEMX, LLC no Market Makers have 1 SQF Port/SQF Purge Port, 1 Market Maker has 2-5 SQF Ports/SQF Purge Ports, 4 Market Makers have between 6-10 SQF Ports/SQF Purge Ports, and 8 Market Makers have more than 10 SQF Ports/SQF Purge Ports. Finally, on Nasdaq MRX LLC (“MRX”), 2 Market Makers have 1 SQF Ports/SQF Purge Ports, no Market Makers have 2-5 SQF Ports/SQF Purge Ports, 2 Market Makers have between 6-10 SQF Ports/SQF Purge Ports, and 6 Market Makers have more than 10 SQF Ports/SQF Purge Ports.
                    </P>
                </FTNT>
                <P>
                    The proposed pricing change to increase the SQF Port Fee and SQF Purge Port Fee for above 20 ports to $750 per port if a Market Maker does not transact 1.50% of Total Customer Volume that adds liquidity in a month is equitable and not unfairly discriminatory as the Exchange would uniformly apply the criteria when assessing fees. The Exchange notes that unlike other market participants, Market Makers are required to quote intra-day.
                    <SU>12</SU>
                    <FTREF/>
                     Further, unlike other market participants, Market Makers have obligations to the market to maintain a two-sided market in those options in which the Market Maker is registered to trade, in a manner that enhances the depth, liquidity and competitiveness of the market and compete with other Market Makers in all options in all capacities in which the Market Maker is registered to trade, among other obligations.
                    <SU>13</SU>
                    <FTREF/>
                     These liquidity providers are critical market participants in that they are the only market participants that provide liquidity to NOM. Allowing Market Makers to manage their costs by lowering the SQF Port and SQF Purge Port Fees for above 20 ports enables these essential market participants to manage their business model more effectively and better allocate resources to other technologies that are necessary to manage risk and capacity to ensure that these market participants continue to compete effectively on NOM. The following chart represents the classification of NOM members and the percentage of Market Makers.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 5(d).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 4(a)(1) and (3).
                    </P>
                </FTNT>
                <GPH SPAN="3" DEEP="232">
                    <GID>EN28JN24.024</GID>
                </GPH>
                <P>The Exchange believes that Market Makers should be eligible for certain incentives because they fulfill a unique role on the Exchange and are the only market participants required to submit quotes to the Exchange. The proposed reduced fee for above 20 ports is designed to ensure that Market Makers that add a certain amount of liquidity on NOM could obtain lower fees for above 20 ports to reduce costs. The Exchange desires to reward Market Makers provided they are adding a certain amount of liquidity to NOM and would apply the criteria uniformly.</P>
                <P>Finally, the reduced SQF Port and SQF Purge Port fees for above 20 ports is constrained by competitive forces and reasonably designed in consideration of the competitive environment in which the Exchange operates. This fee structure incents Market Makers to support increased liquidity, quote competition, and trading opportunities on the Exchange, for the benefit of all market participants.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.</P>
                <HD SOURCE="HD3">Intermarket Competition</HD>
                <P>
                    The proposal does not impose an undue burden on intermarket competition. The Exchange believes its proposal remains competitive with other options markets who also offer order entry protocols. The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. The 
                    <PRTPAGE P="54107"/>
                    chart below shows the February 2024 market share for multiply listed options by exchange. Of the 17 operating options exchanges, none currently has more than a 17.6% market share. Customers widely distribute their transactions across exchanges according to their business needs and the ability of each exchange to meet those needs through technology, liquidity and functionality. 
                </P>
                <GPH SPAN="3" DEEP="246">
                    <GID>EN28JN24.025</GID>
                </GPH>
                <P>Market share is the percentage of volume on a particular exchange relative to the total volume across all exchanges, and indicates the amount of order flow directed to that exchange. High levels of market share enhance the value of trading and ports.</P>
                <P>In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges. Because competitors are free to modify their own fees in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited.</P>
                <HD SOURCE="HD3">Intramarket Competition</HD>
                <P>
                    The proposed pricing change to increase the SQF Port Fee and SQF Purge Port Fee for above 20 ports to $750 per port if a Market Maker does not transact 1.50% of Total Customer Volume that adds liquidity in a month does not impose an undue burden on competition as the Exchange would uniformly apply the criteria when assessing fees. The Exchange notes that unlike other market participants, Market Makers are required to quote intra-day.
                    <SU>14</SU>
                    <FTREF/>
                     Further, unlike other market participants, Market Makers have obligations to the market to maintain a two-sided market in those options in which the Market Maker is registered to trade, in a manner that enhances the depth, liquidity and competitiveness of the market and compete with other Market Makers in all options in all capacities in which the Market Maker is registered to trade, among other obligations.
                    <SU>15</SU>
                    <FTREF/>
                     These liquidity providers are critical market participants in that they are the only market participants that provide liquidity to NOM. Allowing Market Makers to manage their costs by lowering the SQF Port and SQF Purge Port Fees for above 20 ports enables these essential market participants to manage their business model more effectively and better allocate resources to other technologies that are necessary to manage risk and capacity to ensure that these market participants continue to compete effectively on NOM. The Exchange believes that Market Makers should be eligible for certain incentives because they fulfill a unique role on the Exchange and are the only market participants required to submit quotes to the Exchange. The proposed reduced fee for above 20 ports is designed to ensure that Market Makers that add a certain amount of liquidity on NOM could obtain lower fees for above 20 ports to reduce costs. The Exchange desires to reward Market Makers provided they are adding a certain amount of liquidity to NOM and would apply the criteria uniformly.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 5(d).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 4(a)(1) and (3).
                    </P>
                </FTNT>
                <P>Finally, the reduced SQF Port and SQF Purge Port fees for above 20 ports is constrained by competitive forces and reasonably designed in consideration of the competitive environment in which the Exchange operates. This fee structure incents Market Makers to support increased liquidity, quote competition, and trading opportunities on the Exchange, for the benefit of all market participants.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were either solicited or received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.
                    <SU>16</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         15 U.S.C. 78s(b)(3)(A)(ii).
                    </P>
                </FTNT>
                <P>
                    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 
                    <PRTPAGE P="54108"/>
                    action is: (i) necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved.
                </P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-NASDAQ-2024-025 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-NASDAQ-2024-025. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-NASDAQ-2024-025 and should be submitted on or before July 19, 2024.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>17</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>17</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Vanessa A. Countryman,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14211 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[SEC File No. 270-563, OMB Control No. 3235-0694]</DEPDOC>
                <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
                <FP SOURCE="FP-1">
                    <E T="03">Upon Written Request, Copies Available From:</E>
                     Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549-2736
                </FP>
                <FP SOURCE="FP-2">
                    <E T="03">Extension:</E>
                </FP>
                <FP SOURCE="FP1-2">Rule 17g-10 and Form ABS Due Diligence—15E</FP>
                <P>
                    Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ), the Securities and Exchange Commission (“Commission”) is soliciting comments on the collection of information summarized below. The Commission plans to submit an extension for this current collection of information to the Office of Management and Budget for approval.
                </P>
                <P>
                    Rule 17g-10 (17 CFR 240.17g-10) requires a provider of third-party due diligence services to provide the written certification required by Section 15E(s)(4) of the Securities Exchange Act of 1934 (15 U.S.C. 78a 
                    <E T="03">et seq.</E>
                    ) on Form ABS Due Diligence—15E (17 CFR 249b.500). Based on Commission staff's experience, it is estimated that third-party due diligence service providers would be required to spend, on average, 0.20 hours to complete and transmit Form ABS Due Diligence—15E, for a total annual burden of 470 hours.
                    <SU>1</SU>
                    <FTREF/>
                     The cost for a compliance manager to complete and submit Form ABS Due Diligence—15E pursuant to Rule 17g-10 is estimated at $372 per hour,
                    <SU>2</SU>
                    <FTREF/>
                     resulting in an industry-wide annual internal cost to third-party service providers of $175,000 per year.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         This figure is calculated by multiplying the per year average number of offerings of asset-backed securities, as the term is defined in Section 3(a)(79) of the Exchange Act, which was estimated at 1,410 offerings, by the hour burden to complete and transmit Form ABS Due Diligence—15E estimated at 0.20 hours (1,410 offerings × 0.20 hours = 470 hours).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         The $372 figure for a compliance manager is based on SIFMA's Management &amp; Professional Earnings in the Securities Industry 2013, modified by Commission staff to account for an 1,800-hour work-year and multiplied by 5.35 to account for bonuses, firm size, employee benefits and overhead, as adjusted for inflation using the Bureau of Labor Statistics' CPI Inflation Calculator.
                    </P>
                </FTNT>
                <P>
                    The public may view background documentation for this information collection at the following website: 
                    <E T="03">www.reginfo.gov.</E>
                     Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function. Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice by July 29, 2024 to (i) 
                    <E T="03">MBX.OMB.OIRA.SEC_desk_officer@omb.eop.gov</E>
                     and (ii) David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or by sending an email to: 
                    <E T="03">PRA_Mailbox@sec.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: June 24, 2024.</DATED>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14224 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-100406; File No. SR-GEMX-2024-13]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 7, Section 6</SUBJECT>
                <DATE>June 24, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on June 12, 2024, Nasdaq GEMX, LLC (“GEMX” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The Exchange proposes to amend its Rules at Options 7, Section 6.
                    <SU>3</SU>
                    <FTREF/>
                     The 
                    <PRTPAGE P="54109"/>
                    Exchange proposes to sunset the amendments to Options 7, Section 6, C on July 1, 2024. The amendments to Options 7, Section 6, C proposed herein will remain in effect through the month of June 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange initially filed the proposed pricing changes on November 28, 2023 (SR-GEMX-
                        <PRTPAGE/>
                        2023-16) to be effective on December 1, 2023. On December 5, 2023, the Exchange withdrew SR-GEMX-2023-16 and replaced it with SR-GEMX-2023-19. On January 16, 2023, the Exchange withdrew SR-GEMX-2023-19 and submitted SR-GEMX-2024-03. On March 7, 2024, the Exchange withdrew SR-GEMX-2024-03 and submitted SR-GEMX-2024-07. On May 1, 2024, the Exchange withdrew SR-GEMX-2024-07 and submitted SR-GEMX-2024-10. On June 12, 2024, the Exchange withdrew SR-GEMX-2024-10 and submitted this filing.
                    </P>
                </FTNT>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://listingcenter.nasdaq.com/rulebook/gemx/rules,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Options 7, Section 6, C, Ports and Other Services. Specifically, the Exchange proposes to amend the monthly caps for SQF Ports 
                    <SU>4</SU>
                    <FTREF/>
                     and SQF Purge Ports.
                    <SU>5</SU>
                    <FTREF/>
                     The Exchange proposes to sunset the amendments to Options 7, Section 6, C on July 1, 2024. The amendments to Options 7, Section 6, C proposed herein will remain in effect through the month of June 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         “Specialized Quote Feed” or “SQF” is an interface that allows Market Makers to connect, send, and receive messages related to quotes, Immediate-or-Cancel Orders, and auction responses to the Exchange. Features include the following: (1) options symbol directory messages (
                        <E T="03">e.g.,</E>
                         underlying instruments); (2) System event messages (
                        <E T="03">e.g.,</E>
                         start of trading hours messages and start of opening); (3) trading action messages (
                        <E T="03">e.g.,</E>
                         halts and resumes); (4) execution messages; (5) quote messages; (6) Immediate-or-Cancel Order messages; (7) risk protection triggers and purge notifications; (8) opening imbalance messages; (9) auction notifications; and (10) auction responses. The SQF Purge Interface only receives and notifies of purge requests from the Market Maker. Market Makers may only enter interest into SQF in their assigned options series. Immediate-or-Cancel Orders entered into SQF are not subject to the Order Price Protection, Market Order Spread Protection, and Size Limitation Protection in Options 3, Section 15(a)(1)(A), (1)(B), and (2)(B) respectively. 
                        <E T="03">See</E>
                         Supplementary Material .03(c) to Options 3, Section 7.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         SQF Purge is a specific port for the SQF interface that only receives and notifies of purge requests from the Market Maker. Dedicated SQF Purge Ports enable Market Makers to seamlessly manage their ability to remove their quotes in a swift manner. The SQF Purge Port is designed to assist Market Makers in the management of, and risk control over, their quotes. Market Makers may utilize a purge port to reduce uncertainty and to manage risk by purging all quotes in their assigned options series. Of note, Market Makers may only enter interest into SQF in their assigned options series. Additionally, the SQF Purge Port may be utilized by a Market Maker in the event that the Member has a system issue and determines to purge its quotes from the order book.
                    </P>
                </FTNT>
                <P>
                    Today, GEMX assesses $1,250 per port, per month for an SQF Port as well as an SQF Purge Port.
                    <SU>6</SU>
                    <FTREF/>
                     Also, today, SQF Ports and SQF Purge Ports are subject to a monthly cap of $17,500, which cap is applicable to Market Makers.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The Exchange proposes to add a comma between “per port” and “per month” in the Options 7, Section 6, C, SQF Port and SQF Purge Port Fee rule text. The Exchange also proposes to remove an extraneous period in Options 7, Section 6, C, in the second paragraph.
                    </P>
                </FTNT>
                <P>
                    At this time, the Exchange proposes to establish an increased SQF Fee and SQF Purge Port Cap to Primary Market Makers and Market Makers that do not provide a minimum amount of liquidity on GEMX. This proposed increased SQF Fee and SQF Purge Port Cap is intended to incentivize Primary Market Makers and Market Makers to add liquidity on GEMX for the benefit of other market participants in order to lower their fees. GEMX proposes to increase the SQF Port and SQF Purge Port Cap to $27,500 a month if a Primary Market Maker or Market Maker does not transact 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month.
                    <SU>7</SU>
                    <FTREF/>
                     Today, GEMX caps an SQF Port and SQF Purge Port at $17,500 a month.
                    <SU>8</SU>
                    <FTREF/>
                     With this proposal, the Exchange would not assess Primary Market Makers and Market Makers an SQF Port and SQF Purge Port Cap beyond the monthly cap of $27,500, instead of $17,500, once the Member has exceeded the proposed port cap for the respective month. Primary Market Makers and Market Makers who transact 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month will continue to be subject to the $17,500 SQF Port and SQF Purge Port Cap.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         For purposes of this cap, “Total Customer Volume” shall be defined as a percentage of all cleared customer volume at The Options Clearing Corporation in Multiply Listed Equity Options and Exchange-Traded Products (“TCV”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The Exchange also proposes a technical amendment to remove an extra period in Options 7, Section 6, C.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Supplementary Material .03(c) to Options 3, Section 7, Market Makers may only enter interest into SQF in their assigned options series. Pursuant to Supplementary Material .03(c) to Options 3, Section 7, the SQF interface allows Market Makers to connect, send, and receive messages related to quotes, Immediate-or-Cancel Orders, and auction responses to the Exchange. An SQF Purge is a specific port for the SQF interface that only receives and notifies of purge requests from the Market Maker. A GEMX Market Maker requires only one SQF Port to submit quotes in its assigned options series into GEMX. While a Market Maker may elect to obtain multiple SQF Ports and SQF Purge Ports to organize its business,
                    <SU>9</SU>
                    <FTREF/>
                     only one SQF Port and SQF Purge Port is necessary for a Market Maker to fulfill its regulatory quoting obligations.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         For example, a Market Maker may desire to utilize multiple SQF Ports for accounting purposes, to measure performance, for regulatory reasons or other determinations that are specific to that Member.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         GEMX Market Makers have various regulatory requirements as provided for in Options 2, Section 4. Additionally, GEMX Market Makers have certain quoting requirements with respect to their assigned options series as provided in Options 2, Section 5. SQF Ports are the only quoting protocol available on GEMX and only Market Makers may utilize SQF Ports. The same is true for SQF Purge Ports.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
                    <SU>11</SU>
                    <FTREF/>
                     in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,
                    <SU>12</SU>
                    <FTREF/>
                     in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other 
                    <PRTPAGE P="54110"/>
                    persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         15 U.S.C. 78f(b)(4) and (5).
                    </P>
                </FTNT>
                <P>
                    The proposed pricing change to increase the SQF Port and SQF Purge Port monthly cap from $17,500 per month to $27,500 per month if Primary Market Makers or Market Makers do not transact 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month is reasonable because it will incentivize Primary Market Makers and Market Makers to add liquidity on GEMX to lower their costs. The Exchange believes that the total volume required to achieve the cap is reasonable as the Exchange has limited the volume to simple orders, as not all Market Makers transact complex orders. Further, 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month is an achievable number for Market Makers who currently add volume to the Exchange. Additionally, the Exchange believes that an SQF Fee and SQF Purge Port Cap of $27,500, in lieu of $17, 500, is reasonable because Primary Market Makers and Market Makers are obligated, among other things, to compete with other Market Makers to improve the market in all series of options classes to which the Market Maker is appointed and to update market quotations in response to changed market conditions in all series of options classes to which the Market Maker is appointed.
                    <SU>13</SU>
                    <FTREF/>
                     The Exchange believes that it is reasonable to increase the SQF Port and SQF Purge Port Cap to $27,500 for Primary Market Makers and Market Makers that do not transact 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month because the Exchange believes that Primary Market Makers and Market Makers that do not contribute a minimum amount of liquidity on GEMX should not be subject to the same opportunities to lower their costs as those Primary Market Makers and Market Makers that do contribute to liquidity and therefore provide the ability for other market participants to engage with that order flow. The Exchange believes that the increase is modest and would serve to encourage Primary Market Makers and Market Makers to submit order flow to GEMX in order to lower their cost and would result in additional order competition, which also benefits market participants. The Exchange believes this proposal promotes liquidity, quote competition, and trading opportunities.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 4(b)(1) and (3).
                    </P>
                </FTNT>
                <P>
                    SQF Ports and SQF Purge Ports are utilized by Primary Market Makers and Market Makers to quote on GEMX. A Market Maker may submit all quotes through one SQF Port and utilize one SQF Purge Port to view its purge requests. While a Market Maker may elect to obtain multiple SQF Ports to organize its business,
                    <SU>14</SU>
                    <FTREF/>
                     only one SQF Port is necessary for a Market Maker to fulfill its regulatory quoting obligations.
                    <SU>15</SU>
                    <FTREF/>
                     For those Market Makers that elect to organize themselves by obtaining a greater number of SQF Ports or SQF Purge Ports, they will be subject to a cap.
                    <SU>16</SU>
                    <FTREF/>
                     For Market Makers that only take 1 SQF Port or only a few SQF Ports or SQF Purge Ports, their costs would be far below the $27,500 or $17,500 threshold for the cap.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         For example, a Market Maker may desire to utilize multiple SQF Ports and SQF Purge Ports for accounting purposes, to measure performance, for regulatory reasons or other determinations that are specific to that member organization.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         Market Makers have various regulatory requirements as provided for in Options 2, Section 4. Additionally, Market Makers have certain quoting requirements with respect to their assigned options series as provided in Options 2, Section 5. SQF Ports are the only quoting protocol available on GEMX.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         The number of ports that members choose to purchase varies widely. Today, on GEMX, no Market Makers have 1 SQF Port/SQF Purge Port, 1 Market Maker had 2-5 SQF Ports/SQF Purge Ports, 4 Market Makers have between 6-10 SQF Ports/SQF Purge Ports, and 8 Market Makers have more than 11 SQF Ports/SQF Purge Ports.
                    </P>
                </FTNT>
                <P>
                    The proposed pricing change to increase the SQF Fee and SQF Purge Cap for Primary Market Makers and Market Makers to $27,500 a month if Primary Market Makers or Market Makers do not transact 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month is equitable and not unfairly discriminatory as all Primary Market Makers and Market Makers would be able to cap their SQF Port and SQF Purge Port costs at $17,500, provided they transacted the requisite volume, otherwise Primary Market Makers and Market Makers would be uniformly subject to the $27,500 SQF Port and SQF Purge Port Cap. The Exchange notes that unlike other market participants, Primary Market Makers are obligated to quote in the Opening Process and intra-day.
                    <SU>17</SU>
                    <FTREF/>
                     Additionally, Market Makers may enter quotes in the Opening Process to open an option series and they are required to quote intra-day.
                    <SU>18</SU>
                    <FTREF/>
                     Further, unlike other market participants, Primary Market Makers and Market Makers have obligations to compete with other Market Makers to improve the market in all series of options classes to which the Market Maker is appointed and to update market quotations in response to changed market conditions in all series of options classes to which the Market Maker is appointed.
                    <SU>19</SU>
                    <FTREF/>
                     Finally, unlike other market participants, Primary Market Makers and Market Makers incur other costs related to their quoting obligations in addition to other fees paid by other market participants. Market Makers are subject to a number of fees, unlike other market participants. Market Makers pay separate Membership Fees,
                    <SU>20</SU>
                    <FTREF/>
                     and CMM Trading Right Fees,
                    <SU>21</SU>
                    <FTREF/>
                     in addition to other fees paid by other market participants. These liquidity providers are critical market participants in that they are the only market participants that provide liquidity to GEMX and are necessary for opening the market. Allowing Primary Market Makers and Market Makers to manage their costs by capping SQF Ports and SQF Purge Ports in addition to transaction fees enables these essential market participants to manage their business model more effectively and better allocate resources to other technologies that are necessary to manage risk and capacity to ensure that these market participants continue to compete effectively on GEMX. The following chart represents the classification of GEMX members and the percentage of Market Makers.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Options 3, Section 8 and Options 2, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 4(b)(1) and (3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 6, A.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 6, B.
                    </P>
                </FTNT>
                <GPH SPAN="3" DEEP="258">
                    <PRTPAGE P="54111"/>
                    <GID>EN28JN24.026</GID>
                </GPH>
                <P>GEMX believes Primary Market Makers and Market Makers should be eligible for certain incentives because they fulfill a unique role on the Exchange and are the only market participants required to submit quotes to the Exchange. The proposed SQF Port and SQF Purge Cap is designed to ensure that Primary Market Makers and Market Makers add a certain amount of liquidity on GEMX in order to be able to cap their SQF Port and SQF Purge Port Fees at the lower cap of $17,500 as compared to the increased cap of $27,500. The Exchange would apply the criteria uniformly when applying the SQF Fee and SQF Purge Cap to Primary Market Makers and Market Makers.</P>
                <P>Finally, GEMX believes the proposed SQF Fee and SQF Purge Cap is constrained by competitive forces and reasonably designed in consideration of the competitive environment in which the Exchange operates. This fee structure incents Primary Market Makers and Market Makers to support increased liquidity, quote competition, and trading opportunities on the Exchange, for the benefit of all market participants.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.</P>
                <HD SOURCE="HD3">Intermarket Competition</HD>
                <P>The proposal does not impose an undue burden on intermarket competition. The Exchange believes its proposal remains competitive with other options markets who also offer order entry protocols. The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. The chart below shows the February 2024 market share for multiply listed options by exchange. Of the 17 operating options exchanges, none currently has more than a 17.6% market share. Customers widely distribute their transactions across exchanges according to their business needs and the ability of each exchange to meet those needs through technology, liquidity and functionality. </P>
                <GPH SPAN="3" DEEP="246">
                    <PRTPAGE P="54112"/>
                    <GID>EN28JN24.027</GID>
                </GPH>
                <P>Market share is the percentage of volume on a particular exchange relative to the total volume across all exchanges, and indicates the amount of order flow directed to that exchange. High levels of market share enhance the value of trading and ports.</P>
                <P>In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges. Because competitors are free to modify their own fees in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited.</P>
                <HD SOURCE="HD3">Intramarket Competition</HD>
                <P>
                    The proposed pricing change to increase the SQF Fee and SQF Purge Cap for Primary Market Makers and Market Makers to $27,500 a month if Primary Market Makers or Market Makers do not transact 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month does not impose an undue burden on competition as all Primary Market Makers and Market Makers would be able to cap their SQF Port and SQF Purge Port costs at $17,500, provided they transacted the requisite volume, otherwise Primary Market Makers and Market Makers would be uniformly subject to the $27,500 SQF Port and SQF Purge Port Cap. The Exchange notes that unlike other market participants, Primary Market Makers are obligated to quote in the Opening Process and intra-day.
                    <SU>22</SU>
                    <FTREF/>
                     Additionally, Market Makers may enter quotes in the Opening Process to open an option series and they are required to quote intra-day.
                    <SU>23</SU>
                    <FTREF/>
                     Further, unlike other market participants, Primary Market Makers and Market Makers have obligations to compete with other Market Makers to improve the market in all series of options classes to which the Market Maker is appointed and to update market quotations in response to changed market conditions in all series of options classes to which the Market Maker is appointed.
                    <SU>24</SU>
                    <FTREF/>
                     Finally, unlike other market participants, Primary Market Makers and Market Makers incur other costs related to their quoting obligations in addition to other fees paid by other market participants. Market Makers are subject to a number of fees, unlike other market participants. Market Makers pay separate Membership Fees,
                    <SU>25</SU>
                    <FTREF/>
                     and CMM Trading Right Fees,
                    <SU>26</SU>
                    <FTREF/>
                     in addition to other fees paid by other market participants. These liquidity providers are critical market participants in that they are the only market participants that provide liquidity to GEMX and are necessary for opening the market. Allowing Primary Market Makers and Market Makers to manage their costs by capping SQF Ports and SQF Purge Ports in addition to transaction fees enables these essential market participants to manage their business model more effectively and better allocate resources to other technologies that are necessary to manage risk and capacity to ensure that these market participants continue to compete effectively on GEMX. GEMX believes Primary Market Makers and Market Makers should be eligible for certain incentives because they fulfill a unique role on the Exchange and are the only market participants required to submit quotes to the Exchange. The proposed SQF Port Cap is designed to ensure that Primary Market Makers and Market Makers add a certain amount of liquidity on GEMX in order to be able to cap their SQF Port and SQF Purge Port Fees at the lower cap of $17,500 as compared to the increased cap of $27,500. The Exchange would apply the criteria uniformly when applying the SQF Fee and SQF Purge Cap to Primary Market Makers and Market Makers.
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Options 3, Section 8 and Options 2, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 4(b)(1) and (3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 6, A.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 6, B.
                    </P>
                </FTNT>
                <P>
                    Finally, GEMX believes the proposed SQF Fee and SQF Purge Cap is constrained by competitive forces and reasonably designed in consideration of the competitive environment in which the Exchange operates. This fee structure incents Primary Market Makers and Market Makers to support increased liquidity, quote competition, and trading opportunities on the Exchange, for the benefit of all market participants.
                    <PRTPAGE P="54113"/>
                </P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were either solicited or received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.
                    <SU>27</SU>
                    <FTREF/>
                     At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved.
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         15 U.S.C. 78s(b)(3)(A)(ii).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov</E>
                    . Please include file number SR-GEMX-2024-13 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-GEMX-2024-13. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-GEMX-2024-13 and should be submitted on or before July 19, 2024.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>28</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Vanessa A. Countryman,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14209 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-100407; File No. SR-MRX-2024-15]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 7, Section 6</SUBJECT>
                <DATE>June 24, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on June 12, 2024, Nasdaq MRX, LLC (“MRX” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The Exchange proposes to amend its Rules at Options 7, Section 6.
                    <SU>3</SU>
                    <FTREF/>
                     The Exchange proposes to sunset the amendments to Options 7, Section 6 on July 1, 2024. The amendments to Options 7, Section 6 proposed herein will remain in effect through the month of June 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange initially filed the proposed pricing changes on November 28, 2023 (SR-MRX-2023-23) to be effective on December 1, 2023. On December 5, 2023, the Exchange withdrew SR-MRX-2023-23 and replaced it with SR-MRX-2023-25. On January 16, 2023, the Exchange withdrew SR-MRX-2023-25 and submitted SR-MRX-2024-02. On March 7, 2024, the Exchange withdrew SR-MRX-2024-02 and submitted SR-MRX-2024-07. On May 1, 2024, the Exchange withdrew SR-MRX-2024-07 and submitted SR-MRX-2024-11. On June 12, 2024, the Exchange withdrew SR-MRX-2024-11 and submitted this rule change.
                    </P>
                </FTNT>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://listingcenter.nasdaq.com/rulebook/mrx/rules,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Options 7, Section 6, Ports and Other Services. Specifically, the Exchange proposes to amend the monthly caps for 
                    <PRTPAGE P="54114"/>
                    SQF Ports 
                    <SU>4</SU>
                    <FTREF/>
                     and SQF Purge Ports.
                    <SU>5</SU>
                    <FTREF/>
                     The Exchange proposes to sunset the amendments to Options 7, Section 6 on July 1, 2024. The amendments to Options 7, Section 6 proposed herein will remain in effect through the month of June 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         “Specialized Quote Feed” or “SQF” is an interface that allows Market Makers to connect, send, and receive messages related to quotes, Immediate-or-Cancel Orders, and auction responses to the Exchange. Features include the following: (1) options symbol directory messages (
                        <E T="03">e.g.,</E>
                         underlying and complex instruments); (2) system event messages (
                        <E T="03">e.g.,</E>
                         start of trading hours messages and start of opening); (3) trading action messages (
                        <E T="03">e.g.,</E>
                         halts and resumes); (4) execution messages; (5) quote messages; (6) Immediate-or-Cancel Order messages; (7) risk protection triggers and purge notifications; (8) opening imbalance messages; (9) auction notifications; and (10) auction responses. The SQF Purge Interface only receives and notifies of purge requests from the Market Maker. Market Makers may only enter interest into SQF in their assigned options series. Immediate-or-Cancel Orders entered into SQF are not subject to the (i) Order Price Protection, Market Order Spread Protection, and Size Limitation Protection in Options 3, Section 15(a)(1)(A), (1)(B), and (2)(B) respectively, for single leg orders, or (ii) Complex Order Price Protection as defined in Options 3, Section 16(c)(1) for Complex Orders. 
                        <E T="03">See</E>
                         Supplementary Material .03(c) to Options 3, Section 7.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         SQF Purge is a specific port for the SQF interface that only receives and notifies of purge requests from the Market Maker. Dedicated SQF Purge Ports enable Market Makers to seamlessly manage their ability to remove their quotes in a swift manner. The SQF Purge Port is designed to assist Market Makers in the management of, and risk control over, their quotes. Market Makers may utilize a purge port to reduce uncertainty and to manage risk by purging all quotes in their assigned options series. Of note, Market Makers may only enter interest into SQF in their assigned options series. Additionally, the SQF Purge Port may be utilized by a Market Maker in the event that the Member has a system issue and determines to purge its quotes from the order book.
                    </P>
                </FTNT>
                <P>Today, MRX assesses $1,250 per port, per month for an SQF Port as well as an SQF Purge Port. Today, MRX waives one SQF Port fee per Market Maker per month. Also, today, SQF Ports and SQF Purge Ports are subject to a monthly cap of $17,500, which cap is applicable to Market Makers.</P>
                <P>
                    At this time, the Exchange proposes to establish an increased SQF Fee and SQF Purge Port Cap to Primary Market Makers and Market Makers that do not provide a minimum amount of liquidity on MRX. This proposed increased SQF Fee and SQF Purge Port Cap is intended to incentivize Primary Market Makers and Market Makers to add liquidity on MRX for the benefit of other market participants in order to lower their fees. MRX proposes to increase the SQF Port and SQF Purge Port Cap to $27,500 a month if a Primary Market Maker or Market Maker does not transact 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month.
                    <SU>6</SU>
                    <FTREF/>
                     Today, MRX caps an SQF Port and SQF Purge Port at $17,500 a month. With this proposal, the Exchange would not assess Primary Market Makers and Market Makers an SQF Port and SQF Purge Port Cap beyond the monthly cap of $27,500, instead of $17,500, once the Member has exceeded the proposed port cap for the respective month. Primary Market Makers and Market Makers who transacts 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month will continue to be subject to the $17,500 SQF Port and SQF Purge Port Cap.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         For purposes of this cap, “Total Customer Volume” shall be defined as a percentage of all cleared customer volume at The Options Clearing Corporation in Multiply Listed Equity Options and Exchange-Traded Products (“TCV”).
                    </P>
                </FTNT>
                <P>
                    Pursuant to Supplementary Material .03(c) to Options 3, Section 7, Market Makers may only enter interest into SQF in their assigned options series. Pursuant to Supplementary Material .03(c) to Options 3, Section 7, the SQF interface allows Market Makers to connect, send, and receive messages related to quotes, Immediate-or-Cancel Orders, and auction responses to the Exchange. An SQF Purge is a specific port for the SQF interface that only receives and notifies of purge requests from the Market Maker. A MRX Market Maker requires only one SQF Port to submit quotes in its assigned options series into MRX. While a Market Maker may elect to obtain multiple SQF Ports and SQF Purge Ports to organize its business,
                    <SU>7</SU>
                    <FTREF/>
                     only one SQF Port and SQF Purge Port is necessary for a Market Maker to fulfill its regulatory quoting obligations.
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         For example, a Market Maker may desire to utilize multiple SQF Ports for accounting purposes, to measure performance, for regulatory reasons or other determinations that are specific to that Member.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         MRX Market Makers have various regulatory requirements as provided for in Options 2, Section 4. Additionally, MRX Market Makers have certain quoting requirements with respect to their assigned options series as provided in Options 2, Section 5. SQF Ports are the only quoting protocol available on MRX and only Market Makers may utilize SQF Ports. The same is true for SQF Purge Ports.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
                    <SU>9</SU>
                    <FTREF/>
                     in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,
                    <SU>10</SU>
                    <FTREF/>
                     in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         15 U.S.C. 78f(b)(4) and (5).
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
                    <SU>11</SU>
                    <FTREF/>
                     in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,
                    <SU>12</SU>
                    <FTREF/>
                     in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         15 U.S.C. 78f(b)(4) and (5).
                    </P>
                </FTNT>
                <P>
                    The proposed pricing change to increase the SQF Port and SQF Purge Port monthly cap from $17,500 per month to $27,500 per month if Primary Market Makers or Market Makers do not transact 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month is reasonable because it will incentivize Primary Market Makers and Market Makers to add liquidity on MRX to lower their costs. The Exchange believes that the total volume required to achieve the cap is reasonable as the Exchange has limited the volume to simple orders, as not all Market Makers transact complex orders. Further, 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month is an achievable number for Market Makers who currently add volume to the Exchange. Additionally, the Exchange believes that an SQF Fee and SQF Purge Port Cap of $27,500, in lieu of $17, 500, is reasonable because Primary Market Makers and Market Makers are obligated, among other things, to compete with other Market Makers to improve the market in all series of options classes to which the Market Maker is appointed and to update market quotations in response to changed market conditions in all series of options classes to which the Market Maker is appointed.
                    <SU>13</SU>
                    <FTREF/>
                     The Exchange believes that it is reasonable to increase the SQF Port and SQF Purge Port Cap to $27,500 for Primary Market Makers and Market Makers that do not transact 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month because the Exchange believes that Primary Market Makers and Market Makers that do not contribute a minimum amount of liquidity on MRX should not be subject to the same opportunities to lower their costs as those Primary Market Makers and Market Makers that do contribute to liquidity and therefore provide the ability for other market participants to 
                    <PRTPAGE P="54115"/>
                    engage with that order flow. The Exchange believes that the increase is modest and would serve to encourage Primary Market Makers and Market Makers to submit order flow to MRX in order to lower their cost and would result in additional order competition, which also benefits market participants. The Exchange believes this proposal promotes liquidity, quote competition, and trading opportunities.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 4(b)(1) and (3).
                    </P>
                </FTNT>
                <P>
                    SQF Ports and SQF Purge Ports are utilized by Primary Market Makers and Market Makers to quote on MRX. A Market Maker may submit all quotes through one SQF Port and utilize one SQF Purge Port to view its purge requests. While a Market Maker may elect to obtain multiple SQF Ports to organize its business,
                    <SU>14</SU>
                    <FTREF/>
                     only one SQF Port is necessary for a Market Maker to fulfill its regulatory quoting obligations.
                    <SU>15</SU>
                    <FTREF/>
                     For those Market Makers that elect to organize themselves by obtaining a greater number of SQF Ports or SQF Purge Ports, they will be subject to a cap.
                    <SU>16</SU>
                    <FTREF/>
                     For Market Makers that only take 1 SQF Port or only a few SQF Ports or SQF Purge Ports, their costs would be far below the $27,500 or $17,500 threshold for the cap.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         For example, a Market Maker may desire to utilize multiple SQF Ports and SQF Purge Ports for accounting purposes, to measure performance, for regulatory reasons or other determinations that are specific to that member organization.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         Market Makers have various regulatory requirements as provided for in Options 2, Section 4. Additionally, Market Makers have certain quoting requirements with respect to their assigned options series as provided in Options 2, Section 5. SQF Ports are the only quoting protocol available on MRX.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         The number of ports that members choose to purchase varies widely. Today, on MRX, 2 Market Makers have 1 SQF Ports/SQF Purge Ports, no Market Makers have 2-5 SQF Ports/SQF Purge Ports, 2 Market Makers have between 6-10 SQF Ports/SQF Purge Ports, and 6 Market Makers have more than 10 SQF Ports/SQF Purge Ports.
                    </P>
                </FTNT>
                <P>
                    The proposed pricing change to increase the SQF Fee and SQF Purge Cap for Primary Market Makers and Market Makers to $27,500 a month if Primary Market Makers or Market Makers do not transact 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month is equitable and not unfairly discriminatory as all Primary Market Makers and Market Makers would be able to cap their SQF Port and SQF Purge Port costs at $17,500, provided they transacted the requisite volume, otherwise Primary Market Makers and Market Makers would be uniformly subject to the $27,500 SQF Port and SQF Purge Port Cap. The Exchange notes that unlike other market participants, Primary Market Makers are obligated to quote in the Opening Process and intra-day.
                    <SU>17</SU>
                    <FTREF/>
                     Additionally, Market Makers may enter quotes in the Opening Process to open an option series and they are required to quote intra-day.
                    <SU>18</SU>
                    <FTREF/>
                     Further, unlike other market participants, Primary Market Makers and Market Makers have obligations to compete with other Market Makers to improve the market in all series of options classes to which the Market Maker is appointed and to update market quotations in response to changed market conditions in all series of options classes to which the Market Maker is appointed.
                    <SU>19</SU>
                    <FTREF/>
                     Finally, unlike other market participants, Primary Market Makers and Market Makers incur other costs related to their quoting obligations in addition to other fees paid by other market participants. Market Makers are subject to a number of fees, unlike other market participants. Market Makers pay separate Membership Fees,
                    <SU>20</SU>
                    <FTREF/>
                     and CMM Trading Right Fees,
                    <SU>21</SU>
                    <FTREF/>
                     in addition to other fees paid by other market participants. These liquidity providers are critical market participants in that they are the only market participants that provide liquidity to MRX and are necessary for opening the market. Allowing Primary Market Makers and Market Makers to manage their costs by capping SQF Ports and SQF Purge Ports in addition to transaction fees enables these essential market participants to manage their business model more effectively and better allocate resources to other technologies that are necessary to manage risk and capacity to ensure that these market participants continue to compete effectively on MRX. The following chart represents the classification of MRX members and the percentage of Market Makers.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Options 3, Section 8 and Options 2, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 4(b)(1) and (3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 6, A.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 6, B.
                    </P>
                </FTNT>
                <GPH SPAN="3" DEEP="230">
                    <GID>EN28JN24.022</GID>
                </GPH>
                <PRTPAGE P="54116"/>
                <P>MRX believes Primary Market Makers and Market Makers should be eligible for certain incentives because they fulfill a unique role on the Exchange and are the only market participants required to submit quotes to the Exchange. The proposed SQF Port and SQF Purge Cap is designed to ensure that Primary Market Makers and Market Makers add a certain amount of liquidity on MRX in order to be able to cap their SQF Port and SQF Purge Port Fees at the lower cap of $17,500 as compared to the increased cap of $27,500. The Exchange would apply the criteria uniformly when applying the SQF Fee and SQF Purge Cap to Primary Market Makers and Market Makers.</P>
                <P>Finally, MRX believes the proposed SQF Fee and SQF Purge Cap is constrained by competitive forces and reasonably designed in consideration of the competitive environment in which the Exchange operates. This fee structure incents Primary Market Makers and Market Makers to support increased liquidity, quote competition, and trading opportunities on the Exchange, for the benefit of all market participants.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.</P>
                <HD SOURCE="HD3">Intermarket Competition</HD>
                <P>The proposal does not impose an undue burden on intermarket competition. The Exchange believes its proposal remains competitive with other options markets who also offer order entry protocols. The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. The chart below shows the February 2024 market share for multiply listed options by exchange. Of the 17 operating options exchanges, none currently has more than a 17.6% market share. Customers widely distribute their transactions across exchanges according to their business needs and the ability of each exchange to meet those needs through technology, liquidity and functionality.</P>
                <GPH SPAN="3" DEEP="246">
                    <GID>EN28JN24.023</GID>
                </GPH>
                <P>Market share is the percentage of volume on a particular exchange relative to the total volume across all exchanges, and indicates the amount of order flow directed to that exchange. High levels of market share enhance the value of trading and ports.</P>
                <P>In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges. Because competitors are free to modify their own fees in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited.</P>
                <HD SOURCE="HD3">Intramarket Competition</HD>
                <P>
                    The proposed pricing change to increase the SQF Fee and SQF Purge Cap for Primary Market Makers and Market Makers to $27,500 a month if Primary Market Makers or Market Makers do not transact 0.50% of Total Customer Volume in electronic simple orders that adds liquidity in a month does not impose an undue burden on competition as all Primary Market Makers and Market Makers would be able to cap their SQF Port and SQF Purge Port costs at $17,500, provided they transacted the requisite volume, otherwise Primary Market Makers and Market Makers would be uniformly subject to the $27,500 SQF Port and SQF Purge Port Cap. The Exchange notes that unlike other market participants, Primary Market Makers are obligated to quote in the Opening Process and intra-day.
                    <SU>22</SU>
                    <FTREF/>
                     Additionally, Market Makers may enter quotes in the Opening Process to open an option series and they are required to quote intra-day.
                    <SU>23</SU>
                    <FTREF/>
                     Further, unlike other market participants, Primary Market Makers and Market Makers have obligations to compete with other Market Makers to improve the market in all series of options classes to which the Market Maker is appointed and to update market quotations in response to 
                    <PRTPAGE P="54117"/>
                    changed market conditions in all series of options classes to which the Market Maker is appointed.
                    <SU>24</SU>
                    <FTREF/>
                     Finally, unlike other market participants, Primary Market Makers and Market Makers incur other costs related to their quoting obligations in addition to other fees paid by other market participants. Market Makers are subject to a number of fees, unlike other market participants. Market Makers pay separate Membership Fees,
                    <SU>25</SU>
                    <FTREF/>
                     and CMM Trading Right Fees,
                    <SU>26</SU>
                    <FTREF/>
                     in addition to other fees paid by other market participants. These liquidity providers are critical market participants in that they are the only market participants that provide liquidity to MRX and are necessary for opening the market. Allowing Primary Market Makers and Market Makers to manage their costs by capping SQF Ports and SQF Purge Ports in addition to transaction fees enables these essential market participants to manage their business model more effectively and better allocate resources to other technologies that are necessary to manage risk and capacity to ensure that these market participants continue to compete effectively on MRX. MRX believes Primary Market Makers and Market Makers should be eligible for certain incentives because they fulfill a unique role on the Exchange and are the only market participants required to submit quotes to the Exchange. The proposed SQF Port Cap is designed to ensure that Primary Market Makers and Market Makers add a certain amount of liquidity on MRX in order to be able to cap their SQF Port and SQF Purge Port Fees at the lower cap of $17,500 as compared to the increased cap of $27,500. The Exchange would apply the criteria uniformly when applying the SQF Fee and SQF Purge Cap to Primary Market Makers and Market Makers.
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Options 3, Section 8 and Options 2, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Options 2, Section 4(b)(1) and (3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 6, A.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 6, B.
                    </P>
                </FTNT>
                <P>Finally, MRX believes the proposed SQF Fee and SQF Purge Cap is constrained by competitive forces and reasonably designed in consideration of the competitive environment in which the Exchange operates. This fee structure incents Primary Market Makers and Market Makers to support increased liquidity, quote competition, and trading opportunities on the Exchange, for the benefit of all market participants.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were either solicited or received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.
                    <SU>27</SU>
                    <FTREF/>
                     At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved.
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         15 U.S.C. 78s(b)(3)(A)(ii).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-MRX-2024-15 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-MRX-2024-15. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-MRX-2024-15 and should be submitted on or before July 19, 2024.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>28</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Vanessa A. Countryman,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14210 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-100412; File No. SR-CboeBZX-2024-041]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules Relating to the Continuing Education for Registered Persons As Provided Under Exchange Rule 2.16.01</SUBJECT>
                <DATE>June 24, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on June 12, 2024, Cboe BZX Exchange, Inc. (the “Exchange” or “BZX”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to 
                    <PRTPAGE P="54118"/>
                    solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe BZX, Inc. (the “Exchange” or “BZX”) proposes to amend its rules relating to the Continuing Education for Registered Persons as provided under Exchange Rule 2.16.01. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The proposed rule change amends Exchange Rule 2.16.01 to reopen the period by which certain participants in the Maintaining Qualifications Program (“MQP”) will be able to complete their prescribed 2022 and 2023 continuing education content.</P>
                <P>
                    In 2021, the Financial Industry Regulatory Authority, Inc. (“FINRA”) implemented rule changes, which amended FINRA's Continuing Education (“CE”) Program requirements to, among other things, provide eligible individuals who terminate any of their representative or principal registration categories the option of maintaining their qualification for any terminated registration categories by completing annual CE through a new program, the MQP.
                    <SU>5</SU>
                    <FTREF/>
                     Under FINRA Rule 1240.01, the MQP designated a look-back provision that, subject to specified conditions, extended the option to participate in the MQP to individuals who: (1) were registered as a representative or principal within two years immediately prior to March 15, 2022 (the implementation date of the MQP); and (2) individuals who were participating in the Financial Services Affiliate Waiver Program (“FSAWP”) 
                    <SU>6</SU>
                    <FTREF/>
                     under FINRA Rule 1210.09 (Waiver of Examinations for Individuals Working for a Financial Services Industry Affiliate of a Member) immediately prior to March 15, 2022 (collectively, “Look-Back Individuals”).
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 93097 (September 21, 2021), 86 FR 53358 (September 27, 2021) (Order Approving File No. SR-FINRA-2021-015). Other exchanges, including BZX, subsequently filed copycat rule filings to align their continuing education rules with those of FINRA. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 94528 (March 28, 2022), 87 FR 19146 (April 1, 2022), (SR-CboeBZX-2022-022).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The FSAWP is a waiver program for eligible individuals who have left a member firm to work for a foreign or domestic financial services affiliate of a member firm. FINRA stopped accepting new participants for the FSAWP beginning on March 15, 2022; however, individuals who were already participating in the FSAWP prior to that date had the option of continuing in the FSAWP.
                    </P>
                </FTNT>
                <P>
                    In 2023, FINRA amended FINRA Rule 1240.01, to provide Look-Back Individuals a second opportunity to elect to participate in the MQP (the “FINRA Second Enrollment Period”).
                    <SU>7</SU>
                    <FTREF/>
                     The proposed rule change required that Look-Back Individuals who elect to participate in the MQP during the FINRA Second Enrollment Period complete any prescribed 2022 and 2023 MQP content by March 31, 2024. Look-Back Individuals who are enrolled in the MQP, similar to other MQP participants, are able to complete any prescribed CE and renew their annual MQP participation through their FINRA Financial Professional Gateway (“FinPro”) accounts.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 97184 (March 22, 2023), 88 FR 18359 (March 28, 2023) (SR-FINRA-2023-005).
                    </P>
                </FTNT>
                <P>
                    In response to FINRA's rule changes and to facilitate compliance with the Exchange's CE Program requirements by members of multiple exchanges, the Exchange implemented rule changes to align with FINRA's CE Program.
                    <SU>8</SU>
                    <FTREF/>
                     Such rules, among other things, provide eligible individuals who terminate any of their representative or principal registrations the option of maintaining their qualification for any of the terminated registrations by completing CE through the MQP. Further, Exchange Rule 2.16.01 includes a look-back provision that, subject to specified conditions, extends the option for maintaining qualifications following a registration category termination to (i) individuals who have been registered as a representative or principal within two years immediately preceding March 15, 2022, and (ii) individuals who have been participants of the FSAWP immediately preceding March 15, 2022 implementation (
                    <E T="03">i.e.,</E>
                     Look-Back Individuals). Exchange Rule 2.16.01 also provided Look-Back Individuals with a second enrollment period, between October 19, 2023, and December 31, 2023 (the “Exchange Second Enrollment Period”). Exchange Rule 2.16.01 requires that Look-Back Individuals who elect to participate in the MQP during the Exchange Second Enrollment Period complete any prescribed 2022 and 2023 MQP content by March 31, 2024.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Rules 2.16(c), 2.16.01, and 2.16.02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The Exchange determined to treat the individuals who enrolled during the first period (between January 31, 2022, and March 15, 2022) the same as those who enrolled during the second period (between October 19, 2023, and December 31, 2023) for purposes of the March 31, 2024, deadline for completion of prescribed 2022 and 2023 CE content. This is because those who had enrolled in the MQP during the first period satisfied all of the eligibility criteria for enrollment during the second period and would have been able to complete their prescribed CE content by March 31, 2024, had they chosen to enroll during the second period instead of enrolling during the first period.
                    </P>
                </FTNT>
                <P>
                    FINRA recently submitted a proposal related to its CE Program (the “FINRA Rule Change”).
                    <SU>10</SU>
                    <FTREF/>
                     The proposal set forth changes to FINRA Rule 1240.01, to provide Look-Back Individuals enrolled in the MQP in both 2022 and 2023 who did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, the opportunity to complete such content between May 22, 2024, and July 1, 2024, to be eligible to continue their participation in the MQP.
                    <SU>11</SU>
                    <FTREF/>
                     In addition, the proposed rule change provides that any such individuals who will have completed their prescribed 2022 and 2023 CE content between March 31, 2024, and May 22, 2024, will be deemed to have completed such content by July 1, 2024, for purposes of the rule.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100067 (May 6, 2024), 89 FR 40520 (May 10, 2024) (SR-FINRA-2024-006).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         This would include any Look-Back Individuals who were still in the process of completing their prescribed CE content as of March 31, 2024.
                    </P>
                </FTNT>
                <P>
                    In the FINRA Rule Change, FINRA noted that FINRA sent multiple reminders, including a March 16, 2024 email, to Look-Back Individuals who had enrolled in the MQP but had not completed their prescribed CE to remind them of the March 31, 2024 deadline. In the FINRA Rule Change, FINRA further noted that in the week leading up to the deadline, FINRA noticed that several thousand of those individuals were renewing their participation in the MQP for 2024 instead of completing their prescribed 
                    <PRTPAGE P="54119"/>
                    CE.
                    <SU>12</SU>
                    <FTREF/>
                     Per the FINRA Rule Change, FINRA believes that some of those individuals may have been confused by the layout of their FinPro accounts. Specifically, if they selected the 2024 renewal banner, which was prominently displayed on their FinPro accounts, and completed the renewal process, they would not have been automatically redirected to complete any prescribed CE. Therefore, individuals may have inadvertently assumed that completion of the renewal process alone would have satisfied all of the necessary requirements to continue their participation in the MQP.
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Look-Back Individuals who enrolled in the MQP have until December 31, 2024, to renew their participation in the MQP for 2024, provided that they complete their prescribed CE by the stated deadline.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         According to FINRA, a number of these individuals contacted FINRA to confirm whether they were required to satisfy any additional requirements other than completing the 2024 renewal. To provide FINRA with additional time to assess the situation, FINRA temporarily changed the March 31, 2024, due date for CE completion in its systems. This may have compounded the confusion because any Look-Back Individual who may have logged into their FinPro account during this time would have seen an interim CE completion date and would have been able to complete their prescribed CE content based on that interim CE completion date.
                    </P>
                </FTNT>
                <P>
                    For similar reasons and to facilitate compliance with the Exchange's CE Program requirements by members of multiple exchanges, the Exchange is also proposing to amend its rules (
                    <E T="03">i.e.,</E>
                     Exchange Rule 2.16.01) to provide Look-Back Individuals enrolled in the MQP in both 2022 and 2023 who did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, the opportunity to complete such content between the effective date of this filing, and July 1, 2024, to be eligible to continue their participation in the MQP.
                    <SU>14</SU>
                    <FTREF/>
                     In addition, the proposed rule change provides that any such individuals who will have completed their prescribed 2022 and 2023 CE content between March 31, 2024, and the effective date of this filing, will be deemed to have completed such content by July 1, 2024, for purposes of the rule.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         This would include any Look-Back Individuals who were still in the process of completing their prescribed CE content as of March 31, 2024.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>15</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>16</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be 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 regulating, clearing, settling, processing information with respect to, and 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. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>17</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>The Exchange believes that reopening the period by which Look-Back Individuals will be able to complete their prescribed 2022 and 2023 CE content is appropriate under the circumstances. As FINRA noted in the FINRA Rule Change, Look-Back Individuals who had enrolled in the MQP in 2022 and 2023 but had not completed their prescribed 2022 and 2023 CE content by the March 31, 2024 deadline may have been confused, as described above. The Exchange believes that participation in the MQP reduces unnecessary impediments to requalification for these individuals without diminishing investor protection. In addition, the proposed rule change is consistent with other goals, such as the promotion of diversity and inclusion in the securities industry by attracting and retaining a broader and diverse group of professionals. The MQP also allows the industry to retain expertise from skilled individuals, providing investors with the advantage of greater experience among the individuals working in the industry. The Exchange believes that reopening the CE completion period, as proposed, will further these goals and objectives.</P>
                <P>Further, the Exchange believes the proposed amendments reduce the possibility of a regulatory gap between Exchange and FINRA rules, providing more uniform standards across the securities industry. The Exchange believes that the proposed rule change will bring consistency and uniformity with FINRA's recently amended CE Program, which will, in turn, assist members and their associated persons in complying with these rules and improve regulatory efficiency. The proposed rule changes make ministerial changes to the Exchange's CE rules to align them with the CE rules of FINRA, in order to prevent unnecessary regulatory burdens and to promote efficient administration of the rules.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>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 purposes of the Act. The Exchange believes that the proposed rule changes which are, in all material respects, based upon and substantially similar to, recent rule changes adopted by FINRA, will reduce the regulatory burden placed on market participants engaged in trading activities across different markets. The Exchange believes that the harmonization of the CE Program requirements across the various markets will reduce burdens on competition by removing impediments to participation in the national market system and promoting competition among participants across the multiple national securities exchanges.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    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 
                    <SU>18</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         15 U.S.C. 78s(b)(3)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 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.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>20</SU>
                    <FTREF/>
                     normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),
                    <SU>21</SU>
                    <FTREF/>
                     the Commission may designate a shorter time if such action is consistent with the protection 
                    <PRTPAGE P="54120"/>
                    of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposed rule change may become operative upon filing. The Exchange, like FINRA, requests that the proposed rule change become operative as quickly as possible so FINRA, on behalf of the Exchange, can communicate the rule change to impacted individuals in a timely manner. Waiver of the operative delay would allow the Exchange to implement the proposed changes to its CE rules without delay, thereby eliminating the possibility of a significant regulatory gap between the FINRA and the Exchange rules, providing more uniform standards across the securities industry, and helping to avoid confusion for Exchange members that are also FINRA members. For these reasons, the Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>
                    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. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) 
                    <SU>23</SU>
                    <FTREF/>
                     of the Act to determine whether the proposed rule change should be approved or disapproved.
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         15 U.S.C. 78s(b)(2)(B).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeBZX-2024-041 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeBZX-2024-041. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection.
                </FP>
                <P>All submissions should refer to file number SR-CboeBZX-2024-041 and should be submitted on or before July 19, 2024.</P>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>24</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Vanessa A. Countryman,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14214 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">SMALL BUSINESS ADMINISTRATION</AGENCY>
                <DEPDOC>[Disaster Declaration #20358 and #20359; Texas Disaster Number TX-20013]</DEPDOC>
                <SUBJECT>Presidential Declaration Amendment of a Major Disaster for Public Assistance Only for the State of Texas</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Small Business Administration.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Amendment 4.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This is an amendment of the Presidential declaration of a major disaster for Public Assistance Only for the State of Texas (FEMA-4781-DR), dated 05/23/2024.</P>
                    <P>
                        <E T="03">Incident:</E>
                         Severe Storms, Straight-line Winds, Tornadoes, and Flooding.
                    </P>
                    <P>
                        <E T="03">Incident Period:</E>
                         04/26/2024 through 06/05/2024.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Issued on 06/24/2024.</P>
                    <P>
                        <E T="03">Physical Loan Application Deadline Date:</E>
                         07/22/2024.
                    </P>
                    <P>
                        <E T="03">Economic Injury (EIDL) Loan Application Deadline Date:</E>
                         02/24/2025.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        <E T="03">Visit the MySBA Loan Portal at https://lending.sba.gov</E>
                         to apply for a disaster assistance loan.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Alan Escobar, Office of Disaster Recovery &amp; Resilience, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205-6734.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The notice of the President's major disaster declaration for Private Non-Profit organizations in the State of Texas, dated 05/23/2024, is hereby amended to include the following areas as adversely affected by the disaster.</P>
                <FP SOURCE="FP-2">
                    <E T="03">Primary Counties:</E>
                     Coke, Fannin, Lynn, Panola, San Augustine, Shelby, Sterling.
                </FP>
                <P>All other information in the original declaration remains unchanged.</P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance Number 59008)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Francisco Sánchez, Jr.,</NAME>
                    <TITLE>Associate Administrator, Office of Disaster Recovery &amp; Resilience.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14246 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8026-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SMALL BUSINESS ADMINISTRATION</AGENCY>
                <DEPDOC>[Disaster Declaration #20397 and #20398; SOUTH CAROLINA Disaster Number SC-20006]</DEPDOC>
                <SUBJECT>Administrative Declaration of a Disaster for the State of South Carolina</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Small Business Administration.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This is a notice of an Administrative declaration of a disaster for the State of SOUTH CAROLINA dated 06/24/2024.</P>
                    <P>
                        <E T="03">Incident:</E>
                         Straight-line winds, large hail, and heavy rain.
                    </P>
                    <P>
                        <E T="03">Incident Period:</E>
                         06/10/2024.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Issued on 06/24/2024.</P>
                    <P>
                        <E T="03">Physical Loan Application Deadline Date:</E>
                         08/23/2024.
                        <PRTPAGE P="54121"/>
                    </P>
                    <P>
                        <E T="03">Economic Injury (EIDL) Loan Application Deadline Date:</E>
                         03/24/2025.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        <E T="03">Visit the MySBA Loan Portal at https://lending.sba.gov</E>
                         to apply for a disaster assistance loan.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Alan Escobar, Office of Disaster Recovery &amp; Resilience, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205-6734.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Notice is hereby given that as a result of the Administrator's disaster declaration, applications for disaster loans may be submitted online using the MySBA Loan Portal 
                    <E T="03">https://lending.sba.gov</E>
                     or other locally announced locations. Please contact the SBA disaster assistance customer service center by email at 
                    <E T="03">disastercustomerservice@sba.gov</E>
                     or by phone at 1-800-659-2955 for further assistance.
                </P>
                <P>The following areas have been determined to be adversely affected by the disaster:</P>
                <FP SOURCE="FP-2">
                    <E T="03">Primary Counties:</E>
                     Berkeley
                </FP>
                <FP SOURCE="FP-2">
                    <E T="03">Contiguous Counties:</E>
                </FP>
                <FP SOURCE="FP1-2">South Carolina: Charleston, Clarendon, Dorchester, Georgetown, Orangeburg, Williamsburg</FP>
                <P>The Interest Rates are:</P>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s50,8">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1">Percent</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="22">
                            <E T="03">For Physical Damage:</E>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">Homeowners with Credit Available Elsewhere</ENT>
                        <ENT>5.375</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">Homeowners without Credit Available Elsewhere</ENT>
                        <ENT>2.688</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">Businesses with Credit Available Elsewhere</ENT>
                        <ENT>8.000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">Businesses without Credit Available Elsewhere</ENT>
                        <ENT>4.000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">Non-Profit Organizations with Credit Available Elsewhere</ENT>
                        <ENT>3.250</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">Non-Profit Organizations without Credit Available Elsewhere</ENT>
                        <ENT>3.250</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22">
                            <E T="03">For Economic Injury:</E>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">Business and Small Agricultural Cooperatives without Credit Available Elsewhere</ENT>
                        <ENT>4.000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">Non-Profit Organizations without Credit Available Elsewhere</ENT>
                        <ENT>3.250</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The number assigned to this disaster for physical damage is 20397B and for economic injury is 203980.</P>
                <P>The State which received an EIDL Declaration is South Carolina.</P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance Number 59008)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Isabella Guzman,</NAME>
                    <TITLE>Administrator.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14190 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8026-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SMALL BUSINESS ADMINISTRATION</AGENCY>
                <DEPDOC>[Disaster Declaration #20360 and #20361; IOWA Disaster Number IA-20003]</DEPDOC>
                <SUBJECT>Presidential Declaration Amendment of a Major Disaster for the State of Iowa</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Small Business Administration.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Amendment 2.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This is an amendment of the Presidential declaration of a major disaster for the State of IOWA (FEMA-4784-DR), dated 05/24/2024.</P>
                    <P>
                        <E T="03">Incident:</E>
                         Severe Storms, Tornadoes, and Flooding.
                    </P>
                    <P>
                        <E T="03">Incident Period:</E>
                         05/20/2024 through 05/31/2024.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Issued on 06/24/2024.</P>
                    <P>
                        <E T="03">Physical Loan Application Deadline Date:</E>
                         07/23/2024.
                    </P>
                    <P>
                        <E T="03">Economic Injury (EIDL) Loan Application Deadline Date:</E>
                         02/24/2025.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        <E T="03">Visit the MySBA Loan Portal at https://lending.sba.gov</E>
                         to apply for a disaster assistance loan.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Alan Escobar, Office of Disaster Recovery &amp; Resilience, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205-6734.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The notice of the President's major disaster declaration for the State of IOWA, dated 05/24/2024, is hereby amended to include the following areas as adversely affected by the disaster:</P>
                <FP SOURCE="FP-2">
                    <E T="03">Primary Counties (Physical Damage and Economic Injury Loans):</E>
                     Adams, Cedar, Jasper
                </FP>
                <FP SOURCE="FP-2">
                    <E T="03">Contiguous Counties (Economic Injury Loans Only):</E>
                </FP>
                <FP SOURCE="FP1-2">Iowa: Clinton, Johnson, Jones, Linn, Mahaska, Muscatine, Poweshiek, Ringgold, Scott, Tama</FP>
                <P>All other information in the original declaration remains unchanged.</P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance Number 59008)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Francisco Sánchez, Jr.,</NAME>
                    <TITLE>Associate Administrator,Office of Disaster Recovery &amp; Resilience.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14235 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8026-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SMALL BUSINESS ADMINISTRATION</AGENCY>
                <SUBJECT>Interest Rates</SUBJECT>
                <P>The Small Business Administration publishes an interest rate called the Optional Peg Rate (13 CFR 120.214) on a quarterly basis. This rate is a weighted average cost of money to the government for maturities similar to the average SBA direct loan. This rate may be used as a base rate for guaranteed fluctuating interest rate SBA loans. This rate will be 4.63 percent for the July-September quarter of FY 2024.</P>
                <P>Pursuant to 13 CFR 120.921(b), the maximum legal interest rate for any Third Party Lender's commercial loan which funds any portion of the cost of a 504 project (see 13 CFR 120.801) shall be 6% over the New York Prime rate or, if that exceeds the maximum interest rate permitted by the constitution or laws of a given State, the maximum interest rate will be the rate permitted by the constitution or laws of the given State.</P>
                <SIG>
                    <NAME>David Parrish,</NAME>
                    <TITLE>Chief, Secondary Market Division.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14233 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SMALL BUSINESS ADMINISTRATION</AGENCY>
                <SUBJECT>Data Collection Available for Public Comments</SUBJECT>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Small Business Administration (SBA) intends to request approval, from the Office of Management and Budget (OMB) for the collection of information described below. The Paperwork Reduction Act (PRA) requires Federal agencies to publish a notice in the 
                        <E T="04">Federal Register</E>
                         concerning each proposed collection of information before submission to OMB, and to allow 60 days for public comment in response to the notice. This notice complies with that requirement.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit comments on or before August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Send all comments to Peter Gorman, 
                        <E T="03">peter.gorman@sba.gov,</E>
                         Senior Product Manager, Office of the Administrator, Small Business Administration.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Peter Gorman, 
                        <E T="03">peter.gorman@sba.gov,</E>
                         (240) 962-9181. Curtis B. Rich, Agency Clearance Officer 
                        <E T="03">curtis.rich@sba.gov</E>
                         (202) 205-7030.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    SBA is transforming how customers interact with the agency via the development of an online MySBA platform that will allow customers to see all their SBA products and services summarized in a single place. MySBA will also allow customers to quickly switch between existing and future SBA digital tools, like the MySBA Loan Portal and VetCert, with single credentials and one 
                    <PRTPAGE P="54122"/>
                    account. Finally, MySBA will highlight additional SBA products and services beneficial to them based on their customer or business information.
                </P>
                <P>So the SBA can provide relevant information, customers may be asked to provide information that fall into three functional areas: Account Registration, Validation and Authentication, and Business Services.</P>
                <HD SOURCE="HD1">Solicitation of Public Comments</HD>
                <P>SBA is requesting comments on (a) Whether the collection of information is necessary for the agency to properly perform its functions; (b) whether the burden estimates are accurate; (c) whether there are ways to minimize the burden, including through the use of automated techniques or other forms of information technology; and (d) whether there are ways to enhance the quality, utility, and clarity of the information.</P>
                <HD SOURCE="HD1">Summary of Information Collection</HD>
                <P>
                    <E T="03">PRA Number:</E>
                </P>
                <P>
                    (1) 
                    <E T="03">Title:</E>
                     MySBA.
                </P>
                <P>
                    <E T="03">Description of Respondents:</E>
                     Current and potential customers of SBA programs.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     N/A.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Respondents:</E>
                     17,677,736 potential users.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Hour Burden per Respondent:</E>
                     2 minutes.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Hour Burden per Respondent:</E>
                     589,258 hours.
                </P>
                <SIG>
                    <NAME>Curtis B. Rich,</NAME>
                    <TITLE>Agency Clearance Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14194 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8026-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <SUBJECT>Public Notice for Release of ADAP Property</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Notice is being given that the FAA is considering a request from the Port of Portland, Oregon to waive the Airport Development Aid Program property requirements for approximately 3 acres of airport property located at Hillsboro Airport, Hillsboro, Oregon.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Tim House, (206) 231-4248.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The subject property is located south of the airport and separated from the aeronautical area by both NE Cornell Rd. and NE Veterans Dr. This release will allow the Port of Portland to sell 3.0 acres. The proceeds generated from the proposed release will be utilized for maintenance and capital improvements that support aeronautical activities. The Port of Portland, Oregon will receive not less than fair market value for the property. It has been determined through study that the subject 3.0 acres will not be needed for aeronautical purposes.</P>
                <SIG>
                    <DATED>Dated: June 18, 2024.</DATED>
                    <NAME>Warren D. Ferrell,</NAME>
                    <TITLE>Manager, Seattle Airports District Office.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14007 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <DEPDOC>[Docket Number: FAA-2024-0435]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities: Requests for Comments; Clearance of a Renewed Approval of Information Collection: Pilot Records Improvement Act of 1996/Pilot Record Database</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In accordance with the Paperwork Reduction Act of 1995, FAA invites public comments about our intention to request the Office of Management and Budget (OMB) approval to renew an information collection. The 
                        <E T="04">Federal Register</E>
                         Notice with a 60-day comment period soliciting comments on the following collection of information was published on March 25, 2024. The collection involves two distinct methods of collecting. The first method of collecting uses the traditional paper/hardcopy forms which is limited in scope. The second method is more expansive and uses online web-based forms or Application Programming Interface (API) upload functionality. The information can then be shared with a potential employer to aid them in their hiring decision-making process. The information collected can be release to a hiring employer by the pilot. Disclosure of their information is not possible unless the pilot first authorizes the release. The information to be collected will be used to and/or is necessary because before allowing an individual to begin service as a pilot, and air carrier or operator shall receive and evaluate all relevant information pertaining to the individual.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written comments should be submitted by July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Justin Eddleman by email at: 
                        <E T="03">justin.eddleman@faa.gov; prdsupport@faa.gov;</E>
                         phone: 405-954-4173.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Public Comments Invited:</E>
                     You are asked to comment on any aspect of this information collection, including (a) Whether the proposed collection of information is necessary for FAA's performance; (b) the accuracy of the estimated burden; (c) ways for FAA to enhance the quality, utility and clarity of the information collection; and (d) ways that the burden could be minimized without reducing the quality of the collected information.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     2120-0607.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Pilot Records Improvement Act of 1996/Pilot Record Database.
                </P>
                <P>
                    <E T="03">Form Numbers:</E>
                </P>
                <FP SOURCE="FP-1">FAA FORM 8060-11 AIR CARRIER AND OTHER RECORDS REQUEST (PRIA)</FP>
                <FP SOURCE="FP-1">FAA FORM 8060-11A AIRMAN NOTICE AND RIGHT TO RECEIVE COPY—AIR CARRIER AND OTHER RECORDS (PRIA)</FP>
                <FP SOURCE="FP-1">FAA FORM 8060-12 AUTHORIZATION FOR RELEASE OF DOT DRUG AND ALCOHOL TESTING RECORDS UNDER PRIA AND MAINTAINED UNDER TITLE 49 CODE OF FEDERAL REGULATIONS (49 CFR) PART 40</FP>
                <FP SOURCE="FP-1">FAA FORM 8060-13 NATIONAL DRIVER REGISTER RECORDS REQUEST (PRIA)</FP>
                <FP SOURCE="FP-1">FAA FORM 8060-14 PILOT CONSENT/REVOCATION FOR AIR CARRIER ACCESS TO PILOT RECORDS DATABASE</FP>
                <FP SOURCE="FP-1">FAA FORM 8060-15 PILOT RECORDS DATABASE PILOT RECORDS DISPUTE SUPPLEMENTAL INFORMATION</FP>
                <P>
                    <E T="03">Web Based Forms &amp; API Upload:</E>
                </P>
                <FP SOURCE="FP-2">#1: Drug and Alcohol records reporting</FP>
                <FP SOURCE="FP-2">#2: Training, qualification, and proficiency records reporting</FP>
                <FP SOURCE="FP-2">#3: Final Disciplinary Action records reporting</FP>
                <FP SOURCE="FP-2">
                    #4: NDR records reporting
                    <PRTPAGE P="54123"/>
                </FP>
                <FP SOURCE="FP-2">#5: Date of Hire reporting</FP>
                <FP SOURCE="FP-2">#6: Assignment to Duty records reporting</FP>
                <FP SOURCE="FP-2">#7: Date of Separation reporting</FP>
                <FP SOURCE="FP-2">#8: Employment History records reporting</FP>
                <FP SOURCE="FP-2">#10: Pilot Consent form</FP>
                <P>
                    <E T="03">Type of Review:</E>
                     Renewal of an information collection.
                </P>
                <P>
                    <E T="03">Background:</E>
                     The 
                    <E T="04">Federal Register</E>
                     Notice with a 60-day comment period soliciting comments on the following collection of information was published on March 25, 2024 (89 FR 20749). The Pilot Records Improvement Act of 1996 (PRIA) as amended, was enacted to ensure that part 121, 125 and 135 air carriers and air operators adequately investigate a pilot's background before allowing that pilot to conduct commercial air carrier flights for their company. Under PRIA, a hiring employer cannot place a pilot into service until they obtain, review and approve the pilot's background and other safety-related records for the past 5 year period as specified in PRIA. The FAA information disclosed under PRIA are medical and airman certificate verifications and any closed enforcement and revocation data. The air carrier information disclosed under PRIA are those concerning pilot performance and training, disciplinary and removal from service, and drug and alcohol testing records. Records from the Department of Motor Vehicles of any particular State would include records of drug and alcohol convictions. Other records collections such as financial statements, fingerprints and failed check rides may be requested and received but they are outside the purview and scope of PRIA and would be requested using other vehicles than the PRIA forms. PRIA request forms can be received by fax or mail; however, the most common method is by email attachment, one pilot/applicant per one form. As set forth in 49 U.S.C. 44703(i)(1), under the Pilot Records Database (PRD), a hiring employer cannot place a pilot into service until the employer has evaluate all the relevant information in the PRD. PRD relies on a digital and centralized repository containing the pilot information. It also expands on the types of operators that must participate in the sharing of information than that of PRIA. The following official FAA-Records about a pilot are collected; airman certificates and associated ratings, accident and incident information, enforcement information, and drug and alcohol testing. There is also industry collected information about pilots which include; training, qualification, and proficiency Records, final disciplinary records, employment history, and the Motor Vehicle Driving record evaluation date. The PRD facilitates the sharing of pilot records among pilot employers in a clearinghouse managed by the Federal Aviation Administration (FAA). In accordance with part 111, all 14 CFR part 121, 125, 135 certificate holders, 91K operators, air tour operators, and other specific entities operating under part 91 are required to access the PRD to either evaluate a pilot candidate prior to making a hiring decision or to report records. The PRD contains employer and FAA records on an individual's performance as a pilot for the life of the individual. Records contained within the database would only be permitted to be used as a hiring aid in an operator's decision-making process for pilot employment. The pilot has full control of who they release their PRD information to and for how long. Disclosure of their information can only be initiated by the pilot.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                </P>
                <P>Regarding PRIA, the PRIA representative at each part 121, 125 and 135 air carrier is responsible for completing, forwarding, receiving and providing the air carrier with the completed PRIA report so the air carrier can make a more informed hiring decision concerning each pilot/applicant. One complete PRIA package is required for every pilot/applicant. As of December 7, 2021, the FAA no longer processes PRIA requests via Form 8060-10, as this function became available through PRD. Prior to December 7, 2021, the FAA processes approximately 24,120 PRIA packages per year from respondents.</P>
                <P>
                    Regarding PRD, the PRD representative at each certificate holder operating under part 121, 125, 135, 91K operators, air tour operators, and other specific entities operating under part 91 is responsible for completing and submitting the PRD employer records to PRD, for each pilot, through the Web based forms or API. Pilots who hold commercial, airline transport, or remote pilot certificates can access PRD and complete web-based forms concerning Employment History records reporting (#8) and Pilot Consent form (#10). If the pilot is unable to access the PRD, the pilot can submit hardcopies of FAA Forms 8060-14 and 8060-15 to 
                    <E T="03">prdsupport@faa.gov</E>
                     for processing by the FAA on their behalf. The FAA processes approximately 1,040 FAA forms 8060-14 and ten FAA forms 8060-15 per year from respondents.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Estimated Average Burden per Response:</E>
                     0.07181 hours.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden:</E>
                     385,367.92 hours.
                </P>
                <SIG>
                    <DATED>Issued in Oklahoma City, OK, on June 25, 2024.</DATED>
                    <NAME>Justin Eddleman,</NAME>
                    <TITLE>PRD/PRIA Program Manager, Safety Analysis &amp; Promotion Division, Automation Systems Management Group, AFS-950.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14305 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. FMCSA-2013-0109;FMCSA-2015-0116; FMCSA-2015-0323; FMCSA-2015-0326; FMCSA-2018-0050; FMCSA-2018-0051; FMCSA-2019-0206; FMCSA-2020-0046; FMCSA-2020-0047; FMCSA-2022-0043]</DEPDOC>
                <SUBJECT>Qualification of Drivers; Exemption Applications; Epilepsy and Seizure Disorders</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of renewal of exemptions; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>FMCSA announces its decision to renew exemptions for 12 individuals from the requirement in the Federal Motor Carrier Safety Regulations (FMCSRs) that interstate commercial motor vehicle (CMV) drivers have “no established medical history or clinical diagnosis of epilepsy or any other condition which is likely to cause loss of consciousness or any loss of ability to control a CMV.” The exemptions enable these individuals who have had one or more seizures and are taking anti-seizure medication to continue to operate CMVs in interstate commerce.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Each group of renewed exemptions are applicable on the dates stated in the discussions below and will expire on the dates stated in the discussions below. Comments must be received on or before July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        You may submit comments identified by the Federal Docket Management System Docket No. FMCSA-2013-0109, Docket No. FMCSA-2015-0116, Docket No. FMCSA-2015-0323, Docket No. FMCSA-2015-0326, Docket No. FMCSA-2018-0050, Docket No. FMCSA-2018-0051, Docket No. FMCSA-2019-0206, Docket No. FMCSA-2020-0046, Docket No. FMCSA-2020-0047, or Docket No. FMCSA-2022-0043 using any of the following methods:
                        <PRTPAGE P="54124"/>
                    </P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">www.regulations.gov/,</E>
                         insert the docket number (FMCSA-2013-0109, FMCSA-2015-0116, FMCSA-2015-0323, FMCSA-2015-0326, FMCSA-2018-0050, FMCSA-2018-0051, FMCSA-2019-0206, FMCSA-2020-0046, FMCSA-2020-0047, or FMCSA-2022-0043) in the keyword box and click “Search.” Next, sort the results by “Posted (Newer-Older),” choose the first notice listed, and click on the “Comment” button. Follow the online instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Dockets Operations; U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor, Washington, DC 20590-0001.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery:</E>
                         West Building Ground Floor, 1200 New Jersey Avenue SE, Washington, DC 20590-0001 between 9 a.m. and 5 p.m. ET Monday through Friday, except Federal Holidays.
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         (202) 493-2251.
                    </P>
                    <P>
                        To avoid duplication, please use only one of these four methods. See the “Public Participation” portion of the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section for instructions on submitting comments.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Ms. Christine A. Hydock, Chief, Medical Programs Division, FMCSA, DOT, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, (202) 366-4001, 
                        <E T="03">fmcsamedical@dot.gov.</E>
                         Office hours are from 8:30 a.m. to 5 p.m. ET Monday through Friday, except Federal holidays. If you have questions regarding viewing or submitting material to the docket, contact Dockets Operations, (202) 366-9826.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Public Participation</HD>
                <HD SOURCE="HD2">A. Submitting Comments</HD>
                <P>If you submit a comment, please include the docket number for this notice (Docket No. FMCSA-2013-0109, Docket No. FMCSA-2015-0116, Docket No. FMCSA-2015-0323, Docket No. FMCSA-2015-0326, Docket No. FMCSA-2018-0050, Docket No. FMCSA-2018-0051, Docket No. FMCSA-2019-0206, Docket No. FMCSA-2020-0046, Docket No. FMCSA-2020-0047, or Docket No. FMCSA-2022-0043), indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. You may submit your comments and material online or by fax, mail, or hand delivery, but please use only one of these means. FMCSA recommends that you include your name and a mailing address, an email address, or a phone number in the body of your document so that FMCSA can contact you if there are questions regarding your submission.</P>
                <P>
                    To submit your comment online, go to 
                    <E T="03">www.regulations.gov/,</E>
                     insert the docket number (FMCSA-2013-0109, FMCSA-2015-0116, FMCSA-2015-0323, FMCSA-2015-0326, FMCSA-2018-0050, FMCSA-2018-0051, FMCSA-2019-0206, FMCSA-2020-0046, FMCSA-2020-0047, or FMCSA-2022-0043) in the keyword box and click “Search.” Next, sort the results by “Posted (Newer-Older),” choose the first notice listed, click the “Comment” button, and type your comment into the text box on the following screen. Choose whether you are submitting your comment as an individual or on behalf of a third party and then submit.
                </P>
                <P>
                    If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 8
                    <FR>1/2</FR>
                     by 11 inches, suitable for copying and electronic filing. FMCSA will consider all comments and material received during the comment period.
                </P>
                <HD SOURCE="HD2">B. Viewing Comments</HD>
                <P>
                    To view comments go to 
                    <E T="03">www.regulations.gov.</E>
                     Insert the docket number (FMCSA-2013-0109, FMCSA-2015-0116, FMCSA-2015-0323, FMCSA-2015-0326, FMCSA-2018-0050, FMCSA-2018-0051, FMCSA-2019-0206, FMCSA-2020-0046, FMCSA-2020-0047, or FMCSA-2022-0043) in the keyword box and click “Search.” Next, sort the results by “Posted (Newer-Older),” choose the first notice listed, and click “Browse Comments.” If you do not have access to the internet, you may view the docket online by visiting Dockets Operations on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m. ET Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations.
                </P>
                <HD SOURCE="HD2">C. Privacy Act</HD>
                <P>
                    In accordance with 49 U.S.C. 31315(b)(6), DOT solicits comments from the public on the exemption request. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov.</E>
                     As described in the system of records notice DOT/ALL 14 (Federal Docket Management System), which can be reviewed at 
                    <E T="03">https://www.transportation.gov/individuals/privacy/privacy-act-system-records-notices,</E>
                     the comments are searchable by the name of the submitter.
                </P>
                <HD SOURCE="HD1">II. Background</HD>
                <P>Under 49 U.S.C. 31136(e) and 31315(b), FMCSA may grant an exemption from the FMCSRs for no longer than a 5-year period if it finds such exemption would likely achieve a level of safety that is equivalent to, or greater than, the level that would be achieved absent such exemption. The statutes also allow the Agency to renew exemptions at the end of the 5-year period. However, FMCSA grants medical exemptions from the FMCSRs for a 2-year period to align with the maximum duration of a driver's medical certification.</P>
                <P>The physical qualification standard for drivers regarding epilepsy found in 49 CFR 391.41(b)(8) states that a person is physically qualified to drive a CMV if that person has no established medical history or clinical diagnosis of epilepsy or any other condition which is likely to cause the loss of consciousness or any loss of ability to control a CMV.</P>
                <P>
                    In addition to the regulations, FMCSA has published advisory criteria 
                    <SU>1</SU>
                    <FTREF/>
                     to assist Medical Examiners in determining whether drivers with certain medical conditions are qualified to operate a CMV in interstate commerce.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         These criteria may be found in APPENDIX A TO PART 391—MEDICAL ADVISORY CRITERIA, section H. 
                        <E T="03">Epilepsy:</E>
                         § 391.41(b)(8), paragraphs 3, 4, and 5, which is available on the internet at 
                        <E T="03">https://www.gpo.gov/fdsys/pkg/CFR-2015-title49-vol5/pdf/CFR-2015-title49-vol5-part391-appA.pdf.</E>
                    </P>
                </FTNT>
                <P>The 12 individuals listed in this notice have requested renewal of their exemptions from the epilepsy and seizure disorders prohibition in § 391.41(b)(8), in accordance with FMCSA procedures. Accordingly, FMCSA has evaluated these applications for renewal on their merits and decided to extend each exemption for a renewable 2-year period.</P>
                <HD SOURCE="HD1">III. Request for Comments</HD>
                <P>Interested parties or organizations possessing information that would otherwise show that any, or all, of these drivers are not currently achieving the statutory level of safety should immediately notify FMCSA. The Agency will evaluate any adverse evidence submitted and, if safety is being compromised or if continuation of the exemption would not be consistent with the goals and objectives of 49 U.S.C. 31136(e) and 31315(b), FMCSA will take immediate steps to revoke the exemption of a driver.</P>
                <HD SOURCE="HD1">IV. Basis for Renewing Exemptions</HD>
                <P>
                    In accordance with 49 U.S.C. 31136(e) and 31315(b), each of the 12 applicants 
                    <PRTPAGE P="54125"/>
                    has satisfied the renewal conditions for obtaining an exemption from the epilepsy and seizure disorders prohibition. The 12 drivers in this notice remain in good standing with the Agency, have maintained their medical monitoring and have not exhibited any medical issues that would compromise their ability to safely operate a CMV during the previous 2-year exemption period. In addition, for commercial driver's license (CDL) holders, the Commercial Driver's License Information System and the Motor Carrier Management Information System are searched for crash and violation data. For non-CDL holders, the Agency reviews the driving records from the State Driver's Licensing Agency. These factors provide an adequate basis for predicting each driver's ability to continue to safely operate a CMV in interstate commerce. Therefore, FMCSA concludes that extending the exemption for each renewal applicant for a period of 2 years is likely to achieve a level of safety equal to that existing without the exemption.
                </P>
                <P>In accordance with 49 U.S.C. 31136(e) and 31315(b), the following groups of drivers received renewed exemptions in the month of July and are discussed below. As of July 1, 2024, and in accordance with 49 U.S.C. 31136(e) and 31315(b), the following nine individuals have satisfied the renewal conditions for obtaining an exemption from the epilepsy and seizure disorders prohibition in the FMCSRs for interstate CMV drivers:</P>
                <FP SOURCE="FP-1">David Bigler (MN)</FP>
                <FP SOURCE="FP-1">Michael Davis (ME)</FP>
                <FP SOURCE="FP-1">Daniel Dellasera (CA)</FP>
                <FP SOURCE="FP-1">John Johnson (WI)</FP>
                <FP SOURCE="FP-1">Nathan Kanouff (GA)</FP>
                <FP SOURCE="FP-1">Sean Moran (MA)</FP>
                <FP SOURCE="FP-1">Stephen Soden (LA)</FP>
                <FP SOURCE="FP-1">Kevin Sprinkle (NC)</FP>
                <FP SOURCE="FP-1">Michael Vitch (MA)</FP>
                <P>The drivers were included in docket number FMCSA-2013-0109, FMCSA-2015-0116, FMCSA-2015-0323, FMCSA-2015-0326, FMCSA-2018-0050, FMCSA-2018-0051, FMCSA-2019-0206, FMCSA-2020-0046, or FMCSA-2022-0043. Their exemptions are applicable as of July 1, 2024 and will expire on July 1, 2026.</P>
                <P>As of July 21, 2024, and in accordance with 49 U.S.C. 31136(e) and 31315(b), the following three individuals have satisfied the renewal conditions for obtaining an exemption from the epilepsy and seizure disorders prohibition in the FMCSRs for interstate CMV drivers:</P>
                <P>Sonny Chase (MN); Jason Miller (NE); and Michael Morris (OR).</P>
                <P>The drivers were included in docket number FMCSA-2020-0047. Their exemptions are applicable as of July 21, 2024 and will expire on July 21, 2026.</P>
                <HD SOURCE="HD1">V. Conditions and Requirements</HD>
                <P>The exemptions are extended subject to the following conditions: (1) each driver must remain seizure-free and maintain a stable treatment during the 2-year exemption period; (2) each driver must submit annual reports from their treating physicians attesting to the stability of treatment and that the driver has remained seizure-free; (3) each driver must undergo an annual medical examination by a certified ME, as defined by § 390.5; and (4) each driver must provide a copy of the annual medical certification to the employer for retention in the driver's qualification file, or keep a copy of his/her driver's qualification file if he/she is self-employed. The driver must also have a copy of the exemption when driving, for presentation to a duly authorized Federal, State, or local enforcement official. The exemption will be rescinded if: (1) the person fails to comply with the terms and conditions of the exemption; (2) the exemption has resulted in a lower level of safety than was maintained before it was granted; or (3) continuation of the exemption would not be consistent with the goals and objectives of 49 U.S.C. 31136(e) and 31315(b).</P>
                <HD SOURCE="HD1">VI. Preemption</HD>
                <P>During the period the exemption is in effect, no State shall enforce any law or regulation that conflicts with this exemption with respect to a person operating under the exemption.</P>
                <HD SOURCE="HD1">VII. Conclusion</HD>
                <P>Based on its evaluation of the 12 exemption applications, FMCSA renews the exemptions of the aforementioned drivers from the epilepsy and seizure disorders prohibition in § 391.41(b)(8). In accordance with 49 U.S.C. 31136(e) and 31315(b), each exemption will be valid for 2 years unless revoked earlier by FMCSA.</P>
                <SIG>
                    <NAME>Larry W. Minor,</NAME>
                    <TITLE>Associate Administrator for Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14328 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. FMCSA-2022-0240]</DEPDOC>
                <SUBJECT>Parts and Accessories Necessary for Safe Operation; Application for an Exemption From Brent Higgins Trucking, Inc., USDOT #717434</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of final disposition; grant of exemption.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Federal Motor Carrier Safety Administration (FMCSA) announces its decision to grant an application from Brent Higgins Trucking, Inc. (Higgins, USDOT #717434) for an exemption to allow it to operate commercial motor vehicles (CMVs) equipped with a module manufactured by Intellistop, Inc. (Intellistop). The Intellistop module is designed to pulse the required rear clearance, identification, and brake lamps from a lower-level lighting intensity to a higher-level lighting intensity 4 times in 2 seconds when the brakes are applied and then return the lights to a steady-burning state while the brakes remain engaged. The Agency has determined that granting the exemption to Higgins would likely achieve a level of safety equivalent to, or greater than, the level of safety achieved by the regulation.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This exemption is effective June 28, 2024 and ending June 28, 2029.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. David Sutula, Vehicle and Roadside Operations Division, Office of Carrier, Driver, and Vehicle Safety, MC-PSV, (202) 366-9209, Federal Motor Carrier Safety Administration, 1200 New Jersey Avenue SE, Washington, DC 20590-0001; 
                        <E T="03">MCPSV@dot.gov.</E>
                    </P>
                    <HD SOURCE="HD1">I. Viewing Comments and Documents</HD>
                    <P>
                        To view comments, go to 
                        <E T="03">www.regulations.gov,</E>
                         insert the docket number “FMCSA-2022-0240” in the keyword box, and click “Search.” Next, sort the results by “Posted (Newer-Older),” choose the first notice listed, click “Browse Comments.”
                    </P>
                    <P>
                        To view documents mentioned in this notice as being available in the docket, go to 
                        <E T="03">www.regulations.gov,</E>
                         insert the docket number “FMCSA-2022-0240” in the keyword box, click “Search,” and chose the document to review.
                    </P>
                    <P>
                        If you do not have access to the internet, you may view the docket online by visiting Dockets Operations 
                        <PRTPAGE P="54126"/>
                        on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations.
                    </P>
                    <HD SOURCE="HD1">II. Legal Basis</HD>
                    <P>
                        FMCSA has authority under 49 U.S.C. 31136(e) and 31315(b) to grant exemptions from Federal Motor Carrier Safety Regulations (FMCSRs) to regulated entities (
                        <E T="03">e.g.,</E>
                         motor carriers). FMCSA must publish a notice of each exemption request in the 
                        <E T="04">Federal Register</E>
                         (49 CFR 381.315(a)). The Agency must provide the public an opportunity to inspect the information relevant to the application, including the applicant's safety analysis. The Agency must provide an opportunity for public comment on the request.
                    </P>
                    <P>The Agency reviews safety analyses and public comments submitted and determines whether granting the exemption would likely achieve a level of safety equivalent to, or greater than, the level that would be achieved by the current regulation (49 CFR 381.315(b)). If granted, the notice will identify the regulatory provision from which the applicant will be exempt, the effective period, and all terms and conditions of the exemption (49 CFR 381.315(c)(1)). If the exemption is denied, the notice will explain the reason for the denial (49 CFR 381.315(c)(2)). The exemption may be renewed (49 CFR 381.300(b)).</P>
                    <HD SOURCE="HD1">III. Background</HD>
                    <HD SOURCE="HD2">A. Current Regulatory Requirements</HD>
                    <P>Section 393.25(e) of the Federal Motor Carrier Safety Regulations (FMCSRs) requires all exterior lamps (both required lamps and any additional lamps) be steady burning, with certain exceptions not relevant here. Two other provisions of the FMCSRs—section 393.11(a) and section 393.25(c)—mandate that required lamps on CMVs meet the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No. 108 in effect at the time of manufacture. FMVSS No. 108, issued by the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA), includes a requirement that installed brake lamps, whether original or replacement equipment, be steady burning.</P>
                    <HD SOURCE="HD2">B. Applicant's Request</HD>
                    <P>Higgins applied for an exemption from 49 CFR 393.25(e) to allow it to operate CMVs, equipped with Intellistop's module. When the brakes are applied, the Intellistop module is designed to pulse the rear clearance, identification, and brake lamps from a lower-level lighting intensity to a higher-level lighting intensity 4 times in 2 seconds and then maintain the original equipment manufacturer's (OEM) level of illumination for those lamps until the brakes are released and reapplied. Intellistop asserts that its module is designed to ensure that if the module ever fails, the clearance, identification, and brake lamps will default to normal OEM function and illumination.</P>
                    <P>Higgins' application followed the Agency's October 7, 2022, denial (87 FR 61133) of Intellistop's application for an industry-wide exemption to allow all interstate motor carriers to operate CMVs equipped with the Intellistop module. While the Agency determined that the scope of the exemption Intellistop sought was too broad to ensure that an equivalent level of safety would be achieved, the Agency explained that individual motor carrier applications for exemption may be more closely aligned with FMCSA authorities. Exemptions more limited in scope would allow the Agency to ensure compliance with all relevant FMCSA regulations because the individual exemptee would be easily identifiable and its compliance with applicable regulations could be monitored, thus providing a level of safety equivalent to compliance with 49 CFR 393.25(e).</P>
                    <P>
                        Higgins stated that previous research demonstrated that the use of pulsating brake-activated lamps increases the visibility of vehicles and should lead to a significant decrease in rear-end crashes. In support of its application, Higgins submitted several reports of research conducted by NHTSA on the issues of rear-end crashes, distracted driving, and braking signals.
                        <E T="51">1 2 3</E>
                        <FTREF/>
                         This same body of research was also referenced in Intellistop's industry-wide exemption application. Relying on these studies, Higgins stated that the addition of brake-activated pulsating lamp(s) will not have an adverse impact on safety and would likely maintain a level of safety equivalent to or greater than the level of safety achieved without the exemption.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             See NHTSA Study—Evaluation of Enhanced Brake Lights Using Surrogate Safety Metrics 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/811127.pdf;</E>
                             As part of the General Findings the NHTSA study report concluded that “rear lighting continues to look promising as a means of reducing the number and severity of rear-end crashes.”
                        </P>
                        <P>
                            <SU>2</SU>
                             See also NHTSA Study—Enhanced Rear Lighting and Signaling Systems 
                            <E T="03">https://tinyurl.com/y2romx76</E>
                             or 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/task_3_results_0.pdf;</E>
                             As part of the conclusions NHTSA found that enhanced, flashing brake lighting “demonstrated improvements in brake response times and other related performance measures.”
                        </P>
                        <P>
                            <SU>3</SU>
                             See also NHTSA—Traffic Safety Facts 
                            <E T="03">https://tinyurl.com/yxglsdax</E>
                             or 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/tsf811128.pdf;</E>
                             which concluded that flashing brake lights were a promising signal for improving attention-getting during brake applications.
                        </P>
                    </FTNT>
                    <P>A copy of the application is included in the docket referenced at the beginning of this notice.</P>
                    <HD SOURCE="HD1">IV. Comments</HD>
                    <P>
                        FMCSA published a notice of the application in the 
                        <E T="04">Federal Register</E>
                         on February 1, 2023, and asked for public comment (88 FR 6811). The Agency received 18 comments from organizations and individuals including the American Trucking Associations (ATA); Intellistop; the National Truck Equipment Association (NTEA); the Transportation Safety Equipment Institute (TSEI); and 14 other commenters. Seventeen of the commenters favored the exemption application, while TSEI expressed concerns.
                    </P>
                    <P>TSEI reiterated comments it had previously made in support of the safety benefits of brake-activated warning lamps when used in conjunction with steady burning red brake lamps as well as its prior support of the exemption requests from Groendyke Transport, National Tank Truck Carriers (NTTC), and Grote Industries. Despite these previous expressions of support for the potential benefits of some brake warning lamp configurations, TSEI stated that it is concerned about any exemption permitting the pulsing of lamps that are currently required to be steady burning without a thorough consideration of safety data and research on the level of notice and comment rulemaking. Accordingly, TSEI stated that the aim of future rulemaking should be to ensure consistent application across all vehicles equipped with such pulsating lamps and recommended that the Agency engage in a formal rulemaking to amend Part 393 to allow for pulsating brake lamps.</P>
                    <P>
                        ATA supported Higgins' request and stated that enhanced rear signaling (ERS) can provide functionality beyond what traditional CMV lighting and reflective devices offer, including drawing attention to CMVs stopped ahead; increasing awareness of roadside breakdowns; notification of emergency braking; and improving driver confidence both in ERS-equipped CMVs and in the following vehicle. ATA also stated that, in addition to these safety benefits, ERS performance is superior to that of steady burning brake lamps in conditions of severe weather, taillight glare, and around infrastructure 
                        <PRTPAGE P="54127"/>
                        obstacles. Specifically, ATA noted that this “request by Higgins presents another opportunity for the DOT to learn about the performance of ERS in real world applications.” Further, ATA stated that “[it] believes the exemption process is well-suited for these kinds of situations, where the DOT can monitor small, controlled deployments to learn about benefits and costs and gather important data to make sound judgments on a broader industry exemption or change in regulations.”
                    </P>
                    <P>ATA recommended the Agency provide clear guidance in the terms and conditions of the exemption grant to aid the Agency in monitoring the exemption for unintended consequences and aid the Applicant in understanding expectations for potential renewal of the exemption application. ATA further commented that FMCSA should work with industry to develop research efforts that examine the performance of ERS to supplement future DOT decisions on ERS technologies.</P>
                    <P>The NTEA supported the exemption but expressed concern that some of its members who are manufacturers and alterers of motor vehicles receive requests from fleet operators to install brake-activated pulsating warning lamps on certain new vehicles they construct or modify. As manufacturers of new motor vehicles, NTEA members are required to certify that these vehicles comply with applicable FMVSS. NTEA noted that FMCSA does not have the authority to exempt CMV manufacturers from their obligation to certify FMVSS compliance. It recommended the Agency include in the terms and conditions of the exemption a statement of the responsibilities of the carrier and manufacturer, and of the conditions under which repair facilities may undertake modification of brake-activated warning lamps. NTEA specifically requested that FMCSA “make clear that [this] exemption does not currently change any NHTSA regulations applying to the certification of federal motor vehicle safety standards,” if it grants the exemption.</P>
                    <P>Intellistop supported the Applicant's request for exemption. It commented that for over 20 years, multiple States have allowed pulsing or flashing of brake lamps. Intellistop also asserted many State driver training schools recommend tapping brakes to warn other motorists when a CMV is slowing or stopping. Intellistop stated that it is unlikely that other motorists would confuse the use of their module with the recommendation to tap brakes when a CMV is slowing or stopping, as “[s]eeing brake lights flash is a commonly communicated method to alert other drivers that a vehicle is slowing down or stopping.”</P>
                    <P>Fourteen other comments supported the exemption. These commenters believe that any technology that has been shown to reduce rear-end crashes should be allowed and cited various benefits of brake activated pulsating lamps, including (1) enhanced awareness that the vehicle is making a stop, especially at railroad crossings, and (2) increased visibility in severe weather conditions. Several commenters noted that 37 States currently allow brake lamps to flash. In addition, three commenters noted that the guidelines developed by the American Driver and Traffic Safety Education Association advise driving instructors to teach new drivers to pulse brake lamps when stopping to improve visibility.</P>
                    <HD SOURCE="HD1">V. FMCSA Equivalent Level of Safety Analysis</HD>
                    <P>Higgins petitioned FMCSA to grant an exemption from 49 CFR 393.25(e)—requiring certain exterior lamps to be steady burning—to allow it to operate CMVs equipped with Intellistop's module. FMCSA has determined that in order for Higgins to operate vehicles in compliance with the FMCSRs, an exemption from 49 CFR 393.25(e) must be accompanied by limited exemptions from 49 CFR 393.11(a) and 393.25(c), both of which mandate that required lamps on CMVs operated in interstate commerce must, “at a minimum, meet the applicable requirements of 49 CFR 571.108 (FMVSS No. 108) in effect at the time of manufacture of the vehicle.” FMCSA grants exemptions only when it determines “such exemption[s] would likely achieve a level of safety that is equivalent to, or greater than, the level that would be achieved absent the exemption[s].”</P>
                    <P>
                        Rear-end crashes generally account for approximately 30 percent of all crashes. They often result from a failure to respond (or delays in responding) to a stopped or decelerating lead vehicle. Data on crashes that occurred between 2010 and 2016 show that large trucks are consistently three times more likely than other vehicles to be struck in the rear in two-vehicle fatal crashes.
                        <E T="51">4 5</E>
                        <FTREF/>
                         FMCSA is deeply interested in the development and deployment of technologies that can reduce the frequency, severity, and risk of rear-end crashes.
                    </P>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             U.S. Department of Transportation, National Highway Traffic Safety Administration (2012), Traffic Safety Facts—2010 Data; Large Trucks, Report No. DOT HS 811 628, Washington, DC (June 2012), 
                            <E T="03">available at: https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/811628.</E>
                        </P>
                        <P>
                            <SU>5</SU>
                             U.S. Department of Transportation, National Highway Traffic Safety Administration (2018), Traffic Safety Facts—2016 Data; Large Trucks, Report No. DOT HS 812 497, Washington, DC (May 2018), 
                            <E T="03">available at: https://crashstats.nhtsa.dot.gov/Api/Public/Publication/812497.</E>
                        </P>
                    </FTNT>
                    <P>
                        Both FMCSA and NHTSA have examined alternative rear-signaling systems to reduce the incidence of rear-end crashes. While research efforts concluded that improvements in the incidence of rear-end crashes could be realized through certain rear-lighting systems that flash,
                        <SU>6</SU>
                        <FTREF/>
                         the FMCSRs do not currently permit the use of pulsating, brake-activated lamps on the rear of CMVs. FMCSA believes that the two agencies' previous research programs demonstrate that rear-signaling systems may be able to “improve attention getting” to reduce the frequency and severity of rear-end crashes. Any possible benefit must be balanced against a possible risk of increased driver distraction and confusion. In balancing these interests, the Agency was compelled to deny the Intellistop application for exemption, believing the industry-wide scope of the request was too broad for the Agency to effectively monitor for the potential risk of driver distraction or confusion, particularly where the exemption would impact FMVSS-required equipment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             Expanded Research and Development of an Enhanced Rear Signaling System for Commercial Motor Vehicles: Final Report, William A. Schaudt 
                            <E T="03">et al.</E>
                             (Apr. 2014) (Report No. FMCSA-RRT-13-009).
                        </P>
                    </FTNT>
                    <P>
                        The Agency acknowledges the limitations of the research studies completed to date and the overall data deficiencies in this area. Nonetheless, as noted in its Intellistop decision, the Agency recognizes that existing data do suggest a potential safety value in the use of alternative rear-signaling systems, generally. Specifically, FMCSA considered NHTSA's research concerning the development and evaluation of rear-signaling applications designed to reduce the frequency and severity of rear-end crashes via enhancements to rear-brake lighting. The NHTSA study examined enhancements for (1) redirecting drivers' visual attention to the forward roadway (for cases involving a distracted driver) and (2) increasing the saliency or meaningfulness of the brake signal (for inattentive drivers).
                        <SU>7</SU>
                        <FTREF/>
                         The research considered the attention-getting capability and discomfort glare of a set of candidate rear brake lighting configurations using driver judgments and eye-drawing metrics. The results of this research served to narrow the set of 
                        <PRTPAGE P="54128"/>
                        candidate lighting configurations to those that would most likely be carried forward for additional on-road study. Based on subjective participant responses, this research indicates some form of flashing or variation in brake light brightness may be more than two times more attention-getting than the baseline, steady-burning brake lights for distracted drivers.
                        <SU>8</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             See NHTSA Study—Evaluation of Enhanced Brake Lights Using Surrogate Safety Metrics 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/811127.pdf.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Ibid. While data demonstrated that brighter flashing lights were the most attention-getting combination for distracted drivers in this study, flashing lights with no increase in brightness were still more effective at capturing a distracted driver's attention than the baseline steady-burning brake lamps. Both look-up (eye drawing) data and interview data supported the hypothesis that simultaneous flashing of all rear lighting combined with increased brightness would be effective in redirecting the driver's eyes to the lead vehicle when the driver is looking away with tasks that involve visual load.
                        </P>
                    </FTNT>
                    <P>While some of the data collected may not be statistically significant, the study results nonetheless indicate that additional efforts to get drivers' attention when they are approaching the rear of a CMV that is stopping may be helpful to reduce driver distraction and, ultimately, rear-end crashes. This was among several reasons why researchers concluded that the promising nature of enhanced brake lighting systems warranted additional work and research. FMCSA believes the acquisition of relevant data through real-world monitoring is of critical importance as the Agency continues to seek new and innovative options for reducing crashes. This is particularly true given the data limitations noted in previous studies.</P>
                    <P>
                        Despite finding a potential safety value in the use of alternative rear-signaling technology, in the Intellistop decision the Agency determined that the data presently available did not justify an exemption to allow all interstate motor carriers to alter the performance of an FMVSS-required lighting device (
                        <E T="03">i.e.,</E>
                         stop lamps) on any CMV. In contrast, however, Higgins' application requests an exemption for CMV operations by only one interstate motor carrier. As FMCSA noted in its denial of Intellistop's industry-wide exemption application, individual motor carrier exemption requests typically align more closely with FMCSA and NHTSA authorities to ensure compliance with all other applicable regulations and with the safety performance of the smaller population of affected motor carriers. With an individual motor carrier exemption, the Agency can also more easily monitor compliance with terms and conditions intended to ensure operations conducted under the exemption do in fact provide an equivalent level of safety. Higgins' application demonstrates why this is particularly true, since the vehicles it operates would be easily identifiable, and compliance with NHTSA's “make inoperative” prohibition and other related regulations could be readily checked.
                    </P>
                    <P>The Agency's decision to grant this exemption is based on the data suggesting enhanced rear signal systems, such as pulsing brake lights, may help reduce the frequency and severity of rear-end crashes, as well as on the limited number of vehicles operating under the exemption. Higgins currently operates a nationwide fleet of approximately 29 vehicles. The installation of the module on CMVs operated by a single motor carrier provides the opportunity for the Agency to collect data on the effects of pulsing brake lights in real-world conditions. The terms and conditions FMCSA imposes through this exemption will ensure appropriate Federal oversight in the use of these devices on a definite and limited population of CMVs utilizing a phased in approach.</P>
                    <P>Initially restricting the application of this exemption to a limited portion of Higgins' fleet will allow for a comparison between the crash involvement of Higgins CMVs equipped with the Intellistop device, those without the device, and the overall crash involvement of CMVs operated by similarly sized motor carriers with similar operations and overall safety performance. Data collected through this exemption and any other similar exemptions the Agency may grant in the future will allow for an evaluation of how the Intellistop module may improve following vehicle driver responses to CMV braking. Consideration of the scope of any particular carrier's operation and the number and types of vehicles the carrier operates are critical to ensuring FMCSA gathers the most relevant data as it considers safety benefits gained by the deployment of these rear brake lamp systems. The Agency's incremental approach in granting this limited exemption will also allow FMCSA to investigate and respond as appropriate to any incidents of alleged driver confusion attributable to use of the brake lamp systems in CMV operations, which some commenters have raised as a potential concern.</P>
                    <P>FMCSA acknowledges that all other pulsating rear lamp exemptions the Agency previously granted involved the addition of non-mandatory auxiliary lights while the Intellistop module that Higgins seeks to install alters the functionality of original equipment manufacturers' lamps. Nonetheless, those previous exemptions are instructive, most notably Groendyke. The Groendyke exemption involved auxiliary lamps rather than required lighting, but, like the Intellistop system, the modulation of the auxiliary lamps in the Groendyke exemption occurs during braking. More importantly, the Groendyke case also involved a technology installed on a number of one carrier's CMVs, which allowed the Agency more realistically to monitor the exemptee's compliance with other applicable regulations. When granting the exemption, FMCSA found Groendyke's previous experience with brake-activated pulsating warning lamps, which resulted in a 33.7 percent reduction in rear-end crashes, to be compelling. Through the granting of the Groendyke exemption, the Agency was able to collect additional real-world data about the operation of the module at issue. Similarly, limited exemptions with narrowly tailored terms and conditions permitting the use of the Intellistop module will allow the Agency to collect data about the reliability and safety benefits of an integrated alternative rear-signaling system.</P>
                    <P>FMCSA notes that Higgins failed to provide any evidence beyond what is publicly available about the integration of the Intellistop module with its CMVs' existing systems or to support the claim that a malfunction of the device would result in the brake lights returning to OEM functionality. Nonetheless, based on the Agency's understanding of the device's design and assertions made in publicly available materials, FMCSA believes concerns about both the reliability and integration of the device are sufficiently alleviated in this instance because of the narrow scope of the exemption and the stringent requirements imposed by the Agency in the terms and conditions. Any evidence that module failure results in anything less than a return to brake light OEM functionality will result in revocation of the exemption.</P>
                    <P>Likewise, granting this exemption to an easily identifiable carrier alleviates concerns the Agency previously articulated about its inability to monitor compliance with NHTSA's “make inoperative” prohibition. FMCSA can monitor compliance with this exemption and ensure that only Higgins installs the module on its own CMVs.</P>
                    <P>
                        Notwithstanding the promise the Agency sees in this technology, exemptions are warranted only if the applicant can demonstrate that an equivalent level of safety likely will be maintained. For this reason, the Agency believes it is important to consider the 
                        <PRTPAGE P="54129"/>
                        safety record of the applicant motor carrier. Higgins' on-road safety performance record warrants granting this exemption to collect safety performance data. Higgins' out-of-service (OOS) rate is below the national average, with a vehicle OOS rate of only 11.5 percent (national average—21.4 percent), a driver OOS rate of 0 percent (national average—6 percent), and a hazardous material OOS rate of 0 (national average—4.5 percent). Higgins maintains a Satisfactory safety rating.
                    </P>
                    <P>FMCSA acknowledges that the research described above did not fully address all of the implications of allowing pulsating stop lamps, especially by automobiles where stop lamp design is stylized and often brand-specific, and that it remains unclear whether deviation from the uniform brake-light patterns of CMVs may cause confusion among highway users when the lamps are pulsated during braking. When Intellistop sought an industry-wide exemption, FMCSA concluded that the potential risks of widespread adoption outweighed the potential benefits. But FMCSA reaches a different conclusion here, where any risks will be more limited and easier to monitor. FMCSA notes, moreover, that the research suggests that the use of rear-signaling systems may be a means to reduce the frequency and severity of rear-end crashes involving CMVs, as do the reductions in rear-end crashes reported by Groendyke (84 FR 17910, April 26, 2019) utilizing an auxiliary flashing rear-signaling system. These facts and the specific safety record of the applicant motor carrier support the conclusion that permitting the use of Intellistop's pulsating-lamp module among a limited and known population of vehicles of a single motor carrier, subject to terms and conditions for monitoring, is likely to achieve a level of safety that is equivalent to, or greater than, the level of safety achieved without the exemption.</P>
                    <HD SOURCE="HD1">VI. Exemption Decision</HD>
                    <HD SOURCE="HD2">a. Grant of Exemption</HD>
                    <P>FMCSA has evaluated Higgins' exemption application and the comments received. The Agency believes that granting a temporary exemption to section 393.25(e), and temporary limited exemptions to the requirements of 49 CFR 393.11(a) and 393.25(c) to allow Higgins to operate a limited number of CMVs equipped with Intellistop's pulsating-brake module will likely achieve a level of safety that is equivalent to, or greater than, the level of safety achieved without the exemption.</P>
                    <P>This exemption is restricted to vehicles in Higgins' fleet and provides relief from the steady burning requirement for rear clearance, identification, and brake lamp activation for 2 seconds following brake activation. All other FMVSS No. 108 requirements cross-referenced or incorporated within the FMCSRs remain in effect, with a limited exception to the requirement in sections 393.11(a) and 393.25(c) for only the first two seconds of brake engagement. In addition, through the terms and conditions, FMCSA will be able to monitor to performance of these CMVs to determine whether they were involved in a crash and whether they appear to be overrepresented in crashes compared to a control group (Higgins vehicles that are not equipped with the Intellistop unit but are operating on similar routes with similar schedules, etc.).</P>
                    <P>The Agency has evaluated the application and hereby grants the exemption for a 5-year period, beginning June 28, 2024 and ending June 28, 2029. During the temporary exemption period, Higgins (Applicant) may operate CMVs, equipped with Intellistop's module that pulses the rear brake, clearance, and identification lamps from a lower-level lighting intensity to a higher-level lighting intensity 4 times in 2 seconds. This grant applies only to the “steady-burning” requirement as specified in FMVSS 108 S7.3, and Tables I-a, I-b, and I-c. All other photometric and requirements for stop lamps specified in FMVSS 108 must still be met.</P>
                    <HD SOURCE="HD2">b. Terms and Conditions of the Exemption</HD>
                    <P>
                        <E T="03">(i). Installation of the Intellistop module. The Applicant is responsible for installing the Intellistop module.</E>
                        <SU>9</SU>
                        <FTREF/>
                         This exemption applies only to CMVs owned and operated by the Applicant. THE PRODUCT MUST BE INSTALLED BY THE OWNER OF THE VEHICLE ONLY. IN ACCORDANCE WITH FEDERAL LAW (49 U.S.C. 30112(a)(1) AND 49 U.S.C. 30122), THE PRODUCT MAY NOT BE INSTALLED BY ANY MANUFACTURER, DISTRIBUTOR, DEALER, RENTAL COMPANY, OR MOTOR VEHICLE REPAIR BUSINESS.
                    </P>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             FMCSA has authority to grant temporary exemptions to the FMCSRs to motor carriers, but not to CMV manufacturers or vehicle alterers.
                        </P>
                    </FTNT>
                    <P>The Applicant may not install the Intellistop module on more than 25% of its power units, and 25% of its trailers during the first year of operation under the exemption, or on more than 50% of its power units, and 50% of its trailers during the second year. The Applicant shall provide the vehicle identification numbers for the power units and trailers that will be operating under the exemption.</P>
                    <P>The Applicant must maintain a control group of equal size to its power units and trailers equipped with the Intellistop unit during the first 2 years of the exemption. And the CMVs in the control group must operate on routes with schedules that are similar to those of the Intellistop-equipped vehicles.</P>
                    <P>Installed modules may only be used to modulate rear clearance, identification, and stop lamps.</P>
                    <P>
                        Within 30 business days of its first installation of the Intellistop module, the Applicant must notify the Agency via email at 
                        <E T="03">MCPSV@dot.gov</E>
                         of the number and type of CMVs it is operating, or intends to operate, with the Intellistop module installed; the module type and/or sub-type; and any trouble-shooting, repair, or other use of an Intellistop module covered by this exemption. Amended installation information, including CMVs on which the device is installed or uninstalled, may then be submitted via the quarterly submission specified in sub-paragraph (iv) 
                        <E T="03">Recurring Reporting Requirements</E>
                         below.
                    </P>
                    <P>If the Applicant sells or transfers ownership of any CMV equipped with an Intellistop module under this exemption, or if the exemption is terminated for any reason, the Applicant must remove the module and restore the CMV to full compliance with the FMCSRs and FMVSSs prior to the transfer of ownership, or upon termination of the exemption. The Applicant must also certify in writing to the purchaser/transferee and FMCSA that the CMV has been restored to compliance with the FMCSRs and FMVSSs.</P>
                    <P>
                        <E T="03">(ii). Driver Pre-Trip Vehicle Inspections.</E>
                         The Applicant must ensure that each driver of an Intellistop-equipped CMV performs a pre-trip inspection to confirm that the Intellistop module operates only for 2 seconds and does not interfere with the normal operation of lamps after 2 seconds. If the lamps are not steady burning after 2 seconds, the CMV must not be dispatched until repairs are made. At the end of each work shift, drivers must note any problems observed by or reported to the driver concerning the Intellistop module on a driver vehicle inspection report (see 49 CFR 396.11), and the motor carrier must correct the problem before the vehicle is dispatched again.
                    </P>
                    <P>
                        <E T="03">(iii). Safety Notification to FMCSA.</E>
                         The Applicant must notify FMCSA within 5 business days after it becomes 
                        <PRTPAGE P="54130"/>
                        aware, or otherwise determines, that the continued use of a module or entire type or subtype of module covered by this exemption is no longer likely to maintain a level of safety that is at least equivalent to the level that would be achieved absent this exemption. Notification must be made by sending an email to FMCSA at 
                        <E T="03">MCPSD@dot.gov.</E>
                    </P>
                    <P>
                        <E T="03">(iv). Recurring Reporting Requirements.</E>
                         During the exemption period, the Applicant must provide quarterly submissions to FMCSA of the data described below. The Applicant's first quarterly submission is due on September 30, 2024, and thereafter will be due every 3 months, on the first business day of the month. The first quarterly submission must include the required data beginning 60 days prior to the date of module installation. All quarterly submissions must include data through at least the 14th day (inclusive) of the month immediately preceding the submission. Unless otherwise agreed to by FMCSA, quarterly submissions must be sent via email to FMCSA at 
                        <E T="03">MCPSD@dot.gov.</E>
                         If the Applicant does not have one or more categories of information described below, it must, within 20 days of the effective date of this exemption, discuss with FMCSA other available information. If the Agency accepts such alternative information, the Applicant must submit that data in lieu of the information specified below.
                    </P>
                    <P>In the quarterly submission, the Applicant must provide FMCSA the following information known to the Applicant regarding all crashes and other incidents (“crash or incident”) involving a CMV equipped with an Intellistop module covered by this exemption where the Intellistop module is potentially implicated. Crashes involving a CMV equipped with an Intellistop module that are “head-on” or otherwise involve only the front of the Intellistop-equipped CMV impacting some other object (such that the Intellistop module, without question, could not be implicated) are not subject to this condition. For the first quarterly submission, data must include any crash or incident occurring in the 60 days prior to installation of the Intellistop module that would have been contained in this reporting category had the module been installed at the time of the crash or incident. The Applicant's knowledge includes, but is not limited to: (1) outreach from a consumer, lawyer, or any other person or organization (via letter, email, fax, telephone call, social media, or any other medium); (2) lawsuits to which the Applicant is a party, or otherwise knows exist where an Intellistop module covered by this exemption is an issue in the litigation; and (3) insurance claims against the Applicant related to use of the Intellistop module. When in the Applicant's possession, information provided to FMCSA shall include:</P>
                    <P>1. The date of first contact regarding, or the Applicant's first awareness of, the crash or incident;</P>
                    <P>2. The date of the most recent follow-up contact, if any, between the Applicant and the other party;</P>
                    <P>3. The date, time, and location of the crash or incident;</P>
                    <P>4. A brief description of the crash or incident; and</P>
                    <P>5. The Intellistop module type and/or subtype(s) involved in the crash or incident.</P>
                    <P>6. Information, if any, indicating that the Intellistop module is, or was, not working as intended, or caused confusion or a roadway hazard for either the consumer or other motorists.</P>
                    <P>
                        <E T="03">Annual data.</E>
                         At the end of each 12-month period this exemption is in effect, the Applicant shall, within 60 days, submit a report detailing all information in its possession regarding crash rates and vehicle miles traveled by CMVs equipped with a module covered by this exemption. Additionally, the report shall specify the number and type of CMVs the Applicant is operating under the exemption, the module type or sub-type installed on each CMV, the affected lamps (rear clearance, identification, and/or brake lamps), the number of covered vehicles sold or transferred in ownership during the 12-month reporting period, and a statement certifying that any sold/transferred vehicle(s) have been restored to compliance with applicable FMVSSs and FMCSRs.
                    </P>
                    <P>
                        <E T="03">Meetings.</E>
                         The Applicant shall, at FMCSA's request, meet with FMCSA to answer questions regarding data and information provided by the Applicant under this exemption.
                    </P>
                    <P>
                        <E T="03">(v). Early Termination.</E>
                         The exemption is valid for 5 years from the date of issuance unless rescinded earlier by FMCSA. FMCSA will terminate the exemption if: (1) the Applicant fails to comply with the terms and conditions; (2) the exemption results in a lower level of safety than was maintained before it was granted; or (3) continuation of the exemption would not be consistent with the goals and objectives of 49 U.S.C. 31136(e) and 31315(b).
                    </P>
                    <P>
                        <E T="03">(vi). Notification from the Public.</E>
                         Interested parties possessing information that would demonstrate that Higgins' CMVs equipped with Intellistop's pulsating rear-light module may not be achieving the requisite statutory level of safety should immediately notify FMCSA. The Agency will evaluate any such information and, if safety is being compromised or if the continuation of the exemption is not consistent with 49 U.S.C. 31136(e) and 31315(b), will take immediate steps to revoke the exemption.
                    </P>
                    <P>
                        <E T="03">(vii). Non-Endorsement.</E>
                         This limited and conditional exemption does not constitute an endorsement of the Intellistop product by FMCSA, NHTSA, the U.S. DOT, or any of their components, or by any of these agencies' employees or agents. As a condition of the continued effectiveness of this exemption, Intellistop is expressly prohibited from describing its product as approved by, endorsed by, or otherwise authorized by FMCSA, NHTSA, or U.S. DOT, or as compliant with Federal safety regulations.
                    </P>
                    <HD SOURCE="HD1">VII. Preemption</HD>
                    <P>In accordance with 49 U.S.C. 31315(d), as implemented by 49 CFR 381.600, during the period this exemption is in effect, no State shall enforce any law or regulation applicable to interstate commerce that conflicts with or is inconsistent with this exemption. States may, but are not required to, adopt the same exemption with respect to operations in intrastate commerce.</P>
                    <SIG>
                        <NAME>Vincent G. White,</NAME>
                        <TITLE>Acting Administrator.</TITLE>
                    </SIG>
                </FURINF>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14264 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. FMCSA-2024-0023]</DEPDOC>
                <SUBJECT>Qualification of Drivers; Exemption Applications; Epilepsy and Seizure Disorders</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of denials.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>FMCSA announces its decision to deny applications from 16 individuals who requested an exemption from the Federal Motor Carrier Safety Regulations (FMCSRs) prohibiting persons with a clinical diagnosis of epilepsy or any other condition that is likely to cause a loss of consciousness or any loss of ability to operate a commercial motor vehicle (CMV) from operating CMVs in interstate commerce.</P>
                </SUM>
                <FURINF>
                    <PRTPAGE P="54131"/>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Ms. Christine A. Hydock, Chief, Medical Programs Division, FMCSA, Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, (202) 366-4001, 
                        <E T="03">fmcsamedical@dot.gov.</E>
                         Office hours are from 8:30 a.m. to 5 p.m. ET Monday through Friday, except Federal holidays. If you have questions regarding viewing material in the docket, contact Dockets Operations, (202) 366-9826.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Public Participation</HD>
                <HD SOURCE="HD2">A. Comments</HD>
                <P>
                    To view comments go to 
                    <E T="03">www.regulations.gov.</E>
                     Insert the docket number (FMCSA-2024-0023) in the keyword box, and click “Search.” Next, choose the only notice listed, and click “Browse Comments.” If you do not have access to the internet, you may view the docket online by visiting Dockets Operations on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m. ET Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations.
                </P>
                <HD SOURCE="HD2">B. Privacy Act</HD>
                <P>
                    In accordance with 49 U.S.C. 31315(b)(6), DOT solicits comments from the public on the exemption request. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov.</E>
                     As described in the system of records notice DOT/ALL 14 (Federal Docket Management System), which can be reviewed at 
                    <E T="03">https://www.transportation.gov/individuals/privacy/privacy-act-system-records-notices,</E>
                     the comments are searchable by the name of the submitter.
                </P>
                <HD SOURCE="HD1">II. Background</HD>
                <P>FMCSA received applications from 16 individuals who requested an exemption from the FMCSRs prohibiting persons with a clinical diagnosis of epilepsy or any other condition that is likely to cause a loss of consciousness or any loss of ability to operate a CMV from operating CMVs in interstate commerce.</P>
                <P>FMCSA has evaluated the eligibility of these applicants and concluded that granting these exemptions would not provide a level of safety that would be equivalent to, or greater than, the level of safety that would be obtained by complying with § 391.41(b)(8).</P>
                <HD SOURCE="HD1">III. Basis for Exemption Determination</HD>
                <P>Under 49 U.S.C. 31136(e) and 31315(b), FMCSA may grant an exemption from the FMCSRs for no longer than a 5-year period if it finds such exemption would likely achieve a level of safety that is equivalent to, or greater than, the level that would be achieved absent such exemption. The statute also allows the Agency to renew exemptions at the end of the 5-year period. FMCSA grants medical exemptions from the FMCSRs for a 2-year period to align with the maximum duration of a driver's medical certification. The Agency's decision regarding these exemption applications is based on the eligibility criteria, the terms and conditions for Federal exemptions, and an individualized assessment of each applicant's medical information provided by the applicant.</P>
                <HD SOURCE="HD1">IV. Conclusion</HD>
                <P>The Agency has determined that these applicants do not satisfy the eligibility criteria or meet the terms and conditions of the Federal exemption and granting these exemptions would not provide a level of safety that would be equivalent to, or greater than, the level of safety that would be obtained by complying with § 391.41(b)(8). Therefore, the 16 applicants in this notice have been denied exemptions from the physical qualification standards in § 391.41(b)(8).</P>
                <P>Each applicant has, prior to this notice, received a letter of final disposition regarding his/her exemption request. Those decision letters fully outlined the basis for the denial and constitute final action by the Agency. This notice summarizes the Agency's recent denials as required under 49 U.S.C. 31315(b)(4) by periodically publishing names and reasons for denial.</P>
                <P>The following 16 applicants do not meet the minimum time requirement for being seizure-free, either on or off anti-seizure medication:</P>
                <FP SOURCE="FP-1">Ethan Abbott (PA)</FP>
                <FP SOURCE="FP-1">John Chacon (WA)</FP>
                <FP SOURCE="FP-1">James Crawford (NC)</FP>
                <FP SOURCE="FP-1">Kevin Frackman (PA)</FP>
                <FP SOURCE="FP-1">Kevin Fredericks (WI)</FP>
                <FP SOURCE="FP-1">Ricky Green (VA)</FP>
                <FP SOURCE="FP-1">Carl Hardy (NC)</FP>
                <FP SOURCE="FP-1">Carson Herndon (NC)</FP>
                <FP SOURCE="FP-1">Johnny Hollins (TN)</FP>
                <FP SOURCE="FP-1">Jonathan Johnson (WA)</FP>
                <FP SOURCE="FP-1">Marijan Micakovic (MI)</FP>
                <FP SOURCE="FP-1">Christopher Robinson (NC)</FP>
                <FP SOURCE="FP-1">David Saldana (GA)</FP>
                <FP SOURCE="FP-1">Jacob Utphall (WI)</FP>
                <FP SOURCE="FP-1">Jeremy Williams (MS)</FP>
                <FP SOURCE="FP-1">Stetson Williamson (TX)</FP>
                <SIG>
                    <NAME>Larry W. Minor,</NAME>
                    <TITLE>Associate Administrator for Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14325 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. FMCSA-2022-0241]</DEPDOC>
                <SUBJECT>Parts and Accessories Necessary for Safe Operation; Application for an Exemption from DJS Fundraising, Inc., USDOT #681063</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of final disposition; grant of exemption.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Federal Motor Carrier Safety Administration (FMCSA) announces its decision to grant an application from DJS Fundraising, Inc. (DJS, USDOT #612506) for an exemption to allow it to operate commercial motor vehicles (CMVs) equipped with a module manufactured by Intellistop, Inc. (Intellistop). The Intellistop module is designed to pulse the required rear clearance, identification, and brake lamps from a lower-level lighting intensity to a higher-level lighting intensity 4 times in 2 seconds when the brakes are applied and then return the lights to a steady-burning state while the brakes remain engaged. The Agency has determined that granting the exemption to DJS would likely achieve a level of safety equivalent to, or greater than, the level of safety achieved by the regulation.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This exemption is effective June 28, 2024 and ending June 28, 2029.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. David Sutula, Vehicle and Roadside Operations Division, Office of Carrier, Driver, and Vehicle Safety, MC-PSV, (202) 366-9209, Federal Motor Carrier Safety Administration, 1200 New Jersey Avenue SE, Washington, DC 20590-0001; 
                        <E T="03">MCPSV@dot.gov.</E>
                    </P>
                    <HD SOURCE="HD1">I. Viewing Comments and Documents</HD>
                    <P>
                        To view comments, go to 
                        <E T="03">www.regulations.gov,</E>
                         insert the docket number “FMCSA-2022-0241” in the keyword box, and click “Search.” Next, sort the results by “Posted (Newer-Older),” choose the first notice listed, click “Browse Comments.”
                    </P>
                    <P>
                        To view documents mentioned in this notice as being available in the docket, go to 
                        <E T="03">www.regulations.gov,</E>
                         insert the 
                        <PRTPAGE P="54132"/>
                        docket number “FMCSA-2022-0241” in the keyword box, click “Search,” and chose the document to review.
                    </P>
                    <P>If you do not have access to the internet, you may view the docket online by visiting Dockets Operations on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations.</P>
                    <HD SOURCE="HD1">II. Legal Basis</HD>
                    <P>
                        FMCSA has authority under 49 U.S.C. 31136(e) and 31315(b) to grant exemptions from the Federal Motor Carrier Safety Regulations (FMCSRs) to regulated entities (
                        <E T="03">e.g.,</E>
                         motor carriers). FMCSA must publish a notice of each exemption request in the 
                        <E T="04">Federal Register</E>
                         (49 CFR 381.315(a)). The Agency must provide the public an opportunity to inspect the information relevant to the application, including the applicant's safety analysis. The Agency must provide an opportunity for public comment on the request.
                    </P>
                    <P>
                        The Agency reviews safety analyses and public comments submitted and determines whether granting the exemption would likely achieve a level of safety equivalent to, or greater than, the level that would be achieved by the current regulation (49 CFR381.305(a)). The Agency must publish its decision in the 
                        <E T="04">Federal Register</E>
                         (49 CFR 381.315(b)). If granted, the notice will identify the regulatory provision from which the applicant will be exempt, the effective period, and all terms and conditions of the exemption (49 CFR 381.315(c)(1)). If the exemption is denied the notice will explain the reason for the denial (49 CFR 381.315(c)(2). The exemption may be renewed (49 CFR 381.300(b)).
                    </P>
                    <HD SOURCE="HD1">III. Background</HD>
                    <HD SOURCE="HD2">A. Current Regulatory Requirements</HD>
                    <P>Section 393.25(e) of the Federal Motor Carrier Safety Regulations (FMCSRs) requires all exterior lamps (both required lamps and any additional lamps) be steady burning, with certain exceptions not relevant here. Two other provisions of the FMCSRs—section 393.11(a) and section 393.25(c)—mandate that required lamps on CMVs meet the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No. 108 in effect at the time of manufacture. FMVSS No. 108, issued by the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA), includes a requirement that installed brake lamps, whether original or replacement equipment, be steady burning.</P>
                    <HD SOURCE="HD2">B. Applicant's Request</HD>
                    <P>DJS applied for an exemption from 49 CFR 393.25(e) to allow it to operate CMVs, equipped with Intellistop's module. When the brakes are applied, the Intellistop module is designed to pulse the rear clearance, identification, and brake lamps from a lower-level lighting intensity to a higher-level lighting intensity 4 times in 2 seconds and then maintain the original equipment manufacturer's (OEM) level of illumination for those lamps until the brakes are released and reapplied. Intellistop asserts that its module is designed to ensure that if the module ever fails, the clearance, identification, and brake lamps will default to normal OEM function and illumination.</P>
                    <P>DJS' application followed the Agency's October 7, 2022, denial (87 FR 61133) of Intellistop's application for an industry-wide exemption to allow all interstate motor carriers to operate CMVs equipped with the Intellistop module. While the Agency determined that the scope of the exemption Intellistop sought was too broad to ensure that an equivalent level of safety would be achieved, the Agency explained that individual motor carrier applications for exemption may be more closely aligned with FMCSA authorities. Exemptions more limited in scope would allow the Agency to ensure compliance with all relevant FMCSA regulations because the individual exemptee would be easily identifiable and its compliance with applicable regulations could be monitored, thus providing a level of safety equivalent to compliance with 49 CFR 393.25(e).</P>
                    <P>
                        DJS stated that previous research demonstrated that the use of pulsating brake-activated lamps increases the visibility of vehicles and should lead to a significant decrease in rear-end crashes. In support of its application, DJS submitted several reports of research conducted by NHTSA on the issues of rear-end crashes, distracted driving, and braking signals.
                        <E T="51">1 2 3</E>
                        <FTREF/>
                         This same body of research was also referenced in Intellistop's industry-wide exemption application. Relying on these studies, DJS stated that the addition of brake-activated pulsating lamp(s) will not have an adverse impact on safety and would likely maintain a level of safety equivalent to or greater than the level of safety achieved without the exemption.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             See NHTSA Study—Evaluation of Enhanced Brake Lights Using Surrogate Safety Metrics 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/811127.pdf;</E>
                             As part of the General Findings the NHTSA study report concluded that “rear lighting continues to look promising as a means of reducing the number and severity of rear-end crashes.”
                        </P>
                        <P>
                            <SU>2</SU>
                             See also NHTSA Study—Enhanced Rear Lighting and Signaling Systems 
                            <E T="03">https://tinyurl.com/y2romx76</E>
                             or 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/task_3_results_0.pdf;</E>
                             As part of the conclusions NHTSA found that enhanced, flashing brake lighting “demonstrated improvements in brake response times and other related performance measures.”
                        </P>
                        <P>
                            <SU>3</SU>
                             See also NHTSA—Traffic Safety Facts 
                            <E T="03">https://tinyurl.com/yxglsdax</E>
                             or 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/tsf811128.pdf;</E>
                             which concluded that flashing brake lights were a promising signal for improving attention-getting during brake applications.
                        </P>
                    </FTNT>
                    <P>A copy of the application is included in the docket referenced at the beginning of this notice.</P>
                    <HD SOURCE="HD1">IV. Comments</HD>
                    <P>
                        FMCSA published a notice of the application in the 
                        <E T="04">Federal Register</E>
                         on February 1, 2023, and asked for public comment (88 FR 6808). The Agency received 18 comments from organizations and individuals including the American Trucking Associations (ATA); Intellistop; the National Truck Equipment Association (NTEA); the Transportation Safety Equipment Institute (TSEI); and 14 other commenters. Seventeen of the commenters favored the exemption application, while TSEI expressed concerns.
                    </P>
                    <P>TSEI reiterated comments it had previously made in support of the safety benefits of brake-activated warning lamps when used in conjunction with steady burning red brake lamps as well as its prior support of the exemption requests from Groendyke Transport, National Tank Truck Carriers (NTTC), and Grote Industries. Despite these previous expressions of support for the potential benefits of some brake warning lamp configurations, TSEI stated that it is concerned about any exemption permitting the pulsing of lamps that are currently required to be steady burning without a thorough consideration of safety data and research on the level of notice and comment rulemaking. Accordingly, TSEI stated that the aim of future rulemaking should be to ensure consistent application across all vehicles equipped with such pulsating lamps and recommended that the Agency engage in a formal rulemaking to amend part 393 to allow for pulsating brake lamps.</P>
                    <P>
                        ATA supported DJS' request and stated that enhanced rear signaling (ERS) can provide functionality beyond what traditional CMV lighting and reflective devices offer, including drawing attention to CMVs stopped ahead; increasing awareness of roadside 
                        <PRTPAGE P="54133"/>
                        breakdowns; notification of emergency braking; and improving driver confidence both in ERS-equipped CMVs and in the following vehicle. ATA also stated that, in addition to these safety benefits, ERS performance is superior to that of steady burning brake lamps in conditions of severe weather, taillight glare, and around infrastructure obstacles. Specifically, ATA noted that this “request by DJS presents another opportunity for the DOT to learn about the performance of ERS in real world applications.” Further, ATA stated that “[it] believes the exemption process is well-suited for these kinds of situations, where the DOT can monitor small, controlled deployments to learn about benefits and costs and gather important data to make sound judgments on a broader industry exemption or change in regulations.”
                    </P>
                    <P>ATA recommended the Agency provide clear guidance in the terms and conditions of the exemption grant to aid the Agency in monitoring the exemption for unintended consequences and aid the Applicant in understanding expectations for potential renewal of the exemption application. ATA further commented that FMCSA should work with industry to develop research efforts that examine the performance of ERS to supplement future DOT decisions on ERS technologies.</P>
                    <P>The NTEA expressed concern that some of its members who are manufacturers and alterers of motor vehicles receive requests from fleet operators to install brake-activated pulsating warning lamps on certain new vehicles they construct or modify. As manufacturers of new motor vehicles, NTEA members are required to certify that these vehicles comply with applicable FMVSS. NTEA noted that FMCSA does not have the authority to exempt CMV manufacturers from their obligation to certify FMVSS compliance. It recommended the Agency include in the terms and conditions of the exemption a statement of the responsibilities of the carrier and manufacturer, and of the conditions under which repair facilities may undertake modifications of brake-activated warning lamps. NTEA specifically requested that FMCSA “make clear that [this] exemption does not currently change any NHTSA regulations applying to the certification of federal motor vehicle safety standards,” if it grants the exemption.</P>
                    <P>Intellistop supported the Applicant's request for exemption. It commented that for over 20 years, multiple States have allowed pulsing or flashing of brake lamps. Intellistop also asserted many State driver training schools recommend tapping brakes to warn other motorists when a CMV is slowing or stopping. Intellistop stated that it is unlikely that other motorists would confuse the use of their module with the recommendation to tap brakes when a CMV is slowing or stopping, as “[s]eeing brake lights flash is a commonly communicated method to alert other drivers that a vehicle is slowing down or stopping.”</P>
                    <P>Fourteen other comments supported the exemption. These commenters believe that any technology that has been shown to reduce rear-end crashes should be allowed and cited various benefits of brake activated pulsating lamps, including (1) enhanced awareness that the vehicle is making a stop, especially at railroad crossings, and (2) increased visibility in severe weather conditions. Several commenters noted that 37 States currently allow brake lamps to flash. In addition, three commenters noted that the guidelines developed by the American Driver and Traffic Safety Education Association advise driving instructors to teach new drivers to pulse brake lamps when stopping to improve visibility.</P>
                    <HD SOURCE="HD1">V. FMCSA Equivalent Level of Safety Analysis</HD>
                    <P>DJS petitioned FMCSA to grant an exemption from 49 CFR 393.25(e)—requiring certain exterior lamps to be steady burning—to allow it to operate CMVs equipped with Intellistop's module. FMCSA has determined that in order for DJS to operate vehicles in compliance with the FMCSRs, an exemption from 49 CFR 393.25(e) must be accompanied by limited exemptions from 49 CFR 393.11(a) and 393.25(c), both of which mandate that required lamps on CMVs operated in interstate commerce must, “at a minimum, meet the applicable requirements of 49 CFR 571.108 (FMVSS No. 108) in effect at the time of manufacture of the vehicle.” FMCSA grants exemptions only when it determines “such exemption[s] would likely achieve a level of safety that is equivalent to, or greater than, the level that would be achieved absent the exemption[s].”</P>
                    <P>
                        Rear-end crashes generally account for approximately 30 percent of all crashes. They often result from a failure to respond (or delays in responding) to a stopped or decelerating lead vehicle. Data on crashes that occurred between 2010 and 2016 show that large trucks are consistently three times more likely than other vehicles to be struck in the rear in two-vehicle fatal crashes.
                        <E T="51">4 5</E>
                        <FTREF/>
                         FMCSA is deeply interested in the development and deployment of technologies that can reduce the frequency, severity, and risk of rear-end crashes.
                    </P>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             U.S. Department of Transportation, National Highway Traffic Safety Administration (2012), Traffic Safety Facts—2010 Data; Large Trucks, Report No. DOT HS 811 628, Washington, DC (June 2012), 
                            <E T="03">available at: https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/811628.</E>
                        </P>
                        <P>
                            <SU>5</SU>
                             U.S. Department of Transportation, National Highway Traffic Safety Administration (2018), Traffic Safety Facts—2016 Data; Large Trucks, Report No. DOT HS 812 497, Washington, DC (May 2018), 
                            <E T="03">available at: https://crashstats.nhtsa.dot.gov/Api/Public/Publication/812497.</E>
                        </P>
                    </FTNT>
                    <P>
                        Both FMCSA and NHTSA have examined alternative rear-signaling systems to reduce the incidence of rear-end crashes. While research efforts concluded that improvements in the incidence of rear-end crashes could be realized through certain rear-lighting systems that flash,
                        <SU>6</SU>
                        <FTREF/>
                         the FMCSRs do not currently permit the use of pulsating, brake-activated lamps on the rear of CMVs. FMCSA believes that the two agencies' previous research programs demonstrate that rear-signaling systems may be able to “improve attention getting” to reduce the frequency and severity of rear-end crashes. Any possible benefit must be balanced against a possible risk of increased driver distraction and confusion. In balancing these interests, the Agency was compelled to deny the Intellistop application for exemption, believing the industry-wide scope of the request was too broad for the Agency to effectively monitor for the potential risk of driver distraction or confusion.
                    </P>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             Expanded Research and Development of an Enhanced Rear Signaling System for Commercial Motor Vehicles: Final Report, William A. Schaudt 
                            <E T="03">et al.</E>
                             (Apr. 2014) (Report No. FMCSA-RRT-13-009).
                        </P>
                    </FTNT>
                    <P>
                        The Agency acknowledges the limitations of the research studies completed to date and the overall data deficiencies in this area. Nonetheless, as noted in its Intellistop decision, the Agency recognizes that existing data do suggest a potential safety value in the use of alternative rear-signaling systems, generally. Specifically, FMCSA considered NHTSA's research concerning the development and evaluation of rear-signaling applications designed to reduce the frequency and severity of rear-end crashes via enhancements to rear-brake lighting. The NHTSA study examined enhancements for (1) redirecting drivers' visual attention to the forward roadway (for cases involving a distracted driver) and (2) increasing the saliency or meaningfulness of the brake signal (for inattentive drivers).
                        <SU>7</SU>
                        <FTREF/>
                         The 
                        <PRTPAGE P="54134"/>
                        research considered the attention-getting capability and discomfort glare of a set of candidate rear brake lighting configurations using driver judgments and eye-drawing metrics. The results of this research served to narrow the set of candidate lighting configurations to those that would most likely be carried forward for additional on-road study. Based on subjective participant responses, this research indicates some form of flashing or variation in brake light brightness may be more than two times more attention-getting than the baseline, steady-burning brake lights for distracted drivers.
                        <SU>8</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             See NHTSA Study—Evaluation of Enhanced Brake Lights Using Surrogate Safety Metrics 
                            <E T="03">
                                https://
                                <PRTPAGE/>
                                www.nhtsa.gov/sites/nhtsa.dot.gov/files/811127.pdf.
                            </E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Ibid. While data demonstrated that brighter flashing lights were the most attention-getting combination for distracted drivers in this study, flashing lights with no increase in brightness were still more effective at capturing a distracted driver's attention than the baseline steady-burning brake lamps. Both look-up (eye drawing) data and interview data supported the hypothesis that simultaneous flashing of all rear lighting combined with increased brightness would be effective in redirecting the driver's eyes to the lead vehicle when the driver is looking away with tasks that involve visual load.
                        </P>
                    </FTNT>
                    <P>While some of the data collected may not be statistically significant, the study results nonetheless indicate that additional efforts to get drivers' attention when they are approaching the rear of a CMV that is stopping may be helpful to reduce driver distraction and, ultimately, rear-end crashes. This was among several reasons why researchers concluded that the promising nature of enhanced brake lighting systems warranted additional work and research. FMCSA believes the acquisition of relevant data through real-world monitoring is of critical importance as the Agency continues to seek new and innovative options for reducing crashes. This is particularly true given the data limitations noted in previous studies.</P>
                    <P>
                        Despite finding a potential safety value in the use of alternative rear-signaling technology, in the Intellistop decision the Agency determined that the data presently available did not justify an exemption to allow all interstate motor carriers to alter the performance of an FMVSS-required lighting device (
                        <E T="03">i.e.,</E>
                         stop lamps) on any CMV. In contrast, however, the DJS application requests an exemption for CMV operations by only one interstate motor carrier. As FMCSA noted in its denial of Intellistop's industry-wide exemption application, individual motor carrier exemption requests typically align more closely with FMCSA and NHTSA authorities to ensure compliance with all other applicable regulations and with the safety performance of the smaller population of affected motor carriers. With an individual motor carrier exemption, the Agency can also more easily monitor compliance with terms and conditions intended to ensure operations conducted under the exemption do, in fact, provide an equivalent level of safety. The DJS application demonstrates why this is particularly true, since the vehicles it operates would be easily identifiable, and compliance with NHTSA's “make inoperative” prohibition and other related regulations could be readily checked.
                    </P>
                    <P>The Agency's decision to grant this exemption is based on the data suggesting enhanced rear signal systems, such as pulsing brake lights, may help reduce the frequency and severity of rear-end crashes, as well as on the limited number of vehicles operating under the exemption. DJS currently operates a nationwide fleet of approximately five vehicles. The installation of the module on CMVs operated by a single motor carrier provides the opportunity for the Agency to collect data on the effects of pulsing brake lights in real-world conditions. The terms and conditions FMCSA imposes through this exemption will ensure appropriate Federal oversight in the use of these devices on a definite and limited number of CMVs utilizing a phased in approach.</P>
                    <P>Initially restricting the application of this exemption to a limited portion of DJS' fleet will allow for a comparison between the crash involvement of DJS CMVs equipped with the Intellistop device, those without the device, and the overall crash involvement of CMVs operated by similarly sized motor carriers with similar operations and overall safety performance. Data collected through this exemption and any other similar exemptions the Agency may grant in the future will allow for an evaluation of how the Intellistop module may improve following vehicle driver responses to CMV braking. Consideration of the scope of any particular carrier's operation and the number and types of vehicles the carrier operates are critical to ensuring FMCSA gathers the most relevant data as it considers safety benefits gained by the deployment of these rear brake lamp systems. The Agency's incremental approach in granting this limited exemption will also allow FMCSA to investigate and respond as appropriate to any incidents of alleged driver confusion attributable to use of the brake lamp systems in CMV operations, which some commenters have raised as a potential concern.</P>
                    <P>FMCSA acknowledges that all other pulsating rear lamp exemptions the Agency previously granted involved the addition of non-mandatory auxiliary lights, while the Intellistop module that DJS seeks to install alters the functionality of original equipment manufacturers' lamps. Nonetheless, those previous exemptions are instructive, most notably Groendyke. The Groendyke exemption involved auxiliary lamps rather than required lighting, but, like the Intellistop system, the modulation of the auxiliary lamps in the Groendyke exemption occurs during braking. More importantly, the Groendyke case also involved a technology installed on a number of one carrier's CMVs, which allowed the Agency more realistically to monitor the exemptee's compliance with other applicable regulations. When granting the exemption, FMCSA found Groendyke's previous experience with brake-activated pulsating warning lamps, which resulted in a 33.7 percent reduction in rear-end crashes, to be compelling. Through the granting of the Groendyke exemption, the Agency was able to collect additional real-world data about the operation of the module at issue. Similarly, limited exemptions with narrowly tailored terms and conditions permitting the use of the Intellistop module will allow the Agency to collect data about the reliability and safety benefits of an integrated alternative rear-signaling system.</P>
                    <P>FMCSA notes that DJS failed to provide any evidence beyond what is publicly available about the integration of the Intellistop module with its CMVs' existing systems or to support the claim that a malfunction of the device would result in the brake lights returning to OEM functionality. Nonetheless, based on the Agency's understanding of the device's design and assertions made in publicly available materials, FMCSA believes concerns about both the reliability and integration of the device are sufficiently alleviated in this instance because of the narrow scope of the exemption and the stringent requirements imposed by the Agency in the terms and conditions. Any evidence that module failure results in anything less than a return to brake light OEM functionality will result in revocation of the exemption.</P>
                    <P>
                        Likewise, granting this exemption to an easily identifiable carrier alleviates concerns the Agency previously articulated about its inability to monitor compliance with NHTSA's “make inoperative” prohibition. FMCSA can monitor compliance with this 
                        <PRTPAGE P="54135"/>
                        exemption and ensure that only DJS installs the module on its own CMVs.
                    </P>
                    <P>Notwithstanding the promise the Agency sees in this technology, exemptions are warranted only if the applicant can demonstrate that an equivalent level of safety likely will be maintained. For this reason, the Agency believes it is important to consider the safety record of the applicant motor carrier. The on-road safety performance of DJS warrants granting this exemption to collect additional safety performance data. DJS's out-of-service (OOS) rate is well below the national average, with a vehicle OOS rate of 0.0 percent (national average—21.4 percent), a driver OOS rate of 0 percent (national average—6 percent), and a hazardous material OOS rate of 0 (national average—4.5 percent). DJS maintains a Satisfactory safety rating.</P>
                    <P>FMCSA acknowledges that the research described above did not fully address all the implications of allowing pulsating stop lamps, especially by automobiles where stop lamp design is stylized and often brand-specific, and that it remains unclear whether deviation from the uniform brake-light patterns of CMVs may cause confusion among highway users when the lamps are pulsated during braking. When Intellistop sought an industry-wide exemption, FMCSA concluded that the potential risks of widespread adoption outweighed the potential benefits. But FMCSA reaches a different conclusion here, where any risks will be more limited and easier to monitor. FMCSA notes, moreover, that the research suggests that the use of rear-signaling systems may be a means to reduce the frequency and severity of rear-end crashes involving CMVs, as do the reductions in rear-end crashes reported by Groendyke (84 FR 17910, April 26, 2019) utilizing an auxiliary flashing rear-signaling system. These facts and the specific safety record of the applicant motor carrier support the conclusion that permitting the use of Intellistop's pulsating-lamp module among a definite and limited number of vehicles of a single motor carrier, subject to terms and conditions for monitoring, is likely to achieve a level of safety that is equivalent to, or greater than, the level of safety achieved without the exemption.</P>
                    <HD SOURCE="HD1">VI. Exemption Decision</HD>
                    <HD SOURCE="HD2">a. Grant of Exemption</HD>
                    <P>FMCSA has evaluated the DJS exemption application and the comments received. The Agency believes that granting a temporary exemption to section 393.25(e), and temporary limited exemptions to the requirements of 49 CFR 393.11(a) and 393.25(c) to allow DJS to operate a defined and limited number of CMVs equipped with Intellistop's pulsating-brake module will likely achieve a level of safety that is equivalent to, or greater than, the level of safety achieved without the exemption.</P>
                    <P>This exemption is restricted to vehicles in the DJS fleet and provides relief from the steady burning requirement for rear clearance, identification, and brake lamp activation for 2 seconds following brake activation. All other FMVSS No. 108 requirements cross-referenced or incorporated within the FMCSRs remain in effect, with a limited exception to the requirement in sections 393.11(a) and 393.25(c) for only the first two seconds of brake engagement. In addition, through the terms and conditions, FMCSA will be able to monitor to performance of these CMVs to determine whether they were involved in a crash and whether they appear to be overrepresented in crashes compared to a control group (DJS vehicles that are not equipped with the Intellistop unit but are operating on similar routes with similar schedules, etc.).</P>
                    <P>The Agency has evaluated the application and hereby grants the exemption for a 5-year period, beginning June 28, 2024 and ending June 28, 2029. During the temporary exemption period, DJS (Applicant) may operate CMVs, equipped with Intellistop's module that pulses the rear brake, clearance, and identification lamps from a lower-level lighting intensity to a higher-level lighting intensity 4 times in 2 seconds. This grant applies only to the “steady-burning” requirement as specified in FMVSS 108 S7.3, and Tables I-a, I-b, and I-c. All other photometric and requirements for stop lamps specified in FMVSS 108 must still be met.</P>
                    <HD SOURCE="HD2">b. Terms and Conditions of the Exemption</HD>
                    <P>
                        (i). Installation of the Intellistop module. The Applicant is responsible for installing the Intellistop module.
                        <SU>9</SU>
                        <FTREF/>
                         This exemption applies only to CMVs owned and operated by the Applicant. THE PRODUCT MUST BE INSTALLED BY THE OWNER OF THE VEHICLE ONLY. IN ACCORDANCE WITH FEDERAL LAW (49 U.S.C. 30112(a)(1) AND 49 U.S.C. 30122), THE PRODUCT MAY NOT BE INSTALLED BY ANY MANUFACTURER, DISTRIBUTOR, DEALER, RENTAL COMPANY, OR MOTOR VEHICLE REPAIR BUSINESS.
                    </P>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             FMCSA has authority to grant temporary exemptions to the FMCSRs to motor carriers, but not to CMV manufacturers or vehicle alterers.
                        </P>
                    </FTNT>
                    <P>The Applicant may not install the Intellistop module on more than 25% of its power units, and 25% of its trailers during the first year of operation under the exemption, or on more than 50% of its power units, and 50% of its trailers during the second year. The Applicant shall provide the vehicle identification numbers for the power units and trailers that will be operating under the exemption.</P>
                    <P>The Applicant must maintain a control group of equal size to its power units and trailers equipped with the Intellistop unit during the first 2 years of the exemption. And the CMVs in the control group must operate on routes with schedules that are similar to those of the Intellistop-equipped vehicles.</P>
                    <P>Installed modules may only be used to modulate rear clearance, identification, and stop lamps.</P>
                    <P>
                        Within 30 business days of its first installation of the Intellistop module, the Applicant must notify the Agency via email at 
                        <E T="03">MCPSV@dot.gov</E>
                         of the number and type of CMVs it is operating, or intends to operate, with the Intellistop module installed; the module type and/or sub-type; and any trouble-shooting, repair, or other use of an Intellistop module covered by this exemption. Amended installation information, including CMVs on which the device is installed or uninstalled, may then be submitted via the quarterly submission specified in sub-paragraph (iv) 
                        <E T="03">Recurring Reporting Requirements</E>
                         below.
                    </P>
                    <P>The rights granted under this exemption do not transfer to the purchaser or other transferee of Applicant's CMVs. If the Applicant sells or transfers ownership of any CMV equipped with an Intellistop module under this exemption, or if the exemption is terminated for any reason, the Applicant must remove the module and restore the CMV to full compliance with the FMCSRs and FMVSSs prior to the transfer of ownership, or upon termination of the exemption. The Applicant must also certify in writing to the purchaser/transferee and FMCSA that the CMV has been restored to compliance with the FMCSRs and FMVSSs.</P>
                    <P>
                        <E T="03">(ii). Driver Pre-Trip Vehicle Inspections.</E>
                         The Applicant must ensure that each driver of an Intellistop-equipped CMV performs a pre-trip inspection to confirm that the Intellistop module operates only for 2 seconds and does not interfere with the normal operation of lamps after 2 seconds. If the lamps are not steady burning after 2 seconds, the CMV must not be 
                        <PRTPAGE P="54136"/>
                        dispatched until repairs are made. At the end of each work shift, drivers must note any problems observed by or reported to the driver concerning the Intellistop module on a driver vehicle inspection report (see 49 CFR 396.11), and the motor carrier must correct the problem before the vehicle is dispatched again.
                    </P>
                    <P>
                        <E T="03">(iii). Safety Notification to FMCSA.</E>
                         The Applicant must notify FMCSA within 5 business days after it becomes aware, or otherwise determines, that the continued use of a module or entire type or subtype of module covered by this exemption is no longer likely to maintain a level of safety that is at least equivalent to the level that would be achieved absent this exemption. Notification must be made by sending an email to FMCSA at 
                        <E T="03">MCPSD@dot.gov.</E>
                    </P>
                    <P>
                        <E T="03">(iv). Recurring Reporting Requirements.</E>
                         During the exemption period, the Applicant must provide quarterly submissions to FMCSA of the data described below. The Applicant's first quarterly submission is due on September 30, 2024, and thereafter will be due every 3 months, on the first business day of the month. The first quarterly submission must include the required data beginning 60 days prior to the date of module installation. All quarterly submissions must include data through at least the 14th day (inclusive) of the month immediately preceding the submission. Unless otherwise agreed to by FMCSA, quarterly submissions must be sent via email to FMCSA at 
                        <E T="03">MCPSD@dot.gov.</E>
                         If the Applicant does not have one or more categories of information described below, it must, within 20 days of the effective date of this exemption, discuss with FMCSA other available information. If the Agency accepts such alternative information, the Applicant must submit that data in lieu of the information specified below.
                    </P>
                    <P>In the quarterly submission, the Applicant must provide FMCSA the following information known to the Applicant regarding all crashes and other incidents (“crash or incident”) involving a CMV equipped with an Intellistop module covered by this exemption where the Intellistop module is potentially implicated. Crashes involving a CMV equipped with an Intellistop module that are “head-on” or otherwise involve only the front of the Intellistop-equipped CMV impacting some other object (such that the Intellistop module, without question, could not be implicated) are not subject to this condition. For the first quarterly submission, data must include any crash or incident occurring in the 60 days prior to installation of the Intellistop module that would have been contained in this reporting category had the module been installed at the time of the crash or incident. The Applicant's knowledge includes, but is not limited to: (1) outreach from a consumer, lawyer, or any other person or organization (via letter, email, fax, telephone call, social media, or any other medium); (2) lawsuits to which the Applicant is a party, or otherwise knows exist where an Intellistop module covered by this exemption is an issue in the litigation; and (3) insurance claims against the Applicant related to use of the Intellistop module. When in the Applicant's possession, information provided to FMCSA shall include:</P>
                    <P>1. The date of first contact regarding, or the Applicant's first awareness of, the crash or incident;</P>
                    <P>2. The date of the most recent follow-up contact, if any, between the Applicant and the other party;</P>
                    <P>3. The date, time, and location of the crash or incident;</P>
                    <P>4. A brief description of the crash or incident; and</P>
                    <P>5. The Intellistop module type and/or subtype(s) involved in the crash or incident.</P>
                    <P>6. Information, if any, indicating that the Intellistop module is, or was, not working as intended, or caused confusion or a roadway hazard for either the consumer or other motorists.</P>
                    <P>
                        <E T="03">Annual data.</E>
                         At the end of each 12-month period this exemption is in effect, the Applicant shall, within 60 days, submit a report detailing all information in its possession regarding crash rates and vehicle miles traveled by CMVs equipped with a module covered by this exemption. Additionally, the report shall specify the number and type of CMVs the Applicant is operating under the exemption, the module type or sub-type installed on each CMV, the affected lamps (rear clearance, identification, and/or brake lamps), the number of covered vehicles sold or transferred in ownership during the 12-month reporting period, and a statement certifying that any sold/transferred vehicle(s) have been restored to compliance with applicable FMVSSs and FMCSRs.
                    </P>
                    <P>
                        <E T="03">Meetings.</E>
                         The Applicant shall, at FMCSA's request, meet with FMCSA to answer questions regarding data and information provided by the Applicant under this exemption.
                    </P>
                    <P>
                        <E T="03">(v). Early Termination</E>
                    </P>
                    <P>The exemption is valid for 5 years from the date of issuance unless rescinded earlier by FMCSA. FMCSA will terminate the exemption if: (1) the Applicant fails to comply with the terms and conditions; (2) the exemption results in a lower level of safety than was maintained before it was granted; or (3) continuation of the exemption would not be consistent with the goals and objectives of 49 U.S.C. 31136(e) and 31315(b).</P>
                    <P>
                        <E T="03">(vi). Notification from the Public</E>
                    </P>
                    <P>Interested parties possessing information that would demonstrate that DJS' CMVs equipped with Intellistop's pulsating rear-light module may not be achieving the requisite statutory level of safety should immediately notify FMCSA. The Agency will evaluate any such information and, if safety is being compromised or if the continuation of the exemption is not consistent with 49 U.S.C. 31136(e) and 31315(b), will take immediate steps to revoke the exemption.</P>
                    <P>
                        <E T="03">(vii). Non-Endorsement</E>
                    </P>
                    <P>This limited and conditional exemption does not constitute an endorsement of the Intellistop product by FMCSA, NHTSA, the U.S. DOT, or any of their components, or by any of these agencies' employees or agents. As a condition of the continued effectiveness of this exemption, Intellistop is expressly prohibited from describing its product as approved by, endorsed by, or otherwise authorized by FMCSA, NHTSA, or U.S. DOT, or as compliant with Federal safety regulations.</P>
                    <HD SOURCE="HD1">VII. Preemption</HD>
                    <P>In accordance with 49 U.S.C. 31315(d), as implemented by 49 CFR 381.600, during the period this exemption is in effect, no State shall enforce any law or regulation applicable to interstate commerce that conflicts with or is inconsistent with this exemption. States may, but are not required to, adopt the same exemption with respect to operations in intrastate commerce.</P>
                    <SIG>
                        <NAME>Vincent G. White,</NAME>
                        <TITLE>Acting Administrator.</TITLE>
                    </SIG>
                </FURINF>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14263 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. FMCSA-2022-0244]</DEPDOC>
                <SUBJECT>Parts and Accessories Necessary for Safe Operation; Application for an Exemption From JM Bozeman Enterprises, Inc., USDOT #612506</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <PRTPAGE P="54137"/>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of final disposition; grant of exemption.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Federal Motor Carrier Safety Administration (FMCSA) announces its decision to grant an application from JM Bozeman Enterprises, Inc. (Bozeman, USDOT #612506) for an exemption to allow it to operate commercial motor vehicles (CMVs) equipped with a module manufactured by Intellistop, Inc. (Intellistop). The Intellistop module is designed to pulse the required rear clearance, identification, and brake lamps from a lower-level lighting intensity to a higher-level lighting intensity 4 times in 2 seconds when the brakes are applied and then return the lights to a steady-burning state while the brakes remain engaged. The Agency has determined that granting the exemption to Bozeman would likely achieve a level of safety equivalent to, or greater than, the level of safety achieved by the regulation.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This exemption is effective June 28, 2024 and ending June 28, 2029.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. David Sutula, Vehicle and Roadside Operations Division, Office of Carrier, Driver, and Vehicle Safety, MC-PSV, (202) 366-9209, Federal Motor Carrier Safety Administration, 1200 New Jersey Avenue SE, Washington, DC 20590-0001; 
                        <E T="03">MCPSV@dot.gov.</E>
                    </P>
                    <HD SOURCE="HD1">I. Viewing Comments and Documents</HD>
                    <P>
                        To view comments, go to 
                        <E T="03">www.regulations.gov,</E>
                         insert the docket number “FMCSA-2022-0244” in the keyword box, and click “Search.” Next, sort the results by “Posted (Newer-Older),” choose the first notice listed, click “Browse Comments.”
                    </P>
                    <P>
                        To view documents mentioned in this notice as being available in the docket, go to 
                        <E T="03">www.regulations.gov,</E>
                         insert the docket number “FMCSA-2022-0244” in the keyword box, click “Search,” and chose the document to review.
                    </P>
                    <P>If you do not have access to the internet, you may view the docket online by visiting Dockets Operations on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations.</P>
                    <HD SOURCE="HD1">II. Legal Basis</HD>
                    <P>
                        FMCSA has authority under 49 U.S.C. 31136(e) and 31315(b) to grant exemptions from Federal Motor Carrier Safety Regulations (FMCSRs). FMCSA must publish a notice of each exemption request in the 
                        <E T="04">Federal Register</E>
                         (49 CFR 381.315(a)). The Agency must provide the public an opportunity to inspect the information relevant to the application, including the applicant's safety analysis. The Agency must provide an opportunity for public comment on the request.
                    </P>
                    <P>
                        The Agency reviews safety analyses and public comments submitted and determines whether granting the exemption would likely achieve a level of safety equivalent to, or greater than the level that would be achieved by the current regulation (49 CFR 381.305(a)). The Agency must publish its decision in the 
                        <E T="04">Federal Register</E>
                         (49 CFR 381.315(b)). If granted, the notice will identify the regulatory provision from which the applicant will be exempt, the effective period, and all terms and conditions of the exemption (49 CFR 381.315(c)(1)). If the exemption is denied, the notice will explain the reason for the denial (49 CFR 381.315(c)(2)). The exemption may be renewed (49 CFR 381.300(b)).
                    </P>
                    <HD SOURCE="HD1">III. Background</HD>
                    <HD SOURCE="HD2">A. Current Regulatory Requirements</HD>
                    <P>Section 393.25(e) of the Federal Motor Carrier Safety Regulations (FMCSRs) requires all exterior lamps (both required lamps and any additional lamps) to be steady-burning, with certain exceptions not relevant here. Two other provisions of the FMCSRs—section 393.11(a) and section 393.25(c)—mandate that required lamps on CMVs meet the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No. 108 in effect at the time of manufacture. FMVSS No. 108, issued by the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA), includes a requirement that installed brake lamps, whether original or replacement equipment, be steady burning.</P>
                    <HD SOURCE="HD2">B. Applicant's Request</HD>
                    <P>Bozeman applied for an exemption from 49 CFR 393.25(e) to allow it to operate CMVs, equipped with Intellistop's module. When the brakes are applied, the Intellistop module is designed to pulse the rear clearance, identification, and brake lamps from a lower-level lighting intensity to a higher-level lighting intensity 4 times in 2 seconds and then maintain the original equipment manufacturer's (OEM) level of illumination for those lamps until the brakes are released and reapplied. Intellistop asserts that its module is designed to ensure that if the module ever fails, the clearance, identification, and brake lamps will default to normal OEM function and illumination.</P>
                    <P>Bozeman's application followed the Agency's October 7, 2022, denial (87 FR 61133) of Intellistop's application for an industry-wide exemption to allow all interstate motor carriers to operate CMVs equipped with the Intellistop module. While the Agency determined that the scope of the exemption Intellistop sought was too broad to ensure that an equivalent level of safety would be achieved, the Agency explained that individual motor carrier applications for exemption may be more closely aligned with FMCSA authorities. Exemptions more limited in scope would allow the Agency to ensure compliance with all relevant FMCSA regulations because the individual exemptee would be easily identifiable and its compliance with applicable regulations could be monitored, thus providing a level of safety equivalent to compliance with 49 CFR 393.25(e).</P>
                    <P>
                        Bozeman stated that previous research demonstrated that the use of pulsating brake-activated lamps increases the visibility of vehicles and should lead to a significant decrease in rear-end crashes. In support of its application, Bozeman submitted several reports of research conducted by NHTSA on the issues of rear-end crashes, distracted driving, and braking signals.
                        <E T="51">1 2 3</E>
                        <FTREF/>
                         This same body of research was also referenced in Intellistop's industry-wide exemption application. Relying on these studies, Bozeman stated that the addition of brake-activated pulsating lamp(s) will not have an adverse impact on safety and would likely maintain a level of safety equivalent to or greater than the level of safety achieved without the exemption.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             See NHTSA Study—Evaluation of Enhanced Brake Lights Using Surrogate Safety Metrics 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/811127.pdf;</E>
                             As part of the General Findings the NHTSA study report concluded that “rear lighting continues to look promising as a means of reducing the number and severity of rear-end crashes.”
                        </P>
                        <P>
                            <SU>2</SU>
                             See also NHTSA Study—Enhanced Rear Lighting and Signaling Systems 
                            <E T="03">https://tinyurl.com/y2romx76</E>
                             or 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/task_3_results_0.pdf;</E>
                             As part of the conclusions NHTSA found that enhanced, flashing brake lighting “demonstrated improvements in brake response times and other related performance measures.”
                        </P>
                        <P>
                            <SU>3</SU>
                             See also NHTSA—Traffic Safety Facts 
                            <E T="03">https://tinyurl.com/yxglsdax</E>
                             or 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/tsf811128.pdf;</E>
                             which concluded that flashing brake lights were a promising signal for improving attention-getting during brake applications.
                        </P>
                    </FTNT>
                    <P>
                        A copy of the application is included in the docket referenced at the beginning of this notice.
                        <PRTPAGE P="54138"/>
                    </P>
                    <HD SOURCE="HD1">IV. Comments</HD>
                    <P>
                        FMCSA published a notice of the application in the 
                        <E T="04">Federal Register</E>
                         on February 1, 2023, and asked for public comment (88 FR 6808). The Agency received 18 comments from organizations and individuals including the American Trucking Associations (ATA); Intellistop, Inc.; the National Truck Equipment Association (NTEA); the Transportation Safety Equipment Institute (TSEI); and 14 other commenters. Seventeen of the commenters favored the exemption application, while TSEI expressed concerns.
                    </P>
                    <P>TSEI reiterated comments it had previously made in support of the safety benefits of brake-activated warning lamps when used in conjunction with steady burning red brake lamps as well as its prior support of the exemption requests from Groendyke Transport, National Tank Truck Carriers (NTTC), and Grote Industries. Despite these previous expressions of support for the potential benefits of some brake warning lamp configurations, TSEI stated that it is concerned about any exemption permitting the pulsing of lamps that are currently required to be steady burning without a thorough consideration of safety data and research. TSEI stated that the aim of future rulemaking should be to ensure consistent application across all vehicles equipped with such pulsating lamps and recommended that the Agency engage in a formal rulemaking to amend Part 393 to allow for pulsating brake lamps.</P>
                    <P>ATA supported Bozeman's request and stated that enhanced rear signaling (ERS) can provide functionality beyond what traditional CMV lighting and reflective devices offer, including drawing attention to CMVs stopped ahead; increasing awareness of roadside breakdowns; notification of emergency braking; and improving driver confidence both in ERS-equipped CMVS and in the following vehicles. ATA also stated that, in addition to these safety benefits, ERS performance is superior to that of steady burning brake lamps in conditions of severe weather, taillight glare, and around infrastructure obstacles. Specifically, ATA noted that this “request by Bozeman presents another opportunity for the DOT to learn about the performance of ERS in real world applications.” Further, ATA stated that “[it] believes the exemption process is well-suited for these kinds of situations, where the DOT can monitor small, controlled deployments to learn about benefits and costs and gather important data to make sound judgments on a broader industry exemption or change in regulations.”</P>
                    <P>ATA recommended the Agency provide clear guidance in the terms and conditions of the exemption grant to aid the Agency in monitoring the exemption for unintended consequences and aid the Applicant in understanding expectations for potential renewal of the exemption application. ATA further commented that FMCSA should work with industry to develop research efforts that examine the performance of ERS to supplement future DOT decisions on ERS technologies.</P>
                    <P>The NTEA supported the exemption but expressed concern that some of its members who are manufacturers and alterers of motor vehicles receive requests from fleet operators to install brake-activated pulsating warning lamps on certain new vehicles they construct or modify. As manufacturers of new motor vehicles, NTEA members are required to certify that these vehicles comply with applicable FMVSS. NTEA noted that FMCSA does not have the authority to exempt CMV manufacturers from their obligation to certify FMVSS compliance. It recommended the Agency include in the terms and conditions of the exemption a statement of the responsibilities of the carrier and manufacturer, and of the conditions under which repair facilities may undertake modification of brake-activated warning lamps. NTEA specifically requested that FMCSA “make clear that [this] exemption does not currently change any NHTSA regulations applying to the certification of federal motor vehicle safety standards,” if it grants the exemption.</P>
                    <P>Intellistop supported the Applicant's request for exemption. It commented that for over 20 years, multiple States have allowed pulsing or flashing of brake lamps. Intellistop also asserted many State driver training schools recommend tapping brakes to warn other motorists when a CMV is slowing or stopping. Intellistop stated that it is unlikely that other motorists would confuse the use of their module with the recommendation to tap brakes when a CMV is slowing or stopping, as “[s]eeing brake lights flash is a commonly communicated method to alert other drivers that a vehicle is slowing down or stopping.”</P>
                    <P>Fourteen other comments supported the exemption. These commenters believe that any technology that has been shown to reduce rear-end crashes should be allowed and cited various benefits of brake activated pulsating lamps, including (1) enhanced awareness that the vehicle is making a stop, especially at railroad crossings, and (2) increased visibility in severe weather conditions. Several commenters noted that 37 States currently allow brake lamps to flash. In addition, three commenters noted that the guidelines developed by the American Driver and Traffic Safety Education Association advise driving instructors to teach new drivers to pulse brake lamps when stopping to improve visibility.</P>
                    <HD SOURCE="HD1">V. FMCSA Equivalent Level of Safety Analysis</HD>
                    <P>Bozeman requested that FMCSA grant an exemption from 49 CFR 393.25(e)—requiring certain exterior lamps to be steady burning—to allow it to operate CMVs equipped with Intellistop's module. FMCSA has determined that in order for Bozeman to operate vehicles in compliance with the FMCSRs, an exemption from 49 CFR 393.25(e) must be accompanied by limited exemptions from 49 CFR 393.11(a) and 393.25(c), both of which mandate that required lamps on CMVs operated in interstate commerce must, “at a minimum, meet the applicable requirements of 49 CFR 571.108 (FMVSS No. 108) in effect at the time of manufacture of the vehicle.” FMCSA grants exemptions only when it determines “such exemption[s] would likely achieve a level of safety that is equivalent to, or greater than, the level that would be achieved absent the exemption[s].”</P>
                    <P>
                        Rear-end crashes generally account for approximately 30 percent of all crashes. They often result from a failure to respond (or delays in responding) to a stopped or decelerating lead vehicle. Data on crashes that occurred between 2010 and 2016 show that large trucks are consistently three times more likely than other vehicles to be struck in the rear in two-vehicle fatal crashes.
                        <E T="51">4 5</E>
                        <FTREF/>
                         FMCSA is deeply interested in the development and deployment of technologies that can reduce the frequency, severity, and risk of rear-end crashes.
                    </P>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             U.S. Department of Transportation, National Highway Traffic Safety Administration (2012), Traffic Safety Facts—2010 Data; Large Trucks, Report No. DOT HS 811 628, Washington, DC (June 2012), 
                            <E T="03">available at: https://crashstats.crashstats.nhtsa.nhtsa.dot.gov/Api/Public/ViewPublication/811628.</E>
                        </P>
                        <P>
                            <SU>5</SU>
                             U.S. Department of Transportation, National Highway Traffic Safety Administration (2018), Traffic Safety Facts—2016 Data; Large Trucks, Report No. DOT HS 812 497, Washington, DC (May 2018), 
                            <E T="03">available at: https://crashstats.crashstats.nhtsa.nhtsa.dot.gov/Api/Public/Publication/812497.</E>
                        </P>
                    </FTNT>
                    <P>
                        Both FMCSA and NHTSA have examined alternative rear-signaling systems to reduce the incidence of rear-end crashes. While research efforts concluded that reductions in the 
                        <PRTPAGE P="54139"/>
                        incidence of rear-end crashes could be realized through certain rear-lighting systems that flash,
                        <SU>6</SU>
                        <FTREF/>
                         the FMCSRs do not currently permit the use of pulsating, brake-activated lamps on the rear of CMVs. FMCSA believes that the two agencies' previous research programs demonstrate that rear-signaling systems may be able to “improve attention getting” to reduce the frequency and severity of rear-end crashes. Any possible benefit must be balanced against a possible risk of increased driver distraction and confusion. In balancing these interests, the Agency was compelled to deny the Intellistop application for exemption, believing the industry-wide scope of the request was too broad for the Agency to effectively monitor for the potential risk of driver distraction or confusion, particularly where the exemption would impact FMVSS-required equipment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             Expanded Research and Development of an Enhanced Rear Signaling System for Commercial Motor Vehicles: Final Report, William A. Schaudt 
                            <E T="03">et al.</E>
                             (Apr. 2014) (Report No. FMCSA-RRT-13-009).
                        </P>
                    </FTNT>
                    <P>
                        The Agency acknowledges the limitations of the research studies completed to date and the overall data deficiencies in this area. Nonetheless, as noted in its Intellistop decision, the Agency recognizes that existing data do suggest a potential safety value in the use of alternative rear-signaling systems, generally. Specifically, FMCSA considered NHTSA's research concerning the development and evaluation of rear-signaling applications designed to reduce the frequency and severity of rear-end crashes via enhancements to rear-brake lighting. The study examined enhancements for (1) redirecting drivers' visual attention to the forward roadway (for cases involving a distracted driver) and (2) increasing the saliency or meaningfulness of the brake signal (for inattentive drivers).
                        <SU>7</SU>
                        <FTREF/>
                         The research considered the attention-getting capability and discomfort glare of a set of candidate rear brake lighting configurations using driver judgments and eye-drawing metrics. The results of this research served to narrow the set of candidate lighting configurations to those that would most likely be carried forward for additional on-road study. Based on subjective participant responses, this research indicates some form of flashing or variation in brake light brightness may be more than two times more attention-getting than the baseline, steady-burning brake lights for distracted drivers.
                        <SU>8</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             See NHTSA Study—Evaluation of Enhanced Brake Lights Using Surrogate Safety Metrics 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/811127.pdf.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Ibid. While data demonstrated that brighter flashing lights were the most attention-getting combination for distracted drivers in this study, flashing lights with no increase in brightness were still more effective at capturing a distracted driver's attention than the baseline steady-burning brake lamps. Both look-up (eye drawing) data and interview data supported the hypothesis that simultaneous flashing of all rear lighting combined with increased brightness would be effective in redirecting the driver's eyes to the lead vehicle when the driver is looking away with tasks that involve visual load.
                        </P>
                    </FTNT>
                    <P>While some of the data collected may not be statistically significant, the study results nonetheless indicate that additional efforts to get drivers' attention when they are approaching the rear of a CMV that is stopping may be helpful to reduce driver distraction and, ultimately, rear-end crashes. This was among several reasons why researchers concluded that the promising nature of enhanced brake lighting systems warranted additional work and research. FMCSA believes the acquisition of relevant data through real-world monitoring is of critical importance as the Agency continues to seek new and innovative options for reducing crashes. This is particularly true given the data limitations noted in previous studies.</P>
                    <P>
                        Despite finding a potential safety value in the use of alternative rear-signaling technology, in the Intellistop decision the Agency determined that the data presently available did not justify an exemption to allow all interstate motor carriers to alter the performance of an FMVSS-required lighting device (
                        <E T="03">i.e.,</E>
                         stop lamps) on any CMV. In contrast, however, Bozeman's application requests an exemption t for CMV operations by only one interstate motor carrier. As FMCSA noted in its denial of Intellistop's industry-wide exemption application, individual motor carrier exemption requests typically align more closely with FMCSA and NHTSA authorities to ensure compliance with all other applicable regulations and with the safety performance of the smaller population of affected motor carriers. With an individual motor carrier exemption, the Agency can also more easily monitor compliance with terms and conditions intended to ensure operations conducted under the exemption do in fact provide an equivalent level of safety. Bozeman's application demonstrates why this is particularly true, since the vehicles it operates under the exemption would be easily identifiable, and compliance with NHTSA's “make inoperative” prohibition and other related regulations could be readily checked.
                    </P>
                    <P>The Agency's decision to grant this exemption is based on the data suggesting enhanced rear signal systems, such as pulsing brake lights, may help reduce the frequency and severity of rear-end crashes, as well as on the limited number of vehicles operating under the exemption. Bozeman currently operates a nationwide fleet of approximately 223 vehicles. The installation of the module on a limited and definite number of CMVs operated by a single motor carrier provides the opportunity for the Agency to collect data on the effects of pulsing brake lights in real-world conditions. The terms and conditions FMCSA imposes through this exemption will ensure appropriate Federal oversight in the use of these devices on a finite number of CMVs utilizing a phased in approach.</P>
                    <P>Initially restricting the application of this exemption to a limited portion of Bozeman's fleet will allow for a comparison between the crash involvement of Bozeman CMVs equipped with the Intellistop device, those without the device, and the overall crash involvement of CMVs operated by similarly sized motor carriers with similar operations and overall safety performance. Data collected through this exemption and any other similar exemptions the Agency may grant in the future will allow for an evaluation of how the Intellistop module may improve following vehicle driver responses to CMV braking. Consideration of the scope of any particular carrier's operation and the number and types of vehicles the carrier operates are critical to ensuring FMCSA gathers the most relevant data as it considers safety benefits gained by the deployment of these rear brake lamp systems. The Agency's incremental approach in granting this limited exemption will also allow FMCSA to investigate and respond as appropriate to any incidents of alleged driver confusion attributable to use of the brake lamp systems in CMV operations, which some commenters have raised as a potential concern.</P>
                    <P>
                        FMCSA acknowledges that all other pulsating rear lamp exemptions the Agency previously granted involved the addition of non-mandatory auxiliary lights while the Intellistop module that Bozeman seeks to install alters the functionality of original equipment manufacturers' lamps. Nonetheless, those previous exemptions are instructive, most notably Groendyke. The Groendyke exemption involved auxiliary lamps rather than required lighting, but, like the Intellistop system, 
                        <PRTPAGE P="54140"/>
                        the modulation of the auxiliary lamps in the Groendyke exemption occurs during braking. More importantly, the Groendyke case also involved a technology installed on a number of one carrier's CMVs, which allowed the Agency more realistically to monitor the exemptee's compliance with other applicable regulations. When granting the exemption, FMCSA found Groendyke's previous experience with brake-activated pulsating warning lamps, which resulted in a 33.7 percent reduction in rear-end crashes, to be compelling. Through the granting of the Groendyke exemption, the Agency was able to collect additional valuable real-world data about the operation of the module at issue. Similarly, limited exemptions with narrowly tailored terms and conditions permitting the use of the Intellistop module will allow the Agency to collect data about the reliability and safety benefits of an integrated alternative rear-signaling system.
                    </P>
                    <P>FMCSA notes that Bozeman failed to provide any evidence beyond what is publicly available about the integration of the Intellistop module with its CMVs' existing systems or to support the claim that a malfunction of the device would result in the brake lights returning to OEM functionality. Nonetheless, based on the Agency's understanding of the device's design and assertions made in publicly available materials, FMCSA believes concerns about both the reliability and integration of the device are sufficiently alleviated in this instance because of the narrow scope of the exemption and the stringent requirements imposed by the Agency in the terms and conditions. Any evidence that module failure results in anything less than a return to brake light OEM functionality will result in revocation of the exemption.</P>
                    <P>Likewise, granting this exemption to an easily identifiable carrier alleviates concerns the Agency previously articulated about its inability to monitor compliance with NHTSA's “make inoperative” prohibition. FMCSA can monitor compliance with this exemption and ensure that only Bozeman installs the module on its own CMVs.</P>
                    <P>Notwithstanding the promise the Agency sees in this technology, exemptions are warranted only if the applicant can demonstrate that an equivalent level of safety likely will be maintained. For this reason, the Agency believes it is important to consider the safety record of the applicant motor carrier. Bozeman's on-road safety performance record warrants granting this exemption, to collect safety performance data in a limited set of operations. Bozeman's out-of-service (OOS) rate is below the national average, with a vehicle OOS rate of only 10.7 percent (national average—21.4 percent), a driver OOS rate of only 1 percent (national average—6 percent), and hazardous material OOS rate of 3.3 percent (national average—4.5 percent). Bozeman maintains a Satisfactory safety rating.</P>
                    <P>FMCSA acknowledges that the research described above did not fully address all of the implications of allowing pulsating stop lamps, especially by automobiles where stop lamp design is stylized and often brand-specific, and that it remains unclear whether deviation from the uniform brake-light patterns of CMVs may cause confusion among highway users when the lamps are pulsated during braking. When Intellistop sought an industry-wide exemption, FMCSA concluded that the potential risks of widespread adoption outweighed the potential benefits. But FMCSA reaches a different conclusion here, where any risks will be more limited and easier to monitor. FMCSA notes, moreover, that the research suggests that the use of rear-signaling systems may be a means to reduce the frequency and severity of rear-end crashes involving CMVs, as do the reductions in rear-end crashes reported by Groendyke (84 FR 17910, April 26, 2019) utilizing an auxiliary flashing rear-signaling system. These facts and the specific safety record of the applicant motor carrier support the conclusion that permitting the use of Intellistop's pulsating-lamp module among a definite and limited population of vehicles of a single motor carrier, subject to terms and conditions for monitoring, is likely to achieve a level of safety that is equivalent to, or greater than, the level of safety achieved without the exemption.</P>
                    <HD SOURCE="HD1">VI. Exemption Decision</HD>
                    <HD SOURCE="HD2">a. Grant of Exemption</HD>
                    <P>FMCSA has evaluated Bozeman's exemption application and the comments received. The Agency believes that granting a temporary exemption to section 393.25(e), and temporary limited exemptions to the requirements of 49 CFR 393.11(a) and 393.25(c) to allow Bozeman to operate a limited number of CMVs equipped with Intellistop's pulsating-brake module will likely achieve a level of safety that is equivalent to, or greater than, the level of safety achieved without the exemption.</P>
                    <P>This exemption is restricted to vehicles in Bozeman's fleet and provides relief from the steady burning requirement for rear clearance, identification, and brake lamp activation for 2 seconds following brake activation. All other FMVSS No. 108 requirements cross-referenced or incorporated within the FMCSRs remain in effect, with a limited exception to the requirement in sections 393.11(a) and 393.25(c) for only the first two seconds of brake engagement. In addition, through the terms and conditions, FMCSA will be able to monitor to performance of these CMVs to determine whether they were involved in a crash and whether they appear to be overrepresented in crashes compared to a control group (Bozeman vehicles that are not equipped with the Intellistop unit but are operating on similar routes with similar schedules, etc.).</P>
                    <P>The Agency has evaluated the application and hereby grants the exemption for a 5-year period, beginning June 28, 2024 and ending June 28, 2029. During the temporary exemption period, Bozeman (Applicant) may operate CMVs, equipped with Intellistop's module that pulses the rear brake, clearance, and identification lamps from a lower-level lighting intensity to a higher-level lighting intensity 4 times in 2 seconds. This grant applies only to the “steady-burning” requirement as specified in FMVSS 108 S7.3, and Tables I-a, I-b, and I-c. All other photometric and requirements for stop lamps specified in FMVSS 108 must still be met.</P>
                    <HD SOURCE="HD2">b. Terms and Conditions of the Exemption</HD>
                    <P>
                        <E T="03">(i). Installation of the Intellistop module.</E>
                         The Applicant is responsible for installing the Intellistop module.
                        <SU>9</SU>
                        <FTREF/>
                         This exemption applies only to CMVs owned and operated by the Applicant. THE PRODUCT MUST BE INSTALLED BY THE OWNER OF THE VEHICLE ONLY. IN ACCORDANCE WITH FEDERAL LAW (49 U.S.C. 30112(a)(1) AND 49 U.S.C. 30122), THE PRODUCT MAY NOT BE INSTALLED BY ANY MANUFACTURER, DISTRIBUTOR, DEALER, RENTAL COMPANY, OR MOTOR VEHICLE REPAIR BUSINESS.
                    </P>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             FMCSA has authority to grant temporary exemptions to the FMCSRs to motor carriers, but not to CMV manufacturers or vehicle alterers.
                        </P>
                    </FTNT>
                    <P>
                        The Applicant may not install the Intellistop module on more than 25% of its power units, and 25% of its trailers during the first year of operation under the exemption, or on more than 50% of its power units, and 50% of its trailers during the second year. The Applicant shall provide the vehicle identification 
                        <PRTPAGE P="54141"/>
                        numbers for the power units and trailers that will be operating under the exemption.
                    </P>
                    <P>The Applicant must maintain a control group of equal size to its power units and trailers equipped with the Intellistop unit during the first 2 years of the exemption. And the CMVs in the control group must operate on routes with schedules that are similar to those of the Intellistop-equipped vehicles.</P>
                    <P>Installed modules may only be used to modulate rear clearance, identification, and stop lamps.</P>
                    <P>
                        Within 30 business days of its first installation of the Intellistop module, the Applicant must notify the Agency via email at 
                        <E T="03">MCPSV@dot.gov</E>
                         of the number and type of CMVs it is operating, or intends to operate, with the Intellistop module installed; the module type and/or sub-type; and any trouble-shooting, repair, or other use of an Intellistop module covered by this exemption. Amended installation information, including CMVs on which the device is installed or uninstalled, may then be submitted via the quarterly submission specified in sub-paragraph (iv) 
                        <E T="03">Recurring Reporting Requirements</E>
                         below.
                    </P>
                    <P>If the Applicant sells or transfers ownership of any CMV equipped with an Intellistop module under this exemption, or if the exemption is terminated for any reason, the Applicant must remove the module and restore the CMV to full compliance with the FMCSRs and FMVSSs prior to the transfer of ownership, or upon termination of the exemption. The Applicant must also certify in writing to the purchaser/transferee and FMCSA that the CMV has been restored to compliance with the FMCSRs and FMVSSs.</P>
                    <P>
                        <E T="03">(ii). Driver Pre-Trip Vehicle Inspections.</E>
                         The Applicant must ensure that each driver of an Intellistop-equipped CMV performs a pre-trip inspection to confirm that the Intellistop module operates only for 2 seconds and does not interfere with the normal operation of lamps after 2 seconds. If the lamps are not steady burning after 2 seconds, the CMV must not be dispatched until repairs are made. At the end of each work shift, drivers must note any problems observed by or reported to the driver concerning the Intellistop module on a driver vehicle inspection report (see 49 CFR 396.11), and the motor carrier must correct the problem before the vehicle is dispatched again.
                    </P>
                    <P>
                        <E T="03">(iii). Safety Notification to FMCSA.</E>
                         The Applicant must notify FMCSA within 5 business days after it becomes aware, or otherwise determines, that the continued use of a module or entire type or subtype of module covered by this exemption is no longer likely to maintain a level of safety that is at least equivalent to the level that would be achieved absent this exemption. Notification must be made by sending an email to FMCSA at 
                        <E T="03">MCPSD@dot.gov.</E>
                    </P>
                    <P>
                        <E T="03">(iv). Recurring Reporting Requirements</E>
                        . During the exemption period, the Applicant must provide quarterly submissions to FMCSA of the data described below. The Applicant's first quarterly submission is due on September 30, 2024, and thereafter will be due every 3 months, on the first business day of the month. The first quarterly submission must include the required data beginning 60 days prior to the date of module installation. All quarterly submissions must include data through at least the 14th day (inclusive) of the month immediately preceding the submission. Unless otherwise agreed to by FMCSA, quarterly submissions must be sent via email to FMCSA at 
                        <E T="03">MCPSD@dot.gov.</E>
                         If the Applicant does not have one or more categories of information described below, it must, within 20 days of the effective date of this exemption, discuss with FMCSA other available information. If the Agency accepts such alternative information, the Applicant must submit that data in lieu of the information specified below.
                    </P>
                    <P>In the quarterly submission, the Applicant must provide FMCSA the following information known to the Applicant regarding all crashes and other incidents (“crash or incident”) involving a CMV equipped with an Intellistop module covered by this exemption where the Intellistop module is potentially implicated. Crashes involving a CMV equipped with an Intellistop module that are “head-on” or otherwise involve only the front of the Intellistop-equipped CMV impacting some other object (such that the Intellistop module, without question, could not be implicated) are not subject to this condition. For the first quarterly submission, data must include any crash or incident occurring in the 60 days prior to installation of the Intellistop module that would have been contained in this reporting category had the module been installed at the time of the crash or incident. The Applicant's knowledge includes, but is not limited to: (1) outreach from a consumer, lawyer, or any other person or organization (via letter, email, fax, telephone call, social media, or any other medium); (2) lawsuits to which the Applicant is a party, or otherwise knows exist where an Intellistop module covered by this exemption is an issue in the litigation; and (3) insurance claims against the Applicant related to use of the Intellistop module. When in the Applicant's possession, information provided to FMCSA shall include:</P>
                    <P>1. The date of first contact regarding, or the Applicant's first awareness of, the crash or incident;</P>
                    <P>2. The date of the most recent follow-up contact, if any, between the Applicant and the other party;</P>
                    <P>3. The date, time, and location of the crash or incident;</P>
                    <P>4. A brief description of the crash or incident; and</P>
                    <P>5. The Intellistop module type and/or subtype(s) involved in the crash or incident.</P>
                    <P>6. Information, if any, indicating that the Intellistop module is, or was, not working as intended, or caused confusion or a roadway hazard for either the consumer or other motorists.</P>
                    <P>
                        <E T="03">Annual data.</E>
                         At the end of each 12-month period this exemption is in effect, the Applicant shall, within 60 days, submit a report detailing all information in its possession regarding crash rates and vehicle miles traveled by CMVs equipped with a module covered by this exemption. Additionally, the report shall specify the number and type of CMVs the Applicant is operating under the exemption, the module type or sub-type installed on each CMV, the affected lamps (rear clearance, identification, and/or brake lamps), the number of covered vehicles sold or transferred in ownership during the 12-month reporting period, and a statement certifying that any sold/transferred vehicle(s) have been restored to compliance with applicable FMVSSs and FMCSRs.
                    </P>
                    <P>
                        <E T="03">Meetings.</E>
                         The Applicant shall, at FMCSA's request, meet with FMCSA to answer questions regarding data and information provided by the Applicant under this exemption.
                    </P>
                    <P>
                        <E T="03">(v). Early Termination</E>
                    </P>
                    <P>The exemption is valid for 5 years from the date of issuance unless rescinded earlier by FMCSA. FMCSA will terminate the exemption if: (1) the Applicant fails to comply with the terms and conditions; (2) the exemption results in a lower level of safety than was maintained before it was granted; or (3) continuation of the exemption would not be consistent with the goals and objectives of 49 U.S.C. 31136(e) and 31315(b).</P>
                    <P>
                        <E T="03">(vi). Notification from the Public</E>
                    </P>
                    <P>
                        Interested parties possessing information that would demonstrate that Bozeman's CMVs equipped with Intellistop's pulsating rear-light module may not be achieving the requisite statutory level of safety should immediately notify FMCSA. The 
                        <PRTPAGE P="54142"/>
                        Agency will evaluate any such information and, if safety is being compromised or if the continuation of the exemption is not consistent with 49 U.S.C. 31136(e) and 31315(b), will take immediate steps to revoke the exemption.
                    </P>
                    <P>
                        <E T="03">(vii). Non-Endorsement</E>
                    </P>
                    <P>This limited and conditional exemption does not constitute an endorsement of the Intellistop product by FMCSA, NHTSA, the U.S. DOT, or any of their components, or by any of these agencies' employees or agents. As a condition of the continued effectiveness of this exemption, Intellistop is expressly prohibited from describing its product as approved by, endorsed by, or otherwise authorized by FMCSA, NHTSA, or U.S. DOT, or as compliant with Federal safety regulations.</P>
                    <HD SOURCE="HD1">VII. Preemption</HD>
                    <P>In accordance with 49 U.S.C. 31315(d), as implemented by 49 CFR 381.600, during the period this exemption is in effect, no State shall enforce any law or regulation applicable to interstate commerce that conflicts with or is inconsistent with this exemption. States may, but are not required to, adopt the same exemption with respect to operations in intrastate commerce.</P>
                    <SIG>
                        <NAME>Vincent G. White,</NAME>
                        <TITLE>Acting Administrator.</TITLE>
                    </SIG>
                </FURINF>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14265 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. FMCSA-2013-0122; FMCSA-2013-0125; FMCSA-2014-0384;FMCSA-2017-0057; FMCSA-2021-0015; FMCSA-2022-0034]</DEPDOC>
                <SUBJECT>Qualification of Drivers; Exemption Applications; Hearing</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of renewal of exemptions; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>FMCSA announces its decision to renew exemptions for 10 individuals from the hearing requirement in the Federal Motor Carrier Safety Regulations (FMCSRs) for interstate commercial motor vehicle (CMV) drivers. The exemptions enable these hard of hearing and deaf individuals to continue to operate CMVs in interstate commerce.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The exemptions are applicable on July 11, 2024. The exemptions expire on July 11, 2026. Comments must be received on or before July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments identified by the Federal Docket Management System Docket No. FMCSA-2013-0122, Docket No. FMCSA-2013-0125, Docket No. FMCSA-2014-0384, Docket No. FMCSA-2017-0057, Docket No. FMCSA-2021-0015, or Docket No. FMCSA-2022-0034 using any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">www.regulations.gov/,</E>
                         insert the docket number (FMCSA-2013-0122, FMCSA-2013-0125, FMCSA-2014-0384, FMCSA-2017-0057, FMCSA-2021-0015, or FMCSA-2022-0034) in the keyword box and click “Search.” Next, sort the results by “Posted (Newer-Older),” choose the first notice listed, and click on the “Comment” button. Follow the online instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Dockets Operations; U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor, Washington, DC 20590-0001.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery:</E>
                         West Building Ground Floor, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m. ET Monday through Friday, except Federal Holidays.
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         (202) 493-2251.
                    </P>
                    <P>
                        To avoid duplication, please use only one of these four methods. See the “Public Participation” portion of the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section for instructions on submitting comments.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Ms. Christine A. Hydock, Chief, Medical Programs Division, FMCSA, DOT, 1200 New Jersey Avenue SE, Room W64-224, Washington, DC 20590-0001, (202) 366-4001, 
                        <E T="03">fmcsamedical@dot.gov.</E>
                         Office hours are 8:30 a.m. to 5 p.m. ET Monday through Friday, except Federal holidays. If you have questions regarding viewing or submitting material to the docket, contact Dockets Operations, (202) 366-9826.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Public Participation</HD>
                <HD SOURCE="HD2">A. Submitting Comments</HD>
                <P>If you submit a comment, please include the docket number for this notice (Docket No. FMCSA-2013-0122, Docket No. FMCSA-2013-0125, Docket No. FMCSA-2014-0384, Docket No. FMCSA-2017-0057, Docket No. FMCSA-2021-0015, or Docket No. FMCSA-2022-0034), indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. You may submit your comments and material online or by fax, mail, or hand delivery, but please use only one of these means. FMCSA recommends that you include your name and a mailing address, an email address, or a phone number in the body of your document so that FMCSA can contact you if there are questions regarding your submission.</P>
                <P>
                    To submit your comment online, go to 
                    <E T="03">www.regulations.gov/,</E>
                     insert the docket number (FMCSA-2013-0122, FMCSA-2013-0125, FMCSA-2014-0384, FMCSA-2017-0057, FMCSA-2021-0015, or FMCSA-2022-0034) in the keyword box and click “Search.” Next, sort the results by “Posted (Newer-Older),” choose the first notice listed, click the “Comment” button, and type your comment into the text box on the following screen. Choose whether you are submitting your comment as an individual or on behalf of a third party and then submit.
                </P>
                <P>
                    If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 8
                    <FR>1/2</FR>
                     by 11 inches, suitable for copying and electronic filing. FMCSA will consider all comments and material received during the comment period.
                </P>
                <HD SOURCE="HD2">B. Viewing Comments</HD>
                <P>
                    To view comments go to 
                    <E T="03">www.regulations.gov.</E>
                     Insert the docket number (FMCSA-2013-0122, FMCSA-2013-0125, FMCSA-2014-0384, FMCSA-2017-0057, FMCSA-2021-0015, or FMCSA-2022-0034) in the keyword box and click “Search.” Next, sort the results by “Posted (Newer-Older),” choose the first notice listed, and click “Browse Comments.” If you do not have access to the internet, you may view the docket online by visiting Dockets Operations on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m. ET Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations.
                </P>
                <HD SOURCE="HD2">C. Privacy Act</HD>
                <P>
                    In accordance with 49 U.S.C. 31315(b)(6), DOT solicits comments from the public on the exemption requests. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov.</E>
                     As described in the system of records notice DOT/ALL 14 (Federal Docket Management System), which can be reviewed at 
                    <PRTPAGE P="54143"/>
                    <E T="03">https://www.transportation.gov/individuals/privacy/privacy-act-system-records-notices,</E>
                     the comments are searchable by the name of the submitter.
                </P>
                <HD SOURCE="HD1">II. Background</HD>
                <P>Under 49 U.S.C. 31136(e) and 31315(b), FMCSA may grant an exemption from the FMCSRs for no longer than a 5-year period if it finds such exemption would likely achieve a level of safety that is equivalent to, or greater than, the level that would be achieved absent such exemption. The statutes also allow the Agency to renew exemptions at the end of the 5-year period. FMCSA grants medical exemptions from the FMCSRs for a 2-year period to align with the maximum duration of a driver's medical certification.</P>
                <P>The physical qualification standard for drivers regarding hearing found in 49 CFR 391.41(b)(11) states that a person is physically qualified to drive a CMV if that person first perceives a forced whispered voice in the better ear at not less than 5 feet with or without the use of a hearing aid or, if tested by use of an audiometric device, does not have an average hearing loss in the better ear greater than 40 decibels at 500 Hz, 1,000 Hz, and 2,000 Hz with or without a hearing aid when the audiometric device is calibrated to American National Standard (formerly ASA Standard) Z24.5—1951.</P>
                <P>This standard was adopted in 1970 and was revised in 1971 to allow drivers to be qualified under this standard while wearing a hearing aid, (35 FR 6458, 6463</P>
                <P>(Apr. 22, 1970) and 36 FR 12857 (July 8, 1971), respectively).</P>
                <P>The 10 individuals listed in this notice have requested renewal of their exemptions from the hearing standard in § 391.41(b)(11), in accordance with FMCSA procedures. Accordingly, FMCSA has evaluated these applications for renewal on their merits and decided to extend each exemption for a renewable 2-year period.</P>
                <HD SOURCE="HD1">III. Request for Comments</HD>
                <P>Interested parties or organizations possessing information that would otherwise show that any, or all, of these drivers are not currently achieving the statutory level of safety should immediately notify FMCSA. The Agency will evaluate any adverse evidence submitted and, if safety is being compromised or if continuation of the exemption would not be consistent with the goals and objectives of 49 U.S.C. 31136(e) and 31315(b), FMCSA will take immediate steps to revoke the exemption of a driver.</P>
                <HD SOURCE="HD1">IV. Basis for Renewing Exemptions</HD>
                <P>In accordance with 49 U.S.C. 31136(e) and 31315(b), each of the 10 applicants has satisfied the renewal conditions for obtaining an exemption from the hearing requirement. The 10 drivers in this notice remain in good standing with the Agency. In addition, for commercial driver's license (CDL) holders, the Commercial Driver's License Information System and the Motor Carrier Management Information System are searched for crash and violation data. For non-CDL holders, the Agency reviews the driving records from the State Driver's Licensing Agency. These factors provide an adequate basis for predicting each driver's ability to continue to safely operate a CMV in interstate commerce. Therefore, FMCSA concludes that extending the exemption for each of these drivers for a period of 2 years is likely to achieve a level of safety equal to that existing without the exemption.</P>
                <P>As of July 11, 2024, and in accordance with 49 U.S.C. 31136(e) and 31315(b), the following 10 individuals have satisfied the renewal conditions for obtaining an exemption from the hearing requirement in the FMCSRs for interstate CMV drivers:</P>
                <FP SOURCE="FP-1">Nathan Bohannon (TX)</FP>
                <FP SOURCE="FP-1">Keith Drown (ID)</FP>
                <FP SOURCE="FP-1">Jeremy Earl (IL)</FP>
                <FP SOURCE="FP-1">Edison Garcia (MD)</FP>
                <FP SOURCE="FP-1">Rodney Henley (AL)</FP>
                <FP SOURCE="FP-1">Larry Mancill (IL)</FP>
                <FP SOURCE="FP-1">Glenn McCormack (IL)</FP>
                <FP SOURCE="FP-1">Bradley Sexton (OK)</FP>
                <FP SOURCE="FP-1">Russell Smith (OH)</FP>
                <FP SOURCE="FP-1">William Smitley (CA)</FP>
                <P>The drivers were included in docket number FMCSA-2013-0122, FMCSA-2013-0125, FMCSA-2014-0384, FMCSA-2017-0057, FMCSA-2021-0015, or FMCSA-2022-0034. Their exemptions are applicable as of July 11, 2024 and will expire on July 11, 2026.</P>
                <HD SOURCE="HD1">V. Conditions and Requirements</HD>
                <P>The exemptions are extended subject to the following conditions: (1) each driver must report any crashes or accidents as defined in § 390.5T; and (2) report all citations and convictions for disqualifying offenses under 49 CFR parts 383 and 391 to FMCSA; and (3) each driver prohibited from operating a motorcoach or bus with passengers in interstate commerce. The driver must also have a copy of the exemption when driving, for presentation to a duly authorized Federal, State, or local enforcement official. In addition, the exemption does not exempt the individual from meeting the applicable CDL testing requirements. Each exemption will be valid for 2 years unless rescinded earlier by FMCSA. The exemption will be rescinded if: (1) the person fails to comply with the terms and conditions of the exemption; (2) the exemption has resulted in a lower level of safety than was maintained before it was granted; or (3) continuation of the exemption would not be consistent with the goals and objectives of 49 U.S.C. 31136(e) and 31315(b).</P>
                <HD SOURCE="HD1">VI. Preemption</HD>
                <P>During the period the exemption is in effect, no State shall enforce any law or regulation that conflicts with this exemption with respect to a person operating under the exemption.</P>
                <HD SOURCE="HD1">VII. Conclusion</HD>
                <P>Based upon its evaluation of the 10 exemption applications, FMCSA renews the exemptions of the aforementioned drivers from the hearing requirement in § 391.41 (b)(11). In accordance with 49 U.S.C. 31136(e) and 31315(b), each exemption will be valid for 2 years unless revoked earlier by FMCSA.</P>
                <SIG>
                    <NAME>Larry W. Minor,</NAME>
                    <TITLE>Associate Administrator for Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14326 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. FMCSA-2024-0021]</DEPDOC>
                <SUBJECT>Qualification of Drivers; Exemption Applications; Epilepsy and Seizure Disorders</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of final disposition.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>FMCSA announces its decision to exempt 12 individuals from the requirement in the Federal Motor Carrier Safety Regulations (FMCSRs) that interstate commercial motor vehicle (CMV) drivers have “no established medical history or clinical diagnosis of epilepsy or any other condition which is likely to cause loss of consciousness or any loss of ability to control a CMV.” The exemptions enable these individuals who have had one or more seizures and are taking anti-seizure medication to operate CMVs in interstate commerce.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The exemptions were applicable on June 17, 2024. The exemptions expire on June 17, 2026.</P>
                </DATES>
                <FURINF>
                    <PRTPAGE P="54144"/>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Ms. Christine A. Hydock, Chief, Medical Programs Division, FMCSA, DOT, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, (202) 366-4001, 
                        <E T="03">fmcsamedical@dot.gov.</E>
                         Office hours are from 8:30 a.m. to 5 p.m. ET Monday through Friday, except Federal holidays. If you have questions regarding viewing or submitting material to the docket, contact Dockets Operations, (202) 366-9826.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Public Participation</HD>
                <HD SOURCE="HD2">A. Viewing Comments</HD>
                <P>
                    To view comments go to 
                    <E T="03">www.regulations.gov.</E>
                     Insert the docket number, (FMCSA-2024-0021) in the keyword box and click “Search.” Next, sort the results by “Posted (Older-Newer),” choose the first notice listed, and click “Browse Comments.” If you do not have access to the internet, you may view the docket online by visiting Dockets Operations on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m. ET Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations.
                </P>
                <HD SOURCE="HD2">B. Privacy Act</HD>
                <P>
                    In accordance with 49 U.S.C. 31315(b)(6), DOT solicits comments from the public on the exemption requests. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov.</E>
                     As described in the system of records notice DOT/ALL 14 (Federal Docket Management System), which can be reviewed at 
                    <E T="03">https://www.transportation.gov/individuals/privacy/privacy-act-system-records-notices,</E>
                     the comments are searchable by the name of the submitter.
                </P>
                <HD SOURCE="HD1">II. Background</HD>
                <P>On May 13, 2024, FMCSA published a notice announcing receipt of applications from 12 individuals requesting an exemption from the epilepsy and seizure disorders prohibition in 49 CFR 391.41(b)(8) and requested comments from the public (89 FR 41489). The public comment period ended on June 12, 2024, and no comments were received.</P>
                <P>FMCSA has evaluated the eligibility of these applicants and determined that granting exemptions to these individuals would likely achieve a level of safety that is equivalent to, or greater than, the level that would be achieved by complying with § 391.41(b)(8).</P>
                <P>The physical qualification standard for drivers regarding epilepsy found in § 391.41(b)(8) states that a person is physically qualified to drive a CMV if that person has no established medical history or clinical diagnosis of epilepsy or any other condition which is likely to cause the loss of consciousness or any loss of ability to control a CMV.</P>
                <P>
                    In addition to the regulations, FMCSA has published advisory criteria 
                    <SU>1</SU>
                    <FTREF/>
                     to assist medical examiners (MEs) in determining whether drivers with certain medical conditions are qualified to operate a CMV in interstate commerce.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         These criteria may be found in APPENDIX A TO PART 391—MEDICAL ADVISORY CRITERIA, section H. Epilepsy: § 391.41(b)(8), paragraphs 3, 4, and 5, which is available on the internet at 
                        <E T="03">https://www.gpo.gov/fdsys/pkg/CFR-2015-title49-vol5/pdf/CFR-2015-title49-vol5-part391-appA.pdf.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">III. Discussion of Comments</HD>
                <P>FMCSA received no comments in this proceeding.</P>
                <HD SOURCE="HD1">IV. Basis for Exemption Determination</HD>
                <P>Under 49 U.S.C. 31136(e) and 31315(b), FMCSA may grant an exemption from the FMCSRs for no longer than a 5-year period if it finds such exemption would likely achieve a level of safety that is equivalent to, or greater than, the level that would be achieved absent such exemption. The statutes allow the Agency to renew exemptions at the end of the 5-year period. However, FMCSA grants medical exemptions from the FMCSRs for a 2-year period to align with the maximum duration of a driver's medical certification.</P>
                <P>
                    The Agency's decision regarding these exemption applications is based on the 2007 recommendations of the Agency's Medical Expert Panel. The Agency conducted an individualized assessment of each applicant's medical information, including the root cause of the respective seizure(s) and medical information about the applicant's seizure history, the length of time that has elapsed since the individual's last seizure, the stability of each individual's treatment regimen and the duration of time on or off of anti-seizure medication. In addition, the Agency reviewed the treating clinician's medical opinion related to the ability of the driver to safely operate a CMV with a history of seizure and each applicant's driving record found in the Commercial Driver's License Information System for commercial driver's license (CDL) holders, and interstate and intrastate inspections recorded in the Motor Carrier Management Information System. For non-CDL holders, the Agency reviewed the driving records from the State Driver's Licensing Agency. A summary of each applicant's seizure history was discussed in the May 13, 2024, 
                    <E T="04">Federal Register</E>
                     notice (89 FR 41489) and will not be repeated in this notice.
                </P>
                <P>These 12 applicants have been seizure-free over a range of 16 years while taking anti-seizure medication and maintained a stable medication treatment regimen for the last 2 years. In each case, the applicant's treating physician verified his or her seizure history and supports the ability to drive commercially.</P>
                <P>The Agency acknowledges the potential consequences of a driver experiencing a seizure while operating a CMV. However, the Agency believes the drivers granted this exemption have demonstrated that they are unlikely to have a seizure and their medical condition does not pose a risk to public safety.</P>
                <P>Consequently, FMCSA finds further that in each case exempting these applicants from the epilepsy and seizure disorder prohibition in § 391.41(b)(8) would likely achieve a level of safety equal to that existing without the exemption, consistent with the applicable standard in 49 U.S.C. 31315(b)(1).</P>
                <HD SOURCE="HD1">V. Conditions and Requirements</HD>
                <P>The terms and conditions of the exemption are provided to the applicants in the exemption document and include the following: (1) each driver must remain seizure-free and maintain a stable treatment during the 2-year exemption period; (2) each driver must submit annual reports from their treating physicians attesting to the stability of treatment and that the driver has remained seizure-free; (3) each driver must undergo an annual medical examination by a certified ME, as defined by § 390.5T; and (4) each driver must provide a copy of the annual medical certification to the employer for retention in the driver's qualification file, or keep a copy of his/her driver's qualification file if he/she is self-employed. The driver must also have a copy of the exemption when driving, for presentation to a duly authorized Federal, State, or local enforcement official.</P>
                <HD SOURCE="HD1">VI. Preemption</HD>
                <P>
                    During the period the exemption is in effect, no State shall enforce any law or regulation that conflicts with this exemption with respect to a person operating under the exemption.
                    <PRTPAGE P="54145"/>
                </P>
                <HD SOURCE="HD1">VII. Conclusion</HD>
                <P>Based upon its evaluation of the 12 exemption applications, FMCSA exempts the following drivers from the epilepsy and seizure disorder prohibition in § 391.41(b)(8), subject to the requirements cited above:</P>
                <FP SOURCE="FP-1">Travis Baugh (KY)</FP>
                <FP SOURCE="FP-1">Justin Brashers (MO)</FP>
                <FP SOURCE="FP-1">Donald Gloy (AZ)</FP>
                <FP SOURCE="FP-1">Eric Kirch (IL)</FP>
                <FP SOURCE="FP-1">Cole Leonardson (ID)</FP>
                <FP SOURCE="FP-1">Adam Marcus (NY)</FP>
                <FP SOURCE="FP-1">Adam Rossmiller (NC)</FP>
                <FP SOURCE="FP-1">Andre Santiago (NJ)</FP>
                <FP SOURCE="FP-1">Jayes Scott (MS)</FP>
                <FP SOURCE="FP-1">Nathan Shamon (PA)</FP>
                <FP SOURCE="FP-1">Tyler Tilson (VA)</FP>
                <FP SOURCE="FP-1">Daniel Troya (NC)</FP>
                <P>In accordance with 49 U.S.C. 31315(b), each exemption will be valid for 2 years from the effective date unless revoked earlier by FMCSA. The exemption will be revoked if the following occurs: (1) the person fails to comply with the terms and conditions of the exemption; (2) the exemption has resulted in a lower level of safety than was maintained prior to being granted; or (3) continuation of the exemption would not be consistent with the goals and objectives of 49 U.S.C. 31136, 49 U.S.C. chapter 313, or the FMCSRs.</P>
                <SIG>
                    <NAME>Larry W. Minor,</NAME>
                    <TITLE>Associate Administrator for Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14323 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. FMCSA-2024-0022]</DEPDOC>
                <SUBJECT>Qualification of Drivers; Exemption Applications; Epilepsy and Seizure Disorders</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of applications for exemption; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>FMCSA announces receipt of applications from 13 individuals for an exemption from the prohibition in the Federal Motor Carrier Safety Regulations (FMCSRs) against persons with a clinical diagnosis of epilepsy or any other condition that is likely to cause a loss of consciousness or any loss of ability to control a commercial motor vehicle (CMV) to drive in interstate commerce. If granted, the exemptions would enable these individuals who have had one or more seizures and are taking anti-seizure medication to operate CMVs in interstate commerce.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments identified by the Federal Docket Management System Docket No. FMCSA-2024-0022 using any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">www.regulations.gov/,</E>
                         insert the docket number (FMCSA-2024-0022) in the keyword box and click “Search.” Next, choose the only notice listed, and click on the “Comment” button. Follow the online instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Dockets Operations; U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor, Washington, DC 20590-0001.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery:</E>
                         West Building Ground Floor, 1200 New Jersey Avenue SE, Washington, DC, 20590-0001 between 9 a.m. and 5 p.m. ET Monday through Friday, except Federal Holidays.
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         (202) 493-2251.
                    </P>
                    <P>
                        To avoid duplication, please use only one of these four methods. See the “Public Participation” portion of the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section for instructions on submitting comments.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Ms. Christine A. Hydock, Chief, Medical Programs Division, FMCSA, DOT, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, (202) 366-4001, 
                        <E T="03">fmcsamedical@dot.gov.</E>
                         Office hours are 8:30 a.m. to 5 p.m. ET Monday through Friday, except Federal holidays. If you have questions regarding viewing or submitting material to the docket, contact Dockets Operations, (202) 366-9826.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Public Participation</HD>
                <HD SOURCE="HD2">A. Submitting Comments</HD>
                <P>If you submit a comment, please include the docket number for this notice (Docket No. FMCSA-2024-0022), indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. You may submit your comments and material online or by fax, mail, or hand delivery, but please use only one of these means. FMCSA recommends that you include your name and a mailing address, an email address, or a phone number in the body of your document so that FMCSA can contact you if there are questions regarding your submission.</P>
                <P>
                    To submit your comment online, go to 
                    <E T="03">https://www.regulations.gov/docket/FMCSA-2024-0022.</E>
                     Next, choose the only notice listed, click the “Comment” button, and type your comment into the text box on the following screen. Choose whether you are submitting your comment as an individual or on behalf of a third party and then submit.
                </P>
                <P>
                    If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 8
                    <FR>1/2</FR>
                     by 11 inches, suitable for copying and electronic filing. FMCSA will consider all comments and material received during the comment period.
                </P>
                <HD SOURCE="HD2">B. Viewing Comments</HD>
                <P>
                    To view comments go to 
                    <E T="03">www.regulations.gov.</E>
                     Insert the docket number (FMCSA-2024-0022) in the keyword box and click “Search.” Next, choose the only notice listed, and click “Browse Comments.” If you do not have access to the internet, you may view the docket online by visiting Dockets Operations on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m. ET Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations.
                </P>
                <HD SOURCE="HD2">C. Privacy Act</HD>
                <P>
                    In accordance with 49 U.S.C. 31315(b)(6), DOT solicits comments from the public on the exemption request. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov.</E>
                     As described in the system of records notice DOT/ALL 14 (Federal Docket Management System), which can be reviewed at 
                    <E T="03">https://www.transportation.gov/individuals/privacy/privacy-act-system-records-notices,</E>
                     the comments are searchable by the name of the submitter.
                </P>
                <HD SOURCE="HD1">II. Background</HD>
                <P>
                    Under 49 U.S.C. 31136(e) and 31315(b), FMCSA may grant an exemption from the FMCSRs for no longer than a 5-year period if it finds such exemption would likely achieve a level of safety that is equivalent to, or greater than, the level that would be achieved absent such exemption. The statutes also allow the Agency to renew exemptions at the end of the 5-year period. FMCSA grants medical exemptions from the FMCSRs for a 2-year period to align with the maximum duration of a driver's medical certification.
                    <PRTPAGE P="54146"/>
                </P>
                <P>The 13 individuals listed in this notice have requested an exemption from the epilepsy and seizure disorders prohibition in 49 CFR 391.41(b)(8). Accordingly, the Agency will evaluate the qualifications of each applicant to determine whether granting the exemption will achieve the required level of safety mandated by statute.</P>
                <P>The physical qualification standard for drivers regarding epilepsy found in § 391.41(b)(8) states that a person is physically qualified to drive a CMV if that person has no established medical history or clinical diagnosis of epilepsy or any other condition which is likely to cause the loss of consciousness or any loss of ability to control a CMV.</P>
                <P>
                    In addition to the regulations, FMCSA has published advisory criteria 
                    <SU>1</SU>
                    <FTREF/>
                     to assist medical examiners (MEs) in determining whether drivers with certain medical conditions are qualified to operate a CMV in interstate commerce.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         These criteria may be found in APPENDIX A TO PART 391—MEDICAL ADVISORY CRITERIA, section H. 
                        <E T="03">Epilepsy:</E>
                         § 391.41(b)(8), paragraphs 3, 4, and 5, which is available on the internet at 
                        <E T="03">https://www.gpo.gov/fdsys/pkg/CFR-2015-title49-vol5/pdf/CFR-2015-title49-vol5-part391-appA.pdf.</E>
                    </P>
                </FTNT>
                <P>The criteria states that if an individual has had a sudden episode of a non-epileptic seizure or loss of consciousness of unknown cause that did not require anti-seizure medication, the decision whether that person's condition is likely to cause the loss of consciousness or loss of ability to control a CMV should be made on an individual basis by the ME in consultation with the treating physician. Before certification is considered, it is suggested that a 6-month waiting period elapse from the time of the episode. </P>
                <P>Following the waiting period, it is suggested that the individual have a complete neurological examination. If the results of the examination are negative and anti-seizure medication is not required, then the driver may be qualified.</P>
                <P>
                    In those individual cases where a driver has had a seizure or an episode of loss of consciousness that resulted from a known medical condition (
                    <E T="03">e.g.,</E>
                     drug reaction, high temperature, acute infectious disease, dehydration, or acute metabolic disturbance), certification should be deferred until the driver has recovered fully from that condition, has no existing residual complications, and is not taking anti-seizure medication.
                </P>
                <P>Drivers who have a history of epilepsy/seizures, off anti-seizure medication, and seizure-free for 10 years, may be qualified to operate a CMV in interstate commerce. Interstate drivers with a history of a single unprovoked seizure may be qualified to drive a CMV in interstate commerce if seizure-free and off anti-seizure medication for a 5-year period or more.</P>
                <P>As a result of MEs misinterpreting advisory criteria as regulation, numerous drivers have been prohibited from operating a CMV in interstate commerce based on the fact that they have had one or more seizures and are taking anti-seizure medication, rather than an individual analysis of their circumstances by a qualified ME based on the physical qualification standards and medical best practices.</P>
                <P>On January 15, 2013, FMCSA announced in a notice of final disposition titled, “Qualification of Drivers; Exemption Applications; Epilepsy and Seizure Disorders,” (78 FR 3069), its decision to grant requests from 22 individuals for exemptions from the regulatory requirement that interstate CMV drivers have “no established medical history or clinical diagnosis of epilepsy or any other condition which is likely to cause loss of consciousness or any loss of ability to control a CMV.” Since that time, the Agency has published additional notices granting requests from individuals for exemptions from the regulatory requirement regarding epilepsy found in § 391.41(b)(8).</P>
                <P>To be considered for an exemption from the epilepsy and seizure disorders prohibition in § 391.41(b)(8), applicants must meet the criteria in the 2007 recommendations of the Agency's Medical Expert Panel (78 FR 3069).</P>
                <HD SOURCE="HD1">III. Qualifications of Applicants</HD>
                <HD SOURCE="HD2">Joshua Amos</HD>
                <P>Joshua Amos is a 46-year-old class D license holder in Ohio. They have a history of generalized epilepsy and have been seizure free since 2005. They take anti-seizure medication with the dosage and frequency remaining the same since April 8, 2022. Their physician states that they are supportive of Joshua Amos receiving an exemption.</P>
                <HD SOURCE="HD2">Kyle Batts</HD>
                <P>Kyle Batts is a 45-year-old class D license holder in Connecticut. They have a history of juvenile myoclonic epilepsy and have been seizure free for over 10 years. They take anti-seizure medication with the dosage and frequency remaining the same for over 10 years. Their physician states that they are supportive of Kyle Batts receiving an exemption.</P>
                <HD SOURCE="HD2">Roberto De Leon</HD>
                <P>Roberto De Leon is a 28-year-old class R license holder in Colorado. They have a history of idiopathic generalized epilepsy and have been seizure free since 2015. They take anti-seizure medication with the dosage and frequency remaining the same since November 2012. Their physician states that they are supportive of Roberto De Leon receiving an exemption.</P>
                <HD SOURCE="HD2">Jonathan Heaps</HD>
                <P>Jonathan Heaps is a 25-year-old class A Commercial Driver's License (CDL) in Utah. They have a history of juvenile myoclonic epilepsy and have been seizure free since 2016. They take anti-seizure medication with the dosage and frequency remaining the same since 2016. Their physician states that they are supportive of Jonathan Heaps receiving an exemption.</P>
                <HD SOURCE="HD2">Dale Koehler</HD>
                <P>Dale Koehler is a 78-year-old class A CDL holder in Colorado. They have a history of seizure disorder and have been seizure free since July 2004. They take anti-seizure medication with the dosage and frequency remaining the same since July 2004. Their physician states that they are supportive of Dale Koehler receiving an exemption.</P>
                <HD SOURCE="HD2">Demon Lowe</HD>
                <P>Demon Lowe is a 31-year-old class C license holder in North Carolina. They have a history of generalized epilepsy and have been seizure free since 2014. They take anti-seizure medication with the dosage and frequency remaining the same since for over 10 years. Their physician states that they are supportive of Demon Lowe receiving an exemption.</P>
                <HD SOURCE="HD2">Lamar Mapp</HD>
                <P>Lamar Mapp is a 36-year-old class D license holder in Ohio. They have a history of epilepsy and have been seizure free since 2012. They take anti-seizure medication with the dosage and frequency remaining the same since 2012. Their physician states that they are supportive of Lamar Mapp receiving an exemption.</P>
                <HD SOURCE="HD2">Todd Medsker</HD>
                <P>Todd Medsker is a 60-year-old class D license holder in Idaho. They have a history of seizure disorder and have been seizure free since November 2013. They take anti-seizure medication with the dosage and frequency remaining the same since January 2014. Their physician states that they are supportive of Todd Medsker receiving an exemption.</P>
                <HD SOURCE="HD2">John Pyne</HD>
                <P>
                    John Pyne is a 55-year-old class A CDL holder in Florida. They have a 
                    <PRTPAGE P="54147"/>
                    history of generalized tonic clonic seizure disorder and have been seizure free since 1992. They take anti-seizure medication with the dosage and frequency remaining the same since 1992. Their physician states that they are supportive of John Pyne receiving an exemption.
                </P>
                <HD SOURCE="HD2">William Santini</HD>
                <P>William Santini is a 21-year-old class D license holder in Tennessee. They have a history of focal seizures and have been seizure free since 2007. They take anti-seizure medication with the dosage and frequency remaining the same since 2018. Their physician states that they are supportive of William Santini receiving an exemption.</P>
                <HD SOURCE="HD2">Mitchell Secrist</HD>
                <P>Mitchell Secrist is a 25-year-old class C license holder in California. They have a history of childhood epilepsy and have been seizure free since 2015. They take anti-seizure medication with the dosage and frequency remaining the same since June 2015. Their physician states that they are supportive of Mitchell Secrist receiving an exemption.</P>
                <HD SOURCE="HD2">Joseph Tembo</HD>
                <P>Joseph Tembo is a 40-year-old class C license holder in Maryland. They have a history of tonic clonic seizures and have been seizure free since December 2015. They take anti-seizure medication with the dosage and frequency remaining the same since December 2013. Their physician states that they are supportive of Joseph Tembo receiving an exemption.</P>
                <HD SOURCE="HD2">Joseph Travagliato</HD>
                <P>Joseph Travagliato is a 31-year-old class C CDL holder in New York. They have a history of epilepsy and have been seizure free since December 8, 2013. They take anti-seizure medication with the dosage and frequency remaining the same since March 2013. Their physician states that they are supportive of Joseph Travagliato receiving an exemption.</P>
                <HD SOURCE="HD1">IV. Request for Comments</HD>
                <P>
                    In accordance with 49 U.S.C. 31136(e) and 31315(b), FMCSA requests public comment from all interested persons on the exemption petitions described in this notice. We will consider all comments received before the close of business on the closing date indicated under the 
                    <E T="02">DATES</E>
                     section of the notice.
                </P>
                <SIG>
                    <NAME>Larry W. Minor,</NAME>
                    <TITLE>Associate Administrator for Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14324 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. FMCSA-2018-0223]</DEPDOC>
                <SUBJECT>Parts and Accessories Necessary for Safe Operation; Exemption Renewal for Groendyke Transport, Inc.</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of provisional renewal of exemption; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>FMCSA announces its decision to provisionally renew Groendyke Transport, Inc.'s (Groendyke) exemption to allow the use of an amber brake-activated pulsating lamp on the rear of its trailers in addition to the steady-burning brake lamps required by the Federal Motor Carrier Safety Regulations (FMCSR). The exemption is renewed for 6 months, unless revoked earlier.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This renewed exemption is effective April 26, 2024, through October 26, 2024, unless revoked earlier. Comments must be received on or before July 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments identified by docket number  FMCSA-2018-0223 using any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">https://www.regulations.gov/docket/FMCSA-2018-00223/document.</E>
                         Follow the online instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Dockets Operations, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, Washington, DC 20590-0001.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery or Courier:</E>
                         Dockets Operations, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, Washington, DC 20590-0001, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         (202) 493-2251.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. David Sutula, Chief, Vehicle and Roadside Operations Division, Office of Carrier, Driver, and Vehicle Safety, FMCSA, 1200 New Jersey Avenue SE, Washington, DC 20590-0001; (202) 366-9209; 
                        <E T="03">MCPSV@dot.gov.</E>
                         If you have questions on viewing or submitting material to the docket, call Dockets Operations at (202) 366-9826.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Public Participation and Request for Comments</HD>
                <HD SOURCE="HD2">A. Submitting Comments</HD>
                <P>If you submit a comment, please include the docket number for this notice (FMCSA-2018-0223), indicate the specific section of this document to which the comment applies, and provide a reason for suggestions or recommendations. You may submit your comments and material online or by fax, mail, or hand delivery, but please use only one of these means. FMCSA recommends that you include your name and a mailing address, an email address, or a phone number in the body of your document so the Agency can contact you if it has questions regarding your submission.</P>
                <P>
                    To submit your comment online, go to 
                    <E T="03">https://www.regulations.gov/docket/FMCSA-2018-0223/document,</E>
                     click on this notice, click “Comment,” and type your comment into the text box on the following screen. Choose whether you are submitting your comment as an individual or on behalf of a third party and then submit.
                </P>
                <P>
                    If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 8
                    <FR>1/2</FR>
                     by 11 inches, suitable for copying and electronic filing.
                </P>
                <P>If you submit comments by mail and would like to know that they reached the facility, please enclose a stamped, self-addressed postcard or envelope.</P>
                <P>FMCSA will consider all comments and material received during the comment period. Comments received after the comment closing date will be filed in the public docket and will be considered to the extent practicable.</P>
                <HD SOURCE="HD3">Confidential Business Information (CBI)</HD>
                <P>
                    CBI is commercial or financial information that is both customarily and actually treated as private by its owner. Under the Freedom of Information Act (5 U.S.C. 552), CBI is exempt from public disclosure. If your comments responsive to the notice contain commercial or financial information that is customarily treated as private, that you actually treat as private, and that is relevant or responsive to the notice, it is important that you clearly designate the submitted comments as CBI. Please mark each page of your submission that constitutes CBI as “PROPIN” to indicate it contains proprietary information. FMCSA will treat such marked submissions as confidential under the Freedom of Information Act, and they will not be placed in the public docket of the notice. Submissions containing CBI should be sent to Brian Dahlin, Chief, 
                    <PRTPAGE P="54148"/>
                    Regulatory Evaluation Division, Office of Policy, FMCSA, 1200 New Jersey Avenue SE, Washington, DC 20590-0001 or via email at 
                    <E T="03">brian.g.dahlin@dot.gov.</E>
                     At this time, you need not send a duplicate hardcopy of your electronic CBI submissions to FMCSA headquarters. Any comments FMCSA receives not specifically designated as CBI will be placed in the public docket for this notice.
                </P>
                <HD SOURCE="HD2">B. Viewing Comments and Documents</HD>
                <P>
                    To view any documents mentioned as being available in the docket, go to 
                    <E T="03">https://www.regulations.gov/docket/FMCSA-2018-0223/document</E>
                     and choose the document to review. To view comments, click this notice, then click “Browse Comments.” If you do not have access to the internet, you may view the docket online by visiting Dockets Operations on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations.
                </P>
                <HD SOURCE="HD2">C. Privacy</HD>
                <P>
                    In accordance with 49 U.S.C. 31315(b)(6), DOT solicits comments from the public to better inform its regulatory process. DOT posts these comments, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov,</E>
                     as described in the system of records notice DOT/ALL 14 (Federal Docket Management System (FDMS)), which can be reviewed under the “Department Wide System of Records Notices” at 
                    <E T="03">https://www.transportation.gov/individuals/privacy/privacy-act-system-records-notices.</E>
                     The comments are posted without edit and are searchable by the name of the submitter.
                </P>
                <HD SOURCE="HD1">II. Legal Basis</HD>
                <P>FMCSA has authority under 49 U.S.C. 31136(e) and 31315(b)(2) and 49 CFR 381.300(b) to renew an exemption from the FMCSRs for subsequent periods of up to 5 years if it finds that such exemption would likely maintain a level of safety that is equivalent to, or greater than, the level that would be achieved by the current regulation (49 CFR 381.305(a)).</P>
                <HD SOURCE="HD1">III. Background</HD>
                <HD SOURCE="HD2">Current Regulatory Requirements</HD>
                <P>Section 393.25(e) of the FMCSRs requires all exterior lamps (both required lamps and any additional lamps) to be steady burning except turn signal lamps, hazard warning signal lamps, school bus warning lamps, amber warning lamps or flashing warning lamps on tow trucks and commercial motor vehicles (CMV) transporting oversized loads, and warning lamps on emergency and service vehicles authorized by State or local authorities.</P>
                <HD SOURCE="HD2">Original Exemption</HD>
                <P>In its original exemption application, Groendyke evaluated methods to reduce rear-end collisions involving its trailers. Groendyke drivers transporting hazardous materials are required to slow down or stop at railroad crossings. However, following drivers are not always prepared for these stops, resulting in rear-end crashes. Groendyke's inability to control other drivers' actions meant that the problem could not be solved through its internal training procedures. Consequently, it prioritized enhancing visibility by improving its trailers' braking systems to alert other drivers more effectively.</P>
                <P>Groendyke is a carrier of flammable fuel and liquid hazardous materials that operates a fleet of approximately 1,440 trailers and employs over 1,200 individuals, including around 900 drivers. In its efforts to enhance safety, Groendyke proposed installing an amber brake-activated pulsating lamp at the rear of its trailers, signaling to following drivers that the vehicle is slowing down or coming to a stop. Groendyke specified that the brake-activated pulsating lamp would be positioned in the upper center portion of the trailer.</P>
                <P>In support of its application, Groendyke contended that the addition of the brake-activated pulsating lamp would improve safety, and cited (1) research suggesting that pulsating brake lamps in addition to steady-burning red brake lamps improve visibility and prevent accidents, (2) its own experience demonstrating that pulsating brake lamps in addition to steady-burning red brake lamps decreased the frequency of rear-end accidents involving its fleet, and (3) similar exemptions granted for other classes of vehicles.</P>
                <P>Groendyke referenced research conducted by the National Highway Traffic Safety Administration (NHTSA) concerning rear-end collisions, distracted driving, and braking signals. According to Groendyke, NHTSA research reveals that enhancements to braking systems can significantly improve their effectiveness in capturing the attention of following drivers, thereby reducing rear-end collisions. Specifically, Groendyke states the addition of a pulsating brake lamp on a leading vehicle has been shown to have a measurable impact on the behavior of following drivers, leading to faster and more efficient responses and ultimately preventing or mitigating rear-end collisions.</P>
                <P>Starting in the second quarter of 2015, Groendyke initiated the use of amber brake-activated pulsating lamps on a portion of its fleet, without prior authorization from the FMCSA, as a part of the “Groendyke Brake Warning Device Campaign.” Groendyke initiated this effort to compare the frequency of rear-end collisions between trailers equipped with centrally mounted auxiliary amber brake-activated pulsating lamps (in addition to the required red steady-burning brake lamps), and those equipped exclusively with the required red steady-burning lamps. By July 31, 2017, 632 out of 1,440 trailers had been outfitted with the auxiliary amber brake-activated pulsating lamps.</P>
                <P>Data collected by Groendyke between January 2015 and July 2017 as part of the “Groendyke Brake Warning Device Campaign” demonstrated that trailers equipped with both the auxiliary amber brake-activated pulsating lamp and red steady-burning brake lamps were involved in 33.7 percent fewer rear-end collisions compared to those equipped only with red steady-burning brake lamps. Groendyke also analyzed whether the presence of the auxiliary amber brake-activated pulsating lamp improved outcomes during slowing or stopping at railroad crossings. The analysis revealed that trailers equipped with pulsating lamps were not involved in any rear-end collisions at railroad crossings during the same period. Groendyke did not present any information on crash rates at railroad crossings for trailers not equipped with the pulsating lamps for FMCSA to make a comparison of effectiveness at rail crossings.</P>
                <P>Groendyke concluded that the results of its “Groendyke Brake Warning Device Campaign” show a significant reduction in the frequency of rear-end collisions when trailers are equipped with auxiliary amber brake activated pulsating lamps in addition to the steady-burning red brake lamps required by the FMCSRs. These auxiliary pulsating lamps, according to Groendyke, effectively draw other drivers' attention to the actions of the vehicle in front, enhancing safety and, in the process, productivity.</P>
                <HD SOURCE="HD2">Exemptions for Other Classes of Vehicles</HD>
                <P>
                    Groendyke noted in its application that the current regulations (49 CFR 
                    <PRTPAGE P="54149"/>
                    393.25(e)) exempt tow trucks, CMVs transporting over-sized loads, and emergency vehicles from the requirement that all exterior lamps be steady-burning. In the original exemption application, Groendyke argued that granting a similar exemption for carriers of hazardous loads would align with the intent of that regulation. Groendyke emphasized that this additional brake lamp would not compromise safety and that adherence to the exemption's terms and conditions would achieve a level of safety equivalent to or greater than the level of safety achieved without the exemption.
                </P>
                <P>On April 26, 2019, following notice and consideration of the comments received, FMCSA granted Groendyke a 5-year exemption after determining that the use of an amber brake-activated pulsating lamp positioned in the upper center portion of the trailer, in addition to the steady-burning brake lamps required by the FMCSRs, would likely maintain a level of safety that is equivalent to or greater than the level of safety achieved without the exemption (84 FR 17910). In its decision, FMCSA noted that rear-end crashes, which account for approximately 30% of all crashes, are a significant concern, especially when large trucks are involved. These types of crashes often result from a failure to respond (or delays in responding) to a stopped or decelerating lead vehicle. Data between 2010 and 2016 show that large trucks are consistently three times more likely than other vehicles to be struck in the rear in two-vehicle fatal crashes.</P>
                <P>Research conducted by both FMCSA and NHTSA explored alternative rear signaling systems to address this issue. Specifically, FMCSA conducted research and development on Enhanced Rear Signaling (ERS) systems, which showed promise. However, the FMCSA ultimately decided not to pursue formal field operational testing of the prototype system due to concerns about implementation costs and fleets' willingness to invest in the technology. Nonetheless, the preliminary research showed that the ERS system performed well at detecting and signaling rear-end crash threats and drawing the gaze of following-vehicle drivers to the forward roadway which if implemented, could potentially reduce the number and frequency of rear-end crashes into the rear of CMVs.</P>
                <P>Separately, NHTSA has performed a series of research studies intended to develop and evaluate rear signaling applications designed to reduce the frequency and severity of rear-end crashes via enhancements to rear-brake lighting by redirecting drivers' visual attention to the forward roadway (for cases involving a distracted driver), and/or increasing the saliency or meaningfulness of the brake signal (for attentive drivers). The research demonstrated that flashing all lights simultaneously or alternately flashing is a promising signal for use in enhanced brake light applications, even at levels of brightness within the current regulated limits. Specifically, the study concluded that substantial performance gains may be realized by increasing brake lamp brightness levels under flashing configurations; however, increases beyond a certain brightness threshold will not return substantive performance gains.</P>
                <P>In addition, NHTSA has conducted research on the effectiveness of rear turn signal color on the likelihood of being involved in a rear-end crash. FMVSS No. 108 allows rear turn signals to be either red or amber in color. The study concluded that amber signals show a 5.3 percent effectiveness in reducing involvement in two-vehicle crashes where a lead vehicle is rear-struck in the act of turning left, turning right, merging into traffic, changing lanes, or entering/leaving a parking space. The advantage of amber rear turn signals was shown to be statistically significant.</P>
                <P>Because of the risks posed by rear-end crashes, the potential benefits of ERS suggested by existing studies, and the value of real-world data, FMCSA concluded that Groendyke's tests conducted between January 1, 2015, and July 31, 2017, were both persuasive and compelling. FMCSA noted that this real-world experience, along with the FMCSA and NHTSA research programs that demonstrated the potential ability of ERS to reduce the frequency and severity of rear-end crashes, was sufficient for FMCSA to conclude that the implementation of a supplemental amber brake-activated pulsating lamp on the rear of Groendyke's trailers was likely to provide a level of safety equivalent to, or greater than, the level of safety achieved without the exemption. During the temporary exemption period, Groendyke was allowed to install an amber brake-activated pulsating lamp positioned in the upper center of the rear of its trailers in addition to the steady-burning brake lamps required by the FMCSRs.</P>
                <P>Finally, FMCSA imposed the following terms and conditions to ensure the safety of the motoring public. The exemption would be rescinded if: (1) Groendyke failed to comply with the terms and conditions of the exemption; (2) the exemption resulted in a lower level of safety than was maintained before it was granted; or (3) continuation of the exemption would not be consistent with the goals and objectives of 49 U.S.C. 31136(e) and 31315(b).</P>
                <HD SOURCE="HD2">Application for Renewal of Exemption</HD>
                <P>In its renewal application, Groendyke reaffirmed its previous arguments in support of the original exemption request and requested an additional 5-year exemption. Building upon agency reports, studies, and internal data, Groendyke reiterated the effectiveness of enhanced brake lighting in reducing rear-end accidents.</P>
                <P>Following its previous data collections, Groendyke continued to gather and analyze data from 2018 to 2023. Groendyke noted that since the exemption was granted, the installation of pulsating brake lamps has gradually expanded across its fleet. For instance, in 2018, Groendyke reported that 38% of its trailers had been fitted with additional rear brake-activated pulsating lamps. By 2023, this number had increased significantly, with Groendyke reporting that 93% of its trailers were equipped with such lamps. Following this widespread implementation, Groendyke reported a notable reduction in rear-end accidents since 2018. Based on these findings, Groendyke reached the following conclusions: (1) the “Groendyke Brake Warning Device Campaign” results indicated that the pulsating lamps in addition to steady-burning brake lamps did not lead to confusion or distraction among following drivers; and (2) the data shows a direct correlation between the utilization of auxiliary brake-activated pulsating lamps and a decrease in rear-end accidents, indicating the efficacy of auxiliary pulsating brake lamps in enhancing visibility and reducing accidents. Therefore, Groendyke requests renewal of the initial exemption, highlighting the lamps' role in enhancing safety both for the public and its drivers while reducing overall accident costs. A copy of Groendyke's request to renew the exemption is available in the docket.</P>
                <HD SOURCE="HD1">IV. Equivalent Level of Safety Analysis</HD>
                <P>
                    FMCSA is not aware of any evidence showing that the operation of Groendyke's brake-activated pulsating lamps in accordance with the conditions of the original exemption has resulted in any degradation in safety. In addition, the data provided by Groendyke indicates a notable reduction in rear-ended crashes concurrent with its operation of cargo tank trucks equipped with an auxiliary amber brake-activated pulsating lamp on the rear of its trailers in addition to the 
                    <PRTPAGE P="54150"/>
                    steady-burning brake lamps. This supports Groendyke's argument that the use of pulsating auxiliary lamps has not resulted in a degradation of safety, and Groendyke's overall operations demonstrate achievement of a level of safety equivalent to or greater than operations conducted without the exemption. Therefore, for the reasons discussed above and in the prior notice granting the original exemption request, FMCSA concludes that provisionally renewing the exemption granted on April 26, 2019, for a subsequent 6 months, on the terms and conditions set forth in this exemption renewal decision, would likely achieve a level of safety that is equivalent to, or greater than, the level of safety achieved without the exemption.
                </P>
                <HD SOURCE="HD1">V. Exemption Decision</HD>
                <HD SOURCE="HD2">A. Provisional Granting of Exemption Renewal</HD>
                <P>FMCSA provisionally renews the exemption for a subsequent period of 6 months, instead of the 5 years requested by Groendyke, subject to the terms and conditions of this decision and the absence of adverse evidence sufficiently serious to cause the Agency to revoke the exemption. If evidence of insufficient safety is not provided, FMCSA anticipates granting a full 5-year exemption when the provisional exemption expires. The exemption from the requirements of 49 CFR 393.25(e) is effective April 26, 2024, through October 26, 2024, 11:59 p.m. local time, unless revoked.</P>
                <HD SOURCE="HD2">B. Applicability of Exemption</HD>
                <P>During the temporary exemption period, Groendyke will be allowed to install or continue to use an amber brake-activated pulsating lamp positioned in the upper center of the rear of its trailers in addition to the steady-burning brake lamps required by the FMCSRs.</P>
                <HD SOURCE="HD2">C. Terms and Conditions</HD>
                <P>Below are the conditions applicable to the provisionally renewed exemption. These conditions establish requirements for reporting, data submission, and compliance monitoring to ensure the safe operation of CMVs equipped with Groendyke's brake activated pulsating lamps. Each condition serves to maintain safety standards while allowing for the continued use of these lamps under specified terms and conditions. Groendyke must follow the terms and conditions listed below:</P>
                <P>
                    1. 
                    <E T="03">Limitation of Exemption:</E>
                </P>
                <P>• This exemption applies exclusively to CMVs operated by Groendyke Transport, Inc., and does not extend to any other motor carrier.</P>
                <P>
                    2. 
                    <E T="03">Recurring Data Reporting Requirements:</E>
                </P>
                <P>• Groendyke must provide recurring yearly data submissions to include information on rear-impact crashes and incidents involving a CMV equipped with Groendyke's amber brake-activated pulsating lamps. The first submission is due March 31, 2025, and, if the exemption is extended, subsequent submissions are due every 12-months thereafter until the exemption expires or is revoked.</P>
                <P>
                    • The yearly data submissions must be sent via email to FMCSA at 
                    <E T="03">MCPSD@dot.gov.</E>
                </P>
                <P>• If Groendyke lacks certain categories of information, alternative information may be discussed with FMCSA and submitted if approved.</P>
                <P>
                    3. 
                    <E T="03">Data Reporting Requirements for Rear-impact Crashes and Incidents:</E>
                </P>
                <P>• At the end of each 12-month period, Groendyke must submit a report detailing crash rates, vehicle miles traveled, number and type of CMVs operating under the exemption, information including dates of the crash or incident, time, location, and a brief description of the event.</P>
                <P>• Groendyke must provide any available information indicating malfunction of or confusion caused by the use of Groendyke's amber brake-activated pulsating lamps.</P>
                <P>
                    4. 
                    <E T="03">Meetings:</E>
                </P>
                <P>• Groendyke must meet with FMCSA upon request to answer questions regarding data and information provided under the exemption.</P>
                <HD SOURCE="HD2">D. Preemption</HD>
                <P>In accordance with 49 U.S.C. 31315(d), as implemented by 49 CFR 381.600, during the period this exemption is in effect, no State shall enforce any law or regulation that conflicts with or is inconsistent with this exemption with respect to a person operating under the exemption. States may, but are not required to, adopt the same exemption with respect to operations in intrastate commerce.</P>
                <HD SOURCE="HD2">E. Revocation</HD>
                <P>The exemption will be valid for 6 months as provided in section V.A. above, unless revoked earlier by FMCSA. FMCSA does not believe that drivers, and CMVs covered by the exemption will experience any deterioration of their safety record. However, should this occur, FMCSA will take all steps necessary to protect the public interest, including revocation of the exemption without prior notice. The exemption will be immediately revoked if: (1) Groendyke's drivers, and/or CMVs fail to comply with the terms and conditions of the exemption; (2) the exemption has resulted in a lower level of safety than was maintained before it was granted; or (3) continuation of the exemption would not be consistent with the goals and objectives of 49 U.S.C. 31136 or chapter 313.</P>
                <P>
                    Interested parties possessing information that would demonstrate that Groendyke's use of an amber brake-activated pulsating lamp positioned in the upper center of the rear of the trailer in addition to the steady-burning brake lamps required by the FMCSRs is not achieving the requisite statutory level of safety should immediately notify FMCSA by email at 
                    <E T="03">MCPSV@DOT.GOV.</E>
                     The Agency will evaluate any such information and, if safety is being compromised or if the continuation of the exemption is not consistent with the goals and objectives of 49 U.S.C. 31136 or chapter 313, will take immediate steps to revoke the exemption.
                </P>
                <HD SOURCE="HD1">VI. Request for Comments</HD>
                <P>In accordance with 49 U.S.C. 31315(b), FMCSA requests public comment from all interested persons on Groendyke's application for renewal of its exemption from § 393.25(e). All comments received before the close of business on the comment closing date indicated at the beginning of this notice will be considered and will be available for examination in the docket at the location listed under the Addresses section of this notice. Comments received after the comment closing date will be filed in the public docket and will be considered to the extent practicable. In addition to late comments, FMCSA will also continue to file, in the public docket, relevant information that becomes available after the comment closing date. Interested persons should continue to examine the public docket for new material.</P>
                <SIG>
                    <NAME>Vincent G. White,</NAME>
                    <TITLE>Acting Administrator.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14335 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="54151"/>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. FMCSA-2022-0245]</DEPDOC>
                <SUBJECT>Parts and Accessories Necessary for Safe Operation; Application for an Exemption From Meiborg Brothers, Inc., USDOT #190639</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of final disposition; grant of exemption.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Federal Motor Carrier Safety Administration (FMCSA) announces its decision to grant an application from Meiborg Brothers, Inc. (Meiborg, USDOT #190639) for an exemption to allow it to operate commercial motor vehicles (CMVs) equipped with a module manufactured by Intellistop, Inc. (Intellistop). The Intellistop module is designed to pulse the required rear clearance, identification, and brake lamps from a lower-level lighting intensity to a higher-level lighting intensity 4 times in 2 seconds when the brakes are applied and then return the lights to a steady-burning state while the brakes remain engaged. The Agency has determined that granting the exemption to Meiborg would likely achieve a level of safety equivalent to, or greater than, the level of safety achieved by the regulation.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This exemption is effective June 28, 2024 and ending June 28, 2029..</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. David Sutula, Vehicle and Roadside Operations Division, Office of Carrier, Driver, and Vehicle Safety, MC-PSV, (202) 366-9209, Federal Motor Carrier Safety Administration, 1200 New Jersey Avenue SE., Washington, DC 20590-0001; 
                        <E T="03">MCPSV@dot.gov.</E>
                    </P>
                    <HD SOURCE="HD1">I. Viewing Comments and Documents</HD>
                    <P>
                        To view comments, go to 
                        <E T="03">www.regulations.gov,</E>
                         insert the docket number “FMCSA-2022-0245” in the keyword box, and click “Search.” Next, sort the results by “Posted (Newer-Older),” choose the first notice listed, click “Browse Comments.”
                    </P>
                    <P>
                        To view documents mentioned in this notice as being available in the docket, go to 
                        <E T="03">www.regulations.gov,</E>
                         insert the docket number “FMCSA-2022-0245” in the keyword box, click “Search,” and chose the document to review.
                    </P>
                    <P>If you do not have access to the internet, you may view the docket online by visiting Dockets Operations on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations.</P>
                    <HD SOURCE="HD1">II. Legal Basis</HD>
                    <P>
                        FMCSA has authority under 49 U.S.C. 31136(e) and 31315(b) to grant exemptions from Federal Motor Carrier Safety Regulations (FMCSRs) to regulated entities (
                        <E T="03">e.g.,</E>
                         motor carriers). FMCSA must publish a notice of each exemption request in the 
                        <E T="04">Federal Register</E>
                         (49 CFR 381.315(a)). The Agency must provide the public an opportunity to inspect the information relevant to the application, including the applicant's safety analysis. The Agency must provide an opportunity for public comment on the request.
                    </P>
                    <P>
                        The Agency reviews safety analyses and public comments submitted and determines whether granting the exemption would likely achieve a level of safety equivalent to, or greater than, the level that would be achieved by the current regulation (49 CFR 381.305(a). The Agency must publish its decision in the 
                        <E T="04">Federal Register</E>
                         (49 CFR 381.315(b)). If granted, the notice will identify the regulatory provision from which the applicant will be exempt, the effective period, and all terms and conditions of the exemption (49 CFR 381.315(c)(1)). If the exemption is denied, the notice will explain the reason for the denial (49 CFR 381.315(c)(2)). The exemption may be renewed (49 CFR 381.300(b)).
                    </P>
                    <HD SOURCE="HD1">III. Background</HD>
                    <HD SOURCE="HD2">A. Current Regulatory Requirements</HD>
                    <P>Section 393.25(e) of the Federal Motor Carrier Safety Regulations (FMCSRs) requires all exterior lamps (both required lamps and any additional lamps) be steady burning, with certain exceptions not relevant here. Two other provisions of the FMCSRs—section 393.11(a) and section 393.25(c)—mandate that required lamps on CMVs meet the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No. 108 in effect at the time of manufacture. FMVSS No. 108, issued by the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA), includes a requirement that installed brake lamps, whether original or replacement equipment, be steady burning.</P>
                    <HD SOURCE="HD2">B. Applicant's Request</HD>
                    <P>Meiborg applied for an exemption from 49 CFR 393.25(e) to allow it to operate CMVs, equipped with Intellistop's module. When the brakes are applied, the Intellistop module is designed to pulse the rear clearance, identification, and brake lamps from a lower-level lighting intensity to a higher-level lighting intensity 4 times in 2 seconds and then maintain the original equipment manufacturer's (OEM) level of illumination for those lamps until the brakes are released and reapplied. Intellistop asserts that its module is designed to ensure that if the module ever fails, the clearance, identification, and brake lamps will default to normal OEM function and illumination.</P>
                    <P>Meiborg's application followed the Agency's October 7, 2022, denial (87 FR 61133) of Intellistop's application for an industry-wide exemption to allow all interstate motor carriers to operate CMVs equipped with the Intellistop module. While the Agency determined that the scope of the exemption Intellistop sought was too broad to ensure that an equivalent level of safety would be achieved, the Agency explained that individual motor carrier applications for exemption may be more closely aligned with FMCSA authorities. Exemptions more limited in scope would allow the Agency to ensure compliance with all relevant FMCSA regulations because the individual exemptee would be easily identifiable and its compliance with applicable regulations could be monitored, thus providing a level of safety equivalent to compliance with 49 CFR 393.25(e).</P>
                    <P>
                        Meiborg stated that previous research demonstrated that the use of pulsating brake-activated lamps increases the visibility of vehicles and should lead to a significant decrease in rear-end crashes. In support of its application, Meiborg submitted several reports of research conducted by NHTSA on the issues of rear-end crashes, distracted driving, and braking signals.
                        <E T="51">1 2“3</E>
                        <FTREF/>
                         This same body of research was also referenced in Intellistop's industry-wide 
                        <PRTPAGE P="54152"/>
                        exemption application. Relying on these studies, Meiborg stated that the addition of brake-activated pulsating lamp(s) will not have an adverse impact on safety and would likely maintain a level of safety equivalent to or greater than the level of safety achieved without the exemption.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             See NHTSA Study—Evaluation of Enhanced Brake Lights Using Surrogate Safety Metrics 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/811127.pdf;</E>
                             As part of the General Findings the NHTSA study report concluded that “rear lighting continues to look promising as a means of reducing the number and severity of rear-end crashes.”
                        </P>
                        <P>
                            <SU>2</SU>
                             See also NHTSA Study—Enhanced Rear Lighting and Signaling Systems 
                            <E T="03">https://tinyurl.com/y2romx76</E>
                             or 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/task_3_results_0.pdf;</E>
                             As part of the conclusions NHTSA found that enhanced, flashing brake lighting “demonstrated improvements in brake response times and other related performance measures.”
                        </P>
                        <P>
                            <SU>3</SU>
                             See also NHTSA—Traffic Safety Facts 
                            <E T="03">https://tinyurl.com/yxglsdax</E>
                             or 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/tsf811128.pdf;</E>
                             which concluded that flashing brake lights were a promising signal for improving attention-getting during brake applications.
                        </P>
                    </FTNT>
                    <P>A copy of the application is included in the docket referenced at the beginning of this notice.</P>
                    <HD SOURCE="HD1">IV. Comments</HD>
                    <P>
                        FMCSA published a notice of the application in the 
                        <E T="04">Federal Register</E>
                         on February 1, 2023, and asked for public comment (88 FR 6804). The Agency received 18 comments from organizations and individuals including the American Trucking Associations (ATA); Intellistop, Inc.; the National Truck Equipment Association (NTEA); the Transportation Safety Equipment Institute (TSEI); and 14 other commenters. Seventeen of the commenters favored the exemption application, while TSEI expressed concerns.
                    </P>
                    <P>TSEI reiterated comments it had previously made in support of the safety benefits of brake-activated warning lamps when used in conjunction with steady burning red brake lamps as well as its prior support of the exemption requests from Groendyke Transport, National Tank Truck Carriers (NTTC), and Grote Industries. Despite these previous expressions of support for the potential benefits of some brake warning lamp configurations, TSEI stated that it is concerned about any exemption permitting the pulsing of lamps that are currently required to be steady burning without a thorough consideration of safety data and research on the level of notice and comment rulemaking. Accordingly, TSEI stated that the aim of future rulemaking should be to ensure consistent application across all vehicles equipped with such pulsating lamps and recommended that the Agency engage in a formal rulemaking to amend part 393 to allow for pulsating brake lamps.</P>
                    <P>ATA supported Meiborg's request and stated that enhanced rear signaling (ERS) can provide functionality beyond what traditional CMV lighting and reflective devices offer, including drawing attention to CMVs stopped ahead; increasing awareness of roadside breakdowns; notification of emergency braking; and improving driver confidence both in the ERS-equipped CMVs and in the following vehicle. ATA also stated that, in addition to these safety benefits, ERS performance is superior to that of steady burning brake lamps in conditions of severe weather, taillight glare, and around infrastructure obstacles. Specifically, ATA noted that this “request by Meiborg presents another opportunity for the DOT to learn about the performance of ERS in real world applications.” Further, ATA stated that “[it] believes the exemption process is well-suited for these kinds of situations, where the DOT can monitor small, controlled deployments to learn about benefits and costs and gather important data to make sound judgments on a broader industry exemption or change in regulations.”</P>
                    <P>ATA recommended the Agency provide clear guidance in the terms and conditions of the exemption grant to aid the Agency in monitoring the exemption for unintended consequences and aid the Applicant in understanding expectations for potential renewal of the exemption application. ATA further commented that FMCSA should work with industry to develop research efforts that examine the performance of ERS to supplement future DOT decisions on ERS technologies.</P>
                    <P>The NTEA expressed concern that some of its members who are manufacturers and alterers of motor vehicles receive requests from fleet operators to install brake-activated pulsating warning lamps on certain new vehicles they construct or modify. As manufacturers of new motor vehicles, NTEA members are required to certify that these vehicles comply with applicable FMVSS. NTEA noted that FMCSA does not have the authority to exempt CMV manufacturers from their obligation to certify FMVSS compliance. It recommended the Agency include in the terms and conditions of the exemption a statement of the responsibilities of the carrier and manufacturer, and of the conditions under which repair facilities may undertake modifications of brake-activated warning lamps. NTEA specifically requested that FMCSA “make clear that [this] exemption does not currently change any NHTSA regulations applying to the certification of federal motor vehicle safety standards,” if it grants the exemption.</P>
                    <P>Intellistop supported the Applicant's request for exemption. It commented that for over 20 years, multiple States have allowed pulsing or flashing of brake lamps. Intellistop also asserted many State driver training schools recommend tapping brakes to warn other motorists when a CMV is slowing or stopping. Intellistop stated that it is unlikely that other motorists would confuse the use of their module with the recommendation to tap brakes when a CMV is slowing or stopping, as “[s]eeing brake lights flash is a commonly communicated method to alert other drivers that a vehicle is slowing down or stopping.”</P>
                    <P>Fourteen other comments supported the exemption. These commenters believe that any technology that has been shown to reduce rear-end crashes should be allowed and cited various benefits of brake activated pulsating lamps, including (1) enhanced awareness that the vehicle is making a stop, especially at railroad crossings, and (2) increased visibility in severe weather conditions. Several commenters noted that 37 States currently allow brake lamps to flash. In addition, three commenters noted that the guidelines developed by the American Driver and Traffic Safety Education Association advise driving instructors to teach new drivers to pulse brake lamps when stopping to improve visibility.</P>
                    <HD SOURCE="HD1">V. FMCSA Equivalent Level of Safety Analysis</HD>
                    <P>Meiborg petitioned FMCSA to grant an exemption from 49 CFR 393.25(e)—requiring certain exterior lamps to be steady burning—to allow it to operate CMVs equipped with Intellistop's module. FMCSA has determined that in order for Meiborg to operate vehicles in compliance with the FMCSRs, an exemption from 49 CFR 393.25(e) must be accompanied by limited exemptions from 49 CFR 393.11(a) and 393.25(c), both of which mandate that required lamps on CMVs operated in interstate commerce must, “at a minimum, meet the applicable requirements of 49 CFR 571.108 (FMVSS No. 108) in effect at the time of manufacture of the vehicle.” FMCSA grants exemptions only when it determines “such exemption[s] would likely achieve a level of safety that is equivalent to, or greater than, the level that would be achieved absent the exemption[s].”</P>
                    <P>
                        Rear-end crashes generally account for approximately 30 percent of all crashes. They often result from a failure to respond (or delays in responding) to a stopped or decelerating lead vehicle. Data on crashes that occurred between 2010 and 2016 show that large trucks are consistently three times more likely than other vehicles to be struck in the rear in two-vehicle fatal crashes.
                        <FTREF/>
                        <E T="51">4 5</E>
                          
                        <PRTPAGE P="54153"/>
                        FMCSA is deeply interested in the development and deployment of technologies that can reduce the frequency, severity, and risk of rear-end crashes.
                    </P>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             U.S. Department of Transportation, National Highway Traffic Safety Administration (2012), Traffic Safety Facts—2010 Data; Large Trucks, Report No. DOT HS 811 628, Washington, DC (June 2012), 
                            <E T="03">available at: https://crashstats.crashstats.nhtsa.nhtsa.dot.gov/Api/Public/ViewPublication/811628.</E>
                        </P>
                        <P>
                            <SU>5</SU>
                             U.S. Department of Transportation, National Highway Traffic Safety Administration (2018), Traffic Safety Facts—2016 Data; Large Trucks, Report No. DOT HS 812 497, Washington, DC (May 
                            <PRTPAGE/>
                            2018), 
                            <E T="03">available at: https://crashstats.crashstats.nhtsa.nhtsa.dot.gov/Api/Public/Publication/812497.</E>
                        </P>
                    </FTNT>
                    <P>
                        Both FMCSA and NHTSA have examined alternative rear-signaling systems to reduce the incidence of rear-end crashes. While research efforts concluded that reductions in the incidence of rear-end crashes could be realized through certain rear-lighting systems that flash,
                        <SU>6</SU>
                        <FTREF/>
                         the FMCSRs do not currently permit the use of pulsating, brake-activated lamps on the rear of CMVs. FMCSA believes that the two agencies' previous research programs demonstrate that rear-signaling systems may be able to “improve attention getting” to reduce the frequency and severity of rear-end crashes. Any possible benefit must be balanced against a possible risk of increased driver distraction and confusion. In balancing these interests, the Agency was compelled to deny the Intellistop application for exemption, believing the industry-wide scope of the request was too broad for the Agency to effectively monitor for the potential risk of driver distraction or confusion.
                    </P>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             Expanded Research and Development of an Enhanced Rear Signaling System for Commercial Motor Vehicles: Final Report, William A. Schaudt 
                            <E T="03">et al.</E>
                             (Apr. 2014) (Report No. FMCSA-RRT-13-009).
                        </P>
                    </FTNT>
                    <P>
                        The Agency acknowledges the limitations of the research studies completed to date and the overall data deficiencies in this area. Nonetheless, as noted in its Intellistop decision, the Agency recognizes that existing data do suggest a potential safety value in the use of alternative rear-signaling systems, generally. Specifically, FMCSA considered NHTSA's research concerning the development and evaluation of rear-signaling applications designed to reduce the frequency and severity of rear-end crashes via enhancements to rear-brake lighting. The NHTSA study examined enhancements for (1) redirecting drivers' visual attention to the forward roadway (for cases involving a distracted driver) and (2) increasing the saliency or meaningfulness of the brake signal (for inattentive drivers).
                        <SU>7</SU>
                        <FTREF/>
                         The research considered the attention-getting capability and discomfort glare of a set of candidate rear brake lighting configurations using driver judgments and eye-drawing metrics. The results of this research served to narrow the set of candidate lighting configurations to those that would most likely be carried forward for additional on-road study. Based on subjective participant responses, this research indicates some form of flashing or variation in brake light brightness may be more than two times more attention-getting than the baseline, steady-burning brake lights for distracted drivers.
                        <SU>8</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             See NHTSA Study—Evaluation of Enhanced Brake Lights Using Surrogate Safety Metrics 
                            <E T="03">https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/811127.pdf.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Ibid. While data demonstrated that brighter flashing lights were the most attention-getting combination for distracted drivers in this study, flashing lights with no increase in brightness were still more effective at capturing a distracted driver's attention than the baseline steady-burning brake lamps. Both look-up (eye drawing) data and interview data supported the hypothesis that simultaneous flashing of all rear lighting combined with increased brightness would be effective in redirecting the driver's eyes to the lead vehicle when the driver is looking away with tasks that involve visual load.
                        </P>
                    </FTNT>
                    <P>While some of the data collected may not be statistically significant, the study results nonetheless indicate that additional efforts to get drivers' attention when they are approaching the rear of a CMV that is stopping may be helpful to reduce driver distraction and, ultimately, rear-end crashes. This was among several reasons researchers concluded that the promising nature of enhanced brake lighting systems warranted additional work and research. FMCSA believes the acquisition of relevant data through real-world monitoring is of critical importance as the Agency continues to seek new and innovative options for reducing crashes. This is particularly true given the data limitations noted in previous studies.</P>
                    <P>
                        Despite finding a potential safety value in the use of alternative rear-signaling technology, in the Intellistop decision the Agency determined that the data presently available did not justify an exemption to allow all interstate motor carriers to alter the performance of an FMVSS-required lighting device (
                        <E T="03">i.e.,</E>
                         stop lamps) on any CMV. In contrast, however, Meiborg's application requests an exemption for CMV operations by only one interstate motor carrier. As FMCSA noted in its denial of Intellistop's industry-wide exemption application, individual motor carrier exemption requests typically align more closely with FMCSA and NHTSA authorities to ensure compliance with all other applicable regulations and with the safety performance of the smaller population of affected motor carriers. With an individual motor carrier exemption, the Agency can also more easily monitor compliance with terms and conditions intended to ensure operations conducted under the exemption do in fact provide an equivalent level of safety. Meiborg's application demonstrates why this is particularly true, since the vehicles it operates would be easily identifiable, and compliance with NHTSA's “make inoperative” prohibition and other related regulations could be readily checked.
                    </P>
                    <P>The Agency's decision to grant this exemption is based on the data suggesting enhanced rear signal systems, such as pulsing brake lights, may help reduce the frequency and severity of rear-end crashes, as well as on the limited number of vehicles operating under the exemption. Meiborg currently operates a nationwide fleet of approximately 170 vehicles. The installation of the module on CMVs operated by a single motor carrier provides the opportunity for the Agency to collect data on the effects of pulsing brake lights in real-world conditions. The terms and conditions FMCSA imposes through this exemption will ensure appropriate Federal oversight in the use of these devices on a definite and limited number of CMVs utilizing a phased in approach.</P>
                    <P>Initially restricting the application of this exemption to a limited portion of Meiborg's fleet will allow for a comparison between the crash involvement of Meiborg CMVs equipped with the Intellistop device, those without the device, and the overall crash involvement of CMVs operated by similarly sized motor carriers with similar operations and overall safety performance. Data collected through this exemption and any other similar exemptions the Agency may grant in the future will allow for an evaluation of how the Intellistop module may improve following vehicle driver responses to CMV braking. Consideration of the scope of any particular carrier's operation and the number and types of vehicles the carrier operates are critical to ensuring FMCSA gathers the most relevant data as it considers safety benefits gained by the deployment of these rear brake lamp systems. The Agency's incremental approach in granting this limited exemption will also allow FMCSA to investigate and respond as appropriate to any incidents of alleged driver confusion attributable to use of the brake lamp systems in CMV operations, which some commenters have raised as a potential concern.</P>
                    <P>
                        FMCSA acknowledges that all other pulsating rear lamp exemptions the Agency previously granted involved the addition of non-mandatory auxiliary lights while the Intellistop module that Meiborg seeks to install alters the 
                        <PRTPAGE P="54154"/>
                        functionality of original equipment manufacturers' lamps. Nonetheless, those previous exemptions are instructive, most notably Groendyke. The Groendyke exemption involved auxiliary lamps rather than required lighting, but, like the Intellistop system, the modulation of the auxiliary lamps in the Groendyke exemption occurs during braking. More importantly, the Groendyke case also involved a technology installed on a single carrier's CMVs, which allowed the Agency more realistically to monitor the exemptee's compliance with other applicable regulations. When granting the exemption, FMCSA found Groendyke's previous experience with brake-activated pulsating warning lamps, which resulted in a 33.7 percent reduction in rear-end crashes, to be compelling. Through the granting of the Groendyke exemption, the Agency was able to collect additional real-world data about the operation of the module at issue. Similarly, limited exemptions with narrowly tailored terms and conditions permitting the use of the Intellistop module will allow the Agency to collect data about the reliability and safety benefits of an integrated alternative rear-signaling system.
                    </P>
                    <P>FMCSA notes that Meiborg failed to provide any evidence beyond what is publicly available about the integration of the Intellistop module with its CMVs' existing systems or to support the claim that a malfunction of the device would result in the brake lights returning to OEM functionality. Nonetheless, based on the Agency's understanding of the device's design and assertions made in publicly available materials, FMCSA believes concerns about both the reliability and integration of the device are sufficiently alleviated in this instance because of the narrow scope of the exemption and the stringent requirements imposed by the Agency in the terms and conditions. Any evidence that module failure results in anything less than a return to brake light OEM functionality will result in revocation of the exemption.</P>
                    <P>Likewise, granting this exemption to an easily identifiable carrier alleviates concerns the Agency previously articulated about its inability to monitor compliance with NHTSA's “make inoperative” prohibition. FMCSA can monitor compliance with this exemption and ensure that Meiborg installs the module only on its own CMVs.</P>
                    <P>Notwithstanding the promise the Agency sees in this technology, exemptions are warranted only if the applicant can demonstrate that an equivalent level of safety likely will be maintained. For this reason, the Agency believes it is important to consider the safety record of the applicant motor carrier. Meiborg's existing on-road safety performance record warrants granting this exemption to collect safety performance data in a limited set of operations. Meiborg's out-of-service (OOS) rate is below the national average, with a vehicle OOS rate of only 16.9 percent (national average—21.4 percent), a driver OOS rate of only 2 percent (national average—6 percent), and hazardous material OOS rate of 0 (national average—4.5 percent). Meiborg maintains a Satisfactory safety rating.</P>
                    <P>FMCSA acknowledges that the research described above did not fully address all the implications of allowing pulsating stop lamps, especially by automobiles where stop lamp design is stylized and often brand-specific, and that it remains unclear whether deviation from the uniform brake-light patterns of CMVs may cause confusion among highway users when the lamps are pulsated during braking. When Intellistop sought an industry-wide exemption, FMCSA concluded that the potential risks of widespread adoption outweighed the potential benefits. But FMCSA reaches a different conclusion here, where any risks will be more limited and easier to monitor. FMCSA notes, moreover, that the research suggests that the use of rear-signaling systems may be a means to reduce the frequency and severity of rear-end crashes involving CMVs, as do the reductions in rear-end crashes reported by Groendyke (84 FR 17910, April 26, 2019) utilizing an auxiliary flashing rear-signaling system. These facts and the specific safety record of the applicant motor carrier support the conclusion that permitting the use of Intellistop's pulsating-lamp module among a relatively small, definite number of vehicles of a single motor carrier, subject to terms and conditions for monitoring, is likely to achieve a level of safety that is equivalent to, or greater than, the level of safety achieved without the exemption.</P>
                    <HD SOURCE="HD1">VI. Exemption Decision</HD>
                    <HD SOURCE="HD2">a. Grant of Exemption</HD>
                    <P>FMCSA has evaluated Meiborg's exemption application and the comments received. The Agency believes that granting a temporary exemption to section 393.25(e), and temporary limited exemptions to the requirements of 49 CFR 393.11(a) and 393.25(c) to allow Meiborg to operate a defined number of CMVs equipped with Intellistop's pulsating-brake module will likely achieve a level of safety that is equivalent to, or greater than, the level of safety achieved without the exemption.</P>
                    <P>This exemption is restricted to vehicles in Meiborg's fleet and provides relief from the steady burning requirement for rear clearance, identification, and brake lamp activation for 2 seconds following brake activation. All other FMVSS No. 108 requirements cross-referenced or incorporated within the FMCSRs remain in effect, with a limited exception to the requirement in sections 393.11(a) and 393.25(c) for only the first two seconds of brake engagement. In addition, through the terms and conditions, FMCSA will be able to monitor to performance of these CMVs to determine whether they were involved in a crash and whether they appear to be overrepresented in crashes compared to a control group (Meiborg vehicles that are not equipped with the Intellistop unit but are operating on similar routes with similar schedules, etc.).</P>
                    <P>The Agency has evaluated the application and hereby grants the exemption for a 5-year period, beginning June 28, 2024 and ending June 28, 2029. During the temporary exemption period, Meiborg (Applicant) may operate CMVs, equipped with Intellistop's module that pulses the rear brake, clearance, and identification lamps from a lower-level lighting intensity to a higher-level lighting intensity 4 times in 2 seconds. This grant applies only to the “steady-burning” requirement as specified in FMVSS 108 S7.3, and Tables I-a, I-b, and I-c. All other photometric and requirements for stop lamps specified in FMVSS 108 must still be met.</P>
                    <HD SOURCE="HD2">b. Terms and Conditions of the Exemption</HD>
                    <P>
                        (i). Installation of the Intellistop module. The Applicant is responsible for installing the Intellistop module.
                        <SU>9</SU>
                        <FTREF/>
                         This exemption applies only to CMVs owned and operated by the Applicant. THE PRODUCT MUST BE INSTALLED BY THE OWNER OF THE VEHICLE ONLY. IN ACCORDANCE WITH FEDERAL LAW (49 U.S.C. 30112(a)(1) AND 49 U.S.C. 30122), THE PRODUCT MAY NOT BE INSTALLED BY ANY MANUFACTURER, DISTRIBUTOR, DEALER, RENTAL COMPANY, OR MOTOR VEHICLE REPAIR BUSINESS.
                    </P>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             FMCSA has authority to grant temporary exemptions to the FMCSRs to motor carriers, but not to CMV manufacturers or vehicle alterers.
                        </P>
                    </FTNT>
                    <P>
                        The Applicant may not install the Intellistop module on more than 25% of its power units, and 25% of its trailers 
                        <PRTPAGE P="54155"/>
                        during the first year of operation under the exemption, or on more than 50% of its power units, and 50% of its trailers during the second year. The Applicant shall provide the vehicle identification numbers for the power units and trailers that will be operating under the exemption.
                    </P>
                    <P>The Applicant must maintain a control group of equal size to its power units and trailers equipped with the Intellistop unit during the first 2 years of the exemption. And the CMVs in the control group must operate on routes with schedules that are similar to those of the Intellistop-equipped vehicles.</P>
                    <P>Installed modules may only be used to modulate rear clearance, identification, and stop lamps.</P>
                    <P>
                        Within 30 business days of its first installation of the Intellistop module, the Applicant must notify the Agency via email at 
                        <E T="03">MCPSV@dot.gov</E>
                         of the number and type of CMVs it is operating, or intends to operate, with the Intellistop module installed; the module type and/or sub-type; and any trouble-shooting, repair, or other use of an Intellistop module covered by this exemption. Amended installation information, including CMVs on which the device is installed or uninstalled, may then be submitted via the quarterly submission specified in sub-paragraph (iv) 
                        <E T="03">Recurring Reporting Requirements</E>
                         below.
                    </P>
                    <P>If the Applicant sells or transfers ownership of any CMV equipped with an Intellistop module under this exemption, or if the exemption is terminated for any reason, the Applicant must remove the module and restore the CMV to full compliance with the FMCSRs and FMVSSs prior to the transfer of ownership, or upon termination of the exemption. The Applicant must also certify in writing to the purchaser/transferee and FMCSA that the CMV has been restored to compliance with the FMCSRs and FMVSSs.</P>
                    <P>(ii). Driver Pre-Trip Vehicle Inspections. The Applicant must ensure that each driver of an Intellistop-equipped CMV performs a pre-trip inspection to confirm that the Intellistop module operates only for 2 seconds and does not interfere with the normal operation of lamps after 2 seconds. If the lamps are not steady burning after 2 seconds, the CMV must not be dispatched until repairs are made. At the end of each work shift, drivers must note any problems observed by or reported to the driver concerning the Intellistop module on a driver vehicle inspection report (see 49 CFR 396.11), and the motor carrier must correct the problem before the vehicle is dispatched again.</P>
                    <P>
                        (iii). Safety Notification to FMCSA. The Applicant must notify FMCSA within 5 business days after it becomes aware, or otherwise determines, that the continued use of a module or entire type or subtype of module covered by this exemption is no longer likely to maintain a level of safety that is at least equivalent to the level that would be achieved absent this exemption. Notification must be made by sending an email to FMCSA at 
                        <E T="03">MCPSD@dot.gov.</E>
                    </P>
                    <P>
                        (iv). Recurring Reporting Requirements. During the exemption period, the Applicant must provide quarterly submissions to FMCSA of the data described below. The Applicant's first quarterly submission is due on September 30, 2024, and thereafter will be due every 3 months, on the first business day of the month. The first quarterly submission must include the required data beginning 60 days prior to the date of module installation. All quarterly submissions must include data through at least the 14th day (inclusive) of the month immediately preceding the submission. Unless otherwise agreed to by FMCSA, quarterly submissions must be sent via email to FMCSA at 
                        <E T="03">MCPSD@dot.gov.</E>
                         If the Applicant does not have one or more categories of information described below, it must, within 20 days of the effective date of this exemption, discuss with FMCSA other available information. If the Agency accepts such alternative information, the Applicant must submit that data in lieu of the information specified below.
                    </P>
                    <P>In the quarterly submission, the Applicant must provide FMCSA the following information known to the Applicant regarding all crashes and other incidents (“crash or incident”) involving a CMV equipped with an Intellistop module covered by this exemption where the Intellistop module is potentially implicated. Crashes involving a CMV equipped with an Intellistop module that are “head-on” or otherwise involve only the front of the Intellistop-equipped CMV impacting some other object (such that the Intellistop module, without question, could not be implicated) are not subject to this condition. For the first quarterly submission, data must include any crash or incident occurring in the 60 days prior to installation of the Intellistop module that would have been contained in this reporting category had the module been installed at the time of the crash or incident. The Applicant's knowledge includes, but is not limited to: (1) outreach from a consumer, lawyer, or any other person or organization (via letter, email, fax, telephone call, social media, or any other medium); (2) lawsuits to which the Applicant is a party, or otherwise knows exist where an Intellistop module covered by this exemption is an issue in the litigation; and (3) insurance claims against the Applicant related to use of the Intellistop module. When in the Applicant's possession, information provided to FMCSA shall include:</P>
                    <P>1. The date of first contact regarding, or the Applicant's first awareness of, the crash or incident;</P>
                    <P>2. The date of the most recent follow-up contact, if any, between the Applicant and the other party;</P>
                    <P>3. The date, time, and location of the crash or incident;</P>
                    <P>4. A brief description of the crash or incident; and</P>
                    <P>5. The Intellistop module type and/or subtype(s) involved in the crash or incident.</P>
                    <P>6. Information, if any, indicating that the Intellistop module is, or was, not working as intended, or caused confusion or a roadway hazard for either the consumer or other motorists.</P>
                    <P>
                        <E T="03">Annual data.</E>
                         At the end of each 12-month period this exemption is in effect, the Applicant shall, within 60 days, submit a report detailing all information in its possession regarding crash rates and vehicle miles traveled by CMVs equipped with a module covered by this exemption. Additionally, the report shall specify the number and type of CMVs the Applicant is operating under the exemption, the module type or sub-type installed on each CMV, the affected lamps (rear clearance, identification, and/or brake lamps), the number of covered vehicles sold or transferred in ownership during the 12-month reporting period, and a statement certifying that any sold/transferred vehicle(s) have been restored to compliance with applicable FMVSSs and FMCSRs.
                    </P>
                    <P>
                        <E T="03">Meetings.</E>
                         The Applicant shall, at FMCSA's request, meet with FMCSA to answer questions regarding data and information provided by the Applicant under this exemption.
                    </P>
                    <P>(v). Early Termination</P>
                    <P>The exemption is valid for 5 years from the date of issuance unless rescinded earlier by FMCSA. FMCSA will terminate the exemption if: (1) the Applicant fails to comply with the terms and conditions; (2) the exemption results in a lower level of safety than was maintained before it was granted; or (3) continuation of the exemption would not be consistent with the goals and objectives of 49 U.S.C. 31136(e) and 31315(b).</P>
                    <P>
                        (vi). Notification from the Public
                        <PRTPAGE P="54156"/>
                    </P>
                    <P>Interested parties possessing information that would demonstrate that Meiborg's CMVs equipped with Intellistop's pulsating rear-light module may not be achieving the requisite statutory level of safety should immediately notify FMCSA. The Agency will evaluate any such information and, if safety is being compromised or if the continuation of the exemption is not consistent with 49 U.S.C. 31136(e) and 31315(b), will take immediate steps to revoke the exemption.</P>
                    <P>(vii). Non-Endorsement</P>
                    <P>This limited and conditional exemption does not constitute an endorsement of the Intellistop product by FMCSA, NHTSA, the U.S. DOT, or any of their components, or by any of these agencies' employees or agents. As a condition of the continued effectiveness of this exemption, Intellistop is expressly prohibited from describing its product as approved by, endorsed by, or otherwise authorized by FMCSA, NHTSA, or U.S. DOT, or as compliant with Federal safety regulations.</P>
                    <HD SOURCE="HD1">VII. Preemption</HD>
                    <P>In accordance with 49 U.S.C. 31315(d), as implemented by 49 CFR 381.600, during the period this exemption is in effect, no State shall enforce any law or regulation applicable to interstate commerce that conflicts with or is inconsistent with this exemption. States may, but are not required to, adopt the same exemption with respect to operations in intrastate commerce.</P>
                    <SIG>
                        <NAME>Vincent G. White,</NAME>
                        <TITLE>Acting Administrator.</TITLE>
                    </SIG>
                </FURINF>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-14262 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. FMCSA-2012-0332;FMCSA-2013-0124; FMCSA-2013-0125; FMCSA-2014-0103; FMCSA-2014-0387; FMCSA-2017-0057; FMCSA-2018-0138; FMCSA-2020-0024; FMCSA-2021-0017; FMCSA-2022-0032]</DEPDOC>
                <SUBJECT>Qualification of Drivers; Exemption Applications; Hearing</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of final disposition.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>FMCSA announces its decision to renew exemptions for 13 individuals from the hearing requirement in the Federal Motor Carrier Safety Regulations (FMCSRs) for interstate commercial motor vehicle (CMV) drivers. The exemptions enable these hard of hearing and deaf individuals to continue to operate CMVs in interstate commerce.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Each group of renewed exemptions were applicable on the dates stated in the discussions below and will expire on the dates provided below.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Ms. Christine A. Hydock, Chief, Medical Programs Division, FMCSA, DOT, 1200 New Jersey Avenue SE, Room W64-224, Washington, DC 20590-0001, (202) 366-4001, 
                        <E T="03">fmcsamedical@dot.gov.</E>
                         Office hours are 8:30 a.m. to 5 p.m. ET Monday through Friday, except Federal holidays. If you have questions regarding viewing or submitting material to the docket, contact Dockets Operations, (202) 366-9826.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Public Participation</HD>
                <HD SOURCE="HD2">A. Viewing Comments</HD>
                <P>
                    To view comments go to 
                    <E T="03">www.regulations.gov.</E>
                     Insert the docket number (FMCSA-2012-0332, FMCSA-2013-0124, FMCSA-2013-0125, FMCSA-2014-0103, FMCSA-2014-0387, FMCSA-2017-0057, FMCSA-2018-0138, FMCSA-2020-0024, FMCSA-2021-0017, or FMCSA-2022-0032) in the keyword box and click “Search.” Next, sort the results by “Posted (Newer-Older),” choose the first notice listed, and click “Browse Comments.” If you do not have access to the internet, you may view the docket online by visiting Dockets Operations on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m. ET Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations.
                </P>
                <HD SOURCE="HD2">B. Privacy Act</HD>
                <P>
                    In accordance with 49 U.S.C. 31315(b)(6), DOT solicits comments from the public on the exemption requests. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov.</E>
                     As described in the system of records notice DOT/ALL 14 (Federal Docket Management System), which can be reviewed at 
                    <E T="03">https://www.transportation.gov/individuals/privacy/privacy-act-system-records-notices,</E>
                     the comments are searchable by the name of the submitter.
                </P>
                <HD SOURCE="HD1">II. Background</HD>
                <P>On May 2, 2024, FMCSA published a notice announcing its decision to renew exemptions for 13 individuals from the hearing standard in 49 CFR 391.41(b)(11) to operate a CMV in interstate commerce and requested comments from the public (89 FR 35924). The public comment period ended on June 3, 2024, and no comments were received.</P>
                <P>FMCSA has evaluated the eligibility of these applicants and determined that renewing these exemptions would likely achieve a level of safety that is equivalent to, or greater than, the level that would be achieved by complying with § 391.41(b)(11).</P>
                <P>The physical qualification standard for drivers regarding hearing found in § 391.41(b)(11) states that a person is physically qualified to drive a CMV if that person first perceives a forced whispered voice in the better ear at not less than 5 feet with or without the use of a hearing aid or, if tested by use of an audiometric device, does not have an average hearing loss in the better ear greater than 40 decibels at 500 Hz, 1,000 Hz, and 2,000 Hz with or without a hearing aid when the audiometric device is calibrated to American National Standard (formerly ASA Standard) Z24.5—1951.</P>
                <P>This standard was adopted in 1970 and was revised in 1971 to allow drivers to be qualified under this standard while wearing a hearing aid (35 FR 6458, 6463 (Apr. 22, 1970) and 36 FR 12857 (July 8, 1971), respectively).</P>
                <HD SOURCE="HD1">III. Discussion of Comments</HD>
                <P>FMCSA received no comments in this proceeding.</P>
                <HD SOURCE="HD1">IV. Conclusion</HD>
                <P>Based upon its evaluation of the 13 renewal exemption applications and comments received, FMCSA announces its decision to exempt the following drivers from the hearing requirement in § 391.41 (b)(11).</P>
                <P>As of May 15, 2024, and in accordance with 49 U.S.C. 31136(e) and 31315(b), the following 12 individuals have satisfied the renewal conditions for obtaining an exemption from the hearing requirement in the FMCSRs for interstate CMV drivers (89 FR 35924):</P>
                <FP SOURCE="FP-1">Yunier Alegre (NE)</FP>
                <FP SOURCE="FP-1">Dustin Bemesderfer (FL)</FP>
                <FP SOURCE="FP-1">Marion Bennet (MD)</FP>
                <FP SOURCE="FP-1">Marquarius Boyd (MS)</FP>
                <FP SOURCE="FP-1">Stephan Gensmer (MN)</FP>
                <FP SOURCE="FP-1">Leonie Hall (IL)</FP>
                <FP SOURCE="FP-1">William Larson (NC)</FP>
                <FP SOURCE="FP-1">Jonathan Ramirez (CA)</FP>
                <FP SOURCE="FP-1">
                    Tami Richardson-Nelson (NE)
                    <PRTPAGE P="54157"/>
                </FP>
                <FP SOURCE="FP-1">Joseph Strassburg (SD)</FP>
                <FP SOURCE="FP-1">Charles Whitworth (LA)</FP>
                <FP SOURCE="FP-1">Aldale Williamson (DC)</FP>
                <P>The drivers were included in docket number FMCSA-2012-0332, FMCSA-2013-0124, FMCSA-2014-0103, FMCSA-2014-0387, FMCSA-2017-0057, FMCSA-2018-0138, FMCSA-2020-0024, FMCSA-2021-0017, or FMCSA-2022-0032. Their exemptions were applicable as of May 15, 2024 and will expire on May 15, 2026.</P>
                <P>As of May 19, 2024, and in accordance with 49 U.S.C. 31136(e) and 31315(b), Michael Paasch (NE) has satisfied the renewal conditions for obtaining an exemption from the hearing requirement in the FMCSRs for interstate CMV drivers (89 FR 35924).</P>
                <P>This driver was included in FMCSA-2013-0125. The exemption is applicable as of May 19, 2024 and will expire on May 19, 2026.</P>
                <P>In accordance with 49 U.S.C. 31315(b), each exemption will be valid for 2 years from the effective date unless revoked earlier by FMCSA. The exemption will be revoked if the following occurs: (1) the person fails to comply with the terms and conditions of the exemption; (2) the exemption has resulted in a lower level of safety than was maintained prior to being granted; or (3) continuation of the exemption would not be consistent with the goals and objectives of 49 U.S.C. 31136, 49 U.S.C. chapter 313, or the FMCSRs.</P>
                <SIG>
                    <NAME>Larry W. Minor,</NAME>
                    <TITLE>Associate Administrator for Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14327 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Railroad Administration</SUBAGY>
                <DEPDOC>[Docket No. FRA-2010-0051]</DEPDOC>
                <SUBJECT>Peninsula Corridor Joint Powers Board's Request to Amend Its Positive Train Control Safety Plan and Positive Train Control System</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Railroad Administration (FRA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of availability and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This document provides the public with notice that, on June 19, 2024, Peninsula Corridor Joint Powers Board (Caltrain) submitted a request for amendment (RFA) to its FRA-approved Positive Train Control Safety Plan (PTCSP) to support material modifications to its positive train control (PTC) system and Electric Multiple Unit (EMU) operations by modifying its PTC system software version 6.5.4.0, including changes to the PTC Penalty and Emergency Brake Output Change and Phase Break Function. As this RFA involves a request for FRA's approval of proposed material modifications to an FRA-certified PTC system, FRA is publishing this notice and inviting public comment on Caltrain's RFA to its PTCSP.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>FRA will consider comments received by July 18, 2024. FRA may consider comments received after that date to the extent practicable and without delaying implementation of valuable or necessary modifications to a PTC system.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        <E T="03">Comments:</E>
                         Comments may be submitted by going to 
                        <E T="03">https://www.regulations.gov</E>
                         and following the online instructions for submitting comments.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions must include the agency name and the applicable docket number. The relevant PTC docket number for this host railroad is Docket No. FRA-2010-0051. For convenience, all active PTC dockets are hyperlinked on FRA's website at 
                        <E T="03">https://railroads.crashstats.nhtsa.dot.gov/research-development/program-areas/train-control/ptc/railroads-ptc-dockets.</E>
                         All comments received will be posted without change to 
                        <E T="03">https://www.regulations.gov;</E>
                         this includes any personal information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Gabe Neal, Staff Director, Signal, Train Control, and Crossings Division, telephone: 816-516-7168, email: 
                        <E T="03">Gabe.Neal@dot.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>In general, title 49 United States Code (U.S.C.) section 20157(h) requires FRA to certify that a host railroad's PTC system complies with title 49 Code of Federal Regulations (CFR) part 236, subpart I, before the technology may be operated in revenue service. Before making certain changes to an FRA-certified PTC system or the associated FRA-approved PTCSP, a host railroad must submit, and obtain FRA's approval of, an RFA to its PTCSP under 49 CFR 236.1021.</P>
                <P>
                    Under 49 CFR 236.1021(e), FRA's regulations provide that FRA will publish a notice in the 
                    <E T="04">Federal Register</E>
                     and invite public comment in accordance with 49 CFR part 211, if an RFA includes a request for approval of a material modification of a signal or train control system. Accordingly, this notice informs the public that, on June 19, 2024, Caltrain submitted an RFA to its FRA-approved PTCSP to support material modifications to its PTC system and EMU operations by modifying its PTC system software version 6.5.4.0, including changes to the PTC Penalty and Emergency Brake Output Change and Phase Break Function. That RFA is available in Docket No. FRA-2010-0051.
                </P>
                <P>
                    Interested parties are invited to comment on Caltrain's RFA to its PTCSP by submitting written comments or data. During FRA's review of Caltrain's RFA, FRA will consider any comments or data submitted within the timeline specified in this notice and to the extent practicable, without delaying implementation of valuable or necessary modifications to a PTC system. 
                    <E T="03">See</E>
                     49 CFR 236.1021; 
                    <E T="03">see also</E>
                     49 CFR 236.1011(e). Under 49 CFR 236.1021, FRA maintains the authority to approve, approve with conditions, or deny a railroad's RFA to its PTCSP at FRA's sole discretion.
                </P>
                <HD SOURCE="HD1">Privacy Act Notice</HD>
                <P>
                    In accordance with 49 CFR 211.3, FRA solicits comments from the public to better inform its decisions. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                    <E T="03">https://www.regulations.gov,</E>
                     as described in the system of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
                    <E T="03">https://www.transportation.gov/privacy.</E>
                     See 
                    <E T="03">https://www.regulations.gov/privacy-notice</E>
                     for the privacy notice of regulations.gov. To facilitate comment tracking, we encourage commenters to provide their name, or the name of their organization; however, submission of names is completely optional. If you wish to provide comments containing proprietary or confidential information, please contact FRA for alternate submission instructions.
                </P>
                <SIG>
                    <P>Issued in Washington, DC.</P>
                    <NAME>Carolyn R. Hayward-Williams,</NAME>
                    <TITLE>Director, Office of Railroad Systems and Technology.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14298 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-06-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Pipeline and Hazardous Materials Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. PHMSA-2023-0108, (Notice No. 2023-13)]</DEPDOC>
                <SUBJECT>Hazardous Materials: Request for Feedback on De Minimis Quantities of Explosives</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Pipeline and Hazardous Materials Safety Administration (PHMSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <PRTPAGE P="54158"/>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; request for information.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>PHMSA is publishing this notice to solicit information from hazardous materials (HAZMAT) shippers pertaining to what small quantities or low concentrations of explosives they offer for transport appear to present a low risk to life, property, and the environment.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Interested parties are invited to submit comments on or before September 26, 2024. Comments received after that date will be considered to the extent possible.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments identified by the Docket Number PHMSA-2023-0108 by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         1-202-493-2251.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Docket Management System; U.S. Department of Transportation, West Building, Ground Floor, Room W12-140, Routing Symbol M-30, 1200 New Jersey Avenue SE, Washington, DC 20590.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery:</E>
                         Docket Management System; Room W12-140 on the ground floor of the West Building, 1200 New Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions must include the agency name and Docket Number [PHMSA-2023-0108] for this notice. To avoid duplication, please use only one of these four methods. All comments received will be posted without change to the Federal Docket Management System (FDMS) and will include any personal information you provide.
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         For access to the dockets to read background documents or comments received, go to 
                        <E T="03">http://www.regulations.gov</E>
                         or DOT's Docket Operations Office (see 
                        <E T="02">ADDRESSES</E>
                        ).
                    </P>
                    <P>
                        <E T="03">Privacy Act:</E>
                         In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                        <E T="03">http://www.regulations.gov,</E>
                         as described in the system of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
                        <E T="03">http://www.dot.gov/privacy.</E>
                    </P>
                    <P>
                        <E T="03">Confidential Business Information (CBI):</E>
                         CBI is commercial or financial information that is both customarily and actually treated as private by its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public disclosure. If your comments responsive to this notice contain commercial or financial information that is customarily treated as private, that you actually treat as private, and that is relevant or responsive to this notice, it is important that you clearly designate the submitted comments as “CBI.” Please mark each page of your submission containing CBI as “PROPIN.” Submissions containing CBI should be sent to Michael Klem, Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590-0001. Any commentary PHMSA receives that is not specifically designated as CBI will be placed in the public docket for this notice.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Andrew Leyder, Office of Hazardous Materials Safety, Research, Development &amp; Technology, Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, by phone at 202-360-0664, or by email at 
                        <E T="03">andrew.leyder@dot.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Purpose</HD>
                <P>
                    PHMSA is publishing this notice to HAZMAT shippers to determine, based on their experience, what small quantities or low concentrations of explosives they offer for transport that appear to present a low risk (
                    <E T="03">e.g.,</E>
                     negligible severity, remote probability, etc.) to life, property, and the environment. The information will be used to define the focus of a research project investigating the risk of small and/or de minimis quantities of explosive substances and in selecting test samples for PHMSA research and development Contract# 693JK322C00003.
                </P>
                <HD SOURCE="HD1">II. Background</HD>
                <P>HAZMAT is comprised of substances or materials capable of posing an unreasonable risk to life, property, and the environment when transported in commerce. PHMSA issues the Hazardous Materials Regulations (HMR), contained in title 49 of the Code of Federal Regulations (CFR) parts 171-180, for the safe and secure transportation of HAZMAT. When packaged in inner and outer packagings that do not exceed small threshold quantities, specific classes of HAZMAT can be offered for transport without being subject to many or all of the HMR requirements. Exceptions for small quantities of HAZMAT in transport include the following:</P>
                <P>• Small quantities for highway and rail within the U.S. (49 CFR 173.4).</P>
                <P>• Excepted quantities (49 CFR 173.4a).</P>
                <P>• De minimis exceptions (49 CFR 173.4b).</P>
                <P>Currently there are no small quantity exceptions for Class 1 explosives. Rather, the HMR requires that any change in the formulation, design, or process that alters any of the properties of a Class 1 explosive means it is now considered a “new explosive” and must be examined, classed, and approved for transport. Obtaining a U.S. DOT PHMSA explosives (EX) approval requires significant commitments of time, effort, and financial resources by the prospective shipper, examining agent, and PHMSA. Establishing a small quantity and/or de minimis exception for explosives presenting a low hazard in transport would reduce the time, effort, and financial investments required by all affected parties in order to authorize its transport, while maintaining the safety of the transportation system.</P>
                <P>Although there are no small quantity exceptions for Class 1 explosives with a general scope that might apply to broad categories of small quantity or low concentration explosives, there are a few narrowly defined exceptions that authorize the transport of specific explosive substances that have been desensitized to impact, friction, and/or flame initiation, such as:</P>
                <P>
                    • 
                    <E T="03">UN2555, Nitrocellulose with water [with not less than 25% water, by mass], 4.1, II</E>
                     (≤75% explosives content, 1.1D when undiluted); 
                    <E T="03">UN3357, Nitroglycerin mixture, desensitized, liquid, n.o.s. with not more than 30% nitroglycerin, by mass, 3, II</E>
                     (30% explosives content, forbidden from transport when undiluted); or 
                    <E T="03">UN1204, Nitroglycerin solution in alcohol [with not more than 1% nitroglycerin], 3, II</E>
                     (1% explosives content, forbidden from transport when undiluted).
                </P>
                <P>○ Each can be offered for transport in inner packagings containing up to 30 grams per 49 CFR 173.4 or 173.4a or 1 gram per 49 CFR 173.4b.</P>
                <P>
                    • 
                    <E T="03">UN1571, Barium azide, wetted [with not less than 50% water], by mass, 4.1, I</E>
                     (≤50% explosives content, 1.1A when undiluted); 
                    <E T="03">UN1322, Dinitroresorcinol, wetted [with not less than 15% water, by mass], 4.1, I</E>
                     (≤85% explosives content, 1.1D when undiluted); 
                    <E T="03">UN3366, Trinitrotoluene (TNT), wetted, [with not less than 10% water by mass], 4.1, I</E>
                     (≤90% explosives content, 1.1D when undiluted); or 
                    <E T="03">UN3370, Urea nitrate, wetted, [with not less than 10% water by mass], 4.1, I</E>
                     (≤90% explosives content, 1.1D when undiluted).
                    <PRTPAGE P="54159"/>
                </P>
                <P>○ Each can be offered for transport in inner packagings containing up to 30 grams per 49 CFR 173.4.</P>
                <P>Therefore, although the small quantity exceptions authorize the transport of specific and narrowly defined desensitized explosives, the current quantity exceptions do not have allowances for broader categories of small quantity or low concentration explosives defined by lower concentration without individual testing/examination, nor allowances that define when a diluted explosive might be excepted from the HMR requirements.</P>
                <HD SOURCE="HD1">III. PHMSA's Exceptions for Desensitized Explosives</HD>
                <P>There are currently no small quantity or de minimis exceptions for Class 1 explosive substances or articles in the United States. However, the following exceptions permit the transport of various desensitized explosives that have been excluded from Class 1 (summarized by the following bullets; refer to the regulatory text for the full requirements and allowances):</P>
                <P>• 49 CFR 173.4 (Small quantities for highway and rail within the U.S.) authorizes inner packagings containing up to 30 g of authorized solids or 30 mL of authorized liquids in an outer packaging not exceeding a gross mass of 29 kg.</P>
                <P>• 49 CFR 173.4a (Excepted quantities) authorizes inner packagings containing up to 30 g of authorized solids or 30 mL of authorized liquids in an outer packaging not exceeding a net mass 300 g or 300 mL for PG I solids or liquids; 500 g or 500 mL for solids or liquids of PG II; and 1 kg or 1 L for PG III solids or liquids/gases.</P>
                <P>• 49 CFR 173.4b (De minimis exceptions) authorizes inner packagings containing up to 1 g of authorized solids or 1 mL of authorized liquids with an aggregate quantity of HAZMAT not exceeding 100 g or 100 mL in an outer packaging not exceeding a gross mass of 29 kg.</P>
                <HD SOURCE="HD1">IV. Request for Feedback</HD>
                <P>We are interested in understanding what small quantities or low concentrations of explosives are offered for transport that appear to present a low risk to life, property, and the environment. For this inquiry, an explosive meets the definition of 49 CFR 173.50(a) and United Nations Recommendations on the Transport of Dangerous Goods section 2.1.1 and 2.1.1.3. The phrase “low risk to life, property, and the environment” means a risk comprised of a negligible severity and a remote probability (as defined in MIL-STD-882E, “Department of Defense Standard Practice, System Safety”, 11 May 2012) for the worst-case scenario related to transportation, including preparation for transport, storage, and/or handling incidental to movement. From MIL-STD-882E, negligible severity and remote probability are defined as:</P>
                <P>
                    • 
                    <E T="03">Negligible severity</E>
                    —Could result in one or more of the following: injury or occupational illness not resulting in a lost work day, minimal environmental impact (air/water/solid waste pollutant emissions, inadvertent hazardous releases, or adverse change upon resources/ecosystems), or monetary loss less than $100K.
                </P>
                <P>
                    • 
                    <E T="03">Remote probability</E>
                    —Unlikely, but possible for an incident to occur in the life of the item.
                </P>
                <P>The information will be used to define the focus of a research project investigating the risk of small and/or de minimis quantities of explosive substances, and in selecting test samples for PHMSA Research &amp; Development Contract #693JK322C00003. PHMSA requests comment on the following questions:</P>
                <P>1. Which of the following items do you encounter that a) are to be offered for transport, and b) contain small quantities and/or low concentrations of explosives? Examples could include, but are not limited to: analytical standards, canine training aids, residues in packaging (bags, boxes, drums, etc.), residues on tooling or equipment, contaminated lubricants, residues in piping, residues from processing (wipes, swabs, paper/plastic/textile sheets or covers, absorbent pads, filter media, etc.), residues from handling (gloves, aprons, masks, respirator cartridges, clothing, etc.), manufacturing residues, floor sweepings, residues in solvent or water washes, contaminated soil, and/or other.</P>
                <P>2. How frequently does your facility offer small quantities or low concentrations of explosives as a HAZMAT shipper that appear to present a low risk to life, property, and the environment?</P>
                <FP SOURCE="FP-1">• Never [skip to question 8]</FP>
                <FP SOURCE="FP-1">• Rarely [continue to next question]</FP>
                <FP SOURCE="FP-1">• Yearly [continue to next question]</FP>
                <FP SOURCE="FP-1">• Monthly [continue to next question]</FP>
                <FP SOURCE="FP-1">• Weekly [continue to next question]</FP>
                <FP SOURCE="FP-1">• Daily [continue to next question]</FP>
                <P>3. Please provide responses to the following sub-questions (3.1 to 3.10) for the top five examples of small quantities or low concentrations of explosives encountered by your facility that present a low risk to life, property, and the environment. Please focus on examples at your facility that: (a) are most frequently encountered; (b) represent the greatest mass/volume; (c) have the highest net explosives weight; (d) have the highest explosives concentration; and/or e) have the greatest amount of explosives.</P>
                <P>3.1. What is the composition of the HAZMAT (constituents, concentration, quantity, etc.)?</P>
                <P>3.2. What is the packaging configuration of the HAZMAT (inner, intermediate, and outer packagings)?</P>
                <P>3.3. What is the average net explosives weight of the inner package (in grams)?</P>
                <P>3.4. What is the average net explosives weight of the outer package (in grams)?</P>
                <P>3.5. What is this HAZMAT's UN identification number?</P>
                <P>3.6. On average, how many packages of this HAZMAT are in one shipment?</P>
                <P>3.7. On average, how many shipments of this HAZMAT are made in one year?</P>
                <P>
                    3.8. What mode(s) of transport is/are utilized for these shipments (
                    <E T="03">e.g.,</E>
                     motor vehicle, passenger or cargo-only rail/aircraft, vessel, etc.)?
                </P>
                <P>3.9. Where is this HAZMAT typically shipped? Specify all that apply: another facility for further manufacturing; customer or end user; recycling (reclamation, reuse/use, etc.); hazardous waste facility for chemical/thermal/biological/physical treatment; hazardous waste facility for disposal (dumpsite, landfill, etc.); public landfill; and/or other.</P>
                <P>3.10. Is the HAZMAT offered for transport internationally or domestically in intrastate (within the same state) or interstate (between states) commerce?</P>
                <P>
                    3.11. What type of approval is currently being utilized to offer the HAZMAT for shipment? (
                    <E T="03">e.g.,</E>
                     EX-approval, Special Permit, or Competent Authority).
                </P>
                <P>3.12. What tests were performed to characterize the hazard of the HAZMAT?</P>
                <P>
                    3.13. Are you willing to share more detailed information (
                    <E T="03">e.g.,</E>
                     the test report, recommended classification, and EX-approval) with Safety Management Services, Inc. (SMS) of West Jordan, Utah? SMS is willing to sign non-disclosure agreements to protect proprietary information; further details can be securely transmitted to them.
                </P>
                <P>4. As applicable, please list up to five examples of small quantities and/or low concentrations of explosives presenting more than a low risk to life, property, and the environment.</P>
                <P>
                    5. All materials containing explosives, including small quantities or dilute concentrations, require a PHMSA approval prior to transport; it can take 
                    <PRTPAGE P="54160"/>
                    up to 180 days to examine, classify, and approve a regulated explosives-containing material for transport. What impact does waiting for PHMSA approval of your small quantities and/or dilute explosives have upon your facility, in your efforts to comply with the requirements of other regulatory agencies?
                </P>
                <P>6. What threshold quantity and/or concentration of explosives, if any, presents a low risk to life, property, and the environment, and should, in your opinion, be considered for exception from regulation by PHMSA?</P>
                <P>
                    7. What is the technical basis for your opinion (
                    <E T="03">e.g.,</E>
                     testing, experience, data, etc.)?
                </P>
                <P>8. Why, in your opinion, should a threshold quantity and/or concentration of explosives not be considered for exception from regulation by PHMSA?</P>
                <P>Your efforts to comment on the above questions are appreciated; your responses will be used to better inform decisions in determining small quantity and/or de minimis exceptions for explosive substances and in selecting test samples for Contract #693JK322C00003.</P>
                <SIG>
                    <P>Issued in Washington, DC.</P>
                    <NAME>Yolanda Y. Braxton,</NAME>
                    <TITLE>Director, Operations System Division, Office of Hazardous Materials Safety, Pipeline and Hazardous Materials Safety Administration.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14175 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-60-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF THE TREASURY</AGENCY>
                <SUBAGY>Office of Foreign Assets Control</SUBAGY>
                <SUBJECT>Notice of OFAC Sanctions Actions</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Foreign Assets Control, Department of the Treasury.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing the names of one or more persons whose property and interests in property have been unblocked and who have been removed from the Specially Designated Nationals and Blocked Persons List (SDN List).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        These actions take effect on the dates listed in the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                        .
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>OFAC: Associate Director for Global Targeting, tel: 202-622-2420; Assistant Director for Licensing, tel.: 202-622-2480; Assistant Director for Regulatory Affairs, tel.: 202-622-4855; or Assistant Director for Sanctions Compliance &amp; Evaluation, tel.: 202-622-2490.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Electronic Availability</HD>
                <P>
                    The SDN List and additional information concerning OFAC sanctions programs are available on OFAC's website (
                    <E T="03">https://ofac.treasury.gov</E>
                    ).
                </P>
                <HD SOURCE="HD1">Notice of OFAC Actions</HD>
                <P>A. On June 25, 2024, OFAC determined that the property and interests in property subject to U.S. jurisdiction of the following persons are unblocked and they have been removed from the SDN List.</P>
                <HD SOURCE="HD1">Individuals</HD>
                <EXTRACT>
                    <P>1. VALENCIA CORNELIO, Armando (a.k.a. CORNELIO VALENCIA, Armando; a.k.a. VALENCIA CABALLERO, Elias Armando; a.k.a. VALENCIA PENA, Armando); DOB 15 Jun 1954; alt. DOB 28 Nov 1959; POB Mexico (individual) [SDNTK].</P>
                    <P>2. GASTELUM SERRANO, Jaime (a.k.a. “KIO”); DOB 28 Nov 1972; POB Culiacan, Sinaloa, Mexico; nationality Mexico; C.U.R.P. GASJ721128HSLSRM06 (Mexico) (individual) [SDNTK].</P>
                    <P>3. CARO URIAS, Omar, Calle San Gonzalo 1970-43, Col. Santa Isabel, Zapopan, Jalisco, Mexico; Av. Ramon Corona 4750 Int. L-2, Col. Jardin Real, Zapopan, Jalisco, Mexico; Av. Ramon Corona 4750 Int. L-3, Col. Jardin Real, Zapopan, Jalisco, Mexico; Av. Ramon Corona 4750 Int. L-6, Col. Jardin Real, Zapopan, Jalisco, Mexico; Av. Ramon Corona 4750 Int. L-7, Col. Jardin Real, Zapopan, Jalisco, Mexico; Av. Ramon Corona 4750 Int. L-8, Col. Jardin Real, Zapopan, Jalisco, Mexico; DOB 19 Jun 1977; POB Jalisco, Mexico; citizen Mexico; Gender Male; R.F.C. CAUO770619C87 (Mexico); C.U.R.P. CAUO770619HJCRRM08 (Mexico) (individual) [SDNTK] (Linked To: FLORES DRUG TRAFFICKING ORGANIZATION; Linked To: LOLA LOLITA 1110, S. DE R.L. DE C.V.; Linked To: NOCTURNUM INC, S. DE R.L. DE C.V.).</P>
                    <P>4. BARRERA MARIN, Alvaro, c/o APVA S.A., Cali, Colombia; c/o BARRERA RIOS NEGOCIOS INMOBILIARIOS E.U., Cali, Colombia; c/o CECEP EDITORES S.A., Cali, Colombia; c/o CECEP S.A., Cali, Colombia; c/o COMERCIALIZADORA DE BIENES Y SERVICIOS ADMINISTRATIVOS Y FINANCIEROS S.A., Cali, Colombia; c/o ENSAMBLADORA COLOMBIANA AUTOMOTRIZ S.A., Barranquilla, Colombia; c/o NEGOCIOS Y CAPITALES S.A., Pereira, Colombia; c/o WORLD LINE SYSTEM S.A., Palmira, Valle, Colombia; Calle 56D No. 28B-73, Barrio Las Mercedes, Palmira, Valle, Colombia; DOB 21 Nov 1940; POB Sevilla, Valle, Colombia; Cedula No. 6451857 (Colombia); Passport AG003135 (Colombia) (individual) [SDNT].</P>
                    <P>5. BARRERA RIOS, Alfonso, c/o ALFONSO BARRERA RIOS Y CIA. S. EN C.S., Cali, Colombia; c/o APVA S.A., Cali, Colombia; c/o BARRERA RIOS NEGOCIOS INMOBILIARIOS E.U., Cali, Colombia; c/o CECEP EDITORES S.A., Cali, Colombia; c/o CECEP S.A., Cali, Colombia; c/o ENSAMBLADORA COLOMBIANA AUTOMOTRIZ S.A., Barranquilla, Colombia; c/o NEGOCIOS Y CAPITALES S.A., Pereira, Colombia; c/o WORLD LINE SYSTEM S.A., Palmira, Valle, Colombia; Calle 14 Oeste No. 2B1-45 apto. 302E, Cali, Colombia; c/o A K DIFUSION S.A. PUBLICIDAD Y MERCADEO, Cali, Colombia; c/o A K EDUCAL S.A. EDUCACION CON CALIDAD, Cali, Colombia; c/o B R C S.A., Cali, Colombia; c/o SERPROVIS S.A. SERVICIOS Y PROVISIONES, Cali, Colombia; DOB 08 Dec 1975; POB Cali, Colombia; Cedula No. 79648943 (Colombia); Passport AJ963037 (Colombia) (individual) [SDNT].</P>
                    <P>6. BARRERA RIOS, Alvaro Enrique, c/o ALFONSO BARRERA RIOS Y CIA. S. EN C.S., Cali, Colombia; c/o ALVARO ENRIQUE BARRERA RIOS Y CIA S. EN C.S., Cali, Colombia; c/o APVA S.A., Cali, Colombia; c/o BARRERA RIOS NEGOCIOS INMOBILIARIOS E.U., Cali, Colombia; c/o CECEP EDITORES S.A., Cali, Colombia; c/o CECEP S.A., Cali, Colombia; c/o COMERCIALIZADORA DE BIENES Y SERVICIOS ADMINISTRATIVOS Y FINANCIEROS S.A., Cali, Colombia; c/o ENSAMBLADORA COLOMBIANA AUTOMOTRIZ S.A., Barranquilla, Colombia; c/o NEGOCIOS Y CAPITALES S.A., Pereira, Colombia; c/o WORLD LINE SYSTEM S.A., Palmira, Valle, Colombia; Carrera 54A No. 5A-21, Cali, Colombia; c/o A K DIFUSION S.A. PUBLICIDAD Y MERCADEO, Cali, Colombia; c/o A K EDUCAL S.A. EDUCACION CON CALIDAD, Cali, Colombia; c/o B R C S.A., Cali, Colombia; c/o SERPROVIS S.A. SERVICIOS Y PROVISIONES, Cali, Colombia; DOB 05 Dec 1968; POB Cali, Colombia; Cedula No. 16758185 (Colombia); Passport AJ149349 (Colombia) (individual) [SDNT].</P>
                    <P>7. BARRERA RIOS, Victoria Eugenia, c/o ALFONSO BARRERA RIOS Y CIA. S. EN C.S., Cali, Colombia; c/o APVA S.A., Cali, Colombia; c/o CECEP EDITORES S.A., Cali, Colombia; c/o CECEP S.A., Cali, Colombia; c/o ENSAMBLADORA COLOMBIANA AUTOMOTRIZ S.A., Barranquilla, Colombia; c/o NEGOCIOS Y CAPITALES S.A., Pereira, Colombia; c/o WORLD LINE SYSTEM S.A., Palmira, Valle, Colombia; Transversal 18 No. 127-43 Torre 4 apto. 1201, Bogota, Colombia; c/o A K DIFUSION S.A. PUBLICIDAD Y MERCADEO, Cali, Colombia; c/o A K EDUCAL S.A. EDUCACION CON CALIDAD, Cali, Colombia; c/o B R C S.A., Cali, Colombia; c/o RIOS JIMENEZ S. EN C.S., Bogota, Colombia; c/o SERPROVIS S.A. SERVICIOS Y PROVISIONES, Cali, Colombia; DOB 11 Dec 1970; POB Cali, Colombia; Cedula No. 66818996 (Colombia); Passport AI939751 (Colombia) (individual) [SDNT].</P>
                    <P>8. FRANCO RUIZ, Ruben Alberto, c/o CAMPO LIBRE A LA DIVERSION E.U., Yumbo, Valle, Colombia; Avenida 5N No. 51-57, Cali, Colombia; Calle 34N No. 3CN-62, Cali, Colombia; DOB 18 Feb 1964; POB Cali, Colombia; Cedula No. 16702454 (Colombia); Passport AH070927 (Colombia) (individual) [SDNT].</P>
                    <P>
                        9. LOPERA BARBOSA, Juan Carlos, c/o ASESORIA Y SOLUCIONES GRUPO CONSULTOR S.A., Cali, Colombia; c/o CONSULTORIA INTEGRAL Y ASESORIA EMPRESARIAL S.A., Cali, Colombia; c/o INVERSIONES EPOCA S.A., Cali, Colombia; 
                        <PRTPAGE P="54161"/>
                        c/o J.A.J. BARBOSA Y CIA. S.C.S., Cali, Colombia; Carrera 81 No. 13A-125 Casa 11, Cali, Colombia; DOB 18 Jan 1968; POB Cali, Colombia; Cedula No. 16746731 (Colombia); Passport AK122874 (Colombia) (individual) [SDNT].
                    </P>
                    <P>10. LOPERA BARBOSA, Jairo Humberto, c/o ASESORIA Y SOLUCIONES GRUPO CONSULTOR S.A., Cali, Colombia; c/o CONSULTORIA INTEGRAL Y ASESORIA EMPRESARIAL S.A., Cali, Colombia; c/o INVERSIONES EPOCA S.A., Cali, Colombia; c/o J.A.J. BARBOSA Y CIA. S.C.S., Cali, Colombia; Carrera 72 No. 11-46 Blq. 11 apto. 403, Cali, Colombia; DOB 22 Feb 1971; POB Cali, Colombia; Cedula No. 16792756 (Colombia); Passport AJ172334 (Colombia) (individual) [SDNT].</P>
                    <P>11. QUINONES, Benedicto (a.k.a. QUINONEZ, Benedicto), c/o QUINONES MELO Y CIA. LTDA., Cali, Colombia; c/o ARTURO QUINONEZ LTDA., Cali, Colombia; c/o COMERCIALIZADORA CGQ LTDA., Cali, Colombia; Calle 12A No. 107-25 No. 2, Cali, Colombia; DOB 25 Jun 1946; POB Cali, Colombia; Cedula No. 14934266 (Colombia); Passport 14934266 (Colombia) (individual) [SDNT].</P>
                    <P>12. RAMIREZ ABADIA, Juan Carlos, Calle 6A No. 34-65, Cali, Colombia; c/o DISDROGAS LTDA., Yumbo, Valle, Colombia; c/o RAMIREZ ABADIA Y CIA. S.C.S., Cali, Colombia; DOB 16 Feb 1963; Cedula No. 16684736 (Colombia); Passport AD127327 (Colombia) (individual) [SDNT].</P>
                    <P>13. RAMIREZ GARCIA, Hernan Felipe, c/o CONSULTORIAS FINANCIERAS S.A., Cali, Colombia; Calle 7 No. 51-37, Cali, Colombia; DOB 09 Jun 1969; POB Cali, Colombia; Cedula No. 16772586 (Colombia); Passport AI848476 (Colombia) (individual) [SDNT].</P>
                    <P>14. RAMIREZ LENIS, Jhon Jairo, Carrera 4C No. 34-27, Cali, Colombia; DOB 19 Jul 1966; Cedula No. 79395056 (Colombia) (individual) [SDNT].</P>
                    <P>15. VILLA VINASCO, Armando Alonso, Calle Angel Larra, 4, Madrid 28027, Spain; Miranda, Cauca, Colombia; DOB 24 Oct 1960; Cedula No. 16645357 (Colombia) (individual) [SDNT].</P>
                </EXTRACT>
                <HD SOURCE="HD1">Entities</HD>
                <EXTRACT>
                    <P>
                        1. NOCTURNUM INC, S. DE R.L. DE C.V. (a.k.a. CORTEZ COCINA AUTENTICA; a.k.a. NOCTURN INC, S. DE R.L. DE C.V.; a.k.a. “CORTEZ”; a.k.a. “EL CORTEZ”; a.k.a. “RESTAURANT CORTEZ”; a.k.a. “RESTAURANTE CORTEZ”), Guadalajara, Jalisco, Mexico; Diagonal San Jorge 100, Guadalajara, Jalisco, Mexico; Av. Americas 1417-B, Col. Providencia 2A Seccion, Guadalajara, Jalisco 44630, Mexico; website 
                        <E T="03">www.cortez.com.mx;</E>
                         RFC NIN130327JBO (Mexico); Folio Mercantil No. 74711 (Jalisco) (Mexico) [SDNTK].
                    </P>
                    <P>2. A K DIFUSION S.A. PUBLICIDAD Y MERCADEO, Calle 28N No. 6BN-54, Cali, Colombia; NIT # 900015699-8 (Colombia) [SDNT].</P>
                    <P>3. A K EDUCAL S.A. EDUCACION CON CALIDAD, Calle 28N No. 6BN-54, Cali, Colombia; NIT # 900015704-7 (Colombia) [SDNT].</P>
                    <P>4. ALFONSO BARRERA RIOS Y CIA. S. EN C.S., Calle 14 Oeste No. 2B1-45 apto. 302E, Cali, Colombia; NIT # 900101150-5 (Colombia) [SDNT].</P>
                    <P>5. ALVARO ENRIQUE BARRERA RIOS Y CIA. S. EN C.S., Calle 14 Oeste No. 2B1-45 apto. 302E, Cali, Colombia; NIT # 900105952-3 (Colombia) [SDNT].</P>
                    <P>6. APVA S.A., Calle 5A No. 22-13, Cali, Colombia; NIT # 805010421-0 (Colombia) [SDNT].</P>
                    <P>7. ARTURO QUINONEZ LTDA. (a.k.a. RESTAURANTE SANTA COLOMBIA), Calle 10 No. 46-120, Cali, Colombia; NIT # 900093492-3 (Colombia) [SDNT].</P>
                    <P>8. ASESORIA Y SOLUCIONES GRUPO CONSULTOR S.A., Calle 15 Norte No. 6N-34 ofc. 404, Cali, Colombia; NIT # 805018000-1 (Colombia) [SDNT].</P>
                    <P>9. B R C S.A. (a.k.a. BARRERA RIOS CAMACHO ADMINISTRACION Y FINANZAS S.A.), Calle 28N No. 6BN-54, Cali, Colombia; NIT # 900021843-7 (Colombia) [SDNT].</P>
                    <P>10. BARRERA RIOS NEGOCIOS INMOBILIARIOS E.U., Carrera 22 No. 5A-21, Cali, Colombia; NIT # 805030626-9 (Colombia) [SDNT].</P>
                    <P>11. CAMPO LIBRE A LA DIVERSION E.U. (a.k.a. PARQUE YAKU; a.k.a. YAKU E.U.), Calle 15 No. 27-33, Yumbo, Valle, Colombia; NIT # 805026848-1 (Colombia) [SDNT].</P>
                    <P>12. CECEP EDITORES S.A., Calle 5A No. 22-13, Cali, Colombia; Carrera 22 No. 5A-21, Cali, Colombia; NIT # 805018858-1 (Colombia) [SDNT].</P>
                    <P>13. CECEP S.A. (f.k.a. CENTRO COLOMBIANO DE ESTUDIOS PROFESIONALES LTDA.), Avenida 6 No. 28-102, Cali, Colombia; Calle 9B No. 29A-67, Cali, Colombia; NIT # 890315495-4 (Colombia) [SDNT].</P>
                    <P>14. COMERCIALIZADORA CGQ LTDA. (a.k.a. CENTROPARTES CALI), Carrera 18 No. 9-24, Cali, Colombia; NIT # 805029062-3 (Colombia) [SDNT].</P>
                    <P>15. COMERCIALIZADORA DE BIENES Y SERVICIOS ADMINISTRATIVOS Y FINANCIEROS S.A. (f.k.a. RENTAS Y ADMINISTRACIONES S.A.), Calle 6 No. 39-25 Local 206, Cali, Colombia; NIT # 800200471-6 (Colombia) [SDNT].</P>
                    <P>16. CONSULTORIA INTEGRAL Y ASESORIA EMPRESARIAL S.A. (f.k.a. ASECOM S.A.; a.k.a. COINEMP S.A.), Calle 15 Norte No. 6N-34 ofc. 404, Cali, Colombia; NIT # 890326149-8 (Colombia) [SDNT].</P>
                    <P>17. CONSULTORIAS FINANCIERAS S.A. (a.k.a. COFINANZAS), Carrera 3 No. 12-40 ofc. 1001, Cali, Colombia; NIT # 805017446-6 (Colombia) [SDNT].</P>
                    <P>18. DISDROGAS LTDA. (f.k.a. RAMIREZ Y CIA. LTDA.), Carrera 38 No. 13-138 Acopi, Yumbo, Valle, Colombia; Calle 15 No. 11-34, Pasto, Narino, Colombia; Carrera 1D Bis. No. 15-55, Neiva, Huila, Colombia; Calle 39 No. 17-42, Neiva, Huila, Colombia; Apartado Aereo 30530, Cali, Colombia; NIT # 800058576-2 (Colombia) [SDNT].</P>
                    <P>19. ENSAMBLADORA COLOMBIANA AUTOMOTRIZ S.A. (a.k.a. E.C.A. S.A.), Carrera 39 No. 43-75, Barranquilla, Colombia; NIT # 817000791-1 (Colombia) [SDNT].</P>
                    <P>20. INVERSIONES EPOCA S.A., Calle 15 Norte No. 6N-34 ofc. 404, Cali, Colombia; NIT # 805012582-7 (Colombia) [SDNT].</P>
                    <P>21. J.A.J. BARBOSA Y CIA. S.C.S. (f.k.a. COMERCIO GLOBAL Y CIA. S.C.S.), Calle 15 Norte No. 6N-34 ofc. 404, Cali, Colombia; NIT # 800214437-6 (Colombia) [SDNT].</P>
                    <P>22. NEGOCIOS Y CAPITALES S.A., Avenida 30 de Agosto No. 34-51, Pereira, Colombia; NIT # 800101701-0 (Colombia) [SDNT].</P>
                    <P>23. QUINONES MELO Y CIA. LTDA., Carrera 3 No. 11-55 ofc. 206, Cali, Colombia; NIT # 890327616-0 (Colombia) [SDNT].</P>
                    <P>24. RAMIREZ ABADIA Y CIA. S.C.S., Avenida Estacion No. 5BN-73 of. 207, Cali, Colombia; NIT # 800117676-4 (Colombia) [SDNT].</P>
                    <P>25. RIOS JIMENEZ S. EN C.S., Carrera 18 No. 38-35, Bogota, Colombia; NIT # 830007478-1 (Colombia) [SDNT].</P>
                    <P>26. SERPROVIS S.A. SERVICIOS Y PROVISIONES, Calle 28N No. 6BN-54, Cali, Colombia; NIT # 900023730-2 (Colombia) [SDNT].</P>
                    <P>27. TURISMO HANSA S.A., Avenida 4 Norte No. 19N-34 ofc. 302, Cali, Colombia; Centro Comercial New Point Local 204, San Andres, Colombia; NIT # 860027780-4 (Colombia) [SDNT].</P>
                    <P>28. UNIDAD CARDIOVASCULAR LTDA. (a.k.a. UNICA LTDA.), Calle 25 No. 5BN-08, Cali, Colombia; NIT # 800232679-8 (Colombia) [SDNT].</P>
                    <P>29. WORLD LINE SYSTEM S.A., Calle 46 No. 45A-38, Palmira, Valle, Colombia; Avenida 6 Norte No. 23N-85, Cali, Colombia; NIT # 815003764-9 (Colombia) [SDNT].</P>
                    <P>Additionally, OFAC is updating the SDN List entry for the previously designated person listed below.</P>
                    <FP>From:</FP>
                    <P>CARO URIAS, Efrain, Av. de las Americas 2000-607, Col. Vista del Country, Guadalajara, Jalisco, Mexico; Av. Americas 2000-7, Col. Vistas del Country, Guadalajara, Jalisco, Mexico; Jose Maria Vigil 2830, Col. Providencia, Guadalajara, Jalisco, Mexico; Av. Americas 1417-A, Col. Providencia, Guadalajara, Jalisco 44630, Mexico; Av. Americas 1417-B, Col. Providencia, Guadalajara, Jalisco 44630, Mexico; Giovanni Papini 364-B, Col. Jardines de la Patria, Zapopan, Jalisco 45110, Mexico; Calle San Gonzalo 1970-43, Col. Santa Isabel, Zapopan, Jalisco, Mexico; Los Cerezos 86, Coto 3, Col. Jardin Real, Zapopan, Jalisco, Mexico; Paseo Puesta del Sol 4282-6, Col. Lomas Altas, Zapopan, Jalisco 45110, Mexico; DOB 11 Apr 1974; POB Guadalajara, Jalisco, Mexico; citizen Mexico; Gender Male; R.F.C. CAUE740411RG0 (Mexico); C.U.R.P. CAUE740411HJCRRF07 (Mexico) (individual) [SDNTK] (Linked To: FLORES DRUG TRAFFICKING ORGANIZATION; Linked To: LOLA LOLITA 1110, S. DE R.L. DE C.V.; Linked To: MARIMBA ENTERTAINMENT, S.R.L. DE C.V.; Linked To: NOCTURNUM INC, S. DE R.L. DE C.V.).</P>
                    <FP>To:</FP>
                    <P>
                        CARO URIAS, Efrain, Av. de las Americas 2000-607, Col. Vista del Country, Guadalajara, Jalisco, Mexico; Av. Americas 2000-7, Col. Vistas del Country, Guadalajara, Jalisco, Mexico; Jose Maria Vigil 2830, Col. Providencia, Guadalajara, Jalisco, Mexico; Av. Americas 1417-A, Col. Providencia, Guadalajara, Jalisco 44630, Mexico; Av. Americas 1417-B, Col. Providencia, Guadalajara, Jalisco 44630, Mexico; Giovanni Papini 364-B, Col. Jardines de la Patria, Zapopan, Jalisco 45110, Mexico; Calle San Gonzalo 1970-43, Col. Santa Isabel, Zapopan, 
                        <PRTPAGE P="54162"/>
                        Jalisco, Mexico; Los Cerezos 86, Coto 3, Col. Jardin Real, Zapopan, Jalisco, Mexico; Paseo Puesta del Sol 4282-6, Col. Lomas Altas, Zapopan, Jalisco 45110, Mexico; DOB 11 Apr 1974; POB Guadalajara, Jalisco, Mexico; citizen Mexico; Gender Male; R.F.C. CAUE740411RG0 (Mexico); C.U.R.P. CAUE740411HJCRRF07 (Mexico) (individual) [SDNTK] (Linked To: FLORES DRUG TRAFFICKING ORGANIZATION; Linked To: LOLA LOLITA 1110, S. DE R.L. DE C.V.; Linked To: MARIMBA ENTERTAINMENT, S.R.L. DE C.V.).
                    </P>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: June 25, 2024.</DATED>
                    <NAME>Bradley T. Smith,</NAME>
                    <TITLE>Director, Office of Foreign Assets Control, U.S. Department of the Treasury.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14292 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4810-AL-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE TREASURY</AGENCY>
                <SUBJECT>Agency Information Collection Activities; Submission for OMB Review; Comment Request; Multiple Financial Crimes Enforcement Network Information Collection Requests</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Departmental Offices, Department of the Treasury.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection; request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of the Treasury will submit the following information collection requests to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995, on or after the date of publication of this notice. The public is invited to submit comments on these requests.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments should be received on or before July 29, 2024 to be assured of consideration.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Copies of the submissions may be obtained from Spencer W. Clark by emailing 
                        <E T="03">PRA@treasury.gov,</E>
                         calling (202) 927-5331, or viewing the entire information collection request at 
                        <E T="03">www.reginfo.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Financial Crimes Enforcement Network (FinCEN)</HD>
                <P>
                    <E T="03">1. Title:</E>
                     Anti-Money Laundering Programs for Money Services Businesses, Mutual Funds, and Operators of Credit Card Systems.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1506-0020.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension without change of a currently approved collection.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Section 352 of the USA PATRIOT Act added subsection (h) to 31 U.S.C. 5318 of the BSA that requires the Secretary of the Treasury to require financial institutions to establish and maintain anti-money laundering (“AML”) programs. Pursuant to section 352, FinCEN issued regulations requiring money services businesses (“MSBs”), mutual funds, and operators of credit card systems to develop and implement a written AML program, respectively 31 CFR 1022.210, 31 CFR 1024.210, and 31 CFR 1028.210. The program must be reasonably designed to prevent these financial institutions from being used for money laundering or the financing of terrorist activities, and to achieve and monitor compliance with applicable BSA requirements.
                </P>
                <P>
                    <E T="03">Form:</E>
                     None.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Businesses or other for-profits.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     258,065.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Estimated Total Number of Annual Responses:</E>
                     2,853,697.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     Varies by activity from 2 minutes to 1 hour.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     159,982.
                </P>
                <P>
                    <E T="03">2. Title:</E>
                     Anti-Money Laundering Programs for Dealers in Precious Metals, Precious Stones, or Jewels.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1506-0030.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension without change of a currently approved collection.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Section 352 of the USA PATRIOT Act added subsection (h) to 31 U.S.C. 5318 of the BSA that requires the Secretary of the Treasury to require financial institutions to establish and maintain anti-money laundering (“AML”) programs. Pursuant to section 352, FinCEN issued regulations requiring dealers in precious metals, precious stones, or jewels to develop and implement a written AML program (31 CFR 1027.210). The program must be reasonably designed to prevent these financial institutions from being used for money laundering or the financing of terrorist activities, and to achieve and monitor compliance with applicable BSA requirements.
                </P>
                <P>
                    <E T="03">Form:</E>
                     None.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Businesses or other for-profits.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     6.700.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Estimated Total Number of Annual Responses:</E>
                     6,700.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     Varies by activity from five minutes to one hour.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     7,817.
                </P>
                <P>
                    <E T="03">3. Title:</E>
                     Anti-Money Laundering Programs for Insurance Companies, Non-Bank Residential Mortgage Lenders and Originators, and Banks Lacking a Federal Functional Regulator.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1506-0035.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension without change of a currently approved collection.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Section 352 of the USA PATRIOT Act added subsection (h) to 31 U.S.C. 5318 of the BSA that requires the Secretary of the Treasury to require financial institutions to establish and maintain anti-money laundering (“AML”) programs. Pursuant to section 352, FinCEN issued regulations requiring insurance companies and non-bank residential mortgage lenders and originators (“RMLOs”) to develop and implement a written AML program. The program must be reasonably designed to prevent these financial institutions from being used for money laundering or the financing of terrorist activities, and to achieve and monitor compliance with applicable BSA requirements.
                </P>
                <P>On September 14, 2020, FinCEN issued a final rule implementing sections 352, 326 and 312 of the USA PATRIOT Act and removing the AML program exemption for banks that lack a Federal functional regulator, including, but not limited to, private banks, non-federally insured credit unions, and certain trust companies (the “Final Rule”). The Final Rule requires minimum standards for AML programs for banks without a Federal functional regulator to ensure that all banks, regardless of whether they are subject to Federal regulation and oversight, are required to establish and implement AML programs, and extends customer identification program requirements and beneficial ownership requirements to those banks not already subject to these requirements.</P>
                <P>
                    <E T="03">Form:</E>
                     None.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Businesses or other for-profits.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     18,278.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Estimated Total Number of Annual Responses:</E>
                     18,278.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     Varies by activity from five minutes to one hour.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     21,924.
                    <PRTPAGE P="54163"/>
                </P>
                <P>
                    <E T="03">Authority:</E>
                     44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <NAME>Spencer W. Clark,</NAME>
                    <TITLE>Treasury PRA Clearance Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14296 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4810-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF VETERANS AFFAIRS</AGENCY>
                <DEPDOC>[OMB Control No. 2900-0179]</DEPDOC>
                <SUBJECT>Agency Information Collection Activity: Application for Change of Permanent Plan—Medical</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Veterans Benefits Administration, Department of Veterans Affairs.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Veterans Benefits Administration (VBA), Department of Veterans Affairs (VA), is announcing an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act (PRA) of 1995, Federal agencies are required to publish notice in the 
                        <E T="04">Federal Register</E>
                         concerning each proposed collection of information, including each proposed extension of a currently approved collection, and allow 60 days for public comment in response to the notice.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written comments and recommendations on the proposed collection of information should be received on or before August 27, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Comments must be submitted through 
                        <E T="03">www.regulations.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P/>
                    <P>
                        <E T="03">Program-Specific information:</E>
                         Nancy Kessinger, 202-632-8924, 
                        <E T="03">nancy.kessinger@va.gov.</E>
                    </P>
                    <P>
                        <E T="03">VA PRA information:</E>
                         Maribel Aponte, 202-461-8900, 
                        <E T="03">vacopaperworkreduact@va.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Under the PRA of 1995, Federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. This request for comment is being made pursuant to section 3506(c)(2)(A) of the PRA.</P>
                <P>With respect to the following collection of information, VBA invites comments on: (1) whether the proposed collection of information is necessary for the proper performance of VBA's functions, including whether the information will have practical utility; (2) the accuracy of VBA's estimate of the burden of the proposed collection of information; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or the use of other forms of information technology.</P>
                <P>
                    <E T="03">Title:</E>
                     Application for Change of Permanent Plan—Medical VA Form 29-1549.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     2900-0179. 
                    <E T="03">https://www.reginfo.gov/public/do/PRASearch</E>
                     (Once at this link, you can enter the OMB Control Number to find the historical versions of this Information Collection).
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension of a currently approved collection.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     These forms are used by veterans to apply to change his/her plan of insurance from a higher reserve to a lower reserve. The information on the form is required by law, 38 CFR 6.48 and 8.36.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals and households.
                </P>
                <P>
                    <E T="03">Estimated Annual Burden:</E>
                     14 hours.
                </P>
                <P>
                    <E T="03">Estimated Average Burden per Respondent:</E>
                     30 minutes.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     Once.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     28.
                </P>
                <P>
                    <E T="03">Authority:</E>
                     44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <NAME>Maribel Aponte,</NAME>
                    <TITLE>VA PRA Clearance Officer, Office of Enterprise and Integration/Data Governance Analytics, Department of Veterans Affairs.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-14346 Filed 6-27-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8320-01-P</BILCOD>
        </NOTICE>
    </NOTICES>
    <VOL>89</VOL>
    <NO>125</NO>
    <DATE>Friday, June 28, 2024</DATE>
    <UNITNAME>Notices</UNITNAME>
    <NEWPART>
        <PTITLE>
            <PRTPAGE P="54165"/>
            <PARTNO>Part II</PARTNO>
            <AGENCY TYPE="P">Library of Congress</AGENCY>
            <SUBAGY>Copyright Royalty Board</SUBAGY>
            <HRULE/>
            <TITLE>Distribution of Cable Royalty Funds; Notice</TITLE>
        </PTITLE>
        <NOTICES>
            <NOTICE>
                <PREAMB>
                    <PRTPAGE P="54166"/>
                    <AGENCY TYPE="S">LIBRARY OF CONGRESS</AGENCY>
                    <SUBAGY>Copyright Royalty Board</SUBAGY>
                    <DEPDOC>[Docket No. 16-CRB-0009-CD (2014-17)]</DEPDOC>
                    <SUBJECT>Distribution of Cable Royalty Funds</SUBJECT>
                    <AGY>
                        <HD SOURCE="HED">AGENCY:</HD>
                        <P>Copyright Royalty Board (CRB), Library of Congress.</P>
                    </AGY>
                    <ACT>
                        <HD SOURCE="HED">ACTION:</HD>
                        <P>Final allocation determination.</P>
                    </ACT>
                    <SUM>
                        <HD SOURCE="HED">SUMMARY:</HD>
                        <P>The Copyright Royalty Judges announce the allocation of shares of cable royalty funds for the years 2014, 2015, 2016, and 2017 among six claimant groups.</P>
                    </SUM>
                    <DATES>
                        <HD SOURCE="HED">DATES:</HD>
                        <P>This determination is effective June 28, 2024.</P>
                    </DATES>
                    <ADD>
                        <HD SOURCE="HED">ADDRESSES:</HD>
                        <P>
                            The final determination is posted in eCRB at 
                            <E T="03">https://app.crb.gov/.</E>
                             For access to the docket to read the final determination and submitted background documents, go to eCRB and search for docket number 16-CRB-0009-CD (2014-17).
                        </P>
                    </ADD>
                    <FURINF>
                        <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                        <P>
                            Anita Brown, CRB Program Specialist, (202) 707-7658, 
                            <E T="03">crb@loc.gov</E>
                            .
                        </P>
                    </FURINF>
                </PREAMB>
                <SUPLINF>
                    <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                    <P/>
                    <HD SOURCE="HD1">Final Determination of Royalty Allocation</HD>
                    <P>
                        The purpose of this proceeding is to determine the allocation of shares of the 2014-2017 cable royalty funds among six claimant groups: the Joint Sports Claimants, Commercial Television Claimants, Public Television Claimants, Canadian Claimants Group, Settling Devotional Claimants, and Program Suppliers.
                        <SU>1</SU>
                        <FTREF/>
                         The parties have agreed to settlements regarding the shares to be allocated to the Music Claimants and National Public Radio (NPR). Joint Notice of Settlement Regarding 2014-2017 Royalty Claims of Music Claimants . . . at 1-2 (June 29, 2022); Joint Notice of Settlement and Motion for Final Distribution Regarding Royalty Claims of National Public Radio at 1 (Jan. 7, 2022).
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             The program categories at issue are as follows: “Canadian Claimants.” All programs broadcast on Canadian television stations, except: (1) live telecasts of Major League Baseball, National Hockey League, and U.S. college team sports, and (2) programs owned by U.S. copyright owners; “Commercial Television Claimants.” Programs produced by or for a U.S. commercial television station and broadcast only by that station during the calendar year in question, except those listed in subpart (3) of the Program Suppliers category; “Devotional Claimants.” Syndicated programs of a primarily religious theme, but not limited to programs produced by or for religious institutions; “Joint Sports Claimants.” Live telecasts of professional and college team sports broadcast by U.S. and Canadian television stations, except programs in the Canadian Claimants category; “Program Suppliers.” Syndicated series, specials, and movies, except those included in the Devotional Claimants category. Syndicated series and specials are defined as including (1) programs licensed to and broadcast by at least one U.S. commercial television station during the calendar year in question, (2) programs produced by or for a broadcast station that are broadcast by two or more U.S. television stations during the calendar year in question, and (3) programs produced by or for a U.S. commercial television station that are comprised predominantly of syndicated elements, such as music videos, cartoons, “PM Magazine,” and locally-hosted movies; “Public Television Claimants.” All programs broadcast on U.S. noncommercial educational television stations. Order Lifting Stay and Adopting Claimant Categories (Apr. 5, 2021). The categories are mutually exclusive and, in aggregate, comprehensive.
                        </P>
                    </FTNT>
                    <P>Between 2016 and 2022, the Judges ordered partial distributions of the 2014-2017 cable funds to the “Phase I” participants (including Music Claimants and NPR) according to allocation percentages agreed upon by the participants. Order Granting Motion for Partial Distribution (May 22, 2019); Order Granting Motion for Partial Distribution, Docket No. 16-CRB-0009 CD (2014) (Aug. 15, 2016); Order Granting Motion for Partial Distribution, Docket No. 16-CRB-0020 CD (2015) (June 6, 2017); Order Granting Motion for Partial Distribution, Docket No. 17-CRB-0017 CD (2016) (Jul. 30, 2018).</P>
                    <P>In 2022, the Judges ordered the final distribution of the settled shares from the remaining funds to Music Claimants and National Public Radio. Order Granting Motion for Final Distribution to National Public Radio (Feb. 14, 2022), Order 23 Granting 2014-15 Cable Final Distribution to Music Claimants . . . (Dec. 7, 2022).</P>
                    <P>When the Judges ultimately order the final distribution of the remaining 2014-17 cable royalty funds, they will direct the Licensing Division of the Copyright Office to adjust distributions to each participant to account for partial distributions and to apply the allocation percentages determined herein.</P>
                    <P>Based on the record in this proceeding, the Judges make the following allocation of deposited royalties.</P>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                        <TTITLE>Table 1—Royalty Allocations</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">2014</CHED>
                            <CHED H="1">2015</CHED>
                            <CHED H="1">2016</CHED>
                            <CHED H="1">2017</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="22">Basic Fund:</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">CCG</ENT>
                            <ENT>6.19</ENT>
                            <ENT>14.59</ENT>
                            <ENT>14.60</ENT>
                            <ENT>15.77</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">CTV</ENT>
                            <ENT>20.55</ENT>
                            <ENT>19.78</ENT>
                            <ENT>17.36</ENT>
                            <ENT>17.50</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">JSC</ENT>
                            <ENT>36.13</ENT>
                            <ENT>11.42</ENT>
                            <ENT>10.72</ENT>
                            <ENT>12.36</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Program Suppliers</ENT>
                            <ENT>21.21</ENT>
                            <ENT>28.29</ENT>
                            <ENT>25.53</ENT>
                            <ENT>23.29</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">PTV</ENT>
                            <ENT>11.07</ENT>
                            <ENT>19.18</ENT>
                            <ENT>24.78</ENT>
                            <ENT>25.25</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">SDC</ENT>
                            <ENT>4.85</ENT>
                            <ENT>6.74</ENT>
                            <ENT>7.01</ENT>
                            <ENT>5.83</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22">3.75% Fund:</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">CCG</ENT>
                            <ENT>6.96</ENT>
                            <ENT>18.05</ENT>
                            <ENT>19.41</ENT>
                            <ENT>21.10</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">CTV</ENT>
                            <ENT>23.11</ENT>
                            <ENT>24.48</ENT>
                            <ENT>23.08</ENT>
                            <ENT>23.41</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">JSC</ENT>
                            <ENT>40.63</ENT>
                            <ENT>14.13</ENT>
                            <ENT>14.25</ENT>
                            <ENT>16.53</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Program Suppliers</ENT>
                            <ENT>23.85</ENT>
                            <ENT>35.00</ENT>
                            <ENT>33.94</ENT>
                            <ENT>31.16</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">SDC</ENT>
                            <ENT>5.45</ENT>
                            <ENT>8.34</ENT>
                            <ENT>9.32</ENT>
                            <ENT>7.80</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22">Syndex Fund:</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Program Suppliers</ENT>
                            <ENT>100</ENT>
                            <ENT>100</ENT>
                            <ENT>100</ENT>
                            <ENT>100</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>
                        PTV and JSC filed timely requests for rehearing on September 21, 2023 (Rehearing Requests). The Judges issued their ruling on the Rehearing Requests on March 21, 2024 (Order on Rehearing), denying rehearing on any basis asserted by JSC in its Rehearing Request and granting rehearing on a basis asserted by PTV in its Rehearing Request to correct arithmetic errors. This Final Determination includes the corrections contained in the Initial Determination of Royalty Allocation (Corrected and Redacted) filed on March 29, 2024, which addressed technical and clerical errors.
                        <SU>2</SU>
                        <FTREF/>
                         This Final Determination also includes the corrections set forth in the March 29, 
                        <PRTPAGE P="54167"/>
                        2024 Order on Rehearing, which is included herein, as “Addendum A”, to be published in the 
                        <E T="04">Federal Register</E>
                        .
                        <SU>3</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             
                            <E T="03">See</E>
                             Initial Determination of Royalty Allocation (Corrected and Redacted) at 1.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             
                            <E T="03">See</E>
                             Order on Rehearing at 83 n.63 (“To the extent that corrections set forth in this Order might be construed to reach beyond those identified in the Motions for rehearing or the rehearing authority in 17 U.S.C. 803(c)(2), the Judges also make such corrections under their authority to correct technical or clerical errors in 17 U.S.C. 803(c)(4). For this reason, the Judges set forth the analysis herein also as a written addendum to the Initial Determination, which is distributed to the participants of the proceeding via this Order and will be published as part of the Final Determination, pursuant to 17 U.S.C. 803(c)(4).”)
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">I. Background</HD>
                    <HD SOURCE="HD2">A. Legal Context</HD>
                    <P>
                        In 1976, Congress granted cable television operators a statutory license to enable them to clear the copyrights to over-the-air television and radio broadcast programming which they retransmit to their subscribers. The license requires cable operators to submit semi-annual royalty payments, along with accompanying statements of account, to the Copyright Office for subsequent distribution to copyright owners of the broadcast programming that those cable operators retransmit. 
                        <E T="03">See</E>
                         17 U.S.C. 111(d)(1). To determine how the collected royalties are to be distributed among the copyright owners filing claims for them, the Copyright Royalty Judges (Judges) conduct a proceeding in accordance with chapter 8 of the Copyright Act. This determination is the culmination of one of those proceedings.
                        <SU>4</SU>
                        <FTREF/>
                         Proceedings for determining the distribution of the cable license royalties historically were conducted in two phases. In Phase I, the royalties were divided among programming categories. The claimants to the royalties have previously organized themselves into eight categories of programming retransmitted by cable systems: movies and syndicated television programming; sports programming; commercial broadcast programming; religious broadcast programming; noncommercial television broadcast programming; Canadian broadcast programming; noncommercial radio broadcast programming; and music contained on all broadcast programming. In Phase II, the royalties allotted to each category at Phase I were subdivided among the various copyright holders within that category.
                        <SU>5</SU>
                        <FTREF/>
                         In the most recent proceeding, regarding cable royalties for the 2010-2013 period, the Judges broke with past practice by combining Phase I and Phase II into a single proceeding in which the functions of allocating funds between program categories and distributing funds among claimants within those categories proceeded in parallel.
                        <SU>6</SU>
                        <FTREF/>
                         This determination addresses the Allocation Phase for royalties collected from cable operators for the years 2014, 2015, 2016 and 2017.
                    </P>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             Prior to enactment of the Copyright Royalty and Distribution Reform Act of 2004, which established the Judges program, royalty allocation determinations under the section 111 license were made by two other bodies. The first was the Copyright Royalty Tribunal, which made distributions beginning with the 1978 royalty year, the first year in which cable royalties were collected under the 1976 Copyright Act. Congress abolished the Tribunal in 1993 and replaced it with the Copyright Arbitration Royalty Panel (“CARP”) system. Under this regime, the Librarian of Congress appointed a CARP, consisting of three arbitrators, which recommended to the Librarian how the royalties should be allocated. Final distribution authority, however, rested with the Librarian. The CARP system ended in 2004. 
                            <E T="03">See</E>
                             Copyright Royalty Distribution and Reform Act of 2004, Public Law 108-419, 118 Stat. 2341 (Nov. 30, 2004).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             The Judges last adjudicated an allocation (Phase I) determination for royalty years 2010 to 2013. 
                            <E T="03">See</E>
                             Final Allocation Determination, 
                            <E T="03">Distribution of the 2010 to 2013 Cable Royalty Funds,</E>
                             84 FR 3552 (Feb. 12, 2019) (2010-13 Determination).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             Second Reissued Order Granting in Part Allocation Phase Parties' Motion to Dismiss Multigroup Claimants and Denying Multigroup Claimants' Motion for Sanctions Against Allocation Phase Parties, Docket No. 14-CRB-0010-CD (2010-13) (Apr. 25, 2018). The Judges discontinued use of the terms Phase I and Phase II and use the terms Allocation Phase and Distribution Phase instead. 
                            <E T="03">Id.</E>
                             n.4. This determination addresses the Allocation Phase of the proceeding.
                        </P>
                    </FTNT>
                    <P>
                        The statutory cable license places cable systems into three classes based upon the fees they receive from their subscribers for the retransmission of over-the-air broadcast signals. Small- and medium-sized systems pay a flat fee. 
                        <E T="03">See</E>
                         17 U.S.C. 111(d)(1). Large cable systems (“Form 3” systems) 
                        <SU>7</SU>
                        <FTREF/>
                        —whose royalty payments comprise the lion's share of the royalties distributed in this proceeding—pay a percentage of the gross receipts they receive from their subscribers for each distant over-the-air broadcast station signal they retransmit.
                        <SU>8</SU>
                        <FTREF/>
                         The amount of royalties that a cable system must pay for each broadcast station signal it retransmits depends upon how the carriage of that signal would have been regulated by the Federal Communications Commission (“FCC”) in 1976, the year in which the current Copyright Act was enacted.
                    </P>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             “Form 3” cable systems, so named because they account to the Copyright Office for retransmissions and royalties on “Form 3.” The Form 3 filing is required because they have semiannual gross receipts in excess of $527,600. These systems must submit an SA3 Long Form to the US Copyright Office. They are the only systems required to identify which of the stations they carry are distant signals. Royalty payments from Form 3 systems accounted for over 90% of the total royalties that cable systems paid during 2014-2017. Expert Report of Christopher J. Bennett, Ph.D., Amended Corrected, Trial Ex. 7203, ¶ 11 n.2 (Bennett ACWDT).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             The cable license is premised on the Congressional judgment that large cable systems should only pay royalties for the distant broadcast station signals that they retransmit to their subscribers and not for the local broadcast station signals they provide. However, cable systems that carry only local stations are still required to submit a statement of account and pay a basic minimum fee. 
                            <E T="03">See</E>
                             Distribution Order, 
                            <E T="03">Distribution of the 2000-2003 Cable Royalty Funds,</E>
                             75 FR 26798 n.2 (May 12, 2010) (2000-03 Distribution Order).
                        </P>
                    </FTNT>
                    <P>
                        The royalty scheme for large cable systems employs a statutory device known as the distant signal equivalent (DSE), which is defined at 17 U.S.C. 111(f)(5). The cable systems, other than those paying the minimum fee, pay royalties based upon the number of DSEs they retransmit. The greater the number of DSEs a cable system retransmits the larger its total royalty payment. The cable system pays these royalties to the Copyright Office. These fees comprise the “Basic Fund.” 
                        <E T="03">See</E>
                         17 U.S.C. 111(d)(1)(B). In addition to the Basic Fund, large cable systems also may be required to pay royalties into one of two other funds that the Copyright Office maintains: the Syndex Fund and the 3.75% Fund.
                    </P>
                    <P>
                        As noted above, the utilization of the cable license is linked with how the FCC regulated the cable industry in 1976.
                        <SU>9</SU>
                        <FTREF/>
                         FCC rules at the time restricted the number of distant broadcast signals a cable system was permitted to carry (“the distant signal carriage rules”). 
                        <E T="03">National Cable Television Assoc., Inc.</E>
                         v. 
                        <E T="03">Copyright Royalty Tribunal,</E>
                         724 F.2d 176, 180 (D.C. Cir. 1983). FCC rules also allowed local broadcasters and copyright holders to require cable systems to delete (or blackout) syndicated programming from imported signals if the local station had purchased exclusive rights to the programming (“syndicated exclusivity” or “syndex” rules). 
                        <E T="03">Id.</E>
                         at 187. In 1980, the FCC repealed both sets of rules. 
                        <E T="03">Id.</E>
                         at 181.
                    </P>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             FCC regulation of the cable industry was impacted by passage of the 1976 Copyright Act that created the compulsory license for cable retransmissions codified in section 111. 
                            <E T="03">See</E>
                             Report and Order, Docket Nos. 20988 &amp; 21284, 79 F.C.C. 663 (1980), 
                            <E T="03">aff'd sub nom. Malrite T.V.</E>
                             v. 
                            <E T="03">FCC,</E>
                             652 F.2d 1140, 1146 (2d Cir. 1981).
                        </P>
                    </FTNT>
                    <P>
                        The Copyright Royalty Tribunal (CRT) initiated a cable rate adjustment proceeding to compensate copyright owners for royalties lost as a result of the FCC's repeal of the rules. Final rule, 
                        <E T="03">Adjustment of the Royalty Rate for Cable Systems; Federal Communications Commission's Deregulation of the Cable Industry,</E>
                         Docket No. CRT 81-2, 47 FR 52146 (Nov. 19, 1982). The CRT adopted two new rates applicable to large cable systems making section 111 royalty payments. The first, to compensate for repeal of the distant signal carriage rules, was a 3.75% surcharge of a large 
                        <PRTPAGE P="54168"/>
                        cable system's gross receipts for each distant signal the carriage of which would not have been permitted under the FCC's distant signal carriage rules. Royalties paid at the 3.75% rate—sometimes referred to by the cable industry as the “penalty fee”—are accounted for by the Copyright Office in the “3.75% Fund,” which is separate from royalties kept in the Basic Fund. 
                        <E T="03">See id.;</E>
                         s
                        <E T="03">ee also</E>
                         17 U.S.C. 111(d); 37 CFR part 387.The second rate the CRT adopted, to compensate for the FCC's repeal of its syndicated exclusivity rules, is known as the “syndex surcharge.” Large cable operators were required to pay this additional fee for carrying signals that were or would have been subject to the FCC's syndex rules. Syndex Fund fees are accounted for separately from royalties paid into the Basic Fund.
                        <SU>10</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             In 1989, in response to changes in the cable television industry and passage of the Satellite Home Viewer Act of 1988, the FCC reinstated syndicated exclusivity rules. The reinstated rules differed from the original syndex rules, giving rise to a petition to the CRT for adjustment or elimination of the syndex surcharge. 
                            <E T="03">See</E>
                             Final Rule, 
                            <E T="03">Adjustment of the Syndicated Exclusivity Surcharge,</E>
                             Docket No. 89-5-CRA, 55 FR 33604 (Aug. 16, 1990). The CRT held that “the syndicated exclusivity surcharge paid by Form 3 cable systems in the top 100 television markets is eliminated, except for those instances when a cable system is importing a distant commercial VHF station which places a predicted Grade B contour, as defined by FCC rules, over the cable system, and the station is not “significantly viewed” or otherwise exempt from the syndicated exclusivity rules in effect as of June 24, 1981. In such cases, the syndicated exclusivity surcharge shall continue to be paid at the same level as before.” (
                            <E T="03">Id. See</E>
                             Final Rule, 
                            <E T="03">Cable Television Services; Program Exclusivity in the Cable and Broadcast Industry,</E>
                             54 FR 12913 (Mar. 29, 1989), 
                            <E T="03">aff'd sub nom. United Video, Inc.</E>
                             v. 
                            <E T="03">FCC,</E>
                             890 F.2d 1173 (D.C. Cir. 1989); 47 CFR 73.658(m)(2) (1989); 47 CFR 76.156 (1989). The present proceeding deals only with allocation of those royalties among copyright owners in the various program categories.)
                        </P>
                    </FTNT>
                    <P>
                        Royalties in the three funds—Basic, 3.75%, and Syndex—are the royalties to be distributed to copyright owners of non-network broadcast programming in a section 111 cable license distribution proceeding. 
                        <E T="03">See</E>
                         37 CFR part 387.
                        <SU>11</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             The CRB last adjusted cable Basic, 3.75%, and Syndex rates in 2021, for the period January 1, 2020, through December 31, 2024. 
                            <E T="03">See</E>
                             Final Determination, 
                            <E T="03">Adjustment of Cable Statutory License Royalty Rates,</E>
                             Docket No. 20-CRB-0008-CA (2020-2024), 86 FR 72845 (Dec. 23, 2021). This adjustment was pursuant to a negotiated agreement.
                        </P>
                    </FTNT>
                    <P>Cable system operators are required to file Statements of Account with the Copyright Office detailing subscription revenues and specific television signals they retransmit distantly, and to deposit section 111 royalties calculated according to the reported figures. Testimony of Gregory S. Crawford, Ph.D., Corrected (2010-2013), Trial Ex. 7031, ¶ 74 &amp; n.37 (“Crawford 2010-2013 CWDT”).</P>
                    <HD SOURCE="HD2">B. Posture of the Current Proceeding</HD>
                    <P>
                        In February 2019, the Copyright Royalty Board (CRB) published notice in the 
                        <E T="04">Federal Register</E>
                         announcing commencement of proceedings and seeking Petitions to Participate to determine distribution of 2014, 2015, 2016, and 2017 royalties under the cable and satellite licenses.
                        <SU>12</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             Notice . . ., 
                            <E T="03">Distribution of Cable Royalty Funds,</E>
                             Docket No. 16-CRB-0009-CD (2014-17), 84 FR 2930 (Feb. 8, 2019); Notice . . ., 
                            <E T="03">Distribution of Satellite Royalty Funds,</E>
                             Docket No. 16-CRB-0010-SD (2014-17), 84 FR 2931 (Feb. 8, 2019). The CRB received Petitions to Participate from Broadcast Music, Inc. (“BMI”), the American Society of Composers, Authors and Publishers (“ASCAP”), and SEASAC Performing Rights (jointly, the “Music Claimants”); Canadian Claimants Group (“CCG”); Global Music Rights; Public Broadcasting System (“PBS”) on behalf of Public Television Claimants (“PTV”); Settling Devotional Claimants (“SDC”); Joint Sports Claimants (“JSC”); Major League Soccer (“MLS”); Multigroup Claimants; Commercial Television Claimants represented by the National Association of Broadcasters (“CTV”), National Public Radio for NPR Joint Claimants (“NPR”); David Powell; and the Motion Picture Association of America for MPAA-represented Program Suppliers (“Program Suppliers” or “PS”). Subsequently, MLS filed a notice that it would not participate separately in the allocation phase, eCRB no. 26935, and Mr. Powell was dismissed as a participant, eCRB. no. 22314. Multigroup Claimants expressed an intention to participate in the allocation phase, eCRB no. 25455, but did not file a written direct statement and did not participate.
                        </P>
                    </FTNT>
                    <P>On March 20, 2019, the Judges issued a Notice of Participants and Order for Preliminary Action to Address Categories of Claims. On April 5, 2021, they issued an Order . . . Adopting Claimant Categories in which they identified eight categories of claimants for the proceeding: (1) Canadian Claimants, (2) Commercial Television Claimants; (3) Devotional Claimants, (4) Joint Sports Claimants, (5) Music Claimants, (6) National Public Radio, (7) Program Suppliers, and (8) Public Television Claimants. National Public Radio and Music Claimants reached settlements with the other claimant groups and received respective final distributions. Order Granting Motion for Final Distribution to National Public Radio (Feb. 14, 2022), Order 23 Granting 2014-15 Cable Final Distribution to Music Claimants . . . (Dec. 7, 2022).</P>
                    <P>With the settlement of the Music Claimants' share, only the Program Suppliers claimant group has an interest in the royalties in the Syndex Fund. Program Suppliers' Post Hearing Brief ¶ 81 (PS PHB). Public TV Claimants claim a share only of the Basic Fund. Public Television's Post-Hearing Brief at 83 (PTV PHB).</P>
                    <P>The hearing in the present proceeding commenced on March 20, 2023, and concluded on April 20, 2023. During that period, the Judges heard live testimony from 33 witnesses and admitted written and designated testimony from a number of additional witnesses. The Judges admitted into the record more than 400 exhibits. Many motions related to the hearing were filed and ruled on. Participants made closing arguments on June 12, 2023, after which time the Judges closed the record.</P>
                    <HD SOURCE="HD2">C. Allocation Standard</HD>
                    <P>
                        Congress did not establish a statutory standard in section 111 for the Judges (or their predecessors) to apply when allocating royalties among copyright owners or categories of copyright owners. However, through determinations by the Judges and their predecessors (the Copyright Royalty Tribunal, the CARPs, and the Librarian of Congress), the allocation standard has evolved, and the present standard is one of “relative marketplace value.” 
                        <SU>13</SU>
                        <FTREF/>
                          
                        <E T="03">See</E>
                         Distribution Order, 
                        <E T="03">Distribution of the 2004 and 2005 Cable Royalty Funds,</E>
                         75 FR 57065 (Sept. 17, 2010) (
                        <E T="03">2</E>
                        004-05 Distribution Order).
                    </P>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             In this proceeding, the Judges distinguish between “
                            <E T="03">relative</E>
                             values” (to describe the allocation shares), and 
                            <E T="03">absolute</E>
                             “fair market values.” Because the royalties at issue in this proceeding are regulated and not derived from any actual market transactions, they do not correspond with absolute dollar royalties that would be generated in a market and thus would not reflect absolute “fair market value.”
                        </P>
                    </FTNT>
                    <P>
                        “Relative marketplace values” in these proceedings have been defined as valuations that “simulate [relative] market valuations as if no compulsory license existed.” Final Rule, 
                        <E T="03">Distribution of 1998 and 1999 Cable Royalty Funds,</E>
                         69 FR 3608 (Jan. 26, 2004) (1998-99 Librarian Order). Because such a market does not exist (having been supplanted by the regulatory structure), the Judges are required to construct a “hypothetical market” that generates the relative values that approximate those that would arise in an unregulated market. 2004-05 Distribution Order at 57065; 
                        <E T="03">see also Program Suppliers</E>
                         v. 
                        <E T="03">Librarian of Congress,</E>
                         409 F.3d 395, 401-02 (D.C. Cir. 2001) (“[I]t makes perfect sense to compensate copyright owners by awarding them what they would have gotten relative to other owners . . . .”).
                        <SU>14</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             The Judges discuss the relative marketplace value standard in more detail, 
                            <E T="03">infra,</E>
                             as applied to the facts of this proceeding.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">II. Introduction To Regression Section</HD>
                    <P>
                        Four parties have proposed that the Judges utilize regression analysis to estimate the relative marketplace value of each party's programs distantly retransmitted by CSOs during the four-year period 2014-2017. Each party relies on testimony from economic 
                        <PRTPAGE P="54169"/>
                        experts to support its position. CCG relies on the testimony of Dr. Lisa George. CTV relies on the testimony of Dr. Leslie Marx and the supportive testimony of Dr. Cristopher Bennett. Program Suppliers rely on the testimony of Dr. Cleve Tyler and the supportive testimony of Dr. Gray. Finally, PTV relies on the testimony of Dr. John Johnson.
                    </P>
                    <P>Two parties oppose all of the regression approaches on which each of the above parties relies. The SDC, through the testimony of economists Drs. Erkan Erdem and Daniel Rubinfeld, oppose the regression approach for many of the same reasons it (unsuccessfully) opposed the regressions proffered in the 2010-13 allocation proceeding, which was the most recent section 111 allocation proceeding. However, the SDC has also presented arguments that are differentiated from those it made in that prior proceeding. JSC, although it relied in part on a regression approach in the prior proceeding, opposes the regression approaches through the testimony of two economists, Dr. W. Robert Majure and Dr. John Asker, and a statistician, Mr. R. Garrison Harvey.</P>
                    <P>Dr. Marx, identified above as an expert who relies on the regression approach, does so only for the 2014 royalty year. For the 2015-2017 period, she opposes the use of the regression approach, based on industry changes that she maintains (consistent with a criticism from the other opposing experts listed above) diminished the quality of the available economic data necessary to conduct an appropriate regression.</P>
                    <P>The models of each of the four experts who proffered regression analyses are discussed individually below, together with the rebuttals levied by the opposing experts. However, in order to understand and contextualize the regression-related evidence, it is helpful to address several overarching issues that color the Judges' analysis and conclusions. Accordingly, before jumping into the specific regression models, the Judges first (1) consider in greater detail their allocation standard of “relative marketplace value”, (2) address the changing impact of the “minimum fee” in the 2014-2017 period, (3) evaluate assertions of inappropriate econometric practice (“specification searching”) that may compromise the regression approaches, and (4) analyze questions regarding whether certain types of PTV programs are properly included within the regression analyses.</P>
                    <P>After clearing this analytical underbrush, the Judges proceed to a discussion of the sequential presentation of the parties' regression models, followed by the Judges' “Analysis and Conclusions” regarding those models. Finally, the Judges consider several additional important issues arising from the regressions that relate specifically to (1) the CCG claims for Canadian programming issues and (2) the 3.75% Fund.</P>
                    <HD SOURCE="HD1">III. The Data Relied On By The Parties</HD>
                    <P>All of the parties' experts who relied on data detailing royalty reporting and programming information essentially utilized the same data sources and processed the data in basically the same manner. Specifically, the parties engaged in the following steps:</P>
                    <P>
                        1. Establish a method to link the CSOs distant 
                        <E T="03">signal</E>
                         carriage to the 
                        <E T="03">programs</E>
                         carried on each signal, by merging CSO and distant signal carriage data to television programming and scheduling data (as detailed below).
                    </P>
                    <P>
                        2. Obtain a dataset on 
                        <E T="03">distant signal carriage</E>
                         from Cable Data Corporation (CDC), that covers each semiannual accounting period from 2014-1 through 2017-2 for the larger “Form 3” cable systems.
                        <SU>15</SU>
                        <FTREF/>
                         CDC compiles and digitizes this dataset data directly from the SA3 Statement of Account (SOA) forms that Form 3 cable systems are required to file semiannually at the Licensing Section of the Copyright Office. (The CDC data is set forth in the Written Direct Testimony of Jonda K. Martin.)
                    </P>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             “Form 3” systems are cable systems with semiannual gross receipts in excess of $527,600 that are required to submit an SA3 Long Form to the US Copyright Office. They are the only systems required to identify which of the stations they carry are distant signals, and they account for over 90% of the total royalties paid by all cable systems during 2014-2017.
                        </P>
                    </FTNT>
                    <P>3. Obtain through these SOAs, for each CSO, information about its (a) ownership, rates, gross receipts, total number of subscribers, and communities served, and (b) the identity of every broadcast television station carried and a calculation of royalties owed for the transmission of distant signals under section 111.</P>
                    <P>4. Obtain station, program, and scheduling data from Red Bee Media (formerly FYI Television, Inc.) to merge with the foregoing carriage and royalty data. (Red Bee Media is an international broadcasting and media services company that publishes television airing data, using programming data that it sources directly from stations in the form of interactive program guides.)</P>
                    <P>5. Examine the Red Bee Media's database of U.S. and Canadian broadcast and cable channels carried by U.S. CSOs, together with network data and detailed program and scheduling data for the period January 1, 2014, through December 31, 2017, to identify, per station, (a) program titles, (b) program type/category, (c) originating station, and (d) date and time of program airing.</P>
                    <P>6. Obtain Canadian television program log data from the Canadian Radio-Television and Telecommunications Commission (CRTC), which regulates and supervises broadcasting and telecommunications within Canada.</P>
                    <P>7. Develop and apply an algorithm, using the aforementioned data, that assigns program airings to their correct categories.</P>
                    <P>8. Review and confirm the results and make any modifications that are appropriate.</P>
                    <P>Amended Corrected Written Direct Testimony of Christopher Bennett, Ph.D., Trial Ex. 7203, ¶¶ 10-27 (Bennett ACWDT) (describing the CTV data process); Corrected Written Direct Testimony of R. Garrison Harvey, Trial Ex. 7105, tech. app., pt. A (Harvey CWDT) (describing the JSC data process); Written Direct Testimony of John H. Johnson, IV, Trial Ex. 7300, ¶¶ 46-51 &amp; app. G (Johnson WDT) (describing the PTV data process); Written Direct Testimony of Lisa M. George, Ph.D., Trial Ex. 7403, at 47-50 &amp; app. B (George WDT) (describing the CCG data process, also supplemented with U.S. Census income information); Amended Corrected Written Direct Testimony of Jeffrey S. Gray, Trial Ex. 7605, ¶¶ 16-18; 32-34, &amp; 39 n.23 (describing the Program Suppliers' data process).</P>
                    <P>Given the voluminous nature of the data relating to programming and minutes, the data-related processes suffered from several hiccups during assembly and analysis for the several experts. The record reflects that most of the data-based problems were resolved before the experts filed their direct testimonies, and there were some data-related amendments and corrections set forth in subsequent testimonies. To the extent any of the data problems were unresolved, material, and need to be addressed in order for the Judges to properly allocate shares, those data problems are discussed in this determination.</P>
                    <HD SOURCE="HD1">IV. The Role of Regression Analysis In The Statutory Context</HD>
                    <P>
                        Section 111 sets forth no standard for the Judges (or their predecessors) to apply in allocating royalties arising from the payments made by CSOs. This was no mere oversight. The legislative history makes it clear that Congress 
                        <PRTPAGE P="54170"/>
                        <E T="03">intentionally</E>
                         omitted a standard to guide the Judges: 
                    </P>
                    <EXTRACT>
                        <P>[T]he bill does not include specific provisions to guide . . . determining the appropriate division among competing copyright owners of the royalty fees collected from cable systems under section 111 [because] it would not be appropriate to specify particular, limiting standards for distribution. Rather, the Committee believes that the [adjudicator] should consider all pertinent data and considerations presented by the claimants.</P>
                    </EXTRACT>
                    <FP>House Report No. 94-1476, Notes of Committee on the Judiciary. This standardless delegation has led the parties, as well as the Judges and their predecessors, to invoke an evolving set of five broad factors, that have waxed and waned, to consider when allocating royalties among program category claimants. As the Judges recounted in a prior proceeding: </FP>
                    <EXTRACT>
                        <P>
                            [T]he standards for determining distribution awards have changed dramatically since the inception of the license. In the first Phase I [allocation] proceeding, the Copyright Royalty Tribunal identified three primary factors to guide its determinations: (1) The 
                            <E T="03">harm to copyright owners</E>
                             caused by distant signal retransmissions; (2) the 
                            <E T="03">benefit derived by cable systems</E>
                             from those retransmissions; and (3) the 
                            <E T="03">marketplace value</E>
                             of the copyrighted works retransmitted. 45 FR 63026, 63035 (September 23, 1980). The Tribunal also identified two secondary factors: (1) The 
                            <E T="03">quality of the retransmitted material;</E>
                             and (2) 
                            <E T="03">time-related considerations. Id.</E>
                             By the time of the last fully litigated Tribunal determination, the Tribunal dropped its consideration of the two secondary factors. 57 FR 15286 (April 27, 1992). The first CARP to undertake a Phase I distribution, the 1990-92 proceeding, discarded the “harm” criterion in its consideration . . . . That action was upheld by the Librarian of Congress and, subsequently, the Court of Appeals. 
                            <E T="03">Nat'l Ass'n of Broadcasters</E>
                             v. 
                            <E T="03">Librarian of Congress,</E>
                             146 F.3d 907 (D.C. Cir. 1998). The 1998-99 CARP refined the approach further still, noting that “
                            <E T="03">every party</E>
                             to this proceeding appears to accept `relative marketplace value' as the 
                            <E T="03">sole relevant criterion</E>
                             that should be applied by the Panel.” CARP Report at 10 (emphasis in original). As a consequence, the CARP announced that its “primary objective is to `simulate [relative] market valuation' as if no compulsory license existed.” 
                            <E T="03">Id.</E>
                             The Librarian upheld this conclusion as well, and the Court of Appeals once again affirmed. 
                            <E T="03">Program Suppliers</E>
                             v. 
                            <E T="03">Librarian of Congress,</E>
                             409 F.3d 395 (D.C. Cir. 2005).
                        </P>
                    </EXTRACT>
                    <P>
                        Distribution Order, 
                        <E T="03">Distribution of the 2000-2003 Cable Royalty Funds,</E>
                         75 FR 26798, 26801-02 (May 12, 2010) (2000-03 Distribution Order).
                        <SU>16</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             “Fee-generation,” discussed elsewhere in this determination, is a method proffered to identify relative marketplace value. 
                            <E T="03">Id.</E>
                             at 26804 (the “fee generation approach should be accorded deference, not as 
                            <E T="03">the</E>
                             methodology to determine 
                            <E T="03">the</E>
                             relative marketplace value but as 
                            <E T="03">a</E>
                             methodology to determine that value.”). Other approaches proffered more recently have been advanced in order to apply the present standard, “relative marketplace value.” 
                            <E T="03">See</E>
                             2010-13 Determination at 3556 (identifying [r]egression analyses, CSO survey results, viewership measurements, a changed circumstances analysis, and a cable content analysis” as approaches to estimate relative marketplace value).
                        </P>
                    </FTNT>
                    <P>
                        The D.C. Circuit Court of Appeals has recognized that “the process that Congress ordained” has placed the Judges and their predecessors in a context where “mathematical exactitude . . . appears well-nigh impossible [and] 
                        <E T="03">rough justice</E>
                         in dividing up the royalty pie seems to be . . . inevitable.” 
                        <E T="03">Nat'l Ass'n of Broadcasters</E>
                         v. 
                        <E T="03">Copyright Royalty Tribunal,</E>
                         772 F.2d 922, 926 (D.C. Cir.1985) (emphasis added) (“
                        <E T="03">NAB</E>
                        ”). Moreover, despite the shifts in the administrative standard for allocating royalties, the D.C. Circuit has continued to note this practical concern. 
                        <E T="03">See, e.g., Settling Devotional Claimants</E>
                         v. 
                        <E T="03">Copyright Royalty Board,</E>
                         797 F.3d 1106, 1121 (D.C. Cir. 2015).
                    </P>
                    <P>
                        It is in the context of this “rough balancing of hotly competing claims,” 
                        <E T="03">NAB</E>
                         at 940, that the Judges find it appropriate to rely (in part) on regression approaches in this proceeding. The counter-argument that the regressions do not generate a proxy for price that meets the exactitudes of econometric theorizing may be correct, but it appears to be a precise answer to the wrong question, namely, what is the price that would obtain in a marketplace ill-defined in the record in this proceeding?
                    </P>
                    <P>The Judges have experience in considering market proxies when exercising their companion jurisdiction of setting royalty rates for certain forms of music and sound recording distributions. In those proceedings, the parties proffer, and the Judges consider, benchmark evidence from analogous markets, market-based evidence from the regulated market itself, economic models, economic experiments, and survey evidence—all in an attempt to identify applicable market factors. Often, more than one of these approaches are proffered in the same proceeding, and the Judges consider whether to apply more than one model in rendering a determination. Here, the parties have provided evidence from the regulated market itself, in the form of regression analyses, and survey evidence, in the form of the Bortz Survey.</P>
                    <P>
                        Focusing here on the criticism of the regression evidence generated from the regulated market itself,
                        <SU>17</SU>
                        <FTREF/>
                         the Judges consider the emphasis of the regression opponents upon the exactitude of the price proxies, and find that fixation to be dubious. As the Judges have explained, also in their rate determinations, intellectual property goods (whether retransmitted television stations or streams of musical works or sound recordings) are often licensed at various royalty rates because the nature of these goods invites price discrimination. 
                        <E T="03">See, e.g.,</E>
                         Final rule and order, 
                        <E T="03">Determination of Royalty Rates and Terms for Making and Distributing Phonorecords (Phonorecords III),</E>
                         84 FR 1918, 1980 (Feb. 5, 2019) (dissent, Strickler, J.) (for intellectual property goods there “exist many alternative rate structures with varying rates for various segments of the market . . . forms of `price discrimination,' which, in the broadest sense, means simply a departure from a single, per-unit price.”). Thus, the very idea of a single econometrically correct price for the royalties at issue in this proceeding is fanciful, particularly in the absence of any evidence of such prices or even a methodology to establish price.
                    </P>
                    <FTNT>
                        <P>
                            <SU>17</SU>
                             The Judges focus on the Bortz Survey 
                            <E T="03">infra.</E>
                        </P>
                    </FTNT>
                    <P>
                        Additionally, in line with the D.C. Circuit's acknowledgment that these allocation proceedings may afford the Judges only the ability to dispense “rough justice,” the Judges note an economic corollary: It is better to be “roughly correct” than “precisely wrong.” 
                        <SU>18</SU>
                        <FTREF/>
                         Similarly, in matters of 
                        <E T="03">econometrics,</E>
                         Professor Kennedy, cited 
                        <E T="03">infra</E>
                         by parties on both sides of the regression divide in this proceeding, has cautioned econometricians against making what he calls “Type III errors[,] . . . when a researcher produces the right answer to the wrong question.” Peter Kennedy, 
                        <E T="03">A Guide to Econometrics</E>
                         391 (5th ed. 2003). Indeed, Professor Kennedy, then echoing the quote attributed to Keynes, advises that in econometric practice “a corollary of this rule is that an appropriate answer to the right question is worth a great deal more than a precise answer to the wrong question.” 
                        <E T="03">Id.</E>
                    </P>
                    <FTNT>
                        <P>
                            <SU>18</SU>
                             Attributed to John Maynard Keynes. 
                            <E T="03">See, e.g.,https://graciousquotes.com/john-maynard-keynes/</E>
                             (last accessed August 28, 2023).
                        </P>
                    </FTNT>
                    <P>
                        In this proceeding, counsel for the SDC, a party vigorously advancing the price-based criticism of the regressions, argues that application of any regression analyses would indeed be “rough” but acknowledges that, as for “justice,” only the Judges could say. 6/12/23 Tr. 6007-08 (closing argument). Counsel is essentially correct on both points. First, the use of regression analyses is not precise, but rather “rough,” at least compared to the exactitude of a full-
                        <PRTPAGE P="54171"/>
                        fledged hedonic regression or a discrete choice approach noted by SDC's economic witnesses as possible alternatives (but not proffered as alternative models). And further, Congress most clearly left to the Judges the decision as to the standard to be applied and the methods by which the standards could be effectuated.
                        <SU>19</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>19</SU>
                             SDC's counsel's argument was in line with the D.C. Circuit's understanding that the Judges must by necessity engage in “rough justice” in these allocation proceedings, but he protested that any rough variant of justice that relied on one or more of these regressions would not constitute “rough 
                            <E T="03">economic</E>
                             justice.” 
                            <E T="03">Id.</E>
                             (emphasis added). The Judges disagree, as do their predecessors who have relied on these models, and as do the economists/econometricians who have proffered regression-based models in this and prior proceedings. In this regard, the Judges were struck by a warning given by SDC's counsel that, if the Judges “adopt[ed] the Tyler [M]odel on a theory of “rough economic justice” 
                            <E T="03">without</E>
                             discarding the “relative market value” standard, [they] would inhibit the parties' ability to present top-shelf economists . . . ” SDC PHB at 64 (emphasis in original). The Judges agree with Program Suppliers' counsel who rightly took umbrage at the “not-so-subtle condescending posture of this remark . . . ” Program Suppliers PHRB at 41. The expert witnesses certainly do disagree among each other, but the experience and education of the economists/econometricians who have proffered their regression approaches belie the 
                            <E T="03">ad hominem</E>
                             argument by SDC's counsel.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">V. Minimum Fee Issue</HD>
                    <HD SOURCE="HD2">A. CCG Position on the Minimum Fee Issue</HD>
                    <P>
                        CCG argues that “[it] is incorrect to claim that regressions are not useful . . . because of the minimum fee structure,” or because of “the presence of more minimum fee or `excess capacity' systems” in the 2015-2017 period compared to the prior four years. Proposed Findings of Fact and Conclusions of Law of the Canadian Claimants Group (CCG PFF) at 72-73. In support of this argument, CCG asserts that the regressions proffered in this proceeding do not require accurate measures when the royalty fees “
                        <E T="03">actually paid</E>
                        ” are the minimum fees, even though they may be “poor proxies for price.” CCG PFF ¶ 197 (and record citations therein) (emphasis added). Rather, CCG maintains that the regression coefficients—which are calculated using unpaid subscriber-group base fees—nonetheless provide useful information regarding the correlation between “carriage decisions and royalty payments.” CCG PFF ¶ 197 (and record citations therein). In further support, CCG cites to a statement by the Judges in the prior proceeding, citing Final Allocation Determination, 
                        <E T="03">Distribution of Cable Royalty Funds,</E>
                         Docket No. CONSOLIDATED 14-CRB-0010-CD (2010-2013), 84 FR 3552, 3555-56 n.17 (Feb. 12, 2019) (2010-13 Determination).
                        <SU>20</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>20</SU>
                             In fact, footnote 17 cited by CCG does not address this minimum fee issue.
                        </P>
                    </FTNT>
                    <P>
                        CCG acknowledges though that reliance in these regressions on minimum-fee-paying CSOs generates “measurement error,” but claims that this is not a concern, because it is “an ordinary part of regression . . . reduc[ing] precision but . . . not bias[ing] claimant shares.” CCG PFF ¶ 198 (citing 4/18/23 Tr. 5125-26 (George)). In fact, CCG maintains that the data pertaining to CSOs that pay only the minimum fee reveals that, for them, the value of the distant signal is essentially zero—information that could not have been ascertained from data in an unregulated market.
                        <SU>21</SU>
                        <FTREF/>
                         CCG ¶ 199 (citing 4/18/23 Tr. 5139-41 (George); Written Rebuttal Testimony of Lisa George, Trial Ex. 7404, at 15-16, 47 (George WRT)).
                    </P>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             The minimum fee is a fixed (sunk) cost. A CSO that pays only the minimum fee has a marginal royalty cost to retransmit a signal equal to zero. Thus, a minimum-fee-paying CSO's decision not to retransmit any signal indicates that the net value of retransmittal is zero for that CSO (and may even be negative given transmission and/or opportunity costs).
                        </P>
                    </FTNT>
                    <P>
                        Focusing on the dramatic increase in the number of minimum-fee-only CSOs, CCG dichotomizes this cohort. With regard to CSOs that “do not carry distant signals” at all, CCG reasons that their voluntarily refusal to retransmit means that they cannot be used to determine the value of distant signals in a regression.
                        <SU>22</SU>
                        <FTREF/>
                         CCG PFF ¶ 201 (citing George WRT at 15; 4/18/23 Tr. 5141 (George). And, with regard to the CSOs that do carry 
                        <E T="03">some</E>
                         distant signals, but still have “excess capacity” and thus also pay only the minimum fee, CCG maintains that “these are the same ones that would determine value absent the compulsory license.” CCG PFF ¶ 201 (citing George WRT at 15; 4/18/23 Tr. 5141 (George)).
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             CCG maintains that these non-transmitting CSOs also cannot be utilized in the Bortz Survey.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">B. Program Suppliers Position on the Minimum Fee Issue</HD>
                    <P>
                        According to Program Suppliers, notwithstanding the increase in the number of minimum-fee-only CSOs, regression remains the most useful technique for estimating relative marketplace value. Program Suppliers' Proposed Findings of Fact and Conclusions of Law (PS PFF) at 78. They note that, despite this increase, still “20% of CSOs who carry distant signals have a calculated royalty fee which is approximately the size of the minimum fee.” This “cluster of CSOs at the threshold . . . provides evidence that . . . certain CSOs that paid the minimum fee nevertheless engaged in economic decision-making with regard to distantly retransmitted signals carried.” Amended and Corrected Written Direct Testimony of Cleve B. Tyler, Ph.D., Trial Ex. 7600, ¶¶ 151-52 (Tyler ACWDT). Further elucidating this point, Program Suppliers rely on additional oral testimony by Dr. Tyler, explaining that his regression model “is based in part on the . . . likely uncertainty, at the time that carriage decisions are made, as to whether the minimum fee or the calculated rate [
                        <E T="03">i.e.,</E>
                         the base rate] would bind . . . increas[ing] the economic content within the decision-making process, even where the minimum fee 
                        <E T="03">ultimately</E>
                         binds.” PS PFF ¶ 323 (citing 4/19/23 Tr. at 5521-22 (Tyler)) (emphasis added).
                        <SU>23</SU>
                        <FTREF/>
                         Further in this regard, Program Suppliers aver that even CSOs with 
                        <E T="03">zero distant signal carriage</E>
                         derive “option value” from the section 111 license, because they are always permitted (“privileged” in the language of section 111) to engage in such retransmission. Tyler ACWDT ¶ 102. According to Dr. Tyler, the base fee calculation would tacitly reflect this option value. 
                        <E T="03">Id.</E>
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             In a following colloquy with Judge Strickler, Dr. Tyler acknowledged that, by contrast, where the base fees calculated by CSOs were well below the minimum fee ultimately paid, their base fees provided “less economic content.” 4/19/23 Tr. 5525 (Tyler).
                        </P>
                    </FTNT>
                    <P>
                        In any event, Dr. Tyler rejects as “too extreme” the alternative of “[d]ropping most of the observations” by excluding the minimum-fee-only CSOs, because that would implicitly incorporate the assumption that “there is essentially no value associated with any of the minutes for the systems paying the minimum fee.” 4/19/23 Tr. 5474 (Tyler). In support of this point, Program Suppliers note that “[n]o expert in this proceeding took the approach of dropping minimum fee systems from the analysis.” PS PFF ¶ 327 (and record citations therein).
                        <E T="51">24 25</E>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             This argument is misleading. As described 
                            <E T="03">infra,</E>
                             the SDC, JSC, and CTV, through their experts, all relied on the large number of minimum-fee-only CSOs as a basis to throw out the regressions 
                            <E T="03">entirely</E>
                             for the 2015-2017 period (and the SDC and JSC also reject the minimum-fee-only data for 2014 as part and parcel of their wholesale rejection of the regression approach).
                        </P>
                        <P>
                            <SU>25</SU>
                             Program Suppliers also note that the Bortz Survey likewise considers the stated preferences of survey respondents whose systems pay only the minimum fee. PS PFF ¶ 328.
                        </P>
                    </FTNT>
                    <P>
                        Despite Program Suppliers' assertion that there is economic evidence from the carriage decisions of minimum-fee-only CSOs, they acknowledge that there is also merit to considering a version of the model that includes 
                        <E T="03">only</E>
                         CSOs paying above the minimum fee. Tyler 
                        <PRTPAGE P="54172"/>
                        ACWDT ¶¶ 155-156. According to Dr. Tyler, this restricted data set presents with the “highest degree of confidence” the CSO tradeoffs between different stations and categories of minutes. Tyler ACWDT ¶ 155. To this end, Dr. Tyler undertook a “sensitivity” analysis that considered only CSOs paying more than the minimum fee, and determined the following estimated shares (and standard errors):
                    </P>
                    <GPH SPAN="3" DEEP="235">
                        <GID>EN28JN24.000</GID>
                    </GPH>
                    <P>
                        According to Dr. Tyler, these shares are sufficiently close to the shares he proposes through his analysis of all CSOs, 
                        <E T="03">i.e.,</E>
                         including those only paying the minimum fee. 
                        <E T="03">Compare</E>
                         Tyler ACWDT fig.3.2, 
                        <E T="03">with</E>
                         Tyler ACWDT fig.6.3. According to Dr. Tyler, this “sensitivity” comparison of his recommended share allocation and the allocation generated by above-minimum-fee-only CSOs reveals that his “modeling approach . . . is reasonably robust and . . . sufficiently reliable for informing allocation of the 2014-2017 Cable Royalties among the Allocation Phase claimant categories.” Tyler ACWDT ¶ 105.
                    </P>
                    <HD SOURCE="HD2">C. PTV Position on the Minimum Fee Issue</HD>
                    <P>
                        PTV, like CCG, finds economic significance in the choices of a CSO “to retransmit a distant signal to particular subscriber groups” despite the fact that the CSO pays the minimum fee, relying in part on Dr. Marx's testimony that those choices reveal only 
                        <E T="03">ordinal</E>
                         preferences as to distant programming types. Public Television's Proposed Findings of Fact and Conclusions of Law (PTV PFF) ¶ 58 (citing, 
                        <E T="03">inter alia,</E>
                         4/11/23 Tr. 4165 (Marx)). Thus, PTV finds it appropriate to rely on what it describes as the “ample variation in the decision-making of CSOs that pay the minimum fee . . . to . . . inform[ ] . . . relative marketplace value. . . .” PTV PFF ¶ 59.
                    </P>
                    <P>
                        As an alternative basis for finding relevance in the decision-making of CSOs that paid only the minimum fee after the WGNA conversion, PTV finds relevance in the fact that many CSOs had distantly carried certain PTV signals pre-conversion 
                        <E T="03">together with</E>
                         WGNA, paying above the minimum fee, and 
                        <E T="03">continued</E>
                         to transmit that companion signal post-conversion, when only the minimum fee applied. According to PTV, this continuity of PTV carriage is record evidence of the value of the PTV carriage during the minimum-fee-only periods. PTV PFF ¶ 60; Johnson WRT ¶ 78 (“The WGN conversion in 2015 does not mean the value of KAET-DT [Public Television signal] declined or disappeared altogether.”); 
                        <E T="03">see generally</E>
                         Johnson WRT ¶ 79 (As in the KAET example, “there were 1,115 CSO-Public Television distant signal combinations in the 2015-2017 period where the CSO paid a minimum fee during those years [and] [f]or 
                        <E T="03">55 percent</E>
                         of these combinations, the same CSO also carried the same Public Television distant signal, at a different point in time, when it paid section 111 royalties greater than the minimum fee.”(emphasis added)).
                    </P>
                    <P>
                        As another alternative, Dr. Johnson, on behalf of PTV, and like Dr. Tyler, undertook a “sensitivity test” that excluded the minimum-fee-paying CSOs. According to PTV, the results of this sensitivity test were sufficiently consonant with the coefficients in Dr. Johnson's preferred “baseline” fee-based regression, which included the minimum-fee-only CSOs, to suggest that decisions made by CSOs that paid minimum fees are informative as to the question of relative value. PTV PFF ¶ 84 (and record citations therein); 
                        <E T="03">compare</E>
                         Johnson WDT fig.11 (baseline model coefficient, 
                        <E T="03">with</E>
                         Johnson WDT fig.14 (“sensitivity test” coefficients excluding minimum-fee-paying CSOs). This consonance was important, according to Dr. Johnson, because it justified his use of the “baseline” model, which, because it included the minimum-fee-paying CSOs, relied on 18,666 observations, and therefore was more precise than his “sensitivity test” approach. Johnson WDT ¶ 84.
                    </P>
                    <P>
                        From yet another economic perspective, PTV maintain that for minimum-fee-paying CSOs making some retransmissions, the value of the retransmitted programming must have some marginal value, in excess of “opportunity costs” regarding alternative uses of bandwidth including streaming alternatives. PTV PFF ¶¶ 62-63. Taken together, PTV asserts that the foregoing facts support the inclusion of the base-fee decisions of minimum-fee-paying CSOs. PTV PFF ¶ 97.
                        <PRTPAGE P="54173"/>
                    </P>
                    <HD SOURCE="HD2">D. CTV Position on the Minimum Fee Issue</HD>
                    <P>
                        CTV presents a nuanced argument regarding the relevancy of minimum-fee-only CSOs, consistent with the opinions of their economic expert, Dr. Leslie Marx. On the one hand, CTV and Dr. Marx maintain that the retransmission decisions of minimum-fee-only CSOs were 
                        <E T="03">not</E>
                         so numerous as to preclude the use of base fee data from minimum-fee-only CSOs in a regression for the years 2010-2013 (addressed in the prior determination) and for 2014 (the earliest year addressed in the present proceeding). 4/11/23 Tr. 4157 (Marx) (testifying that “the mere presence of royalties from excess capacity CSOs” does not make the fee-based regressions invalid” because “it's a matter of degree . . . .”). On the other hand, CTV and Dr. Marx maintain that the retransmission decisions of the minimum-fee-only CSOs 
                        <E T="03">were so pervasive</E>
                         during the years 2015-2017 as to preclude the use of fee-based regressions for those three years. 
                        <E T="03">Id.</E>
                         at 4157-58. 
                        <E T="03">See generally</E>
                         Commercial Television's Proposed Findings of Fact and Conclusions of Law (CTV PFF) at 38 (describing CTV's and Dr, Marx's approach as measured, because it “utilize[ed] a fee-based regression only for 2014, [which was] the sole year at issue in this proceeding without significant marketplace changes.”) 
                        <SU>26</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>26</SU>
                             This nuanced position is not an inconsistent 
                            <E T="03">economic</E>
                             argument. Rather, it is an argument regarding data differentiation and the concomitant 
                            <E T="03">weighing of evidence.</E>
                             CTV and Dr. Marx assert that, as a matter of “degree,” too high a percentage of the number of CSOs paying only the minimum fee (and/or too high a percentage of all royalties paid by minimum-fee-only CSOs) will render the incorporation of the retransmission decisions of those CSOs (and/or the royalties they paid) fatal to a fee-based regression. However, they assert that when those minimum-fee-only CSOs and their royalties are only approximately half of the CSOs and royalties paid, as in the 2010-2013 period, and when they principally apply to CSOs with only one subscriber group (and thus are excluded anyway from the Crawford-style regression), their inclusion is too small to preclude use of a fee-based regression. 
                            <E T="03">See generally</E>
                             CTV PFF at 20 
                            <E T="03">et seq.</E>
                             (“The lack of informative data renders any fee-based regression inappropriate and unreliable for 2015, 2016 and 2017.”).
                        </P>
                    </FTNT>
                    <P>
                        CTV continues its argument on this point by pointing out that when a CSO elects to carry a set of distant signals resulting in a payment higher than the minimum fee, that indicates the CSO sufficiently values the programming minutes bundled into the carriage to make it willing to pay marginal royalty payments above the minimum fee. Written Rebuttal Testimony of Leslie M. Marx, Ph.D., Trial Ex. 7208, ¶ 21 (Marx WRT). Alternatively stated, for these CSOs which CTV accurately describes as “above-capacity”, 
                        <E T="03">i.e.,</E>
                         retransmitting more than 1.0 DSE and thereby paying above the minimum fee, the base fee royalties reported by their subscriber groups are their actual royalty payments, revealing the CSO's perceived value of the distantly retransmitted stations and their constituent programs. Written Rebuttal Testimony of Christopher Bennett, Ph.D., Trial Ex. 7035, ¶ 15 (Bennett WRT); CTV PFF ¶ 158.
                    </P>
                    <P>
                        To contrast from the “above-capacity” CSOs, CTV and its experts examine the carriage decisions of CSOs that had carried WGNA in 2014, either solely or with other signals, but could not, and thus did not, carry WGNA after 2014. CTV asserts that because the WGNA conversion generated the explosion of minimum-fee-only CSOs, the majority of the royalties and CSOs do not reflect incremental costs associated with incremental carriage. CTV PFF ¶¶ 177, 186. This change is reflected in a series of figures presented by Dr. Marx. First, she demonstrates the 
                        <E T="03">share of royalty payments</E>
                         by CSOs carrying distant signals relative to the minimum fee, across the relevant years:
                    </P>
                    <GPH SPAN="3" DEEP="307">
                        <GID>EN28JN24.001</GID>
                    </GPH>
                    <PRTPAGE P="54174"/>
                    <P>Next, Dr. Marx identifies the percentage of all CSOs carrying distant signals that are paying the minimum fee over the relevant years:</P>
                    <GPH SPAN="3" DEEP="297">
                        <GID>EN28JN24.002</GID>
                    </GPH>
                    <P>
                        These data present the contrast between how the actual royalty obligations through 2014 were directly linked to base fees at the subscriber-group level and the actual royalty obligations in the 2015-2017 period where they were instead predominantly a function of the minimum fee. CTV PFF ¶ 167 (citing Bennett WRT fig.5). Likewise, Dr. Marx testified that there was no substantial dissimilarity in the 2010-2014 period between: (1) the overall regression coefficients (not allocation shares) for all CSOs and (2) the regression coefficients for 
                        <E T="03">only</E>
                         CSOs carrying fewer distant signals than the minimum fee would permit, which Dr. Marx aptly described as “excess capacity” CSOs. Marx WRT ¶ 62. This substantially similarity was depicted as follows by Dr. Marx:
                    </P>
                    <GPH SPAN="3" DEEP="163">
                        <GID>EN28JN24.003</GID>
                    </GPH>
                    <P>Moreover, according to Dr. Marx, many of the CSOs with “excess capacity” also had less than the two subscriber groups necessary to be observed by the Crawford regression, thus making their “excess capacity” status inconsequential to the regression for this independent reason. 4/11/23 Tr. 4157 (Marx).</P>
                    <P>The scenario for the 2015-2017 period was drastically different, according to Dr. Marx. She also presents coefficients (not allocation shares) for this latter three-year period, and shows how the coefficients for all CSOs differed from those with no excess capacity:</P>
                    <GPH SPAN="3" DEEP="195">
                        <PRTPAGE P="54175"/>
                        <GID>EN28JN24.004</GID>
                    </GPH>
                    <P>With regard to the necessity of at least two subscriber groups within a system during an accounting period (required by Dr. Crawford's system-accounting period fixed effect), Dr. Marx reported that, beginning in 2015, fully 62% of CSOs, accounting for almost 35% of total royalties, did not satisfy this requirement. Amended Corrected Written Direct Testimony of Leslie M. Marx, Ph.D., Trial Ex. 7204, ¶ 58 (Marx ACWDT). By 2017, 93.8% of the royalties were paid via the minimum fee, rather than the base fees. CTV ¶ 189 (citing Marx WRT, fig.14).</P>
                    <P>Although CTV and Dr. Marx do not consistently characterize the evidentiary weight of the royalty data from “excess-capacity” CSOs as wholly uninformative, they unambiguously report Dr. Marx's own opinion that the 2015-2017 minimum fee royalty data is decidedly “less informative” than the royalty data from CSOs that transmitted more than 1.0 DSE. Marx WRT ¶ 22.</P>
                    <P>Further bolstering the point that minimum-fee-only-CSO royalty data dominated the 2015-2017 landscape, CTV points to the following data:</P>
                    <EXTRACT>
                        <P>CSO carriage of fewer distant signals after 2014 sharply increased the percentage number of excess capacity CSOs, from less than 20% of CSOs in 2014 to 73% of CSOs in 2016 onward. Marx WRT ¶ 64.</P>
                        <P>The percentage of CSOs paying more than the minimum fee decreased from 48% in 2014 to only 19% by the end of 2017 (measured by including CSOs with zero retransmittals).</P>
                    </EXTRACT>
                    <FP>CTV PFF ¶¶ 209-210 (and record citations therein).</FP>
                    <EXTRACT>
                        <P>Based on the foregoing, CTV relies on Dr. Marx's conclusions that:</P>
                        <P>The changed circumstances in the real-world market have infected the quality of the data and reduced the quantity of the data utilized by the proffered fee-based regressions making those regressions in the 2015 to 2017 timeframe unreliable. 4/11/23 Tr. 4510-12 (Marx).</P>
                        <P>A regression requires reliable data that fits the underlying assumptions, otherwise the model is putting “garbage in” and getting “garbage out.” The data no longer represents carriage decisions based off of royalty payments from the CSOs. 4/11/23 Tr. 4147; 4194 (Marx).</P>
                    </EXTRACT>
                    <FP>
                        CTV PFF ¶¶ 299-300. 
                        <E T="03">See also</E>
                         Marx WRT ¶ 82 (“[F]or a minimum fee-paying CSO, the inclusion of a distant signal in the channel line-up to a subscriber group . . . reflects the CSO's choice over other alternative signals that also have no incremental cost. This can be informative as to the value of the program minutes on whatever signal the CSO elects to offer.”).
                    </FP>
                    <HD SOURCE="HD2">E. JSC Position on the Minimum Fee Issue</HD>
                    <P>
                        Like CTV, JSC contrasts the 2010-2014 period with the years 2015-2017. In the former period, JSC notes, 
                        <E T="03">most</E>
                         CSOs calculated “a Base Fee + their 3.75% Fee that equaled or exceeded the Minimum Fee.” More particularly, JSC specifies that, “in 2014, 71.8% of all CSOs calculated a Base + 3.75% Fee that met or exceeded their minimum fee obligation, and during the 2010-13 period, 73.0% of all CSOs did so . . . account[ing]for 76.5% of total royalties paid in 2014 and 79.9% of total royalty fees paid during the 2010-13 period.” Proposed Findings of Fact and Conclusions of Law of the Joint Sports Claimants (JSC PFF) ¶ 17 (citing 3/30/23 Tr. 2578 (Majure); Harvey CWDT ¶ 17 &amp; tbl.3; Corrected Bortz Report, Trial Ex. 7101, at 9 (Bortz Report).
                    </P>
                    <P>
                        Further, JSC maintains that even if an economic model could produce reliable 
                        <E T="03">ordinal</E>
                         rankings, which none of the regressions in evidence attempted, it is not possible to make the leap from such rankings to cardinal relative values, 
                        <E T="03">i.e.,</E>
                         allocation of specific royalty amounts to each of the claimant categories in this proceeding. 3/30/23 Tr. 2512-13 (Asker).
                    </P>
                    <P>
                        JSC also maintains that the base fee calculations of 
                        <E T="03">any</E>
                         minimum-fee-only CSO cannot reveal the programming preferences of such CSOs or otherwise be useful in the estimation of relative marketplace value. Specifically, JSC first maintains that “[a]ny alleged uncertainty about application of the Minimum Fee is speculative.” Reply Proposed Findings of Fact and Conclusions of Law of the Joint Sports Claimants (JSC RPFF) at 11. Not only does JSC find this uncertainty to be speculative, they further argue that it is “highly unlikely that most Minimum Fee CSOs would have been uncertain about whether a carriage decision would affect their royalty payment.” JSC RPFF ¶ 32. In support of this point, JSC notes that, after 2014, among minimum-fee-only CSOs that retransmitted at least one distant signal, approximately 86% calculated a base fee + 3.75% Fee that was 75% or less of the CSO's minimum fee. JSC RPFF ¶ 32. Further to this point, JSC takes note of Dr. Tyler's acknowledgement that “the further you are away from the minimum fee threshold, the less likely it would be that there would be that risk of exceeding it.” JSC RPFF ¶ 32.
                        <SU>27</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             However, JSC also acknowledges that the Bortz Survey, on which it relies, likewise “decided to adopt Base [Fee] + 3.75% Fee . . . weighting “[o]nce Bortz realized that many . . . systems were paying the Minimum Fee. . . .” JSC RPFF ¶ 105.
                        </P>
                    </FTNT>
                    <P>
                        In further criticism of the usefulness of regressions, particularly for the two-year 2016-2017 period, JSC notes that only 55.2% of [CSOs chose to carry] distant signals. Harvey CWDT ¶ 26. JSC further notes that, out of this 55.2%, 
                        <PRTPAGE P="54176"/>
                        approximately 74% paid only the minimum fee.
                    </P>
                    <P>
                        Additionally, JSC notes that during the two-year 2016-2017 period, 14% of all CSOs met or exceeded the minimum fee, accounting for but 6.8% of total royalty payments, which reflected a 91% decrease compared to 2014. Harvey CWDT tbl.11.
                        <SU>28</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             More particularly, in the years 2016-2017, only 3.2% of CSOs calculated a base fee + 3.75% Fee that “met” (rather than “exceeded) the minimum fee. JSC PFF ¶ 54 (citing Harvey CWDT tbl.14).
                        </P>
                    </FTNT>
                    <P>
                        With regard to 2015, JSC relies on Mr. Harvey's finding that, after he removes reported WGNA carriage, 72% of CSOs carrying at least one distant signal then paid only the minimum fee. JSC notes that Mr. Harvey found that only 13.4% of CSOs calculated a minimum fee, accounting for 85.2% of total royalty payments for that year. JSC PFF ¶ 46 (citing the Harvey CWDT).
                        <SU>29</SU>
                        <FTREF/>
                         Considering these 2015 data from the opposite perspective, JSC cites Mr. Harvey's calculation that only 13.4% of CSOs calculated a base fee + a 3.75% fee in excess of the minimum fee, reflecting only 9.8% of the total royalties paid in that year. JSC PFF ¶ 47 (further the Harvey CWDT).
                    </P>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             It is hardly clear that Mr. Harvey was justified in removing reported carriage of WGNA in 2015. The record reflects the existence of SOAs filed for 2015 that reported such carriage, and there is uncertainty as to whether those SOAs were erroneous or whether there was residual WGNA carriage as WGNA transitioned from a broadcast channel to a cable station. 
                            <E T="03">But see</E>
                             Kent Gibbons, 
                            <E T="03">WGN America Converts to Cable in Five Markets,</E>
                             Broadcasting &amp; Cable (Dec. 14, 2014) (“Tribune Media Co. said its WGN America is debuting on cable television systems in Chicago, Boston, Philadelphia, Seattle and Washington, DC, starting Tuesday, as it begins converting from a superstation to a cable network . . . on Comcast systems [with] more launches and conversions . . . happening on distributors this month and 
                            <E T="03">throughout 2015.</E>
                            ”) (emphasis added).
                        </P>
                    </FTNT>
                    <P>JSC also relies on another of its expert witnesses, the economist Dr. W. Robert Majure, who explained that, in the 2015-2017 period, most CSOs that formerly carried WGNA under the section 111 license chose not to replace it with an equivalent number of DSEs, and as a result “made far less use of the section 111 license.” JSC PFF ¶ 49 (citing Written Direct Testimony of W. Robert Majure, Ph.D., Trial Ex. 7103, ¶ 77 (Majure WDT)).</P>
                    <P>Based on these data related to the minimum fee, JSC maintains that the fee-based regressions, as they relate to the 2015-2017, period wrongly use base fees (with or without the 3.75% fee) as “price proxies,” in that when the minimum fee binds, the marginal royalty cost of carriage is zero. JSC PFF ¶¶ 148-152 (and record citations therein).</P>
                    <P>In econometric terms, Dr. Asker, on behalf of JSC, measured the alleged errors that Drs. George, Johnson, and Tyler introduced into their regressions by using the incorrect base-fee-related price proxies. These alleged “measurement errors,” according to Dr. Asker, were correlated with the variables measuring distant signal content minutes in the entire 2014-2017 period and equal the difference between the improper price proxies y and the zero price implied by the payment of the minimum fee. Written Rebuttal Testimony of John Asker, Ph.D., Trial Ex. 7114, ¶ 79 (Asker WRT).</P>
                    <P>JSC further notes in this regard that Dr. George herself conceded that the link between base rate royalties and actual CSO demand is “not super tight,” and adds the very sort of “measurement error to the dependent variable” that Dr. Asker has calculated. JSC PFF ¶ 154 (citing Dr. George's hearing testimony).</P>
                    <P>
                        Dr. Asker also takes issue with the regression experts' use of the base fee as a price proxy 
                        <E T="03">even for CSOs paying above the minimum fee.</E>
                         He explains that for a perfectly rational CSO calculating price, the true marginal cost of distantly retransmitting a local station in this context—the difference in cost to the CSO between retransmitting and not retransmitting—is not the base fee, but rather the difference between (1) the total fees that would bind, which may have been the minimum fee, without retransmitting that local station, and (2) the total base fees that would bind (the minimum fee having been exceeded) if that local station was distantly retransmitted. 
                        <E T="03">See</E>
                         Asker WRT ¶¶ 59-77 (applying the definition of price, stated in ¶ 61, as “the extra expenditure required to have it, as compared to not having it.”).
                    </P>
                    <P>
                        Finally, JSC takes note of Dr. Asker's point that it is standard practice among statisticians and econometricians to test the validity of a regression against other available external evidence, as a sort of “reality filter.” JSC PFF ¶ 169 (citing Asker WRT ¶ 104); 
                        <E T="03">see also</E>
                         3/28/23 Tr. 1910-11 (Harvey) (agreeing with Judge Strickler that “validity test” is synonymous with “reality filter”). Here, JSC points out that the validity of the regressions is refuted by the fact that, during the 2015-2017 period, CSOs did not behave in accordance with the assumption behind the regressions. That is, despite the assumption that the incremental benefits of distant carriage were positive (according to the regression estimates) and the incremental royalty cost was zero, most CSOs elected not to add additional distant signals. Thus, the regressions purportedly were invalid, unrealistic, and self-contradictory (“false within their own premise” one might say), according to JSC. Written Rebuttal Testimony of W. Robert Majure, Ph.D., Trial Ex. 7104, ¶¶ 15, 47-50 (Majure WRT); 3/30/23 Tr. 2594-95, 2598-99 (Majure).
                    </P>
                    <HD SOURCE="HD2">F. SDC Position on the Minimum Fee Issue</HD>
                    <P>
                        At the outset, when framing the relevant minimum fee issue, the SDC maintain that, “while it may be true” that CSOs' 
                        <E T="03">ordinal</E>
                         decision-making shows their ranked preferences, “no regression model in this case has been specified for such a theory.” SDC PFF ¶ 39. Rather, these regressions consider the calculated (but not paid) base fees (and the 3.75% Fee, depending on the regression at issue) of these minimum-fee-only CSOs.
                    </P>
                    <P>But the SDC maintain that the minimum fee “confounds any interpretation of a fee-based regression” premised on the CSOs' “willingness-to-pay.” Settling Devotional Claimants' Proposed Findings of Fact and Conclusions of Law (SDC PFF) at 27. In this regard, the SDC point to the testimony of several experts who opine that the minimum fee structure “largely obviate[s] the purported causal theory based on `willingness-to-pay,' ” because the minimum-fee-only CSOs “are required to pay a minimum fee equivalent to a 1.0 DSE . . . whether they are `willing' or not.” SDC PFF ¶ 60 (citing Asker WRT ¶¶ 78-86; Marx WRT ¶ 22.). Stating the point in economic terms, the SDC state that “there is no marginal cost” incurred by a CSO unless and until “the minimum fee is exceeded.” SDC PFF ¶ 60.</P>
                    <P>The SDC do not limit their criticism of the minimum fee issue to the regressions proffered in this proceeding. They also look back to the 2010-13 proceeding, where “approximately 50% of the CSOs paid only the Minimum Fee,” which, the SDC maintain now (as they did in the 2010-13 proceeding), constituted a “serious problem” for the Crawford regression upon which the Judges relied in the prior proceeding. SDC PFF ¶ 61.</P>
                    <P>
                        But the SDC assert that their criticism in the 2010-13 proceeding is even more relevant in the present proceeding, in that this minimum fee problem is “exacerbated after 2014, [because] the proportion of fees paid by systems paying the Minimum Fee went up from 39.2% to 93.8%.” SDC PFF ¶ 62 (citing Ex. 7204 at 29, Marx ACWDT ¶ 65). In this environment, the SDC maintain, it is difficult to see how any inferences could be drawn about “willingness to pay.” SDC PFF ¶ 62.
                        <PRTPAGE P="54177"/>
                    </P>
                    <P>The SDC then evaluate the attempts by the regression experts to address the minimum fee issue, as summarized below:</P>
                    <EXTRACT>
                        <FP SOURCE="FP-1">
                            —The SDC acknowledge that Dr. Tyler's “sensitivity test of this issue,” in which he dropped the minimum-fee-only CSOs, “might provide some 
                            <E T="03">rough guidance</E>
                             as to the potential direction and magnitude of bias introduced by the presence of minimum fees.” SDC PFF ¶ 63 (emphasis added) (citing Tyler ACWDT ¶ 156). But the SDC take note of what they characterize as “the vast amount of data” that Dr. Tyler had to discard to apply this sensitivity test, leading the SDC to conclude that Dr. Tyler's attempt to drop all minimum-fee-paying CSOs was “probably too extreme.” SDC PFF ¶ 63 (citing 4/19/23 Tr. 5473-74 (Tyler).
                        </FP>
                        <FP SOURCE="FP-1">—Dr. Johnson's sensitivity test, in which he too applied his model only to systems paying above the minimum fee, resulted in large swings in the JSC coefficients, rendering them statistically insignificant. SDC PFF ¶ 104.</FP>
                        <FP SOURCE="FP-1">—The SDC acknowledge that Dr. Marx “makes good points about the confounding effects of minimum fee-paying systems . . . in the 2015-2017 timeframe,” but find “her position on the reliability of the model before 2015 . . . too convenient to credit.” Harkening back to their criticism of the 2010-13 Determination's adoption of the Crawford regression, the SDC maintain that Dr Marx's Bayesian regression for 2014 is deficient with regard to this minimum fee issue because “ `CSOs paying the minimum fees accounted for a large proportion already before the conversion of WGNA,' ” and any 2014 modeling “ `should have been specified' ” to address this issue. SDC PFF ¶ 130 (citing Written Rebuttal Testimony of Daniel L. Rubinfeld, Trial Ex. 7505, ¶ 95 (Rubinfeld WRT) (“The fact that Dr. Crawford's model does not hold up when applied to 2014-2017 data in the current proceeding reveals that the regression specification put forth by Dr. Crawford was not robust or informative.”).</FP>
                    </EXTRACT>
                    <HD SOURCE="HD2">G. The Judges' Analysis and Conclusions Regarding the Minimum Fee Issue</HD>
                    <P>
                        The Judges find that the dramatic increase in the number of minimum-fee-only CSOs (
                        <E T="03">i.e.,</E>
                         those with no distant retransmittals and those with some distant retransmittals but with “excess capacity”) renders regression analyses that include those CSOs less reliable and thus can be accorded only very limited economic evidentiary weight. Moreover, the Judges accord significantly more evidentiary weight to regression modeling that focuses only on the CSOs that actually revealed their preferences by willingly paying above the minimum fee, 
                        <E T="03">i.e.,</E>
                         at the base fee level.
                    </P>
                    <P>
                        In particular, as discussed 
                        <E T="03">infra,</E>
                         the Judges rely on the Tyler Model, as Dr. Tyler applied his model to the CSOs paying above the minimum fee. 
                        <E T="03">See</E>
                         Tyler ACWDT ¶ 156 &amp; fig.6.3 (discussed 
                        <E T="03">infra).</E>
                         Although there is hardly a consensus as to the adoption of this variant of the Tyler Model, the Judges are struck by the supportive argument of the SDC, set forth below, regarding the Tyler Model as applied to above-minimum-fee-paying CSOs:
                    </P>
                    <EXTRACT>
                        <P>Dr. Tyler, whose rate-based methodology is the most explicitly based on a “minimum willingness to pay” theory . . . offers a sensitivity test of this issue. Tyler [ACWDT] ¶ 156. (It is a fairer sensitivity test than Dr. Johnson's similar test, which was selected retrospectively out of hundreds of tests that were tried and is performed in the presence of the distortion of multiple misspecifications). Dr. Tyler's sensitivity test might provide some rough guidance as to the potential direction and magnitude of bias introduced by the presence of minimum fees.</P>
                    </EXTRACT>
                    <FP>
                        SDC PFF ¶ 156. 
                        <E T="03">See also</E>
                         4/19/23 Tr. 5473 (SDC's counsel's statement to Dr. Tyler on cross-examination) (“I do want to point out to your credit that your first sensitivity test tries to address this issue.”). This argument is generally consistent with Dr. Tyler's response to SDC counsel on this point, agreeing that it was important to be “cognizant” of this minimum fee issue and that it be “considered and addressed” because there is “reasonable disagreement about how to handle the issue.” 
                        <E T="03">Id.</E>
                         at 5473-74.
                    </FP>
                    <P>
                        The Judges do not see the disagreement as necessarily “reasonable” regarding whether to rely on the calculated base fee data of all CSOs (including the CSOs paying only the minimum fee) or only those who actually paid their calculated base fees. But, however one couches this disagreement, the Judges find the latter approach appropriate, and that—to borrow the SDC's phrase—the variant of the Tyler Model in Figure 6.3 of the Tyler ACWDT offers the Judges' “rough guidance” in the allocation of shares.
                        <SU>30</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             Evidence that provides “rough guidance” is useful evidence in these proceedings. As noted elsewhere in this determination, the D.C. Circuit has acknowledged that the nature of this statutorily-mandated, but statutorily standardless, allocation process can require a measure of “rough justice,” in the face of inevitable mathematical imprecision.
                        </P>
                    </FTNT>
                    <P>
                        With regard to the issue of precision, mathematical or economic, the Judges do not adopt Dr. Asker's analysis, discussed above, that the appropriate method to calculate royalties for above-minimum-fee-paying CSOs should be based on the difference between (1) the actual royalty amount paid when a distant station is added; and (2) the amount that the CSO would have paid pursuant to the minimum fee calculation if it would bind in the absence of transmittal of that station. Although in theory that would appear to be a rational approach, there is no evidence that any CSO actually engages in such an activity. Further, as the Judges note elsewhere in this determination, they credit the designated testimony of Ms. Hamilton, a cable industry expert, who stated that the amount of money at issue regarding section 111 royalties is essentially 
                        <E T="03">de minimis</E>
                         to the CSOs (although quite significant to the parties in this proceeding), and that the CSOs do not devote much attention to issues regarding distant retransmittals. In this context, and in the absence of any evidence to the contrary, the Judges cannot assume, let alone apply, a pricing rationale that suggests a tunnel-vision sort of hyperrationality, when Ms. Hamilton's testimony suggests a broader rationality, whereby CSOs rationally apply their scarce time and attention to more economically consequential matters.
                        <SU>31</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             This finding is consistent with a broader point made by the economist Ronald Coase, who won the Nobel Prize for his foundational work on transaction costs, regarding an overemphasis on what he coined “blackboard economics.” As Dr. Coase explained: “[When] [t]he policy under consideration is one which is implemented on the blackboard [and] [a]ll the information needed is assumed to be available and the teacher plays all the parts . . . there is no counterpart to the teacher within the real economic system . . . no one who is entrusted with the task that is performed on the blackboard.” R. Coase, 
                            <E T="03">The Firm, the Market, and the Law</E>
                             19 (1990). Substitute “expert witness” for “teacher” and “in the testimony” for “on the blackboard” and Dr. Coase's point applies here.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">
                        VI. The Allegations of “Specification Searching” 
                        <E T="51">32</E>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             Specification searching (also known as “data fishing.”) is defined as “the practice of searching numerous research methodologies—including different models, design components, analytical methods, and hypotheses—and selectively reporting only those that produce significant or otherwise favorable results. H. Bavli, 
                            <E T="03">Credibility in Empirical Legal Analysis,</E>
                             87 Brook. L. Rev. 501, 509 (2022).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">A. Allegations of Concealed Specification Searching by Dr. Crawford Applicable to the Present Proceeding</HD>
                    <P>
                        In their determination in the 2010-13 cable proceeding, the Judges relied predominantly, although not solely, on the fee-based regression model presented by Dr. Crawford, who was then a witness on behalf of CTV. In deciding to rely on Dr. Crawford's regression (the Crawford Model), the Judges credited his testimony denying allegations by the SDC that he had improperly attempted and rejected many alternative regression models. 2010-13 Determination at 3566-3567; 
                        <E T="03">see also</E>
                         SDC PFF ¶ 68 (and record citations therein).
                        <PRTPAGE P="54178"/>
                    </P>
                    <P>The SDC maintain that three of the four fee-based regression models presented in this proceeding, PTV's, CCG's, and CTV's, are based upon the Crawford Model. In order to understand the relationship of these three models to the Crawford Model, the SDC argue (and the Judges agree) that it is necessary to understand the characteristics and history of the Crawford Model, comparing what was known at the time of the 2010-13 cable proceeding with what was subsequently uncovered. SDC PFF ¶ 69 (and record citations therein).</P>
                    <P>To begin its review of the Crawford Model, the SDC point to the basic hypothesis undergirding the approach—attempting to “relat[e] a measure of royalty fees to numbers of [program] category minutes.” SDC PFF ¶ 70. The SDC state that, although the Crawford Model “followed a framework that somewhat resembled . . . the model offered by Dr. Waldfogel [the Waldfogel Model] in the 2004-05 cable proceeding,” Dr. Crawford actually made “multiple dramatic departures.” SDC PFF ¶ 70 (citing 2010-13 Determination at 3557 for a description of Dr. Waldfogel's model). Dr. Crawford departed from the Waldfogel Model, according to the SDC, because after he “tested Dr. Waldfogel's model as a starting point using 2010-13 data (which he falsely denied doing), the Waldfogel [M]odel yielded implausible results . . . demonstrating, at a minimum, that [the Waldfogel Model] . . . performed poorly on out-of-sample data.” SDC PFF¶ 70 (and record citations therein). Moreover, the SDC assert that Dr. Crawford undertook, but failed to disclose, his sensitivity testing when he constructed the Crawford Model, which showed that the results of the Waldfogel Model were extremely sensitive to annual changes, suggesting that the Waldfogel Model may have been “selected to fit the data in 2004-05.” SDC PFF ¶ 70 (and record citations therein).</P>
                    <P>Expanding on the foregoing, the SDC imply that specification searching is widespread, noting that “[a]t least 10 different expert witnesses have presented at least 10 different fee-based regression models in the last five allocation proceedings: Dr. Rosston (CTV, 1998-99 cable), Dr. Waldfogel (CTV, 2004-05 cable), Dr. Crawford (CTV, 2010-13 cable), Dr. Israel (JSC, 2010-13 cable), Dr. George (CCG, 2010-13 cable, 2014-17 cable), Dr. Heeb (CTV, 2010-13 satellite), Dr. Gray (PS, 2010-13 satellite), Dr. Johnson (PTV, 2014-17 cable), Dr. Tyler (PS, 2014-17 cable), and Dr. Marx (CTV, 2014-17 cable). Further, the SDC emphasize that only Dr. George has appeared more than once, and that her models in the 2010-13 proceeding and in this proceeding are “very different” from each other. SDC PFF ¶ 73 (and record citations therein).</P>
                    <P>
                        Dr. Erdem, also, later discovered, based on CTV's compelled production in the 2010-13 
                        <E T="03">satellite</E>
                         case, that Dr. Crawford had actually tested many different functional forms before deciding to use the log-linear form. Only then did he perform the appropriate statistical test (the “Box-Cox” test), which Dr. Erdem claims “specifically rejected the log-linear form.” Dr. Erdem further claims that Dr. Crawford improperly failed to run the test on the independent variables, limiting the test to the dependent variable (the royalty measure). Amended Written Direct Testimony of Erkan Erdem, Ph.D., Trial Ex 7502, ¶¶ 41-42 (Erdem AWDT); 
                        <E T="03">see also</E>
                         Supplemental Written Rebuttal Testimony of Erkan Erdem (2010-13 satellite proceeding), Trial Ex. 7054, ¶¶ 16-18 &amp; Ex. 3. 
                        <E T="03">See</E>
                         SDC PFF ¶ 76 (and record citations therein).
                    </P>
                    <P>
                        According to Dr. Erdem, the failure of Dr. Crawford and CTV, in the 2010-13 cable proceeding to disclose, in Dr. Crawford's direct testimony or in discovery, this testing and the results thereof served to conceal the potential for “distortion and bias” in the Crawford Model arising from the use of a “linear form” of a control variable for the number of subscribers in the subscriber group during the prior accounting period (the so-called “lagged subscribers”) as affecting the dependent variable (royalties) expressed not in level (
                        <E T="03">i.e.,</E>
                         linear) form, but rather in log form. 
                        <E T="03">See</E>
                         Erdem AWDT ¶¶ 51, 71; 
                        <E T="03">see also</E>
                         Asker WRT ¶¶ 98-99; Written Rebuttal Testimony of R. Garrison Harvey, Trial Ex. 7106, ¶¶ 194, 197, 202 &amp; Ex. H (Harvey WRT); 
                        <E T="03">see also</E>
                         SDC PFF ¶ 77.
                    </P>
                    <P>
                        The SDC maintain that the foregoing exemplifies the “poor economic practice” and econometric “sin” of specification searching broadly undertaken by Dr. Crawford. SDC PFF ¶ 87 (citing Kennedy, 
                        <E T="03">supra,</E>
                         at 367).
                        <SU>33</SU>
                        <FTREF/>
                         Moreover, the SDC assert that Dr. Crawford did not merely commit the “sin” of specification searching; he also lied by repeatedly denying his econometric misconduct. Erdem AWDT ¶ 36; Written Rebuttal Testimony of Erkan Erdem, Ph.D., Trial Ex. 7503, ¶ 77 (Erdem WRT). According to the SDC, Dr. Crawford instead “acknowledged performing only a single alternative analysis,” and the Judges trusted and relied on his testimony. SDC PFF ¶ 88 (citing 2010-13 Determination at 3568 (finding that Dr. Crawford “had not run such an alternative regression by generating a regression and then discarding it . . . .”)). In fact, according to the SDC, Dr. Crawford “had performed and rejected . . . undisclosed alternative models . . . with different combinations of variables, interactions of variables, no fixed effects, different forms of fixed effects, and a wide range of functional forms . . . produc[ing] wide ranges of implied shares, including 0% shares for every . . . category in . . . some models.” SDC PFF ¶ 88 (and record citations therein).
                    </P>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             A pernicious aspect of covert specification searching is that it masks from the reader (whether Judge, adversary party, journal editor or academic referee) conduct that bears importantly on the regression ultimately produced. The classic example of a simple hidden specification search is the following: “[Although] the probability of flipping a coin and obtaining heads in ten consecutive flips out of ten tries is almost zero. . . . if 15,000 individuals attempt this, it is virtually certain that one or more will succeed.” M. Klock, 
                            <E T="03">Finding Random Coincidences while Searching for the Holy Writ of Truth: Specification Searches in Law and Public Policy or Cum Hoc Ergo Propter Hoc,</E>
                             Wis. L. Rev. 1007, 1010 (2001). An experimenter who “searches” for, and reports only, the 1 out of 15,000 times the experiment generates ten consecutive heads, and who conceals the 14,999 times this result did not occur, is misrepresenting his or her work and the usefulness of the result.
                        </P>
                    </FTNT>
                    <P>
                        According to the SDC, a telltale sign that Dr. Crawford had engaged in specification searching was the Crawford Model's inclusion of “indicator variables that had no function . . . [given] his system-accounting period fixed effects . . . [thereby] suggesting that he had tested the regression with no fixed effects or at other levels of fixed effects . . . . [But] Dr. Crawford repeatedly denied trying a specification without fixed effects or at a different level of fixed effects.” SDC PFF ¶ 90 (and record citations therein). Moreover, the SDC claim that, in response to a question from Judge Feder, Dr. Crawford lied by claiming he did not test regressions without fixed effects; his test results, later produced in the satellite proceeding, showed that he “ran most of his hundreds of models 
                        <E T="03">without fixed effects and at different levels of fixed effects, searching for the best results.</E>
                        ” SDC PFF ¶ 91 (and record citations therein) (emphasis added).
                    </P>
                    <P>
                        Returning to the issue of whether to transform variables from linear to log form, the SDC claim to have identified “[p]erhaps the clearest fingerprint” of Dr. Crawford's specification search. Specifically, although Dr. Crawford had testified that he did not perform a sensitivity test on a log-log form of regression because he “strongly fe[lt] that including log subscribers is not an appropriate specification as an 
                        <PRTPAGE P="54179"/>
                        explanatory variable”, this “was a lie” because the discovery in the satellite proceeding showed that Dr. Crawford did test a log-log form of regression, which resulted in “an approximately 10-point drop in CTV shares (about an $80 million value).” SDC PFF ¶ 93 (and record citations therein).
                    </P>
                    <P>
                        After reviewing the satellite discovery, which included approximately 500 regression model runs, and weighing it against Dr. Crawford's cable testimony, SDC expert Dr. Rubinfeld stated: “I've never seen anything on this scale . . . .” 4/6/23 Tr. 3638 (Rubinfeld). The SDC characterize Dr. Crawford's purported specification searching and related alleged untruths as “[e]vidence of fraud in a past proceeding” that constitutes “changed circumstances,” thus “requir[ing] a reevaluation of those characteristics of a Crawford-like regression that have infected the regression models 
                        <E T="03">presented in this proceeding.</E>
                        ” SDC PFF ¶ 96 (emphasis added).
                    </P>
                    <P>In this regard, the SDC take particular note that Dr. Marx acknowledges that because her Bayesian model relies directly on Dr. Crawford's results her results are unreliable if Dr. Crawford's results are unreliable. SDC PFF ¶ 129 (citing 4/11/23 Tr. 4323-24 (Marx)).</P>
                    <HD SOURCE="HD2">B. CCG Response Regarding Alleged Specification Searching by Dr. Crawford</HD>
                    <P>CCG's “primary response” to the SDC's claim is that any specification searching by Dr. Crawford is irrelevant because “regression has the advantage of transparency and replicability.” CCG PFF ¶ 217 (and record citations therein). This occurred in the present proceeding, CCG maintains, as the work of various experts presenting testimony in this case showed, that every aspect of a regression such as the Crawford Model could be and was examined and tested. 4/18/23 Tr. 5177-79 (George); George WRT at 53.</P>
                    <P>Further, CCG maintains it is appropriate for experts in the present proceeding not to “mov[e] away from an approach that the Judges have found highly useful in determining relative market value” unless there were “clear theoretical or empirical reasons” to do so. CCG PFF ¶ 218 (and record citations therein). CCG analogizes to the “academic setting,” in which “differing views” among econometricians can be “addressed through the `referee' process . . . where the most important criterion for evaluating a proposed alternative model is whether the proposed change undermines the theoretical relationships in some way . . . .” George WRT at 52.</P>
                    <P>
                        Applying the foregoing points, Dr. George was unconcerned that Dr. Crawford's procedures appeared to include “more than one model.” She analyzed the Crawford Model on its merits, concluding that it “was tightly linked to the economics of the cable marketplace and estimated to minimize bias.” It was on this basis, as well as the Judges' endorsement of the model, that Dr. George used the Crawford Model as the basis for her work in this proceeding. 4/18/23 Tr. 5131, 5176 (George); George WDT at 6; Ex. 7404; George WRT at 10-11, 13, 43-44; 
                        <E T="03">see also</E>
                         CCG PFF ¶ 220.
                    </P>
                    <HD SOURCE="HD2">C. CTV Response Regarding Alleged Specification Searching by Dr. Crawford</HD>
                    <P>When asked whether she believed Dr. Crawford had or had not engaged in improper specification searching, Dr. Marx demurred stating that she was “not offering that opinion.” 4/11/23 Tr. 4119 (Marx). When asked specifically about the more detailed arguments made by the SDC witnesses regarding Dr. Crawford's alleged specification searching based on supplemental discovery Dr. Marx sought to make sure her “no-opinion” testimony was unambiguous:</P>
                    <EXTRACT>
                        <P>
                            I want to be clear that I didn't reach an opinion about whether or not [Dr.] Crawford had a fair underlying theoretical structure behind the regressions that he ran. I didn't see anything in what I reviewed that raised red flags that that was not the case, but 
                            <E T="03">what I saw was consistent with or at least not inconsistent with proper econometric practice.</E>
                        </P>
                    </EXTRACT>
                    <FP>
                        4/11/23 Tr. 4121 (Marx) (emphasis added). 
                        <E T="03">See also</E>
                         4/11/23 Tr. 4226 (Marx) (testifying similarly in response to questioning by Judge Strickler); 4/11/23 Tr. 4257 (Marx) (same). On cross-examination, Dr. Marx elaborated while reiterating her “no opinion” regarding the characterization of Dr. Crawford's consideration of hundreds of regression alternatives:
                    </FP>
                    <EXTRACT>
                        <FP>[Dr. Marx]</FP>
                        <P>[I]n my direct testimony . . . I wanted to emphasize that I am not opining that [Dr.] Crawford had an underlying theoretical structure. I'm just saying that what I saw was consistent with that. What I saw was not inconsistent with proper econometric practice, but I'm not offering an opinion about what [Dr.] Crawford was thinking in the process of running these tests. And I'm not trying to speak for [Dr.] Crawford.</P>
                        <FP>[SDC counsel Mr. MacLean]</FP>
                        <P>So you would agree that . . . running hundreds of different models and then selecting models based on preferred or expected results or what you referred to as casting about, that would not be a good research practice . . . ?</P>
                        <FP>[Dr. Marx]</FP>
                        <P>It is not a good research practice to cast about without thinking and without an underlying theoretical structure . . . without the underlying economics being kept in mind. The mere observation of a large number of regressions being run, by itself, in the context of the 2010 to 2013 proceeding, I don't find at all surprising, and seeing that did not raise any concerns in my mind about either the reliability of the work or my ability to use my usual procedure and thinking to assess the reliability of the work.</P>
                    </EXTRACT>
                    <FP>4/11/23 Tr. 4325-27 (Marx).</FP>
                    <P>However, after being confronted with Dr. Crawford's testimony that he had “perform[ed] only one alternative analysis, that he hadn't provided” in discovery, in contrast to what was uncovered in the satellite discovery, Dr. Marx acknowledged that as to Dr. Crawford's oral testimony “there are statements that were made that seem in retrospect not accurate.” 4/11/23 Tr. 4332 (Marx). Dr. Marx then nonetheless retreated to one of her stock statements, asserting that “nothing that I saw raised any concerns in my mind that [Dr.] Crawford's results were not reliable . . . .” 4/11/23 Tr. 4334 (Marx).</P>
                    <P>
                        Accordingly, rather than render her own judgment as to the appropriateness of Dr. Crawford's conduct or adjust her application of the Crawford Model in light of these issues, Dr. Marx testified that she reviewed and assessed Dr. Crawford's 2010-13 regression model as she would consider any such model, whether in her role as an economist or as an academic journal referee (which is a function she performs). On this basis, she determined that Dr. Crawford's model was reliable, 
                        <E T="03">i.e.,</E>
                         regardless of any of the specification searching and dissembling that SDC claimed had been uncovered in the satellite proceeding discovery. Marx WRT ¶¶ 42-54; 4/11/23 Tr. 4112-20, 4325-4327, 4334 (Marx); CTV PFF ¶¶ 366-69; Reply of the Commercial Television Claimants to Proposed Findings of Fact and Conclusions of Law (CTV RPFF) ¶ 169.
                    </P>
                    <P>
                        A key reason why Dr. Marx declined to express an opinion as to Dr. Crawford's alleged specification searching is the following: What the SDC characterize as Dr. Crawford's wrongful experimentation with alternative model specifications, Dr. Marx maintains it can also be understood as a form of sensitivity analysis—not only a standard activity, but actually a best practice in econometric analysis. Marx WRT ¶ 10; 4/11/23 Tr. 4120-21 (Marx). More broadly, CTV asserts that what Drs. Erdem and Rubinfeld criticize as evidence of the improper practice of specification searches can all be understood as the “standard practice of economists”—involving “[r]obustness checks, sensitivity analyses, and 
                        <PRTPAGE P="54180"/>
                        differences across economists in regression specifications.” CTV PFF ¶ 371 (citing Marx WRT ¶¶ 31-36).
                    </P>
                    <HD SOURCE="HD2">D. PTV Response Regarding Alleged Specification Searching by Dr. Crawford</HD>
                    <P>
                        PTV's expert economic witness, Dr. Johnson, did not address the soundness of Dr. Crawford's 2010-13 regression methodology, which, to repeat, the SDC economic experts characterize as the wrongful undertaking of a specification search.
                        <SU>34</SU>
                        <FTREF/>
                         But PTV emphasizes that, although Dr. Johnson acknowledges that his own regression analysis is based on the economic theory and principles underlying Dr. Crawford's regression analysis, Dr. Johnson modified and improved some aspects of Dr. Crawford's regression model. PTV PFF ¶¶ 113, 115 (citing Crawford WDT ¶¶ 32-36, 46.) Thus, PTV argues, even if Dr. Crawford engaged in wrongful specification searching to construct his 2010-13 model, “it makes no sense for it to adversely affect the reliability of Dr. Johnson's regression specification, which has a different set of variables and has been tested on the 2014-17 data.” PTV PFF ¶ 143.
                    </P>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             Dr. Johnson testified he never received Dr. Crawford's workpapers unearthed in discovery in the 2010-13 satellite proceeding on which the SDC relies for its specification search allegation (despite the production of those documents by the SDC to all counsel, including PTV's counsel, in this proceeding.).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">E. Allegations of Concealed Specification Searching by Dr. Johnson in This Proceeding</HD>
                    <P>
                        Turning from the work of Dr. Crawford to the work of Dr. Johnson, on behalf of PTV in the present proceeding, the SDC accuse PTV and Dr. Johnson of similar misconduct as they allege was committed by Dr. Crawford in the 2010-13 proceeding. SDC charge that Dr. Johnson concealed numerous regression modeling tests in discovery, limiting production to only a few sensitivity tests. SDC PFF ¶ 105. Despite this modest discovery, based on the documentation that had been produced by PTV, Dr. Erdem saw evidence suggestive of specification searching. 4/5/23 Tr. 3429; 4/6/23 Tr. 3552-55 (Erdem). These suspicions gave rise to the SDC's motion to compel SDC's production of all regression models that Dr. Johnson had considered, and the Judges granted the motion. 
                        <E T="03">See</E>
                         Order 24 Granting the SDC Motion to Compel PTV to Produce Documents (Jan. 19, 2023).
                    </P>
                    <HD SOURCE="HD2">F. SDC Assertions After Further Discovery</HD>
                    <P>After PTV was compelled by the Judges to provide further discovery, it produced documents revealing that Dr. Johnson's team had selected the four models that he presented out of more than four hundred models. He and his professional subordinates had actually engaged in over 400 runs of regression approaches over several different data sets (resulting in numerous different results in terms of program category coefficients implied allocation shares). Erdem WRT ¶ 82; Supplemental Written Rebuttal Testimony of Erkan Erdem, Trial Ex. 7504, ¶ 3 n.3 (Erdem SWRT); 4/5/23 Tr. 3403 (Erdem); SDC PFF ¶ 106. Further, the SDC cataloged the use by Dr. Johnson and his professional subordinates of 44 different dependent variables (including log transformations) and wide ranges of shares (negative as well as positive) in all claimant categories. Erdem WRT ¶ 82; Supplemental Written Rebuttal Testimony of Daniel L. Rubinfeld, Trial Ex. 7506, ¶ 21, tab 2 (Rubinfeld SWRT).</P>
                    <P>Dr. Erdem analyzed these tests according to dates and sequence numbers included in the documents produced by PTV and claimed to find that the successive testing by Dr. Johnson and/or his team was correlated with a steady rise in PTV's allocation share. Erdem SWRT Ex. 2.</P>
                    <P>
                        The SDC dismissed as implausible Dr. Johnson's explanation of this correlation. Specifically, the SDC rejects Dr. Johnson's claims that the correlation was a “coincidence” or that it could be explained by incomplete and erroneous data that needed to be corrected or updated. SDC PFF ¶ 109 (citing 3/22/Tr. 737-39 (Johnson)).
                        <SU>35</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             It is important to note here that the SDC is mischaracterizing Dr. Johnson's specific testimony. He clearly did not say the correlation was a mere coincidence or explainable as a data issue. Rather he claimed in his testimony that the increase in PTV shares was coincidental with 
                            <E T="03">and</E>
                             caused by the inputting of additional and correct data, and that it was the data that generated PTV's higher share. See 3/22/23 Tr. 738 (Johnson) (“
                            <E T="03">I completely refute . . . that it's a coincidence.</E>
                             The reason that this happened is . . . tied to specific data issues . . . [and] the data is what it is.”) (emphasis added).
                        </P>
                    </FTNT>
                    <P>In any event, Dr. Erdem testified that if Dr. Johnson and his team were not engaged in specification searching, the allocation results arising from the data updates or corrections should have been more randomly distributed, and, further, that as a matter of regression methodology it was inexplicable that data changes would serve to generate hundreds of regressions with different combinations of specifications. 4/6/23 Tr. 3565-67 (Erdem). Moreover, Dr. Erdem accused Dr. Johnson and his professional subordinates of self-servingly searching not only for the specifications that would increase PTV's allocation share, but also of attempting to search for an optimal combination of a specification set and a dataset for increasing PTV's allocation share. 4/6/23 Tr. 3552-55 (Erdem). As purported proof, Dr. Erdem points to his running of Dr. Johnson's preferred (“baseline”) model, but with Dr. George's dataset, which caused PTV's allocation share to decrease by 8 percentage points, with the share of every other category increasing. Erdem WRT Ex. 8.</P>
                    <P>
                        In addition to the more technical econometric evidence relied on by the SDC, they also point to physical evidence. Specifically, the SDC relies on notes left by a project manager on this assignment, Ms. Yan, which showed the search criteria that Dr. Johnson's team applied: a search for positive and statistically significant coefficients on all content and a high allocation share for PTV, denoted in a document as “PBS↑” (
                        <E T="03">i.e.,</E>
                         an “increase value to shift w/lots of minutes”). Erdem SWRT ¶¶ 8-9 &amp; app. E; SDC PFF ¶ 114. The SDC's other econometric expert, Dr. Rubinfeld, using the essentially synonymous phrase “p hacking” to describe the alleged specification searching conduct of Dr. Johnson's professional subordinates, asserts that this behavior “invalidates” Dr. Johnson's statistical tests. Rubinfeld SWRT ¶ 23. SDC's counsel characterizes this note from Ms. Yan as the proverbial “smoking gun.” SDC PFF ¶ 115.
                    </P>
                    <P>The SDC further assert that when the hundreds of regression models developed by Dr. Johnson and his team were culled to a sub-group of those with “positive and statistically significant coefficients for all categories,” only four had higher share allocations for PTV. Moreover, Dr. Erdem opined that these other four had data and statistical anomalies that would have made them difficult for Dr. Johnson to defend in any event. 4/5/323 Tr. 3424-25 (Erdem). The SDC thus concludes that Dr. Johnson and his team essentially chose the model with the highest PTV share that they thought they could defend. SDC PFF ¶ 116.</P>
                    <P>
                        The SDC also maintain that there was an intentional separation between Dr. Johnson and other professionals at his consulting firm, Edgeworth Economics (“Edgeworth”) intended to shield Dr. Johnson from regression specifications that would have generated lower shares for PTV—a form of “plausible deniability.” In support of this assertion, the SDC point to written communications within Edgeworth indicating that certain documents 
                        <PRTPAGE P="54181"/>
                        needed to be kept from Dr. Johnson or else PTV would be required to turn them over in discovery. 
                        <E T="03">See, e.g.,</E>
                         Erdem SWRT ¶ 8 (reproducing notes of Edgeworth employee Eduardo Munoz-Alonso, dated 7/8/2021, distinguishing between material for “John's report (he'll see) [and] other stuff (John won't)”; Erdem SWRT ¶¶ 8-9 &amp; app. E (5/26/22 note written by Esther Yan, 5/26/2022 stating “Anything we show John gets turned over. . . .”); and Erdem SWRT ¶ 8 (an email containing a link to CDC distant signals data sent to Dr. Johnson's team includes the caveat: “. . . these data files are being shared for consulting purposes only and should not be shared with John”).
                    </P>
                    <P>Looking at the entirety of the record regarding the procedures undertaken by Dr. Johnson and others at Edgeworth, Dr. Rubinfeld, one of the two SDC expert witnesses, opined:</P>
                    <EXTRACT>
                        <P>Dr. Johnson's practices (or the practices of other experts or their staff on behalf of PTV Claimants) are counter to sound empirical research practices. Their analyses involve the misuse of the regression methodology to obtain statistically significant results that deliver coefficient values that generated relatively high shares for PTV Claimants.</P>
                    </EXTRACT>
                    <FP>
                        Rubinfeld SWRT ¶¶ 28-30.
                        <SU>36</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             A JSC expert statistical witness, Mr. Harvey, likewise concluded that Dr. Johnson had engaged in a specification search. However, the JSC did not emphasize this point, maintaining instead that “it is unnecessary to conclude that Dr. Johnson intentionally searched for a specification favoring PTV in order to find his model untrustworthy [because] the selection of data inputs and specifications” was improperly undertaken. JSC PFF ¶¶ 195-196 (and record citations therein).
                        </P>
                        <P>
                            Program Suppliers' expert economic witness, Dr, Tyler, also concluded that the work by Dr. Johnson and/or his team “provides evidence that, rather than letting the facts of the industry guide the modeling decision, [they] tested many different models, and then sought to justify certain specifications with economic theory.” PS PFF ¶ 377 (and record citations therein). Further, Program Suppliers maintain that “[t]he evolution of Dr. Johnson's calculated shares for PTV over time provides evidence that data mining [
                            <E T="03">i.e.,</E>
                             specification searching] and/or overfitting occurred.” 
                            <E T="03">Id.</E>
                             Further, Program Suppliers find it problematic that, in this context, “[o]ut of the many regression specifications that Dr. Johnson ran, he selected for his baseline model one in which the PTV share is substantially higher than the median results from the models considered . . . .” 
                            <E T="03">Id.</E>
                             at ¶¶ 377-378 (and record citations therein).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">G. Rebuttals to the SDC's Assertions of Specification Searching</HD>
                    <P>
                        Dr. Johnson maintains that the SDC and other critics of his work (including Dr. Tyler and Mr. Harvey) have misunderstood the nature of the many regression specifications that were generated and run on behalf of PTV. More particularly, he explains in detail that he and his team ran many of the regression specifications for the purpose of testing the data, a process that needed to be repeated to incorporate corrections and updates to the data. 3/21/23 Tr. 416-23, 627-745 (Johnson) (explaining the regression log, the research process, Edgeworth team structure and personnel, timing of data receipts and updates from vendors and scope of discovery productions). 
                        <E T="03">See also</E>
                         PTV PFF ¶¶ 139, 145.
                    </P>
                    <P>
                        Dr. Johnson further maintains that assuming arguendo there was any untoward activity in the nature of a specification search, it is essentially a moot point because through discovery (including the discovery PTV at first withheld and later produced only in response to an order compelling production) every regression specification that he and his team ran has now been produced. This production, according to Dr. Johnson, eliminates any concern that the Johnson Model was misspecified, whether intentionally or otherwise. 3/21/23 Tr. 641 (Johnson) (“Again, you actually have everything. . . . I followed . . . what counsel instructed me to do in terms of what I was required to turn over. And when we were required to turn over everything, everything has been turned over that my team ever ran, so we have given you everything.”). 
                        <E T="03">See also</E>
                         PTV PFF ¶ 146.
                    </P>
                    <P>Additionally, many of the regression models generated and run by Dr. Johnson and other professionals at Edgeworth Economics (Dr. Johnson is the founder and CEO), according to Dr. Johnson, reflected their efforts to understand the Crawford Model proffered in the 2010-13 proceeding and to determine whether the Crawford Model could be applied to the 2014-17 data. 3/21/23 Tr. 367-68, 370-73 (Johnson). Those purposes, PTV maintain, are inconsistent with a characterization of their work as specification searching. Public Television's Reply Proposed Findings of Fact and Conclusions of Law (PTV RPFF) ¶ 208.</P>
                    <P>Overall, given the full disclosure of all the work by Dr. Johnson and his fellow professionals at PTV, PTV maintains that this comprehensive body of evidence shows that the Johnson Model generated regression results that are unbiased and best reflect the data available to be input into the Johnson Model. PTV RPFF ¶ 210.</P>
                    <HD SOURCE="HD2">H. The Judges' Analysis and Conclusions</HD>
                    <P>
                        As an initial matter, the Judges reject SDC's argument that Dr. Crawford's deviations from the prior regression models presented by Drs. Joel Waldfogel and Gregory Rosston 
                        <E T="03">ipso facto</E>
                         demonstrate, or even suggest, that Dr. Crawford engaged in the wrongful process of specification searching. The record reflects no legal, economic or econometric principle that an expert cannot alter, revise, add to or subtract from a prior economic model. Indeed, the history of the Judges' acceptance of fee-based regression models as evidence shows quite the opposite. A brief examination of the evolution the regression methodology, set forth immediately below, makes that clear.
                    </P>
                    <P>In the allocation (Phase I) proceedings for the 1998-99 royalties, the CARP described the first fee-based regression relies upon in such proceedings:</P>
                    <EXTRACT>
                        <P>Dr. Rosston's regression attempts to analyze the relationship between royalties paid by cable operators for the carriage of distant signals in 1998-1999 and the quantity of programming minutes by programming category on those distant signals. . . . It compares the relative volume of the various Phase I categories of programming contained in the station signals actually purchased by CSOs in 1998 1999 with the total royalties each CSO actually paid for that programming . . . identifying the amount of royalties as the dependent variable . . . .</P>
                        <FP>. . .</FP>
                        <P>Dr. Rosston included more than royalties and programming minutes in the dataset he used for his regression analysis. In order to account for the non-programming factors that may affect the royalties paid by a cable system, Dr. Rosston added the following variables: (1) the number of subscribers to the cable system in the prior period (the so-called “lagged subscribers” variable); (2) the number of activated channels for the cable system; (3) the average household income of the market in which the cable system was located; (4) the total number of local channels carried; (5) a variable to account for the payment of 3.75% royalties; and (6) a variable to account for the carriage of partially distant signals.</P>
                    </EXTRACT>
                    <FP>
                        Report of the Copyright Arbitration Royalty Panel to the Librarian of Congress, in Docket No. 2001-8 CARP CD 98-99 (“1998-99 CARP Report”) at 45-46 (Oct. 21, 2003). The CARP accepted Dr. Rosston's fee-based regression, but only as corroborative of survey results also in evidence. 
                        <E T="03">Id.</E>
                         at 50. The CARP declined to give more evidentiary weight to the Rosston regression, relative to the Bortz Survey (which the CARP found to be “extremely robust,” 
                        <E T="03">id.</E>
                         at 30).
                    </FP>
                    <P>In the allocation (Phase I) proceeding for the 2004-05 years, the Judges received in evidence the Waldfogel fee-based regression. Dr. George has described in her testimony in this proceeding the key changes made by Dr. Waldfogel to the Rosston regressions:</P>
                    <EXTRACT>
                        <P>
                            (1) estimating the marginal value of additional programming minutes (regression 
                            <PRTPAGE P="54182"/>
                            coefficients) using pooled data for all years, improving the precision of the estimates;
                        </P>
                        <P>(2) calculating claimant shares using only compensable programming; and</P>
                        <P>(3) estimating the regression model with a sample of programming covering three full weeks per accounting period.</P>
                    </EXTRACT>
                    <FP>
                        George WDT at 24 n.22. 
                        <E T="03">See also</E>
                         2004-05 Distribution Order at 57068 (noting that the Waldfogel regression was “similar” to the Rosston regression, not identical).
                    </FP>
                    <P>
                        Similarly, in the 2010-13 proceeding, the Judges found that the regression approach on which they relied—the Crawford Model—reflected an improvement over the Waldfogel Model, because, 
                        <E T="03">inter alia,</E>
                         the Crawford Model: (1) relied on more granular subscriber group data (made available by statutory changes in CSO reporting requirements); and (2) employed “fixed effects” to diminish the impact of potentially “omitted variables.” 2010-13 Determination at 3569. 
                        <E T="03">See also</E>
                         George WDT at 24-26 (identifying the improvements made by Dr. Crawford).
                    </P>
                    <P>This history clearly shows that the Judges have not found that the mere presence of model modifications reveals any inherent defect in fee-based regressions writ large or in any such model in particular. Rather, a modification of a fee-based regression model may properly reflect (1) improvements in the model; (2) improvements in the data; (3) changes in the underlying industry; (4) changes in applicable economic theory; and/or (4) wrongful specification searching. Without further analysis, deviations from prior models is not itself informative.</P>
                    <P>
                        But the SDC maintain that Dr. Crawford's development of his model was—to say the least—troubling, and not consistent with an attempt simply to improve upon prior regression models or to generate a more relevant model for this proceeding. As noted 
                        <E T="03">supra,</E>
                         SDC argue essentially that Dr. Crawford engage in the improper process of specification searching, and lied on the witness stand to cover-up that improper conduct. To summarize, SDC contends that Dr. Crawford lied under oath about the following:
                    </P>
                    <EXTRACT>
                        <FP SOURCE="FP-1">—his testing of many different functional forms</FP>
                        <FP SOURCE="FP-1">—his development and rejection of many undisclosed alternative models</FP>
                        <FP SOURCE="FP-1">—his inclusion of indicator variables with no apparent function</FP>
                        <FP SOURCE="FP-1">—his running of hundreds of models without Fixed Effects when he actually ran these models at various levels of Fixed Effects.</FP>
                    </EXTRACT>
                    <FP>
                        <E T="03">See</E>
                         SDC PFF ¶¶ 90-91, 99, 106.
                    </FP>
                    <P>As Chief Judge Shaw noted at the hearing, the Judges are not in a position to find whether Dr. Crawford did or did not engage in improper professional conduct, as alleged by SDC, because he is not appearing as a witness in this proceeding. 3/22/23 Tr. 894-95 (Shaw, C.J.) Thus, the Judges were loath to conduct a “trial-within-a-trial” as to Dr. Crawford's work and procedures.</P>
                    <P>
                        However, that is hardly the end of the matter. SDC has presented compelling evidence of potential specification searching and dissembling by Dr. Crawford. Moreover, SDC provided to the other parties in this proceeding, as voluntary discovery disclosures, Dr. Crawford's internal workpapers, which the Judges had ordered produced in the 2010-13 
                        <E T="03">satellite</E>
                         proceeding that followed on the heels of the 2010-13 cable 
                        <E T="03">proceeding</E>
                        —disclosed only after SDC's Motion to Compel and the Judges' 
                        <E T="03">in camera</E>
                         review of those documents.
                    </P>
                    <P>The fee-based regression experts view Dr. Crawford's potential transgressions with less concern. Dr. George, CCG's expert witness, maintains that Dr. Crawford's non-disclosures and untruths, as cataloged and characterized by SDC, are of no consequence, because she, and the other experts, were able to examine the Crawford Model as it was presented, and evaluate it on its merits. George WRT at 53. In essence, this response is in the nature of a “no harm, no foul” rationale for disregarding any of Dr. Crawford's alleged improprieties as alleged by SDC. And, in that context, Dr. George examined the Crawford Model and found no cause to reject it as a starting point for her analysis (although she modified the Crawford Model to account for marketplace changes, arising predominantly from the WGNA conversion, that she found to necessitate modeling changes particularly with regard to the use of fixed effects). George WRT at 50-54.</P>
                    <P>
                        Dr. Marx's carefully repeated testimony is similar, but nuanced, hedged and cast in the form of a double negative: “[W]hat I saw was consistent with or at least not inconsistent with proper econometric practice.” 4/11/23 Tr. 4121 (Marx). She does make a more specific defense of Dr. Crawford, offering her opinion that, the “mere observation of a large number of regressions” in Dr. Crawford's workpapers is “not surprising,” and is what one would expect to see as a “sensitivity” analysis, which is a “best practice” in regression modeling. Marx WRT ¶ 10. As a final defense of Dr. Crawford's modeling conduct, Dr. Marx analogizes his proffer of expert testimony before the Judges to an academic economist's submission of a proposed article to a professional journal, which would be reviewed by an editor and referees, in a process that is within the ambit of Dr. Marx's professional responsibilities. In that context, Dr. Marx would not require that all the modeling decisions by the econometrician be set forth in the proposed article, 4/11/23 Tr. 4328 (Marx) (“in my work as a professional economist, as a referee, as an editor, I don't expect to see the full list of every regression that was ever run.”) and she notes that she was able to evaluate Dr. Crawford's submission on its own merits, like a proposed article, without all the prior regression runs. 
                        <E T="03">Id.</E>
                         at 4111-4115.
                        <SU>37</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             The Judges also take note of Dr. Marx's awkward position as to this issue. As SDC notes, she is a partner at Bates White, an economic and econometric consulting firm (in addition to her position as an economics professor at Duke University's Fuqua School of Business). Dr. Crawford likewise is a partner at Bates White (as is another CTV testifying expert in this proceeding and in the 2010-13 proceeding, Dr. Bennett). Further, Dr. Crawford testified in the prior proceeding on behalf of CTV, whereas Dr. Marx is the economic expert now testifying on behalf of the same party, CTV.
                        </P>
                    </FTNT>
                    <P>
                        The Judges find that the other experts in this proceeding—particularly Drs. Johnson, George and Marx—who proffered fee-based regression models—were obligated to adequately address the impact of Dr. Crawford's workpapers, as well as the assertion that they demonstrated he lied in his testimony in the prior proceeding. This obligation existed because, as SDC witness Dr. Rubinfeld testified, in his decades of experience, he has “never seen anything on this scale” where “a researcher selected a model from hundreds that were tried.” 4/6/23 Tr. 3638 (Rubinfeld). The economists' careful analysis of Dr. Crawford's work is necessary, because—as explained in more detail 
                        <E T="03">infra</E>
                        —the discovery of his potential concealment and dissembling, which was unearthed in discovery in the satellite proceeding, may have been procedural in origin, but procedural matters can be outcome-determinative, or at least impactful as to the outcome of a legal proceeding.
                        <SU>38</SU>
                        <FTREF/>
                         As explained below, 
                        <E T="03">Drs. George, Johnson and Marx all failed in this regard.</E>
                    </P>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             Courts have long been concerned with whether what appears facially to be procedural is in actuality outcome-determinative. 
                            <E T="03">See Erie R. Co.</E>
                             v. 
                            <E T="03">Tompkins,</E>
                             304 U.S. 64 (1938). The Judges in the present case expected the same concern from the economic experts in the context of their analysis.
                        </P>
                    </FTNT>
                    <P>
                        The fundamental problem with the self-exculpations by these experts is that they failed to address an issue that the Judges made explicit in the 2010-13 Determination. Specifically, in response to the SDC's speculation that Dr. Crawford had engaged in specification searching, the Judges agreed that the problem inherent in such improper 
                        <PRTPAGE P="54183"/>
                        behavior was that it would “consum[e] . . . `phantom degrees of freedom,' 
                        <E T="03">i.e.,</E>
                         `variables that were tried and rejected—rather than included in the regression model in evidence.' ” 2010-13 Determination at 3566.
                        <SU>39</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>39</SU>
                             As the Judges noted in that prior proceeding:
                        </P>
                        <P>`Degrees of freedom' are defined “[i]n multiple regression analysis, [as] the number of observations minus the number of estimated parameters.” [citation omitted] Accordingly, statisticians understand “degrees of freedom' to be measures of how much can be learned from a regression, with the quality of knowledge improved by increasing the number of observations, reducing the number of estimated parameters, or by some combination of both that serves to widen the difference between the number of observations and parameters. [citation omitted] . . . [A] `phantom degree of freedom' can be generated when the modeler reduces the number of parameters by his or her rejection of other models that would have added a greater number of parameters—nothing more has really been learned but the explicit number of degrees of freedom appears larger, as an artifact (a ` “phantom') arising from the econometrician's rejection of models containing additional parameters. [citation omitted].</P>
                        <P>2010-13 Determination at 3566 n.63.</P>
                    </FTNT>
                    <P>
                        In that prior proceeding, the Judges found that the record did not reveal evidence of specification searching (recall that this finding was made prior to the CTV's compelled production of Dr. Crawford's workpapers in the companion satellite proceeding). However, in response to an SDC Motion to Strike Dr. Crawford's testimony, which the Judges denied given the absence of evidence of specification searching, they did reserve the right to reduce the weight they accord to the regression Dr.] Crawford presented. 
                        <E T="03">Id.</E>
                         n.64. Ultimately though, the Judges declined to reduce the weight they accorded to Dr. Crawford's regression analysis based on the claim of specification searching. 
                        <E T="03">Id.</E>
                    </P>
                    <P>
                        Of course, between the two cable proceedings then and now, the satellite proceeding intervened. In Order 24 in the present proceeding, the Judges granted SDC's Motion to Compel another party, 
                        <E T="03">PTV,</E>
                         to produce document that might reflect specification searching by its expert Dr. Johnson (discussed 
                        <E T="03">infra</E>
                        ). The Judges' discussion of specification searching in Order 24 also bears on the Judges' present consideration of how Dr. Crawford's modeling procedures impacted the models proffered by Drs. George, Johnson and Marx in this proceeding, all of which were based on the Crawford Model. In summary fashion,
                        <SU>40</SU>
                        <FTREF/>
                         below is what the Judges stated regarding specification searching in Order 24:
                    </P>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             Although the following is a summary, with citations omitted, the Judges adopt in full herein their reasoning in Order 24.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <FP SOURCE="FP-1">
                            —the particular importance of discovery relating to econometric evidence is underscored by the potential for models to be manufactured in the service of a particular result, where findings are presented with “
                            <E T="03">notoriously misleading accounts of how the research itself was conducted.</E>
                            ”
                        </FP>
                        <FP SOURCE="FP-1">
                            —it is important that econometricians 
                            <E T="03">explain fully their specification search</E>
                             in order to judge how the results may have been affected.
                        </FP>
                        <FP SOURCE="FP-1">
                            —econometricians should disclose “
                            <E T="03">all the regressions</E>
                             that were run, not just the good ones . . . basically an `honesty is the best policy approach.”
                        </FP>
                        <FP SOURCE="FP-1">—these criticisms of special import here, where the applied econometric work can affect the allocation of significant royalty sums.</FP>
                        <FP SOURCE="FP-1">—specification searching is a concern here because the “hired gun” role of the expert creates an environment in which specification searching can cause “far-reaching harm.”</FP>
                        <FP SOURCE="FP-1">—but what can be construed as improper “specification searching” can “in fact constitute good econometric practice” by using the empirical evidence to rank models and let the data speak for itself;</FP>
                        <FP SOURCE="FP-1">—adding specifications to the modeling can assist in solving the econometric problem at hand</FP>
                        <FP SOURCE="FP-1">
                            —suppressing failed specifications and arbitrarily presenting one successful specification is a “spurious success,” but it is not 
                            <E T="03">necessarily</E>
                             dishonest.
                        </FP>
                        <FP SOURCE="FP-1">—it would be fallacious to prefer not to search but simply to write down a model and to conduct a one-shot test. . . .</FP>
                        <FP SOURCE="FP-1">—there are search methodologies that support, rather than distort statistical hypothesis tests.</FP>
                        <FP SOURCE="FP-1">—specification searches are necessary, provided there is a “full accounting” of all alternative models, specifications and datasets</FP>
                    </EXTRACT>
                    <FP>Order 24 at 48-51 &amp; n.65. (citations omitted).</FP>
                    <P>
                        In sum, as one authority cited by the Judges concluded: “
                        <E T="03">[T]here are good and bad search procedures.</E>
                        ” Order 24 at 51 (emphasis added).
                    </P>
                    <P>The foregoing summary makes clear that, on the surface, the methods and practice of an econometrician may look either like improper specification searching or like a proper searching for the appropriate model specifications. In order to determine which characterization is more accurate, further expert analysis is needed.</P>
                    <P>
                        However, as to this, the parties that relied on the Crawford Model punted. Most startingly, Dr. Johnson testified that he never received the satellite case documents that SDC's counsel produced to PTV's counsel (and to all counsel) or the testimony by Dr. Erdem in the satellite proceeding that was designated as evidence (Ex. 7054) in this proceeding by the SDC. 3/21/23 Tr. 340-41; 611, 616-17 (Johnson).
                        <SU>41</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             The record does not reflect whether PTV's counsel ever provided copies of these materials to Dr. Johnson.
                        </P>
                    </FTNT>
                    <P>
                        For her part, Dr. Marx in essence simply restates the difficult nature of the process, testifying that she was unable to distinguish Dr. Crawford's process as either an improper specification search or a useful sensitivity search. But Dr. Marx did not indicate that she examined the documents produced by SDC in any detail approximating the analysis engaged in by Dr. Erdem on behalf of SDC, before figuratively throwing up her hands and declaring the characterization of Dr. Crawford's position as unknowable. Moreover, although Dr. Marx was troubled by Dr. Crawford's apparently false statements under oath, she remained incurious as to whether his troubling testimony was indicative of a covering-up of specification searching.
                        <SU>42</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             The SDC also convincingly explained that whatever it was that Dr. Crawford was doing, it did not qualify as a “sensitivity” test. Settling Devotional Claimants' Proposed Reply Findings of Fact and Conclusions of Law ¶ 2. The Judges agree. A sensitivity test is “[t]he process of checking whether the estimated effects and statistical significance of key explanatory variables are sensitive to inclusion of other explanatory variables, functional form, dropping of potential out-lying observations, or different modes of estimating.” 2010-13 Determination at 3562 n.48 (citation omitted). But the same authority quoted in note 34 situates the “sensitivity analysis” as occurring 
                            <E T="03">after</E>
                             the econometrician has estimated his or her original model, 
                            <E T="03">not during the specification process.</E>
                             Wooldridge, 
                            <E T="03">Introductory Economics</E>
                             687 (3d ed. 2006). To engage in what would otherwise be a sensitivity analysis in order to search a model places the cart before the horse, and may be a telltale sign of “data mining,” 
                            <E T="03">i.e.,</E>
                             specification searching. 
                            <E T="03">See</E>
                             Wooldridge, 
                            <E T="03">supra,</E>
                             at 688 (The “inclination . . . to try different models, different estimation techniques, or perhaps different subsets of data until the results correspond more closely to what was expected [is] data mining[which] violates the assumptions we have made in our econometric analysis.”).
                        </P>
                    </FTNT>
                    <P>
                        Moreover, when the specification process has been shrouded, as here, the position taken by Drs. Johnson and George becomes untenable. Their analysis and replication of the Crawford Model is materially incomplete, given that it has credibly been described as allegedly constructed by a specification search that may have generated the “phantom degrees of freedom” discussed 
                        <E T="03">supra,</E>
                         or through a process which is analogous to the equivalent of the spurious coin flip experiment also discussed 
                        <E T="03">supra.</E>
                         The problem for the regression experts who ignore the evidence of potential specification searching is that they simply cannot appreciate the problems that may have been generated, unless and until they have engaged in a reasonable forensic 
                        <PRTPAGE P="54184"/>
                        analysis of the work (and workpapers) of the expert who constructed the model at issue.
                    </P>
                    <P>
                        The failure of Drs. George, Johnson and Marx to thoroughly re-examine the Crawford Model in light of the discovery obtained by SDC in the 2010-13 satellite proceeding has consequences. Although, as noted 
                        <E T="03">supra,</E>
                         the Judges are not in a position to engage in a “trial within a trial” and render findings regarding the Crawford Model in this proceeding (where Dr. Crawford is absent), these three expert witnesses were not similarly constrained. They had a duty to review all materials relevant to their assignments, in a sufficient manner, and the satellite discovery pertaining to Dr. Crawford's work clearly falls within that category of materials. For Dr. Johnson to have not even received that material is inexplicable. For Dr. Marx to acknowledge the problematic nature of Dr. Crawford's apparent dissembling under oath without further analysis of his work is troubling. And for Dr. George to dismiss the assertions of improper specification searching by claiming that she could independently evaluate the Crawford Model is to dismiss the very idea that specification searching may generate hidden problems.
                    </P>
                    <P>Indeed, among the witnesses proffering regressions, only Dr. Tyler appeared to respond reasonably, relying (in part) on the troubling facts uncovered in the satellite proceeding regarding Dr. Crawford's processes to generate his own model that deviated in important ways from the Crawford Model.</P>
                    <P>The impact of Dr. Crawford's troubling conduct is that it raises an issue familiar to judges and lawyers in another context—how to handle testimony and evidence that may be characterized as the “fruit of the poisonous tree.” Although this evidentiary concept is typically pertinent to the criminal law, it is instructive in other areas, including intellectual property matters:</P>
                    <EXTRACT>
                        <P>The animating principle of the fruit of the poisonous tree doctrine is causation: If you had not violated the law, you wouldn't have found the evidence, and you wouldn't have followed whatever investigative path that was triggered by finding that evidence. The newly discovered evidence-the fruit-is tainted by the poison of the illegal search. Civil law also concerns itself with chains of causation . . . [b]ut it does not typically apply the logic of the fruit of the poisonous tree to chase down every consequence of a wrong.</P>
                    </EXTRACT>
                    <FP>
                        M. Lemley, 
                        <E T="03">The Fruit of the Poisonous Tree in IP Law,</E>
                         103 Iowa L. Rev. 245, 246 (2017). As to the present issue, the “fruit of the poisonous tree” logic—if the source of the evidence or evidence itself is tainted, then anything gained from it is tainted as well—has application because it would be inequitable for the Judges to adopt regression evidence built on the Crawford Model, when the witnesses who proffered that evidence inadequately addressed reasonable questions regarding the appropriateness of the methods used to generate the Crawford Model.
                    </FP>
                    <P>
                        If the Crawford Model had been the 
                        <E T="03">first</E>
                         regression model utilized in these allocation proceedings, the Judges might consider rejecting the models proffered by Drs. George, Johnson and Marx for their failure to address in more and sufficient detail how the factual bases for the allegations of Dr. Crawford's specification searching impacted their models. But, as described 
                        <E T="03">supra,</E>
                         the Crawford Model itself was built upon, but differentiated from, the prior regressions produced by Drs. Rosston and Waldfogel and relied upon by the Judges. Thus, the regression models of Drs. George, Johnson and Marx are not the product merely of the Crawford Model, but also of those models that preceded it. Moreover, Drs. George and Johnson take pains to explain how their models are different from Dr. Crawford's, particularly in the reduction or elimination, respectively, of fixed effects, in order to generate more observations (as discussed elsewhere in this determination).
                        <SU>43</SU>
                        <FTREF/>
                         So, it is clear that these two experts engaged in independent economic analysis separate and apart from what was undertaken by Dr. Crawford.
                    </P>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             Whether those particular differentiations from the Crawford Model were appropriate is likewise discussed elsewhere in this determination.
                        </P>
                    </FTNT>
                    <P>The consideration of Dr. Marx's full adoption of the Crawford Model, as it pertained to the year 2013, in order for her to generate her Bayesian model for 2014, must be considered separately. Dr. Marx explicitly relies on the Crawford Model, despite her inability to explain or address his apparent prevarications and despite her unwillingness to determine whether his methods constituted specification searching, sensitivity analysis or something else. However, Dr. Marx's qualitative and directional economic (not econometric) testimony regarding the years 2015-2017 are not compromised in this regard.</P>
                    <P>
                        Accordingly, among the regression approaches proffered in this proceeding, the experts' responses and non-responses to Dr. Crawford's conduct lead the Judges, 
                        <E T="03">ceteris paribus,</E>
                         to give diminished weight to the Johnson and George Models, and the least weight to the Marx Model for 2014. The Judges do not diminish the weight they shall give to the Tyler Model on this basis, given his deviation from the Crawford Model.
                    </P>
                    <HD SOURCE="HD2">I. The Allegation That Dr. Johnson Engaged in Improper Specification Searching</HD>
                    <P>
                        Unlike the specification searching issue regarding the Crawford Model, there is no valid allegation that Dr. Johnson made any material misrepresentations in his testimony. Although SDC correctly notes that PTV did not provide full discovery of the work by Dr. Johnson and other professionals at Edgeworth until compelled to do so pursuant to SDC's motion and the Judges' Order 24, PTV appears to have withheld production of documents regarding this regression work based on its understanding that the 
                        <E T="03">Federal Rules of Civil Procedure</E>
                         do not require production of documents which related to regressions that an expert had rejected or had not otherwise seen or upon which he did not rely.
                        <SU>44</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             In Order 24, the Judges noted that, although they look to the 
                            <E T="03">Federal Rules of Civil Procedure</E>
                             for guidance, they are bound on this issue by 37 CFR 351.10 (e), regarding the production of documents relating to an expert witness's methodology, and that this rule also applies to the production of documents in discovery pertaining to expert methodology.
                        </P>
                    </FTNT>
                    <P>
                        However, the Judges remain troubled, as they so expressed in Order 24, that PTV appeared to allow for the creation of two different “teams” within Dr. Johnson's firm—one identified as the “consulting team,” and the other as the “testifying” team. As noted 
                        <E T="03">supra,</E>
                         the regression-related documents generated by the “consulting team” were not provided to Dr. Johnson. The Judges noted in Order 24 that a “consulting team” of experts can be utilized by a party's law firm, to allow for work product confidentiality in connection with the law firm's evaluation of the facts. However, as Order 24 further explained, when the “consulting team” is created withing the same firm of economists who are also preparing testimony and actually testifying, there is the risk that work by the “consulting” team will be utilized as a screening device for work that should have been undertaken by the “testifying” team. Thus, the use of a “consulting” team can allow a party to also cloak from discovery expert work by claiming the protection of the work-product rule.
                    </P>
                    <P>
                        This is essentially what SDC alleges, when it points to evidence, as noted 
                        <E T="03">supra,</E>
                         that Edgeworth had shielded Dr. 
                        <PRTPAGE P="54185"/>
                        Johnson from certain documents. Moreover, the soundness of the “wall” between the “consulting” team and the “testifying” team was questionable, given that the “consulting” team was led by Drs. Michael Kheyfets and David Colino, but they also were the senior members of the “testifying” team that reported to Dr. Johnson, along with dual team members Dr. Stephanie Cheng and Esther Yan. 3/21/23 Tr. 664-65 (Johnson). Additionally, when PTV first produced documents to SDC, it did not also provide a privilege log describing the Edgeworth documents otherwise withheld because of an assertion of a privilege relating to a consulting team. (After SDC's motion to compel, PTV provided a privilege log, but, after Order 24 issued, PTV produced virtually all of the previously withheld material.) Thus, the Judges find some evidence that PTV attempted to avoid discovery of the work undertaken by the firm it engaged for expert work in this proceeding—the work that has been characterized by SDC as evidence of specification searching.
                        <SU>45</SU>
                        <FTREF/>
                         This evidence serves to diminish the Judges' reliance on the Johnson Model that was generated out of this scenario, although the Judges stop well short of any finding that Edgeworth, or any of its professionals, engaged in any misconduct.
                        <SU>46</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             The Judges take particular note of the fact that an email that was withheld from Dr. Johnson as “consulting” team material contained “a link to CDC distant signals [with] the caveat: `. . . these data files are being shared for consulting purposes only and should not be shared with John'.”. Rubinfeld SWRT at 6. It is difficult to fathom why raw data regarding distant signals would be withheld from the testifying expert.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             Rather, the Judges perceive from the facts that PTV and its experts took a very aggressive litigation posture, one that SDC successfully challenged, leading to the issuance of Order 24.
                        </P>
                    </FTNT>
                    <P>Turning to the substance of the documents produced in response to Order 24, the Judges are struck, as was SDC, with the sheer number of regression runs undertaken by Edgeworth. In particular, the Judges agree with SDC that the experimentation with 44 dependent variables is specifically troubling, as it suggests that the model-building was not well-grounded in economic theory.</P>
                    <P>
                        Also troubling was the fact that, over a prolonged period, successive testing by Dr. Johnson and other Edgeworth Economics professionals was highly correlated with a steady rise in PTV's allocation shares. Although the Judges disagree with SDC's distortion of Dr. Johnson's testimony as to the “coincidental” nature of this correlation, as noted 
                        <E T="03">supra,</E>
                         the Judges do not find any sufficient basis in the record to explain this correlation between sequential regression runs and the growth of PTV's allocation share. Although PTV argues that this correlation subsided as data corrections were completed, PTV presented no sufficient basis to rebut SDC's charge that data changes should not consistently be correlated with the growth of PTV's share allocation, as opposed to a randomized effect on share percentages.
                        <SU>47</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             The Judges are less concerned with SDC's assertion that proof of PTV's specification searching is supported by evidence that PTV's 
                            <E T="03">goal</E>
                             was to maximize PTV's share. The Judges are not naïve, and they recognize that experts will work to produce the best results for the party on whose behalf they provide testimony. Rather, the Judges are concerned with whether the evidence suggests that experts may have engaged in any inappropriate or questionable acts in the course of attempting to maximize the return to the party on whose behalf they give testimony.
                        </P>
                    </FTNT>
                    <P>On balance, the Judges find that the regression analyses undertaken on behalf of PTV at least demonstrate an appearance—in the words of SDC's expert, Dr. Rubinfeld—of practices that ran “counter to sound empirical research practice,” and that this work may well have been undertaken with an overzealous attempt “to obtain . . . results that . . . generated relatively high shares for PTV Claimants.” Rubinfeld SWRT ¶ 28. For this reason—and for other reasons set forth elsewhere in this determination—the Judges give reduced weight to the Johnson Model.</P>
                    <HD SOURCE="HD1">VII. Issues Specific to PTV</HD>
                    <HD SOURCE="HD2">A. How should “must-carry” PTV stations be analyzed in the regression analyses?</HD>
                    <HD SOURCE="HD3">1. PTV's Position on the “Must-Carry” Issue</HD>
                    <P>
                        PTV first emphasizes its 
                        <E T="03">legal</E>
                         argument. They begin by acknowledging that under the Cable Television Consumer Protection and Competition Act of 1992 (the “Cable Act”) and the regulations of the Federal Communications Commission (“FCC”) (the “must-carry” rules), CSOs are 
                        <E T="03">required</E>
                         to retransmit certain broadcast signals. PTV PFF ¶ 70 (citing 47 U.S.C. 534-35). Nonetheless, PTV maintain that “the Judges and their predecessors . . . have never found that must-carry requirements 
                        <E T="03">materially</E>
                         affect the 
                        <E T="03">value</E>
                         of distant retransmissions of Public Television programming.” PTV PFF ¶ 71 (emphasis added).
                    </P>
                    <P>
                        PTV follows this legal point with a 
                        <E T="03">factual</E>
                         issue, challenging the testimony of JSC's witness, Mr. Harvey, who identifies 15.5 percent of PTV distant signals as having been retransmitted in compliance with these must-carry rules, using criteria that Mr. Harvey believed were “generally indicative” of must-carry carriage. PTV PFF ¶ 72. Specifically, Mr. Harvey categorized distantly retransmitted signals as “must-carry” if they were:
                    </P>
                    <P>(1) carried to all subscriber groups within the system,</P>
                    <P>(2) local to at least one subscriber group within the system, and</P>
                    <P>(3) were licensed to a community whose reference point was within 50 miles of the location where the CSO received signals for cable distribution (the “headend”).</P>
                    <FP>PTV PFF ¶ 72 (and record citations therein). A primary assertion by PTV is that, because of the third criterion above, these stations, designated as “must-carry” while technically “distant” within the meaning of section 111, “were more likely to reflect the demands and preferences of regional viewers” and thus contained “valuable programming.” PTV PFF ¶ 72 (and record citations therein).</FP>
                    <P>
                        But PTV takes issue with the entirety of Mr. Harvey's approach to designating “must-carry” stations. First, PTV points out that “even . . . expert witnesses whose opinions rely on Mr. Harvey's must-carry analysis” acknowledge that his analysis “did not 
                        <E T="03">definitively</E>
                         identify must-carry signals.” PTV PFF ¶ 73 (and record citations therein) (emphasis added).
                    </P>
                    <P>
                        Second, PTV argues that “Mr. Harvey failed to provide a reason for adopting his first criterion that the must-carry rules should apply to signals carried “to all subscriber groups within the system.” PTV PFF ¶ 74 (and record citations therein). PTV maintains that there presumably would be no reason to use that as a criterion unless he thought that the must-carry law 
                        <E T="03">required</E>
                         carriage “to all subscriber groups within the system.” PTV PFF ¶ 74 (and record citations therein). More particularly, PTV understands that a “cable system,” as defined in the must-carry rules, “is a smaller unit than the `cable system' as defined in section 111.” PTV PFF ¶ 75 (and record citations therein). Thus, PTV argues that “carriage of such a signal to all of the subscriber groups in a system 
                        <E T="03">may</E>
                         be evidence of that cable system's choice to carry that signal more broadly than the must-carry rules require.” PTV PFF ¶ 75 (and record citations therein). PTV concludes that Mr. Harvey's must-carry analysis “
                        <E T="03">likely</E>
                         results in overstating the [number] of [PTV] signals subject to mandatory carriage, 
                        <E T="03">perhaps</E>
                         dramatically so.” PTV PFF ¶ 75 (emphasis added).
                    </P>
                    <P>
                        PTV further makes what can be characterized as a “no changed circumstance” argument. Specifically, 
                        <PRTPAGE P="54186"/>
                        PTV points out that Mr. Harvey fails to address the fact that mandatory carriage of PTV distant signals has become more expansive since the 2010-2013 proceeding, and that no party argued in that proceeding that the must-carry rules had any material impact on relative market value. Further, PTV avers that “the fraction of PTV signals that Mr. Harvey identified as . . . must-carry declined substantially over the period from 2014 to 2017,” suggesting that, even under his analysis, “the share of PTV distant retransmissions that were subject to must-carry is 
                        <E T="03">less</E>
                         than in prior proceedings.” PTV PFF ¶ 76 (and record citations therein).
                    </P>
                    <P>
                        Additionally, PTV asserts that Mr. Harvey incorrectly implied that PTV's multicast streams 
                        <SU>48</SU>
                        <FTREF/>
                         are subject to the must-carry rules. PTV PFF ¶ 77 (and record citations therein). To the contrary, PTV avers that “it is undisputed that the must-carry rules do not 
                        <E T="03">require</E>
                         CSOs to retransmit those non-primary signals of a PTV broadcast station, and all carriage of Public Television multicast streams was due to the voluntary choice of the cable operators.” PTV PFF ¶ 77 (and record citations therein).
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             The Judges define and discuss “multicast streams” 
                            <E T="03">infra.</E>
                        </P>
                    </FTNT>
                    <P>
                        Beyond its legal and factual arguments, PTV adds an argument based on economic analysis. Taking on a point made by another JSC witness, Dr. Majure, PTV opines that “there is no basis to 
                        <E T="03">assume</E>
                         that any distant signal carried pursuant to the must-carry rules provide `$0' of value to the CSO, as Dr. Majure argues.” PTV PFF ¶ 78 (and record citations therein). More particularly, PTV explains that “[p]eople are routinely required to purchase things, such as health insurance and seat belts, which they may value highly.” PTV PFF ¶ 78 (and record citations therein). 
                        <E T="03">See also</E>
                         PTV PFF ¶ 81 (“Dr. Majure's theory of `$0' value fails [to pass through a] `reality filter' [by] suggest[ing] that 
                        <E T="03">all local</E>
                         [PTV] programming has [
                        <E T="03">zero</E>
                        ] value.”)
                    </P>
                    <P>
                        Changing tacks, PTV points out that, without dispute, “many CSOs chose to retransmit [PTV] distant signals when they could have carried another distant signal instead.” PTV PFF ¶ 79 (and record citations therein) Additionally, PTV compares this CSO decision-making to the CSOs' responses to the Bortz Survey, in which “[s]everal CSOs that carried the purportedly must-carry [PTV] distant signals attributed significant value to 
                        <E T="03">those</E>
                         Public Television distant signals in their [survey] responses . . . .” PTV PFF ¶ 79 (and record citations therein).
                    </P>
                    <P>PTV further points to various “sensitivity tests” undertaken by Drs. Johnson, Bennett and George, all of which “found that those purportedly must-carry Public Television distant signals do not have relative marketplace value that is statistically significantly different from the relative marketplace value of other Public Television distant signals.” PTV PFF ¶ 82 (and record citations therein). Thus, PTV takes issue with any implicit assumption “that any distant signal carried pursuant to the must-carry rules are, on average, less valuable to the CSOs.” PTV PFF ¶ 82.</P>
                    <P>
                        But PTV also acknowledges the presence of an indemnification provision in the must-carry statute, whereby Congress exempted from mandatory carriage any noncommercial educational signals that qualify as distant signals, “unless [the noncommercial educational broadcast station] indemnifies the cable operator for any increased copyright costs resulting from carriage of such signal.” PTV PFF ¶ 84 (quoting 47 U.S.C. 535(i)(2)). Thus, a CSO “was eligible for indemnification only if and to the extent that its section 111 royalty fee increased due to the carriage of a distant signal that was subject to must-carry; and the station then had the choice of declining indemnification, in which case the [CSO] was released from any must-carry obligation.” PTV PFF ¶ 84. Nonetheless, PTV criticizes any party seeking to exclude must-carry stations from the regressions based on this statutory provision, 
                        <E T="03">which cancels out any royalty payment,</E>
                         because PTV argues (echoing its criticism of Mr. Harvey's analysis), that no party has “reliably identified any distant signals that are subject to mandatory carriage . . . for which the retransmitting cable operator received indemnification.” PTV PFF ¶ 85 (and record citations therein).
                    </P>
                    <P>
                        PTV also makes a more general argument that would apply to PTV “must-carry” stations, even assuming they had no value. Specifically, PTV maintains that “[a] fee-based regression model is designed to estimate the 
                        <E T="03">average</E>
                         relative value of programming in a bundle, such that bundling of programming of different values does not bias the regression estimates of relative marketplace value.” PTV PFF ¶ 91.
                    </P>
                    <HD SOURCE="HD3">2. The Other Parties' Positions Regarding PTV “Must-Carry” Signals</HD>
                    <P>
                        As a matter of 
                        <E T="03">legal</E>
                         interpretation, JSC argues that it would not be reasonable to remove from the hypothetical market any statutory provisions that apply to the distant signal market, other than the section 111 license. JSC PFF ¶ 2 (and record citations therein). Applying this approach, JSC notes that, as a matter of statutory law, the Must Carry statutory and regulatory provisions are not found within the section 111 license provisions, but rather are statutorily set forth at 47 U.S.C. 535, and therefore should remain in effect in the hypothetical market the Judges must construct in this proceeding. And, because the Must-Carry provisions preclude any finding of Willingness-to-Pay and fail to reveal CSO's preferences, it is also 
                        <E T="03">economically</E>
                         reasonable to maintain the impact of the Must Carry provisions on the regression approach by excluding such stations from that valuation methodology. JSC PFF ¶ 3 (and record citations therein).
                    </P>
                    <P>JSC also points to the following 1992 legislative history of the must-carry provisions as supporting, from both the legal and economic perspectives, a finding that must-carry PTV stations do not generate additional value that can be incorporated into the fee-based regressions:</P>
                    <EXTRACT>
                        <P>The [House Committee on Energy and Commerce] Committee believes that absent statutory carriage requirements, there is a substantial likelihood that local public television stations will be deleted, will not be carried, or will be switched to undesirable channels on cable systems. Because cable operators are for-profit enterprises, they necessarily seek to provide customers with the package of programming and services that will maximize the operators' profits. As commercial enterprises, cable operators ordinarily lack strong incentive to carry programming that does not attract sufficient dollars or audiences. Traditionally, public television has provided precisely the type of programming commercial broadcasters and cable operators find economically unattractive. For this reason, the Committee believes that, without `must carry' provisions, public television service increasingly will become unavailable to cable subscribers.</P>
                    </EXTRACT>
                    <FP>JSC PFF ¶ 475 (citing Trial Ex. 1003 (House of Representatives Report 102-628) at 62).</FP>
                    <P>JSC points out that this was not only the Congressional viewpoint at the time of enactment of the must-carry law, but also that PTV has continued to agree with Congress's assessment of the economic circumstances described in the above legislative history, insisting that public television stations need must-carry status to guarantee carriage. JSC PFF ¶¶ 476-478, 488-489 (and record citations therein).</P>
                    <P>
                        Last, but certainly not least, in apparent response to PTV's criticism of Mr. Harvey's estimate of the number of must-carry stations, JSC suggests that PTV 
                        <E T="03">knew or should have known</E>
                         how many of the stations it represents in this 
                        <PRTPAGE P="54187"/>
                        proceeding in fact were must-carry stations. JSC PCOL ¶ 13 (“When a party is in a position to proffer testimony or evidence that would elucidate a point, or rebut an adverse point, but declines to do so, a finder of fact may determine that the testimony would not have been supportive of that party's position.”) (citing Final Rule and Order, 
                        <E T="03">Determination of Rates and Terms for Digital Performance of Sound Recordings and Making of Ephemeral Copies to Facilitate Those Performances (Web V),</E>
                         86 FR 59452, 59476 (Oct. 27, 2021) (Web V Final Determination), (citing in turn 
                        <E T="03">Huthnance</E>
                         v. 
                        <E T="03">District of Columbia,</E>
                         722 F.3d 371 (D.C. Cir. 2013)), 
                        <E T="03">aff'd NRBNMLC</E>
                         v. 
                        <E T="03">CRB,</E>
                         77 F.4th 949, 2023 WL 4831376 (July 28, 2023).
                    </P>
                    <HD SOURCE="HD3">a. The SDC Position on the “Must-Carry” Issue</HD>
                    <P>
                        The SDC apply their broad criticism of minimum-fee-only CSOs to the question of how to address the must-carry PTV stations: “[N]o inference can be drawn regarding `willingness to pay' or any other potential theory on the basis of cable system decision-making in the presence of mandatory carriage of certain PTV signals.” Asker WRT ¶ 17 n.11; 4/11/23 Tr. 4319-21 (Marx); 
                        <E T="03">see al</E>
                        so SDC PFF ¶ 64.
                    </P>
                    <P>Like the JSC, the SDC maintain that, as a legal issue, the Judges' consideration of economic market forces to determine relative market value does not mean that the statutory must-carry rules should be ignored:</P>
                    <EXTRACT>
                        <P>
                            The task in these royalty distribution proceedings is to determine the relative value of the relevant program categories in a hypothetical market that exists in the absence of the section 111 compulsory license. There is no basis for assuming away the existence of other aspects of the regulated market, nor has any party in this proceeding presented a rational framework by which one could pick and choose which other aspects of the regulated market would survive. At a minimum, the Retransmission Consent and Must-Carry Requirements set forth in the Communications Act and Federal Communications Commission's (“FCC”) rules would continue to regulate the relationship between broadcast stations and CSOs. 
                            <E T="03">See</E>
                             47 U.S.C. 325(b); 47 CFR 76.55, 76.64.
                        </P>
                    </EXTRACT>
                    <FP>SDC PFF ¶ 218.</FP>
                    <P>The SDC also emphasize a point central to their general criticism of the fee-based regressions—the impact of geography on retransmission decisions:</P>
                    <EXTRACT>
                        <P>Unlike commercial stations, the must-carry zone for noncommercial stations is determined by distance from the cable system rather than by DMA [Designated Market Area]: a noncommercial station is entitled to cable carriage under the FCC's must-carry rules if its city of license is within 50 miles of the cable system's principal headend. 47 CFR 76.55.</P>
                    </EXTRACT>
                    <FP>
                        SDC PFF ¶ 222. Further, the SDC note the indemnification provision, discussed 
                        <E T="03">supra,</E>
                         also compromises the attempt to derive marketplace evidence of the value of must-carry stations:
                    </FP>
                    <EXTRACT>
                        <P>[Although] [u]nder section 111, a noncommercial station is only considered “local” within 35 miles of the cable system's headend . . . [a] cable operator is not required to carry a noncommercial station that would be considered distant for copyright purposes unless the noncommercial station agrees to indemnify the CSO for any increased copyright liability resulting from such carriage.</P>
                        <P>Presumably, this indemnification requirement would be moot in the absence of section 111, because there would be no cost at all to cable systems carrying noncommercial signals within the FCC's 50-mile must-carry zone in the absence of section 111. There is no basis to believe the inapplicability of the indemnification requirement would affect the relative marketplace value of noncommercial stations, as carriage of noncommercial stations would still result from the federal must-carry mandate rather than any CSO choice.</P>
                    </EXTRACT>
                    <FP>SDC PFF ¶ 222 (citing 17 U.S.C. 111(f)(4)).</FP>
                    <HD SOURCE="HD3">b. The CTV Position on the “Must-Carry” Issue</HD>
                    <P>
                        CTV emphasizes the substantial importance of the must-carry issue, noting first that “[d]uring 2014-2017, no less than 33.9% PTV signals were carried pursuant to must-carry rules.” CTV PFF ¶ 249 (citing Harvey CWDT ¶ 87; 3/28/23 Tr. 1836-37 (Harvey)). 
                        <E T="03">See also</E>
                         CTV PFF ¶¶ 256-57 (42.6% of all PTV distant reported base fee royalties are from PTV signals subject to the must-carry rule.)
                    </P>
                    <P>
                        CTV also expands upon the 
                        <E T="03">evidentiary</E>
                         point made by JSC, noted 
                        <E T="03">supra,</E>
                         regarding PTV's failure to produce evidence as to the number of must-carry stations:
                    </P>
                    <EXTRACT>
                        <P>PTV, the claimant with the most accurate information regarding PTV distant stations carried by CSOs pursuant to the must-carry rules, has provided no evidence or statistics to refute the foregoing. At most, PTV economics witness Dr. Johnson contends that Mr. Harvey's findings are speculative, but he neither contested nor provided any alternative calculations to Mr. Harvey's conclusions.</P>
                    </EXTRACT>
                    <FP>
                        CTV PFF ¶ 258. Echoing the criticism noted 
                        <E T="03">supra,</E>
                         CTV maintains that carriage of a PTV signal under the must-carry rules does not reflect a CSO's revealed preference through a weighing of incremental costs versus incremental benefits, and thus does not reflect relative marketplace value. CTV PFF ¶ 272 (and record citations therein).
                    </FP>
                    <P>
                        Moreover, CTV also points out that even when CSOs retransmitting must-carry stations pay 
                        <E T="03">more</E>
                         than the minimum fee, they nonetheless cannot reveal a willingness to pay for that programming because of the indemnification obligation, discussed 
                        <E T="03">supra,</E>
                         of PTV stations to pay back CSOs for any additional royalty costs associated with the required (
                        <E T="03">i.e.,</E>
                         must-carry) retransmission of its programming. CTV PFF ¶ 259.
                    </P>
                    <P>CTV further notes the “material” effect of the must-carry issue on PTV's regression and allocation shares, both individually and jointly. CTV PFF ¶ 264. Pointing to a sensitivity analysis by one of its expert witnesses, Dr. Bennett, CTV notes that eliminating the royalty payments the Johnson Model has attributed to must-carry stations substantially reduces the PTV values on either attribute, and in combination. Bennett WRT ¶ 95. These adjustments are shown in the figure below:</P>
                    <GPH SPAN="3" DEEP="179">
                        <PRTPAGE P="54188"/>
                        <GID>EN28JN24.005</GID>
                    </GPH>
                    <P>Similarly, Dr. Bennett undertakes the same adjustment to Dr. George's regression coefficient and allocation share regression results for PTV:</P>
                    <GPH SPAN="3" DEEP="167">
                        <GID>EN28JN24.006</GID>
                    </GPH>
                    <FP>And in like fashion, Dr. Bennett makes the same must-carry adjustment for PTV to Dr. Tyler's analysis:</FP>
                    <GPH SPAN="3" DEEP="155">
                        <GID>EN28JN24.007</GID>
                    </GPH>
                    <P>
                        In conclusion, CTV underscores the existence of a consensus on this must-carry issue, noting that Drs. Marx, Bennett, and Majure all agree that including PTV must-carry stations in the regressions results in an overestimation of the value of PTV content for all four years. CTV PFF ¶ 534 (and record citations therein).
                        <PRTPAGE P="54189"/>
                    </P>
                    <HD SOURCE="HD3">c. The Program Suppliers Position on the “Must-Carry” Issue</HD>
                    <P>Program Suppliers join with the other parties that maintain the FCC's must-carry rules should still be deemed by the Judges to apply in their modeling of the economic and marketplace environment necessary to allocate the royalties at issue. That is, in the hypothetical environment, even though the section 111 conditions are relaxed, Program Suppliers argue that the parties must “still continue to be subject to the same must-carry rule and agreement obligations . . . .” PS PFF ¶ 101 (and record citations therein).</P>
                    <P>
                        However, Program Suppliers take issue with any assertion that accounting for PTV's must-carry stations would have a significant effect. Their expert, Dr. Tyler, noted that Dr. Bennett's calculations—reproduced 
                        <E T="03">supra</E>
                        —showed that removing the must-carry stations (that were identified by Mr. Harvey) 
                        <E T="03">from the Tyler Model</E>
                         barely changed the PTV share allocation. 4/19/23 Tr. 5456 (Tyler). Moreover, Dr. Tyler opines, consistent with the testimony by PTV's expert Dr. Johnson that, “even with must-carry, CSOs may still have some value related to that carriage.” 4/19/23 Tr. 5456 (Tyler).
                        <SU>49</SU>
                        <FTREF/>
                          
                        <E T="03">See also</E>
                         PS PFF ¶ 337.
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             But note Dr. Marx's point that must-carry stations that were distantly retransmitted by CSOs paying only the minimum fee would not generate a CSO royalty obligation, mooting the need for a royalty indemnification payment. Marx WRT ¶ 79.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">d. The CCG Position on the “Must-Carry” Issue</HD>
                    <P>CCG is part of the chorus asserting that the Judges should include the impact of the must-carry provisions in their economic analysis of relative marketplace value. CCG PFF ¶ 62. However, CCG parts company with those parties arguing that the compelled nature of such retransmission decisively compromises the informational worth of that carriage in estimating such value.</P>
                    <P>
                        Specifically, Dr. George, CCG's expert, like Dr. Johnson, analogizes public television programming to other “real-world examples” of goods that have value, notwithstanding the fact they are mandated by the government. In this regard, as examples, she points to health insurance, which she says generates value, and to automobile airbags and seatbelts which, although mandated, increase the value of an automobile. Similarly, she points to the federal government requirement that individuals carry health insurance to argue that the mandate does not mean that the product does not have value to them. 4/18/23 Tr. 5346. (George). Based on these analogies, CCG maintains that the must-carry rules have a 
                        <E T="03">positive</E>
                         effect on the value of PTV programming. CCG PFF at 81. 
                        <E T="03">See also</E>
                         CCG PFF ¶ 224.
                    </P>
                    <P>
                        Nonetheless, Dr. George recognizes the possibility of an alternative finding—that any assertion of value in must-carry stations would be rejected. Accordingly, she turns to Dr. Bennett's analysis cited 
                        <E T="03">supra</E>
                        —at Bennett WRT fig. 21—which she recognizes as showing the “downward adjustments” to her “regression” to account for a finding of the absence of value in PTV's must-carry signals. CCG PFF ¶ 225 (and record citations therein).
                    </P>
                    <HD SOURCE="HD3">3. The Judges' Analysis and Conclusions Regarding the “Must-Carry” Issue</HD>
                    <P>
                        The Judges agree with JSC and CTV, based on the caselaw cited by JSC, that PTV, whose clients include the public television stations that are 
                        <E T="03">in fact</E>
                         subject to must-carry requirements, bore the twin burdens of proof—the burden of 
                        <E T="03">producing evidence</E>
                         and the burden of 
                        <E T="03">persuasion</E>
                        —regarding which stations were subject to the must-carry provisions and which were not. Further, because PTV is seeking a determination including must-carry station data in the regression, those burdens are apportioned to PTV as a matter of statute. 
                        <E T="03">See</E>
                         5 U.S.C. 556(d).
                    </P>
                    <P>But rather than produce such evidence or prove its significance, PTV elected to attack Mr. Harvey's attempt to estimate the number of must-carry stations. Those attacks are insufficient. The Judges first take note that PTV argues only that Mr. Harvey “perhaps” or “likely” overstated the number of must-carry stations. But Mr. Harvey engaged in a reasonable attempt to estimate this number, which PTV could have set forth in its submissions, but did not.</P>
                    <P>
                        Further, the Judges do not credit PTV's argument that the must-carry status of some PTV stations can be deemed irrelevant because the issue of must-carry stations was not raised in previous section 111 allocation proceedings. Each of these proceedings is 
                        <E T="03">de novo</E>
                         in nature, and the determination is based on the evidentiary record in that proceeding, as well as on the pertinent findings and conclusions in prior proceedings. Although regurgitated factual argument from prior findings may be summarily rejected by reference back to the findings in prior determinations, and although renewed legal arguments are cabined by the precedential effect of prior determinations, new arguments are not similarly restricted. Moreover, the absence of an issue in a prior proceeding, such as the impact of the must-carry status of PTV stations, certainly does not preclude consideration of that issue in 
                        <E T="03">this</E>
                         proceeding.
                    </P>
                    <P>
                        The Judges also reject the argument made by PTV and CCG that the must-carry stations have value, notwithstanding that indemnification provisions would offset any royalty payments. There are two reasons why this argument is incorrect. First, the point is not that the programs on must-carry stations, including those subject to royalty indemnification payment back to the CSOs, lack value; rather, the point is that they lack 
                        <E T="03">objective and measurable</E>
                         value. On the issue of 
                        <E T="03">objective</E>
                         value, the experts for PTV and CCG mistakenly seek to analogize must-carry PTV stations to two “must-buy” automobile attributes, seat belts and air bags, and to “must-carry” health insurance, which come at a cost. There are two problems with this argument. First, although one can quite reasonably argue that these coerced purchases are beneficial, from an economic point of view the purchase does not reveal a buyer's preference because seatbelts, air bags, and health insurance are coerced, not voluntary.
                        <SU>50</SU>
                        <FTREF/>
                         Second, a price proxy could likely be generated for seat belts and air bags by comparing the retail price of cars immediately before and after their inclusion was mandated for new cars, or by comparing the spread in price between new cars (with such a safety device) and used cars (lacking such safety devices). Regressions seeking to use such data would be true, full-fledged hedonic regressions. But here, the task is markedly different and more difficult, because no such historical or comparative comparisons were possible. Thus, as noted elsewhere in this determination, the regressions are “inspired” by, and in the nature of, hedonic regressions, using the context of section 111 to identify the market-related revealed preferences of CSOs, just as fee-based regressions have been utilized in previous allocation proceedings. But the attempted analogy to market-generated attributes included in market-priced products misses the mark and continues the unfortunate strained attempts by the experts supporting and criticizing fee-based 
                        <PRTPAGE P="54190"/>
                        regressions to compare the fee-based regressions to hedonic regressions.
                    </P>
                    <FTNT>
                        <P>
                            <SU>50</SU>
                             It might be reasonable to assume that a consumer would prefer an automobile with these safety features over an automobile lacking them, or the protection of health insurance rather than the risk associated with its absence, but without a structure for monetizing such preferences, the measure is only ordinal in nature, rather than cardinal. PTV alludes to this problem when, as noted 
                            <E T="03">supra,</E>
                             it notes that these are items that purchasers “may” value. But that implies that they may 
                            <E T="03">not</E>
                             value them in a context where there is an associated out-of-pocket or opportunity cost.
                        </P>
                    </FTNT>
                    <P>
                        As to the issue of 
                        <E T="03">measurable</E>
                         value, PTV and CCG fail to address the fact that, if these stations do not generate net royalties, then the regressions should not be attributing (correlating) their minutes with royalties. The regressions will not “see” the indemnification payments made by the PTV stations back to the CSOs who made royalty payments. Thus, to the extent these royalty payments are recorded as base fee payments on the SOA forms relating to subscriber groups, they will falsely be “seen” by the regressions as indicating that the minutes were associated (correlated) with additional royalties, when that was not the case. As several witnesses have noted, the regressions are “dumb,” and will calculate whatever it is they are programmed to calculate. It is up to the econometrician who constructs and evaluates the regression to “think,” and decide whether the regression has reflected reality (legal, institutional, and economic) in a proper manner. The Judges find that Mr. Harvey made a 
                        <E T="03">prima facie</E>
                         case regarding the number of PTV stations that were must-carry.
                    </P>
                    <P>The Judges also do not credit PTV's point that many CSOs chose to retransmit PTV signals when they could have carried another distant signal instead. Not only does that point ignore the problem of whether a station was subject to indemnification, it also indicates merely an ordinal preference.</P>
                    <P>
                        The Judges also reject the argument that the regressions can include the must-carry station data because CSOs responded to the Bortz Survey by attributing value to such signals. This “whataboutism” argument holds no purchase—either the data belongs in the regressions, or it does not. The Bortz Survey is a form of model seeking to address relative marketplace value from a different perspective, and the requisites or output of one model do not necessarily map onto another model. 
                        <E T="03">Cf. NRBNLMC</E>
                         v. 
                        <E T="03">CRB, supra,</E>
                         slip op. at 41 (affirming the Judges' 
                        <E T="03">Web V</E>
                         rate determination that a finding applicable to one economic model (the issue of opportunity cost) did not automatically apply to the same issue when addressed in a different type of model).
                    </P>
                    <P>
                        PTV's assertions regarding the 
                        <E T="03">value</E>
                         of any adjustment regarding presence of must-carry stations with their attendant indemnification requirements is merely an argument regarding the extent of the adjustment, not regarding the need for one. As noted, the extent of the adjustment varies, depending upon how it is applied and to which regression model it is applied. The Judges consider that point in making their adjustments, 
                        <E T="03">infra.</E>
                    </P>
                    <P>Finally, the Judges agree with the argument that the legislative history relating to the must-carry provisions, and PTV's own prior positions, reflect an understanding that public television stations need must-carry status in order to obtain carriage. Such real-world facts serve as “reality filters” that can and should override the “dumb” manner in which a regression “sees” the royalty and carriage data.</P>
                    <P>For these reasons, the Judges find that PTV failed to discharge its evidentiary burdens, failed to demonstrate that Mr. Harvey's estimation should be rejected by the Judges, and failed to adequately demonstrate the existence of value in must-carry stations sufficient to include them as part of the relative marketplace value generated by the regression approach.</P>
                    <P>
                        In terms of the necessary adjustments, the Judges agree with Dr. Bennett's approach, in which he eliminates the value attributed to the must-carry stations in both the regressions and the allocations, as there is no evidence or testimony sufficient to warrant only an adjustment in one of these regards. Thus, the Judges agree with the adjustments in column number 3 in Dr. Bennett's adjustment made in figures 38, 21 and 52, respectively, set forth 
                        <E T="03">supra.</E>
                    </P>
                    <HD SOURCE="HD2">
                        B. Are PTV's Multicast Stations Exempt From Royalty Payments? 
                        <E T="01">
                            <SU>51</SU>
                        </E>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             The definition of multicasting is not in dispute. Basically, it refers to “a type of national television service designed to be broadcast terrestrially . . . on their digital subchannels . . . by the conversion from analog to digital television broadcasting, which le[aves] room for additional services to be broadcast from an individual transmitter . . . .” 
                            <E T="03">Digital multicast television network,</E>
                             Wikipedia, 
                            <E T="03">https://en.wikipedia.org/wiki/Digital_multicast_television_network</E>
                             (last visited Aug. 9, 2023). The exempt/non-exempt nomenclature is somewhat confusing; “exempt” means CSOs 
                            <E T="03">do not</E>
                             pay section 111 royalties, and “non-exempt” means CSOs 
                            <E T="03">shall</E>
                             pay section 111 royalties (unless, by agreement with the copyright owners, section 111 royalty payments are waived).
                        </P>
                    </FTNT>
                    <P>The parties dispute whether multicast stations should be included in the fee-based regressions. Before setting forth the parties' respective positions, it is helpful to set forth a brief history of the relevant statutory provisions and the industry reaction. In this regard, the SDC's overview of the context is accurate and succinct:</P>
                    <EXTRACT>
                        <P>
                            Prior to the analog-to-digital television transition, a broadcast station could transmit only a single stream of programming. The transition to digital broadcasting, completed for all full-power stations in 2009, enabled stations to broadcast multiple streams of programming, 
                            <E T="03">i.e.,</E>
                             a “primary stream” and one or more “multicast streams.”
                        </P>
                        <P>Accordingly, the Satellite Television Extension and Localism Act (“STELA”) of 2010 added a DSE for distant transmissions of multicast streams. STELA, Public Law 111-175, 124 Stat. 1218, 1239 (2010).</P>
                        <P>
                            Certain multicast streams were temporarily exempted from having a DSE value assigned, including those that (a) had been carried by a CSO prior to February 27, 2010, or (b) had an agreement in place prior to June 30, 2009, for free carriage on a CSO. See STELA, 124 Stat. 1218, 1239; 
                            <E T="03">see also</E>
                             Marx ACWDT ¶ 70.
                        </P>
                        <P>The Association of Public Television Stations (“APTS”) entered into such an agreement with the National Cable and Telecommunications Association (“NCTA”) in 2005, which was renewed in 2016 . . . . [REDACTED]. . . .</P>
                        <P>
                            The PBS-NCTA agreement governed carriage of PTV stations during the 2014-2017 time period and required participating CSOs to carry up to four programming streams per PTV station (
                            <E T="03">i.e.,</E>
                             the primary stream and three multicast streams). The agreement thus served to “exempt” up to three multicast streams per station from generating copyright liability until its expiration and renewal in 2016, at which time the exempted multicast streams were reclassified for royalty purposes as “non-exempt” streams with a DSE value of 0.25.
                        </P>
                    </EXTRACT>
                    <FP>
                        SDC PFF ¶¶ 223-224 (and record citations therein). 
                        <E T="03">Accord</E>
                         PTV PFF ¶ 67 (and record citations therein).
                    </FP>
                    <P>
                        The record in this proceeding also reflects the parties' and the industry's awareness of the terms of the 2016 renewal of the 2005 PBS-NCTA agreement referenced above. Accordingly, although the Judges denied the post-hearing admission of the PBS-NCTA agreement into the record,
                        <SU>52</SU>
                        <FTREF/>
                         the Judges have relied upon the record evidence of the parties' understanding of that agreement.
                    </P>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             
                            <E T="03">See</E>
                             Order 41 Denying as Moot Public Television's Motion for Reconsideration of Order 33.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">1. PTV's Position on Multicast Stations</HD>
                    <P>PTV maintains that, for the years 2016 and 2017, multicast stations should be treated like all other distantly retransmitted broadcast stations for the purposes of establishing relative marketplace value through the fee-based regression analysis, noting that, under section 111, they “are assigned the same DSE value as that station's primary stream.” PTV PFF ¶ 66 (citing 17 U.S.C. 111(f)(5); PTV PFF ¶ 67 (and record citations therein).</P>
                    <P>
                        PTV distinguishes the multicast stations from the must-carry rules, asserting “it is undisputed that the must-carry rules do not require CSOs to retransmit those non-primary signals of a [PTV] broadcast station, and all carriage of PTV multicast streams was due to the voluntary choice of the cable operators.” PTV PFF ¶ 77 (and record 
                        <PRTPAGE P="54191"/>
                        citations therein). PTV acknowledges that PTV primary and multicast stations are functionally retransmitted distantly as a “bundle,” but that fact is neither unique to distant carriage of PTV stations nor consequential with regard to the inclusion of the multicast stations in a fee-based regression model. As to the latter point, PTV asserts that, because “[a] fee-based regression model is designed to estimate the 
                        <E T="03">average</E>
                         relative value of programming in a bundle, such . . . bundling of programming of different values does not bias the regression estimates of relative marketplace value.” PTV PFF ¶ 91. More particularly, PTV explains that the Waldfogel-style regressions of Drs. Johnson and George rely on “average relative valuations,” and that programming which does not correlate with higher royalties “will be factored into the regression.” PTV PFF ¶ 91 n.140 (citing George WDT at 51; 4/18/23 Tr. 5170-74 (George); 3/21/23 Tr. 350, 456-58:15, 595 (Johnson); Johnson WRT ¶ 65.
                    </P>
                    <P>
                        Because he understood that programming of multicast streams on distantly retransmitted broadcast signals to be compensable under section 111, Dr. Johnson applied his regression model to estimate the average relative value of distantly retransmitted programming inclusive of multicast streaming. And, as indicated 
                        <E T="03">supra,</E>
                         he understood that, to the extent CSOs might value PBS primary and multicast streams differently, these different values for “multicast streams would be averaged out by the subscriber-weighted distant minutes.” PTV PFF ¶¶ 133-34 (and record citations therein).
                    </P>
                    <P>PTV also notes how relative values, as between JSC and PTV programming, moved in opposite directions during the 2014-2017 period. That is, in 2015, when WGNA converted from a broadcast station to a national cable network, JSC could not claim section 111 royalties for sports programming that was televised on WGNA. But for PTV, the converse was the case: Compensable programming arguably increased when in 2016 multicast stations transformed from being statutorily exempt (no right to section 111 royalties) to non-exempt (royalty-generating). PTV PFF ¶ 135.</P>
                    <HD SOURCE="HD3">2. CCG's Position on Multicast Stations</HD>
                    <P>CCG argues that the minutes of programming on the PTV multicast stations that were reclassified from exempt to non-exempt should be included in the fee-based regressions because their continued retransmission as royalty-generating stations is the consequence of deliberate strategies by CSOs. CCG PFF at 25. Specifically, CCG relies on the fact that the substantial portion of stations that had been distantly retransmitted by Bright House (an MSO) while exempt (from royalties) continued to be retransmitted in 2016 as non-exempt (royalty-bearing) contemporaneously with the acquisition of Bright House by a larger MSO, Charter Communications (formerly Time Warner Cable). CCG PFF ¶ 79 (citing Marx ACWDT ¶ 78).</P>
                    <P>
                        According to Dr. George, Charter Communications could have chosen to cease distantly retransmitting these PTV multicast stations after they became non-exempt (royalty-bearing), but for commercial purposes they elected to maintain carriage, indicating that Charter Communications perceived value in these multicast stations. George WRT at 20. In this regard, Dr. George concluded that the fact that Charter decided to include the PTV signals in its cable lineup and treat those PTV signals as paid while deciding not to carry other distant signals “reveals the 
                        <E T="03">relative</E>
                         value of the programming to the cable system.” George WRT at 20. 
                        <E T="03">See also</E>
                         CCG PFF ¶ 547.
                        <SU>53</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             Program Suppliers are essentially in agreement with CCG in this regard. 
                            <E T="03">See</E>
                             PS PFF ¶ 387 (citing Tyler WRT ¶ 71 for the assertion that “non-exempt signals are part of the question studied and properly included in the analysis.”).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">3. CTV's Position on Multicast Stations</HD>
                    <P>
                        Like, CCG, CTV states that the reclassification of PTV multicast signals from exempt to “paid” (
                        <E T="03">i.e.,</E>
                         non-exempt, or royalty-bearing) had a “significant impact in the industry.” CTV PFF at 17. But quite 
                        <E T="03">unlike</E>
                         CCG, CTV disagrees with the inclusion of the “paid” multicast signal minutes in the fee-based regressions. After reciting the same industry merger history recounted 
                        <E T="03">supra,</E>
                         CTV PFF ¶ 75, CTV notes that the reclassification of these multicast PTV stations increased both (1) PTV subscriber-weighted minutes and (2) the data inputted into the regression (seeking to measure the correlation between category minutes and royalties). CTV PFF ¶ 76.
                    </P>
                    <P>More particularly, 231 PTV signals were reclassified from exempt to paid from 2014 to 2017, “with over 90% of the reclassification of PTV minutes taking place in 2016 and 81% of those reclassifications associated with Charter Communications' acquisitions of Time Warner and Bright House.” CTV PFF ¶ 77 (and record citations therein). CTV further notes the combined industry concentration of Charter Communications, Time Warner, and Bright House prior to the 2016 merger, together accounting for 26.2% of total cable industry subscribers. CTV PFF ¶ 78.</P>
                    <P>But CTV argues that the reclassification had no impact on whether those PTV multicast minutes should have been inputted into the fee-based regressions. Specifically, CTV asserts, “The increase in PTV paid minutes did not create any changes subscribers would notice; there was no change in channel line-ups, viewer access to programming, or content broadcast. Rather, PTV signals that had previously existed on channel lineups became `nonexempt.' ” CTV PFF ¶ 79 (and record citations therein). Thus, CTV concludes that the reclassification merely “created an illusion” of an increase in the number of distantly retransmitted PTV minutes.” CTV PFF ¶ 237 (and record citations therein).</P>
                    <HD SOURCE="HD3">4. SDC's Position on Multicast Stations</HD>
                    <P>
                        The SDC echoes Dr. Marx's position on behalf of CTV, that, although reclassification from exempt to non-exempt “changes the 
                        <E T="03">reporting</E>
                         of PTV minutes in the data, [it] does not change the 
                        <E T="03">content or value</E>
                         that CSOs offer to their subscribers.” SDC PFF ¶ 241 (citing Marx ACWDT ¶ 71).
                    </P>
                    <P>
                        Further, Dr. Marx takes note, in her consideration of the Charter acquisitions discussed 
                        <E T="03">supra,</E>
                         of the existence of the PBS-NCTA agreement in place that maintained the exempt (no royalty) status of a number of public television stations. 4/11/23 Tr. 4272 (Marx).
                    </P>
                    <HD SOURCE="HD3">5. JSC's Position on Multicast Stations</HD>
                    <P>
                        JSC takes note that, although the number of 
                        <E T="03">primary</E>
                         PTV signals did not increase significantly, “CSOs . . . began carrying significantly more PTV 
                        <E T="03">multicast</E>
                         channels, with the share of PTV volume comprised of multicast channels nearly doubling between the beginning of 2014 and the end of 2017.” JSC PFF ¶ 74 (and record citations therein) (emphasis added). More particularly, JSC acknowledges that 
                        <E T="03">some</E>
                         of this increase in reported PTV multicast carriage is attributable to the change in status of certain PTV multicasts from “exempt” to “non-exempt,” as a result of Charter Communications' acquisitions of Time Warner Cable and Bright House Networks in 2016. JSC PFF ¶ 75 (and record citations therein).
                    </P>
                    <P>
                        But JSC rejects the notion that the increase in non-exempt (royalty-bearing) multicast carriage reflects an increase in value for which the PTV allocation should increase. In support of this argument, one of JSC's economic experts, Dr. Majure opines that (1) mere reclassification from exempt to non-exempt itself does not reflect an 
                        <PRTPAGE P="54192"/>
                        increase in value and (2) CSOs chose to carry additional PTV multicasts during 2015-2017 when doing so was typically cost-free, even if they were non-exempt) because their carriage addition did not cause the CSO to exceed the minimum fee. JSC PFF ¶¶ 76-77 (and record citations therein).
                    </P>
                    <P>
                        Moreover, JSC relies on the testimony of PTV's own witness, Dr. Johnson, who acknowledged that the PBS-NCTA agreement provides for CSOs who were NCTA members to carry up to three PTV 
                        <E T="03">multicasts</E>
                         in addition to the carriage of the primary PTV signal, that 
                        <E T="03">PTV would not require payment for the carriage of these multicasts,</E>
                         and that, should the CSO incur financial liability under section 111 for such multicast carriage, PTV would be obligated to either indemnify the CSO for the royalty costs (as with 
                        <E T="03">must-carry primary signals</E>
                        ), or waive the PTV station's right to compel carriage. JSC PFF ¶ 7 (citing 3/22/23 Tr. 985-88 (Johnson)).
                    </P>
                    <P>
                        Based on the foregoing, JSC claims that, without the multicast provisions in the PBS-NCTA agreement, which JSC characterizes as “marketplace” facts, CSOs would pay “little or nothing” for the programming on the multicast stations. JSC PFF ¶ 9 (and record citations therein). 
                        <E T="03">See also</E>
                         JSC PFF ¶¶ 25, 395; Harvey CWDT tbls.37-39.
                    </P>
                    <HD SOURCE="HD3">6. The Judges' Analysis and Conclusions Regarding Multicast Stations</HD>
                    <P>
                        The Judges have the same type of problem with PTV's claim for royalties for the multicast programming as they do for the must-carry station programming discussed 
                        <E T="03">supra.</E>
                         That is, there was evidence available to be produced by PTV, namely the PBS-NCTA agreement as well as the number of entities it represents that would provide significant 
                        <E T="03">marketplace evidence</E>
                         of how PTV stations and the licensor CSOs valued multicast station programming. But, as noted 
                        <E T="03">supra,</E>
                         PTV did not produce either this agreement or the number of entities bound by it as evidence, although its own expert witness testified as to some of the agreement's contents.
                    </P>
                    <P>
                        Thus, the Judges were deprived of full knowledge of the terms of the agreement, the parties' fulsome testimony as to the meaning of its provisions and the number of entities signing on to the agreement. Moreover, PTV opposed the admission of that agreement into evidence. 
                        <E T="03">See</E>
                         Order 41 Denying as Moot Public Television's Motion for Reconsideration of Order 33. Accordingly, the Judges here, too, find that PTV bore, but failed to discharge, the burdens of production and persuasion with regard to the details of the agreement and the extent of its coverage. 
                        <E T="03">See</E>
                         Web V Final Determination at 59452; 
                        <E T="03">Huthnance</E>
                         v. 
                        <E T="03">District of Columbia,</E>
                         722 F.3d 371 (D.C. Cir. 2013); 
                        <E T="03">see also</E>
                         5 U.S.C. 556(d) (placing the burden of proof regarding facts on the party seeking an order based on those facts).
                    </P>
                    <P>
                        Nonetheless, relevant terms of the PBS-NCTA agreement were well-understood by the parties, without dispute. As noted 
                        <E T="03">supra,</E>
                         PTV's own expert, Dr. Johnson, understood what the agreement provided with regard to multicast stations and the absence of a royalty obligation attendant to their carriage. This constitutes a market-based fact, which has two implications. First, as a direct agreement among parties in the 
                        <E T="03">sector at interest in this proceeding,</E>
                         it is an agreement that reflects actual value, not hypothetical value. As such, it is more credible than attempts to tease out market value via regression-derived price proxies or a constant sum survey such as the Bortz Survey. Second, within the context of a fee-based regression, the existence of such zero valuations would certainly affect the regression as well as the number of minutes by which the impacted PTV regression coefficient would be multiplied. But without any information regarding the number of PTV stations covered by the PBS-NCTA agreement, the Judges cannot simply assume that no multicast stations that generated zero net royalties were covered by this agreement.
                        <SU>54</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             The fact that Charter changed some PTV multicast stations from exempt (non-royalty-bearing) to non-exempt (royalty-bearing) after acquiring certain CSOs is anecdotal evidence that suggests these PTV multicast stations were generating royalties, but anecdotes are not substitutes in this context for more comprehensive data. (And some of these royalty-bearing PTV stations may also have been retransmitted by CSOs with excess capacity, thereby not actually generating any revealed preference information for the retransmitting CSOs.)
                        </P>
                    </FTNT>
                    <P>If the Judges had full information regarding the PBS-NCTA agreement from PTV, whose clients are signatories thereto, as well as information from PTV regarding the number of its station clients and base fee royalties impacted by the agreement, the Judges' analysis could have been different. For example, the Judges are not convinced that the fact that these signals had been exempt (not royalty-bearing) previously is a dispositive point. The argument in favor of that position is that the mere change in legal obligation has no impact on economic value. But a simple thought experiment demonstrates the paucity of that reasoning: What if these multicast signals had started off as non-exempt (royalty-bearing) and then were changed to exempt (non-royalty-bearing)? It would have been the same change, only in reverse. Would the original classification remain in place in this juxtaposed scenario, such that royalties would continue to be included in the regression?</P>
                    <P>
                        Also, there was a contentious dispute regarding whether the multicast PTV stations' programming was “duplicative” of the PTV primary signal programming or of each other. Questions arose regarding whether duplication should be narrowly tailored to mean the retransmitting of the identical program at the identical time, at the same proximate time or within a certain period of time, and whether different episodes from the same series retransmitted at the same or some proximate time or day were likewise duplicative. But without information as to whether any multicast station that had retransmitted such potentially duplicative programming was contractually unable to generate royalties under the PBS-NCTA agreement in any event, these issues of potential duplication appear to be indeterminate.
                        <SU>55</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>55</SU>
                             As explained 
                            <E T="03">infra,</E>
                             among the regression approaches, the Judges rely on the Tyler Model's allocation of shares based upon CSOs that actually paid the base fee (not the minimum fee). But although Dr. Bennett's testimony (Bennett WRT fig.52) provides evidence for a downward adjustment of PTV's share to reflect the Must Carry issue discussed 
                            <E T="03">supra,</E>
                             the Judges see no clear evidence in the record to identify how much of a downward adjustment should be made to the PTV share to reflect the Multicast and Duplicative Programming issues. However, because the PBS-NCTA agreement indicates that CSOs would carry up to three Multicast stations as Must Carry stations, 
                            <E T="03">i.e.,</E>
                             without a net royalty obligation, the Judges find that their application of Dr. Bennett's downward adjustment for Must Carry stations essentially embodies any Multicast adjustment, including any duplicative programming within those Multicast channels.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">VIII. Parties' Positions Regarding Regression Models</HD>
                    <HD SOURCE="HD2">A. Introduction</HD>
                    <P>Four parties, CCG, CTV (for 2014 only), Program Suppliers and PTV, through their expert witnesses, proffer regressions that they assert are useful methodologies to determine relative market value. An overview of each regression model and the criticisms thereof are set forth below.</P>
                    <HD SOURCE="HD2">B. CTV's Regression Approach: The Marx Model</HD>
                    <P>
                        On behalf of CTV, Dr. Leslie Marx 
                        <SU>56</SU>
                        <FTREF/>
                         adopted a fee-based regression model (the “Marx Model”) applicable to 2014, 
                        <PRTPAGE P="54193"/>
                        but not for the 2015-2017 period, because she found that data issues rendered the use of such a regression approach “substantially less reliable and informative” for the 2015-2017 timeframe. 4/11/23 Tr. 4117 (Marx). More particularly, for 2014, she adopted a “Bayesian” approach in her fee-based regression model, using that methodological technique to mitigate concerns regarding the reduction in the quantity and quality of 2015-17 data.
                    </P>
                    <FTNT>
                        <P>
                            <SU>56</SU>
                             Dr, Marx was received by the Judges as an “expert economist and econometrician with experience in statistical methods and measurements.” 4/11/23 Tr. 4109 (Marx).
                        </P>
                    </FTNT>
                    <P>
                        At a high level, she described the Bayesian approach as “a technique that allows [an econometrician] to use results from one period and add additional data to it to then update . . . inferences based on . . . that earlier period.” 4/11/23 Tr. 4209:3-6 (Marx).
                        <SU>57</SU>
                        <FTREF/>
                         According to Dr. Marx, three basic reasons supported her use of a Bayesian regression:
                    </P>
                    <FTNT>
                        <P>
                            <SU>57</SU>
                             
                            <E T="03">See also</E>
                             Marx ACWDT ¶ 101 (“Bayesian regression is a well-accepted tool in economic and scientific research that is well-suited to situations in which the researcher has a `prior belief' about the distribution (
                            <E T="03">e.g.,</E>
                             mean and variance) of parameters of interest and wishes to use additional data in order to update conclusions about the parameters.”).
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            1. In the prior proceeding, the Judges found Dr. Crawford's approach to be appropriate for allocating, 
                            <E T="03">inter alia,</E>
                             2013 royalties.
                        </P>
                        <P>2. The 2014 data largely patterns the 2013 data analyzed by Dr. Crawford because (unlike the 2015-2017 data) the 2014 data had not been affected by the growing predominance of excess capacity CSOs, reductions the number of SGs, or the reclassification of PTV stations.</P>
                        <P>3. Although the 2014 data alone would not be robust enough to adequately or reliably model a regression, the Bayesian approach incorporates a methodological technique that helps to resolve concerns regarding the quantity of data.</P>
                    </EXTRACT>
                    <FP>4/11/23 Tr. 4207-08 (Marx).</FP>
                    <P>
                        Accordingly, Dr. Marx ran her Bayesian fee-based regression only for 2014. The estimates she generated from her regression generated 2014 shares aligned with the shares calculated from Dr. Crawford's fee-based regression in the 2010-13 Determination. 4/11/23 Tr. 4126:16-4127:4. (Marx).
                        <SU>58</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             In her Bayesian model, Dr. Marx adopted Dr. Crawford's model that had removed simultaneous “duplicated minutes” (
                            <E T="03">i.e.,</E>
                             minutes of distantly retransmitted programming that were also transmitted on local stations), opining that CSOs would not realize incremental value from offerings of duplicative programming. 4/11/23 Tr. 4213 (Marx). In this regard, Dr. Marx's approach deviated from the Judges' prior determination in which they found a problem with Dr. Crawford's duplicated minutes analysis and elected instead to rely upon his nonduplicated minutes analysis. 
                            <E T="03">See</E>
                             2010-13 Determination at 3562. Dr. Marx's specific change in this regard does not materially affect the Judges' consideration of her Bayesian approach in this proceeding.
                        </P>
                    </FTNT>
                    <P>
                        As noted 
                        <E T="03">supra,</E>
                         Dr. Marx found that the data generated for the 2015-17 period was insufficient to allow her to use a fee-based regression for those years. To be clear, the paucity of data she identified was not a 
                        <E T="03">data collection problem,</E>
                         but rather what she considered to be an insufficient quantity of data borne from significant “changed circumstances,” namely the 2015 conversion of WGNA to a cable 
                        <E T="03">station</E>
                         from a local station that had previously been the most distantly transmitted. These changed circumstances led Dr. Marx to highlight as a key finding from her analysis that “a regression similar to [Dr.] Crawford's would [be] 
                        <E T="03">less</E>
                         informative and 
                        <E T="03">less</E>
                         reliable.” Marx ACWDT ¶ 9(c) (emphasis added); 
                        <E T="03">see also</E>
                         Marx ACWDT ¶ 67 (reiterating after her full analysis that in her opinion a Crawford-style regression would be “
                        <E T="03">less</E>
                         informative and 
                        <E T="03">less</E>
                         reliable for estimating relative marketplace value after 2014.”) (emphasis added).
                    </P>
                    <P>In granular detail, Dr. Marx identified the following dramatic modeling ramifications arising from the WGNA conversion:</P>
                    <EXTRACT>
                        <P>1. The fulsome data set utilized by Dr. Crawford in the 2010-13 proceeding did not exist for the 2015-2017 period.</P>
                        <P>2. The number of CSOs carrying at least one distant signal declined substantially after 2014. More particularly, more than 800 CSOs carried distant signals in 2014, but only approximately 500 CSOs carried distant signals by 2017.</P>
                        <P>3. Total royalties declined by approximately 32% from 2014 to 2017.</P>
                        <P>4. There was a dramatic reduction in the number of subscriber-weighted minutes.</P>
                        <P>
                            5. The number of “excess capacity” CSOs increased dramatically.
                            <SU>59</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>59</SU>
                                 In her rebuttal testimony, Dr. Marx coined the apt phrase “excess capacity CSO” as an identifier of a CSO that distantly retransmitted less than one Distant Signal Equivalent (DSE), had the capacity to distantly retransmit one or more additional distant signals without increasing its royalty obligation above the minimum fee, and yet chose not to make any such additional retransmissions. Marx WRT ¶¶ 6, 13. The Judges adopt this phrase throughout this Determination.
                            </P>
                        </FTNT>
                        <P>
                            6. More than 90% of royalties in 2016 and 2017 were paid by these “excess capacity” CSOs, 
                            <E T="03">i.e.,</E>
                             systems that could have carried more DSEs but declined, notwithstanding the zero marginal royalty cost associated with additional carriage.
                        </P>
                        <P>
                            7. Alternately stated, less than 10% of the SG-level calculated royalties reported by CSOs reflect royalties 
                            <E T="03">actually</E>
                             paid for retransmission of signals by CSOs in 2016 and 2017.
                        </P>
                        <P>
                            8. Consequently, all the royalties calculated for each subscriber group in a cable system do not represent actual or incremental costs paid by the CSO because of the minimum fee requirement.
                            <SU>60</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>60</SU>
                                 The minimum fee issue is separately discussed elsewhere in this determination. It is referenced in this section discussing the experts' models to provide a more complete context.
                            </P>
                        </FTNT>
                        <P>9. Underscoring the impact of the WGNA conversion, 92% of CSOs that had previously carried WGNA (with or without an additional distant signal) in 2014, were paying only the minimum fee.</P>
                        <P>
                            10. Finally, whereas the percentage of all CSOs that carried 
                            <E T="03">no distant</E>
                             signals had increased from only 13% in 2014, 30% in 2015, 44.6% in 2016, and then to 44.8% in 2017.
                        </P>
                    </EXTRACT>
                    <FP>CTV PFF ¶¶ 93-94; 156-163; 167; 170; 195-199 (and record citations therein).</FP>
                    <P>
                        With regard to the 
                        <E T="03">effect</E>
                         of these changed circumstances on a fee-based regression, Dr. Marx testified that Dr. Crawford's regression model relies on variation between the distant retransmission decisions at the SG level—
                        <E T="03">but only within a given CSO.</E>
                         Marx ACWDT ¶ 57. Thus, the Crawford Model included a CSO 
                        <E T="03">only</E>
                         if the CSO had at least two SGs. But with the dramatically changed circumstances caused principally by the WGNA conversion and the resulting increase in the number of excess-capacity CSOs, there were far fewer CSOs in the 2015-2017 period who created the necessary multiplicity of SGs. 
                        <E T="03">Id.</E>
                         More particularly, Dr. Marx relied on the following facts:
                    </P>
                    <EXTRACT>
                        <P>1. In 2015, 62% of CSOs—accounting for almost 35% of total royalties—did not meet the Crawford regression threshold that a CSO have at least two subscriber groups.</P>
                        <P>2. The proportion of CSOs with fewer than two SGs increased from 54.9% to 68.8%.</P>
                        <P>3. The percent of CSOs with zero SGs increased from 13% to 44.8% from 2014 to 2017.</P>
                        <P>4. The number of CSOs qualified to be included in a Crawford fee-based regression continued to decline throughout the relevant time period, with only 31.2% of CSOs included in 2017.</P>
                    </EXTRACT>
                    <FP>Marx ACWDT ¶¶ 58-59 &amp; fig.12; 4/11/23 Tr. 4178 (Marx).</FP>
                    <P>
                        These are the detailed changed circumstances, referred to 
                        <E T="03">supra,</E>
                         which Dr. Marx found to render a Crawford fee-based regression 
                        <E T="03">less</E>
                         informative and reliable in the present proceeding than in the 2010-13 proceeding. Marx ACWDT ¶¶ 64, 67. More particularly, she noted that, in her opinion, the relatively small percent of CSOs that otherwise satisfied the requisites for inclusion in a Crawford-style regression could not be considered a representative sample or a representation of the Willingness to Pay of the larger CSO market. 4/11/23 Tr. 4161, 4173 (Marx).
                        <SU>61</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>61</SU>
                             Dr. Marx testified that the other regression experts essentially agreed with her opinion that the Crawford-style fee- based regression would suffer from an absence of sufficient data on SG variations within a CSO. She identified such agreement in the testimonies of Drs. George, Johnson and Tyler by their relaxation of the number and types of “fixed effects” used by Dr. Crawford to isolate the correlation of category minutes and royalties which his regression seeks to identify. However, as 
                            <PRTPAGE/>
                            discussed in more detail 
                            <E T="03">infra,</E>
                             Dr. Marx criticizes the removal of some or all of these “fixed effects” by these other experts as introducing “omitted variable bias” into their regressions, thus compromising their usefulness in this proceeding. 
                            <E T="03">See</E>
                             Marx WRT ¶¶ 14, 20 &amp; 37; 4/11/23 Tr. 4179, 4181, 4255 (Marx) (removing “fixed effects” in order to introduce into the model different variations 
                            <E T="03">across</E>
                             CSOs and across 
                            <E T="03">time</E>
                             to address the problem of fewer subscriber groups is improper because it generates a new problem—the introduction of “omitted variable bias,” which metaphorically was adding “garbage” into their regressions). The Judges consider the alteration of “fixed effects” by these other experts, and the criticisms of that decision 
                            <E T="03">infra,</E>
                             in their consideration of those proffered regression models.
                        </P>
                    </FTNT>
                    <PRTPAGE P="54194"/>
                    <P>For the foregoing reasons, Dr. Marx utilized a fee-based regression only to estimate the regression coefficients and share allocations for 2014. Her results—are set forth in the figures below:</P>
                    <GPH SPAN="3" DEEP="134">
                        <GID>EN28JN24.008</GID>
                    </GPH>
                    <GPH SPAN="3" DEEP="165">
                        <GID>EN28JN24.009</GID>
                    </GPH>
                    <P>
                        Dr.
                        <FTREF/>
                         Marx then multiplied the subscriber-weighted minutes for each program category, as calculated by another CTV expert, Dr. Christopher Bennett,
                        <SU>63</SU>
                        <FTREF/>
                         by her Bayesian coefficients (as adjusted pursuant to her PTV analysis) and she estimated the following allocation shares for 2014:
                    </P>
                    <FTNT>
                        <P>
                            <SU>62</SU>
                             In her Bayesian regression for 2014, Dr. Marx adjusted the valuation analysis for PTV by addressing certain alleged anomalies in the PTV minutes, including those arising from the presence of PTV “must carry” stations, the transition of PTV stations from exempt (no royalty paid) to non-exempt (royalty paid) and the indemnification of CSOs for royalties paid to transmit PTV signals. The figures reproduced in the text, 
                            <E T="03">supra,</E>
                             from Dr. Marx's WRT embody Dr. Marx's conclusions in these regards. The Judges consider these PTV-specific issues elsewhere in this Determination.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             
                            <E T="03">See</E>
                             Bennett ACWDT figs.1 &amp; 2.
                        </P>
                    </FTNT>
                    <P>
                        (A) Applying Dr. Marx's 's preferred analysis 
                        <E T="03">excluding</E>
                         duplicated minutes: 
                        <SU>64</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             In the 2010-13 Determination, the Judges adopted Dr. Crawford's model that included duplicate minutes because the duplicated minutes calculation was more accurate than the unduplicated minutes calculation. 
                            <E T="03">See</E>
                             2010-13 Determination at 3565. Dr. Marx calculates coefficients (and thus shares) under both scenarios, noting that there is minimal difference between the two approaches. Marx ACWDT ¶ 38.
                        </P>
                    </FTNT>
                    <FP SOURCE="FP-2">
                        <E T="03">Estimated 2014 Shares</E>
                    </FP>
                    <FP SOURCE="FP1-2">PS—19.73%</FP>
                    <FP SOURCE="FP1-2">JSC—43.89%</FP>
                    <FP SOURCE="FP1-2">CTV—15.56%</FP>
                    <FP SOURCE="FP1-2">PTV—16.41%</FP>
                    <FP SOURCE="FP1-2">SDC—0.48%</FP>
                    <FP SOURCE="FP1-2">CCG—3.93%.</FP>
                    <P>
                        (B) Applying the 
                        <E T="03">inclusion</E>
                         of duplicated minutes as in the 2010-13 Determination:
                    </P>
                    <FP SOURCE="FP-2">
                        <E T="03">Estimated 2014 Shares</E>
                    </FP>
                    <FP SOURCE="FP1-2">PS—20.69%</FP>
                    <FP SOURCE="FP1-2">JSC—41.73%</FP>
                    <FP SOURCE="FP1-2">CTV—13.94%</FP>
                    <FP SOURCE="FP1-2">PTV—18.85%</FP>
                    <FP SOURCE="FP1-2">SDC—0.47%</FP>
                    <FP SOURCE="FP1-2">CCG—4.31%.</FP>
                    <FP>Marx ACWDT ¶ 39.</FP>
                    <PRTPAGE P="54195"/>
                    <HD SOURCE="HD3">1. Dr. Marx's “Directional” Analysis for 2015-2017</HD>
                    <P>
                        Having rejected the use of a fee-based regression to estimate relative marketplace value for the 2015-2017 period, Dr. Marx switches gears in two contexts. First, she shifts the demand-side focus, by analyzing how choices of downstream consumers of cable television programming have purportedly changed—and how those changes impact the “derived demand” 
                        <SU>65</SU>
                        <FTREF/>
                         for categories of programming delineated in this proceeding. Second, Dr. Marx uses this analysis to provide what she describes as a “directional” approach, which she opines should guide the Judges regarding the relative increases or decreases in category royalty shares. This “directional” approach is in contrast to both the regression and the survey methods for ascertaining relative marketplace value, which seek to provide specific estimates of the category values. 
                        <E T="03">See</E>
                         Marx ACWDT ¶ 83 (“This is a ‘directional' analysis in that I do not quantitatively measure the effect of streaming on relative market values.”).
                        <SU>66</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             In the 2010-13 Determination, the Judges explained that the concept of “derived demand” was applicable to “[t]he demand for programming at each step in the [distribution] chain . . . all the way to the television viewer,” although, with regard to distant retransmissions of local stations, this derived demand is impacted by “the role of bundling and `niche' programming” that can affect “the premium that certain categories of programming fetch in an open market” that would impact “value among disparate program categories” in these allocation proceedings. 2010-13 Determination at 3600.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             Dr. Marx's “directional” analysis is akin to the testimony of television industry witnesses discussed 
                            <E T="03">infra.</E>
                             In fact, Dr. Marx opines that her “directional” analysis is consistent with the testimonies of five industry witnesses—Mr. Singer, Mr. Warren, Ms. Witmer, Mr. Hartman and Ms. Alany. 4/11/23 Tr. 4234 (Marx).
                        </P>
                    </FTNT>
                    <P>
                        More particularly, Dr. Marx evaluates the changes in how consumers viewed cable television programming content in the 2014-2017 period, compared to viewing in prior years. Specifically, Dr. Marx examined how the introduction and growth of 
                        <E T="03">streaming of programming through over-the-top (OTT) platforms</E>
                         during the 2014-2017 period affected not only 
                        <E T="03">how</E>
                         consumers chose to access content but also, derivatively, the “differential effects” of this change in distribution “across the claimant groups.” Marx ACWDT ¶ 82.
                    </P>
                    <P>Dr. Marx's directional “derived demand” evaluation proceeds as follows:</P>
                    <EXTRACT>
                        <P>1. She summarizes the expansion of streaming prior to and during the 2014-2017 period.</P>
                        <P>
                            2. Dr. Marx then uses viewership data 
                            <SU>67</SU>
                            <FTREF/>
                             to identify evidence indicating how the growth of streaming was likely to have increased or decreased the relative value of the claimants' respective program categories groups to a CSO. More particularly, Dr. Marx opines that a program category with “content [that] had a 
                            <E T="03">larger shift to streaming</E>
                             would, all else equal, be likely to have a 
                            <E T="03">decrease</E>
                             in relative importance when it comes to delivery as a distant signal by CSOs [and] [c]onversely, claimant groups whose content had smaller shifts to streaming likely would, all else equal, have an increase in relative importance.”
                        </P>
                        <FTNT>
                            <P>
                                <SU>67</SU>
                                 Dr. Marx relies on 
                                <E T="03">local</E>
                                 viewing data generated by the Nielsen audience research firm. The probative value, 
                                <E T="03">vel non,</E>
                                 of viewership data, and local viewership in particular, as a proxy for changes in the relative marketplace value of distantly retransmitted local stations, is discussed 
                                <E T="03">infra.</E>
                            </P>
                        </FTNT>
                        <P>
                            3. She next reviews data on household viewership over the relevant period, focusing on the “directional relative effects of streaming growth on CTV, PTV, and Program Suppliers categories . . . .” 
                            <SU>68</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>68</SU>
                                 Dr. Marx focuses on these three categories because her data source only contains one Canadian station, and because the small size of the SDC category renders it less reliable and impactful. She also testifies that “sports content is more challenging to evaluate with this [Nielsen] data due to geographic and temporal variation in ratings driven by factors unrelated to the growth of streaming,” and that she understood “streaming of [JSC] content was limited during the 2014-2017 period.” Marx ACWDT ¶ 84 n.66.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>Marx ACWDT ¶¶ 83-84.</FP>
                    <P>Through this analysis, Dr. Marx reaches the following conclusions:</P>
                    <EXTRACT>
                        <P>1. From as far back as 2010, “streaming and smart device penetration have increased while CSOs have lost subscribers.”</P>
                        <P>2. Viewership data reveals a reduction in TV viewership over the 2014-2017 period.</P>
                        <P>3. Because of increased streaming and lower cable subscribership the “importance of “PTV and Program Suppliers content appear[s] to have diminished . . . relative to CTV content.”</P>
                        <P>
                            4. Although the data reveal a decline in the 
                            <E T="03">absolute</E>
                             number of households watching content within the CTV, PTV, and Program Suppliers categories, the 
                            <E T="03">relative</E>
                             declines were greater for PTV's and Program Suppliers' content than for CTVs' content.
                        </P>
                        <P>5. The absolute and relative decline in the share of viewership on cable of Program Suppliers content is consistent with the contemporaneous improvement in the “quality of streaming video content provided on platforms such as Netflix, Amazon Prime Video, and Hulu.”</P>
                        <P>6. In addition to licensed TV shows, these streaming platforms also transmit original content which they have produced, with quality levels generating Emmy Award nominations, indicating the growing and high quality of content carried by streaming platforms.</P>
                    </EXTRACT>
                    <FP>Marx ACWDT ¶¶ 85-98 &amp; figs.21-24.</FP>
                    <P>Applying the foregoing to the Judges' present task of estimating relative marketplace value across the claimant categories, Dr. Marx concludes as follows:</P>
                    <EXTRACT>
                        <P>In sum, streaming grew rapidly during 2014-2017 [and] Nielsen data show concomitant declines in viewership of the PTV and Program Suppliers claimant groups' content. CTV content viewership also declined, but that decline was smaller than for PTV and Program Suppliers. This implies that the growth of streaming likely had a greater adverse impact on Program Suppliers and PTV claimants than on CTV claimants. All else equal, this is consistent with a higher relative market value for CTV claimants over the 2014-2017 period as compared with Program Suppliers and PTV claimants.</P>
                    </EXTRACT>
                    <FP>Marx ACWDT ¶ 99.</FP>
                    <HD SOURCE="HD3">2. Rebuttals to Dr. Marx's Analyses</HD>
                    <HD SOURCE="HD3">a. Rebuttals to Dr. Marx's WDT by SDC Witness Dr. Erdem</HD>
                    <P>
                        One of the SDC's expert economic witnesses, Dr. Erkan Erdem,
                        <SU>69</SU>
                        <FTREF/>
                         characterizes Dr. Marx's rejection of the applicability of the fee-based regression approach in a broader context than Dr. Marx. Instead, Dr. Erdem avers that the inconsistency between the 2010-2013 data and the data over the entirety of the 2014-2017 period reveals something more profound: that the “Crawford model was made specifically only for the 2010-2013 data . . . [and] is not robust enough to measure the market value of distant minutes per claimant to fit data from other proceedings.” Erdem WRT ¶ 126. By this criticism, Dr. Erdem tacitly criticizes Dr. Marx's Bayesian approach for not applying her criticism with appropriate breadth, maintaining that “[e]ven if there is a shift in the trend of this proceeding's data, [her modeling] should still theoretically be useful for this proceeding, if one were to believe it was useful in the first place, since they are dealing with the same variables.” Erdem WRT ¶ 126. 
                        <E T="03">See als</E>
                        o Erdem WRT ¶ 130 (opining that Dr. Marx was wrong to maintain that after the WGNA conversion 
                        <E T="03">all that was needed</E>
                         was “an adjustment . . . in the Crawford model” because, although “[t]he underlying trends in the data . . . shifted, . . . the variables used are still the same, as well as the computation of distant minutes and distant signals.”).
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             Dr. Erdem was received as an expert in the fields of economics, econometrics, and data analysis. 4/5/23 Tr. 3395 (Erdem).
                        </P>
                    </FTNT>
                    <P>
                        Whereas Dr. Erdem finds the forgoing criticism of the use of a Crawford fee-based regression as incomplete, he finds a second criticism by Dr. Marx to be exaggerated. Specifically, he takes issue with her concern that the number of CSOs with two or more subscriber groups had decreased after 2014, thereby reducing the presence of the 
                        <PRTPAGE P="54196"/>
                        sufficient observations of programming decisions arising from the different stations retransmitted by such subscriber groups. Erdem WRT ¶ 131. Dr. Erdem finds this criticism overblown because the percentage of CSOs with fewer than two subscriber groups only increased from 54.9% to 68.8% from 2014 to 2017, and the CSOs thus excluded from the fee-based regressions would “only account for 38% of the total royalties.” Erdem WRT ¶ 131. Thus, he finds Dr. Marx's reliance on this changed circumstance as obscuring his essential point, to wit, that if the Crawford Model had been “correctly specified in the first place” it would not need “to be adjusted for changes in the data,” but rather “should be able to withstand [data changes] to remain accurate.” Erdem WRT ¶ 131.
                    </P>
                    <P>
                        Finally, but in the same vein, Dr. Erdem disagrees with Dr. Marx's conclusions that the reduction in the percentage of CSOs paying only the minimum fee limits 
                        <E T="03">only the applicabilit</E>
                        y of the fee-based regression approach, as opposed to (as Dr. Erdem maintains) demonstrating the overall incorrectness of the model's specifications. Erdem WRT ¶ 132. More specifically, Dr. Erdem characterizes the 39% of CSOs paying only the minimum fee in 2014 as itself a “large proportion,” which would have required the Crawford Model, or a model fashioned in the manner of the Crawford Model, to have been “specified” for this effect. Instead, Dr. Marx treats the increase in the shift in CSOs paying minimum fees after 2014 only as grounds to find the fee-based regression model inapplicable for 2015-2017, rather than misspecified, and she wrongly deemed the 39% figure in 2014 sufficient to incorporate into her Bayesian regression. Erdem WRT ¶ 132.
                        <SU>70</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             The SDC's other econometric expert, Dr. Rubinfeld, criticizes Dr. Marx's use of a fee-based regression in her Bayesian approach for the same reasons he criticizes fee-based regressions writ large, and those criticisms are addressed elsewhere in this determination. But the Judges note here that Dr. Rubinfeld found Dr. Marx's “directional” analysis for 2015-2017, relating to the growth of streaming as impacting relative share values, as proof that “the regression specification put forth by Dr. Crawford was not robust or informative [because] the model does not adequately characterize the changing U.S. video distribution marketplace.” Rubinfeld WRT ¶ 95.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">b. Rebuttals to Dr. Marx's WDT by Program Suppliers Witness Dr. Tyler</HD>
                    <P>
                        Dr. Tyler 
                        <SU>71</SU>
                        <FTREF/>
                         levies three criticisms at Dr. Marx's direct testimony. First, he criticizes Dr. Marx's regression-based approach for estimating 2014 values for the same reason he criticizes all the other fee-based regression proffered in this proceeding (and Dr. Crawford's model as well).
                        <SU>72</SU>
                        <FTREF/>
                         That is, Dr. Tyler criticizes Dr. Marx's 2014 modeling because her dependent variable, as in the models of Drs. Crawford, George and Johnson, is “a royalty amount.” Written Rebuttal Testimony of Cleve B. Tyler, Ph.D., Trial Ex. 7601, ¶ 30 (Tyler WRT). Dr. Tyler's criticism of this form of dependent variable is that it “contain[s] a substantial amount of variability due to factors other than categories of distantly retransmitted minutes for a subscriber group.” Tyler WRT ¶ 31. According to Dr. Tyler, these models then need to include fixed effects to limit this unrelated variability, but Dr. Crawford's model—subsumed in Dr. Marx's 2014 model—suffers from a loss of information arising from these fixed effects.
                    </P>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             Dr. Tyler was received as an expert in the fields of economics, data analysis, and econometrics. 4/19/23 Tr. 5428 (Tyler).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             To be clear, Dr. Tyler does not criticize Dr. Marx's application of a Bayesian approach to the 2014 allocation issue.
                        </P>
                    </FTNT>
                    <P>
                        Moreover, Dr. Tyler notes that, for the 2015-2017 period, Professor Marx's inability to apply a fee-based regression arises from data limitations generated by the WGNA conversion, but such data limitations are obviated by the change in the dependent variable to 
                        <E T="03">his</E>
                         Subscriber Group Royalty Percentage (“SGRP”), which he avers does not require fixed effects, and thus his model does not discard information from the substantial number of CSOs that have just one Subscriber Group. Tyler WRT ¶ 70.
                    </P>
                    <P>
                        Dr. Tyler also maintains that because Dr. Marx relies on Dr. Crawford's 2010-2013 model, she began her regression analysis from an “imprecise starting point” and a potentially biased “prior belief.” Tyler WRT ¶ 57. That is, because Dr. Tyler is of the opinion that Dr. Crawford's process in generating his model generates “serious questions,” 
                        <SU>73</SU>
                        <FTREF/>
                         she has implicitly ported those problems into her model, which “cast[s] a substantial shadow of doubt on any of her conclusions.” Tyler WRT ¶ 57.
                    </P>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             Dr. Tyler's criticisms of Dr. Crawford's work are set forth at Tyler ACWDT ¶¶ 106-127 tech. app. A. The Judges discuss elsewhere in this determination the impact of the criticism of Dr. Crawford's work on the fee-based regressions proffered in this proceeding.
                        </P>
                    </FTNT>
                    <P>
                        Finally, Dr. Tyler takes aim at Dr. Marx's default to a directional analysis in which she opined that expanded streaming services likely “reduc[ed] the value of Program Suppliers and PTV claimants' retransmitted programming 
                        <E T="03">relative</E>
                         to the programming offered by CTV claimants.” While not disputing the relative value shift posited by Dr. Marx, Dr. Tyler maintains that an appropriate regression analysis, such as his approach, would capture this effect and in a manner superior to the inappropriate speculation embodied in Dr. Marx's “directional” analysis. Tyler WRT ¶ 72.
                    </P>
                    <HD SOURCE="HD3">c. Rebuttals to Dr. Marx's WDT by Program Supplier Expert Dr. Gray</HD>
                    <P>
                        Dr. Gray 
                        <SU>74</SU>
                        <FTREF/>
                         raises the following criticisms of Dr. Marx's approach:
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             The Judges received Dr. Gray as an expert in the fields of economics, statistics, and econometrics. 4/13/23 Tr. 4850 (Gray).
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            1. In support of her “directional” analysis, Dr. Marx claims only that 
                            <E T="03">local</E>
                             viewership declined for each of the Program Suppliers, Commercial Television, and Public Television claimant categories, but she fails to provide information on the level or trend of 
                            <E T="03">distant</E>
                             viewing of these locally produced programs. Written Rebuttal Testimony of Jeffrey S. Gray, Trial Ex. 7606, ¶¶ 47-48 (Gray WRT).
                        </P>
                        <P>2. Relatedly, although the Judges have previously ruled that local viewing patterns are not probative of distant viewing patterns, absent contemporaneous local and distant measures demonstrating that local viewing patterns are sufficiently informative as to subscribers' distant viewing patterns, Dr. Marx offers only local viewing data, which the Judges have previously found not probative of distant viewing pattern rather than evidence of distant viewing patterns. Gray WRT ¶ 48 n.40 (citing Order Reopening Record and Scheduling Further Proceedings, Consolidated Docket Nos. 2012-6 CRB CD 2004-2009 (Phase II) and 2012-7 CRB SD 1999-2009 (Phase II) at 3-4 (May 4, 2016)).</P>
                        <P>
                            3. Dr. Marx fails to account for the substantially diminished number of households which even had distant-retransmitted 
                            <E T="03">access</E>
                             to CTV programming in the years 2015-2017. Thus, she fails to address the fact that “the relative number of subscribers receiving [CTV] programming on a distant basis declined precipitously over the 2014-2017 royalty years,” as shown even in “[s]tatistics presented in Dr. Marx's direct testimony show[ing][CTV's] share of claimant category minutes weighted by the number of distant subscribers reached [had] declined 72% between 2014 and 2017.” Gray WRT ¶ 49.
                        </P>
                    </EXTRACT>
                    <HD SOURCE="HD3">d. Rebuttals to Dr. Marx's WDT by PTV's Expert Dr. Johnson</HD>
                    <P>
                        Dr. Johnson 
                        <SU>75</SU>
                        <FTREF/>
                         recognizes that he and Dr. Marx essentially agree as to the use of fee-based regressions and allocation methodologies for 2014, but that they disagree with regard to the usefulness of a fee-based regression to determine allocation shares for the 2015-2017 period. Johnson WRT ¶ 88. With regard to the latter three years, Dr. Johnson takes issue with Dr. Marx's opinion that the WGNA conversion would 
                        <PRTPAGE P="54197"/>
                        necessarily “ `exclude a large proportion of CSOs and royalties from the analysis,' ” rendering a fee-based regression approach “ `less informative and reliable.' ” Johnson WRT ¶ 89. More particularly, Dr. Johnson criticizes Dr. Marx for not presenting in her WDT “any regression analysis or testing that would support this claim,” and, moreover, that although she produced what appeared to be “computer code . . . appl[ying] Dr. Crawford's model to the entire 2014-2017 period,” she did not provide any explanation how that code might have supported her otherwise conclusory opinion that a fee-based regression for the 2015-2017 period would be “ `less informative and less reliable.' ” Johnson WRT ¶ 89 n.163.
                    </P>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             The Judges received Dr. Johnson as an expert in the fields of economics and econometrics. 3/21/23 Tr. 362 (Johnson).
                        </P>
                    </FTNT>
                    <P>
                        Regarding Dr. Marx's substitution of her “directional” analysis for a regression approach to analyze the 2015-2017 period, Dr. Johnson raises two criticisms. First, he finds her decision to not apply 
                        <E T="03">any</E>
                         modeling approach for that period to be too severe. Johnson WRT ¶ 91. Second, Dr. Johnson criticizes Dr. Marx's “directional analysis” as lacking any specificity, information or guidance as to what any particular claimant groups' royalty shares should be in the 2015-2017 period. Rather, her analysis is nothing more than a recitation of purported “qualitative changes Dr. Marx believes were `likely' to have happened.” Johnson WRT ¶ 92.
                    </P>
                    <HD SOURCE="HD3">e. Rebuttals to Dr. Marx's WDT by CCG's Expert Dr. George</HD>
                    <P>
                        Dr. George 
                        <SU>76</SU>
                        <FTREF/>
                         first addresses Dr. Marx's critique of Dr. Crawford's model somewhat obliquely—not by disputing the critique that his model reduces the available number of meaningful variations (among subscriber groups within CSOs) but by purportedly failing to recognize (as Dr. George opines) that relaxing fixed effects in Dr. Crawford's model would increase the number of subscriber group variations, thus salvaging the use of a fee-based regression. That is, an adjustment allowing for “estimating coefficients from variations within systems over time rather than within each system each accounting period,” allows for a regression to analyze “all systems carrying distant signals in two or more accounting periods [to be] included, regardless of the number of subscriber groups.” George WRT at 18.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             The Judges received Dr. George as an expert in the fields of economics, with experience in econometrics, media markets, and industrial organization. 4/18/23 Tr. 5111 (George).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             Dr. George acknowledges that relaxing Dr. Crawford's “fixed effects” in this manner risks the introduction of bias from omitted variables created by industry and system changes over time left unobserved by the regression, but she believes this trade-off is acceptable. George WRT at 18. By contrast, Dr. Marx maintains that allowing for the introduction of potential “omitted variable bias” would invite application of the metaphor “garbage in, garbage out.”
                        </P>
                    </FTNT>
                    <P>Further, Dr. George “agrees with Dr. Marx that programming on streaming services is likely a closer substitute for [PTV] and Program Supplier programming than other claimant types,” Dr. George finds that Dr. Marx's analysis “likely overstates the relative decline of Program Supplier and Public Television programming relative to Commercial Television content.” George WDT at 21. She reaches this finding by noting that Dr. Marx's reliance on local (rather than distant) viewing neglects the likely fact that local CTV news programming would be less popular in distant markets, whereas Program Suppliers' content is not geographically distinct and would not be less valued for this reason. George WRT at 21.</P>
                    <P>Finally, Dr. George takes issue with Dr. Marx's use of a Bayesian regression incorporating 2013 data into the methodology used to calculate 2014 share estimates.</P>
                    <P>
                        Dr. George emphasizes that pooled data from 2010-2013 reflects the choices made by CSOs in that earlier period with different market conditions. In this regard, Dr. George notes that decisions in 2010-2013 reflect neither the WGNA conversion nor later cable industry acquisitions and entry. George WDT at 22.
                        <SU>78</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             None of the JSC witnesses levied substantive criticisms of Dr. Marx's 2014 Bayesian regression or her 2015-2017 “directional” analysis. This is perhaps unsurprising, because a JSC expert witness, Dr. Majure, does not take issue with the results of Dr. Marx's 2014 Bayesian regression or with her “directional” analysis.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">3. The Judges' Analysis and Findings Regarding the Marx Model and Directional Approach</HD>
                    <P>Having considered all aspects of the CTV Marx Model and directional analysis presented by Dr. Marx, as well as all the criticisms of those approaches contained in the submissions by the other parties, the Judges find as follows:</P>
                    <EXTRACT>
                        <P>
                            1. Dr. Marx's Bayesian modeling, 
                            <E T="03">ceteris paribus,</E>
                             is an appropriate econometric tool to use in the process of estimating relative marketplace value across the program categories for 2014. The Judges do not credit Dr. George's criticism that Dr. Marx's Bayesian approach is deficient because it pools 2014 data with data from the 2010-2013 period. Dr. Marx opined, and the Judges agree, that 2014 was sufficiently similar to this prior period to justify the Bayesian approach.
                            <SU>79</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>79</SU>
                                 The Judges also note that Dr. George herself pooled data from 2014 with the 2015-2017 data, where the data distinction was dramatic, having arisen from the WGNA conversion.
                            </P>
                        </FTNT>
                        <P>
                            2. Dr. Marx's directional analysis for the 2015-2017 period can be useful, despite the absence of any allocation share estimates, in that it suggests to the Judges which of the quantitative estimates on which the Judges do rely could be more probative, in that they are consonant with Dr. Marx's directional analysis. However, in the present proceeding, as discussed 
                            <E T="03">infra,</E>
                             the Judges adopt the Tyler Model as a regression model that is probative of relative marketplace values over the entire 2014-2017 period. Accordingly, the Judges find Dr. Marx's `directional” analysis, although useful, not as probative or definitive as the Tyler Model. Nonetheless, the Judges will utilize the Marx Model, as appropriate, to reconcile differences between the Tyler Model and the adjusted Bortz approach undertaken 
                            <E T="03">infra.</E>
                        </P>
                        <P>
                            3. Nonetheless, the Judges emphasize the appropriateness of Dr. Marx's `directional” analysis, because they do not want to leave the implication that such qualitative analyses are inappropriate. Dr. Marx's 2015-2017 directional analysis was an appropriate alternative to a fee-based regression—because (as discussed elsewhere in this determination) the WGNA conversion substantially increased the number of minimum-fee-only CSOs and the number of CSOs with less than two subscriber groups—reducing significantly the number of CSOs and subscriber groups that was accepted by the Judges in the 2010-13 Determination. In this regard, the Judges do not credit Dr. Erdem's reliance on 
                            <E T="03">separate</E>
                             arguments, seeking to discredit Dr. Marx's use of the regression approach have evidentiary weight commensurate 
                            <E T="03">for 2014,</E>
                             regarding the impact of (a) the reduction in the number of CSOs with two or more subscriber groups; and (b) the increase in the number of minimum-fee-only CSOs. Rather, Dr. Marx has considered the 
                            <E T="03">combined</E>
                             effect of these factors.
                        </P>
                        <P>4. Although Dr. Marx's “directional” approach is probative and useful, she overstated the point that the reduction in above-minimum-fee-paying CSOs rendered their revealed preferences without benefit. Rather, their channel selections/programming preferences are also probative and useful, even if less so than in the 2010-13 Determination because of the reduction in the number of such CSOs and in the percentage of royalties they represent.</P>
                        <P>
                            5. Dr. Marx's allocation shares related to “duplicated” minutes is superior to her share allocation excluding “duplicated” minutes, because the Judges adopted the former in the 2010-13 proceeding, because of problems relating to the latter as described in the prior determination. 
                            <E T="03">See</E>
                             2010-13 Determination at 3565, 3569, 3591, and 3610-11.
                        </P>
                        <P>
                            6. The evidentiary weight of Dr. Marx's “directional” analysis for the 2015-2017 period is not diminished due to her reliance on local viewership data, because the evidence in this proceeding indicates that a substantial percentage of distant viewing is retransmitted to areas in close proximity to the origin of the local signal. 
                            <E T="03">See, e.g.,</E>
                             Erdem WRT 59 (“91% of systems are retransmitting the same signal on a local basis to some 
                            <PRTPAGE P="54198"/>
                            subscriber groups and on a distant basis to other subscriber groups [and] [of]f these systems, on average, 76% of the channels that are distant to a subscriber group are retransmitted as local to another subscriber group . . . .”).
                        </P>
                        <P>
                            7. Dr. Marx's “directional” analysis provides evidence suggesting that PTV and Program Suppliers content declined in viewership relative to CTV, implying, 
                            <E T="03">ceteris paribus,</E>
                             a higher relative share value for CTV. The Judges note that Dr. George agrees with this point (but see point (8) below).
                        </P>
                        <P>8. However, the Judges' prior reluctance to use viewership as a direct proxy for value in the allocation (Phase I) proceedings cautions against applying too much probative weight to this “directional” analysis. Accordingly, the Judges adopt Dr. Gray's criticism regarding Dr. Marx's reliance on local viewership data, but only as a caution regarding its evidentiary weight. In this regard, Dr. George agrees that the weight placed on Dr. Marx's viewership-based approach be limited.</P>
                        <P>9. The Judges further limit the evidentiary weight of Dr. Marx's “directional “analysis, because, as Dr. Gray further notes, Dr. Marx's own data shows that CTV's share of claimant category minutes declined significantly between 2014 and 2017.</P>
                    </EXTRACT>
                    <HD SOURCE="HD2">C. Program Suppliers' Regression Approach: The Tyler Model</HD>
                    <P>
                        On behalf of Program Suppliers, its expert witness, Dr. Tyler, proffered a regression analysis that, while within the broad category of fee-based regressions, is differentiated in ways that Dr. Tyler opines to be important in this proceeding. The Judges' review of his testimony, 
                        <E T="03">infra,</E>
                         highlights these broad similarities and the assertedly important differences.
                    </P>
                    <P>
                        At a high level, Dr. Tyler agrees with the finding in the 2010-13 Determination that regression analysis is very informative for estimating relative marketplace value in this case. But by way of differentiating his approach, Dr. Tyler notes that a regression seeking to establish relative marketplace value should estimate incremental value, which he posits here to be the marginal value of an 
                        <E T="03">additional minute</E>
                         of different types of programming content relative value—rather than a value r
                        <E T="03">elative to a reference or base category,</E>
                         as in the other proffered regressions. Tyler ACWDT ¶ 65; 4/19/23 Tr. 5439-40 (Tyler).
                    </P>
                    <P>
                        Next, Dr. Tyler notes that—although the statutory royalty formula in section 111 prevents the setting of market prices for distantly retransmitted stations—a regression can observe how CSOs reveal their preferences for different types of stations bundling various types of programming content, 
                        <E T="03">given the pre-existing section 111 royalty rate provisions.</E>
                         In turn, the observations of the decision-making by CSOs provides insight into their willingness-to-pay (WTP) for different programming categories on their distantly retransmitted local stations. The final link in this analytic chain, according to Dr. Tyler, is that the regression can measure this WTP and thus estimate the “relative values of market outcomes” that cannot be directly observed. Tyler ACWDT ¶ 65.
                    </P>
                    <P>
                        More particularly, Dr. Tyler explains that regression analysis as applied to determine relative marketplace value in these proceedings “exploits the fact that CSOs make choices as to which bundles of content they retransmit.” Tyler ACWDT ¶ 66. He adds that the regression will estimate the incremental royalty amount that CSOs paid (or, more accurately appeared willing to pay) 
                        <SU>80</SU>
                        <FTREF/>
                         to acquire different types of content, which, he opines, “is akin to finding the relative value of programming content, based on actual choices made by marketplace participants.” 
                        <E T="03">Id.</E>
                         Finally, Dr. Tyler explains that the “marginal values” calculated via his regression must be multiplied by the quantities of minutes “to compute relative marketplace value.” Tyler ACWDT ¶ 68.
                    </P>
                    <FTNT>
                        <P>
                            <SU>80</SU>
                             The Judges understand that Dr. Tyler found it necessary to include this qualifier because in a majority of instances in the 2015-2017 period, CSOs paid the minimum fee rather than the “base fee” calculated on a subscriber group basis. 
                            <E T="03">See</E>
                             Tyler ACWDT ¶ 67 (tacitly acknowledging that where the minimum fee is binding, a fee-based regression does not provide the CSOs' actualized revealed preferences, but rather only “
                            <E T="03">insight</E>
                             into how the CSOs would actually value these program categories in an unregulated market.”). 
                        </P>
                        <P>In this regard, the Judges discuss elsewhere in this determination the distinction in evidentiary value between instances where the CSO actually pays the calculated subscriber group base fee, and instances where the CSO actually pays the minimum fee (not the calculated subscriber group base fee).</P>
                    </FTNT>
                    <P>
                        Notwithstanding his broad agreement with other experts in this and prior proceedings that fee-based regressions are useful, he parts company with them in an important way. Rather than start from the assumption that Dr. Crawford's 2010-13 model is useful or correct, Dr. Tyler constructed a regression model that differed from the approach taken by Dr. Crawford and from Drs. Johnson George and Marx (for 2014), whose approaches were modified versions of Dr. Crawford's model. More specifically, he avers that the Tyler Model diverges importantly and beneficially from prior fee-based regressions and from the fee-based regressions proffered by the other experts here, because of his model's use of a 
                        <E T="03">Rate</E>
                         as the dependent variable.
                    </P>
                    <P>In this regard, Dr. Tyler explains that Crawford-style regressions use actual dollar royalty amounts as the dependent (left-hand side) variable, which is problematic because “substantial variability exists across the royalty amounts calculated for each subscriber group . . . . ” More particularly, because “copyright royalties are determined on the basis of gross receipt percentages . . . greater [dollar] royalty amounts . . . for a subscriber group [may occur] for no other reason than that one CSO has more subscribers or higher prices, or both, than another CSO.” Tyler ACWDT ¶ 83.</P>
                    <P>Accordingly, a regression model using royalty amounts calculated (such as the Crawford Model) “must control for these sources of variability to attempt to isolate the incremental value of minutes by category type.” Tyler ACWDT ¶ 83. This control is made in the Crawford-style regression by the use of “fixed effects,” which “discard information from the substantial number of CSOs that have just one subscriber group,” a loss of data that is unnecessary in the Tyler model. Tyler WRT ¶ 70.</P>
                    <P>
                        Dr. Tyler's use of royalties as a percentage of gross receipts, at the subscriber group level, allows him to calculate what he coins (as noted 
                        <E T="03">supra</E>
                        ) the “Subscriber Group Royalty Percentage” (“SGRP”). When the SGRP is regressed against the number of transmitted minutes for each category, Dr, Tyler obtains coefficients for his regression equation that he describes as “represent[ing] a type of price.” Tyler ACWDT ¶ 84.
                    </P>
                    <P>This attempt by Dr. Tyler to characterize the SGRP dependent variable as a “type of price” is no mere academic detail. By making this characterization, Dr. Tyler claims that his model sits within a well-accepted class of econometric regressions known as “hedonic regressions,” which he defines as follows:</P>
                    <EXTRACT>
                        <P>Hedonic regression . . . model[s] . . . estimate the influence that various factors have on the price of a good, or sometimes the demand for a good. In a hedonic regression model, the dependent variable is the price (or demand) of the good, and the independent variables are the attributes of the good believed to influence utility for the buyer or consumer of the good. The resulting estimated coefficients on the independent variables can be interpreted as the weights that buyers place on the various qualities of the good.</P>
                    </EXTRACT>
                    <FP>Tyler ACWDT ¶ 85.</FP>
                    <P>
                        Dr. Tyler then constructs his purported hedonic regression by using what he describes as the calculated “actual” 
                        <SU>81</SU>
                        <FTREF/>
                         royalty rate per subscriber—
                        <PRTPAGE P="54199"/>
                        determined by the base fee royalty as a percent of each subscriber group's gross receipts. Tyler ACWDT ¶ 87. He proceeds to weight the regression model by the gross receipts of the CSOs, which he opines is “consistent with assessing relative marketplace value [because] [s]ubscriber groups with larger gross receipts would tend to contain more information [and] CSOs would be expected to scrutinize decisions regarding distantly retransmitted signals more carefully when there are more dollars at stake.” Tyler ACWDT ¶ 88.
                        <SU>82</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>81</SU>
                             The word “actual” in this context is rather Orwellian. For the 2015-2017 period, a substantial majority of the CSOs in which the subscriber groups are situated “actually” paid the minimum fee. A Base Fee was “actually” calculated, as required by 
                            <PRTPAGE/>
                            the regulations, but 
                            <E T="03">not “actually” paid,</E>
                             because the Minimum Fee bound. Dr. Tyler's misleading semantic use of the adjective “actual” does not assist the Judges in deciding whether any or all of the Base Fee calculations have objective evidentiary weight.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             The use of weights in hedonic regressions has support in the economic literature. 
                            <E T="03">See</E>
                             Tyler ACWDT ¶ 88 n.72 (citing sources). (Dr. Tyler also includes a sensitivity analysis in which he shows the results of his model without weights Tyler ACWDT § VI.G. (tech. app. C)).
                        </P>
                    </FTNT>
                    <P>
                        Dr. Tyler's regression model “includes interaction terms for each year . . . which allows for estimated valuations that vary” for each year in the 2014-17 period. This annualizing of the valuations is distinguishable from the “pooled” approach of other regression experts in this proceeding, who (in the models proffered in their direct testimonies) “pool” their data across all four years. Dr. Tyler rejects this approach and utilizes an annualized approach instead, because, he opines, utilizing the same coefficient across the four years is both (1) 
                        <E T="03">legally</E>
                         inappropriate because calculating share allocations for specific years is statutorily required and (2) inconsistent with “best practices” for hedonic regressions (data permitting), which allow the underlying relationships between types of minutes and SGRP to vary over time. Tyler ACWDT ¶ 91.
                    </P>
                    <P>Summing up, Dr. Tyler identifies what he understands to be the many advantages of his model:</P>
                    <EXTRACT>
                        <P>1. SGRP—as a type of price—reflects a “minimum willingness to pay” and thus has a “clear economic interpretation.” PS PFF ¶ 285 (and record citations therein).</P>
                        <P>2. The focus of the regression is on “nearly 20,000 observations/data points, and more than 2,000 distinct pricing relationships, providing the variation needed for a meaningful regression. PS PFF ¶ 286 (and record citations therein).</P>
                        <P>3. By using SGRP as the dependent variable instead of royalties (in any functional form), the Tyler Model is not influenced by variability in gross receipts caused by the number of subscribers in a subscriber group or higher CSO subscription prices arising from for example, the number and type of cable networks carried, the quality of (or deficiency in) customer service, and the bundled pricing of cable, internet and/or phone. Unlike the regressions that use royalties as the dependent variable, the Tyler Model does not need to control for these statutorily unrelated effects, thus avoiding the potential for bias when fixed effects are introduced. PS PFF ¶¶ 290-292 (and record citations therein).</P>
                        <P>4. Because the SGRP is a “type of price” the Tyler Model is “closer” to the definition of a traditional hedonic regression and “closer to the definition of a traditional hedonic model.” PS PFF ¶ 293 (and record citations therein).</P>
                        <P>5. By establishing values and shares for each year, rather than pooling the results over the four-year period, the Tyler Model: (a) is in line with the Judges' statutory task; (b) captures annual industry changes; and (c) is consistent with “best practices for hedonic regressions.” PS PFF ¶¶ 294-296 (and record citations therein).</P>
                        <P>6. The Tyler Model looks at the more economically logical hypothetical marginal expansion per minute of a program type to determine value rather than the hypothetical shift of minutes among program categories. PS PFF ¶ 298 (and record citations therein).</P>
                        <P>7. The Tyler Model avoids the problem inherent in the other regressions that must rely on incorrect subscriber number estimates. PS PFF ¶¶ 299-300, 358, 360-3623 (and record citations therein). Unlike the models proffered by Drs. George, Johnson and Marx, the Tyler Model is not based on the Crawford Model. Therefore, unlike those models, the Tyler Model is not tainted by the potential “specification searching” suggested by the high number of models and specifications tested by Dr. Crawford. Moreover, Dr. Tyler only considered the results of fewer than two dozen models (all linear in functional form) many of which were robustness/sensitivity checks and not generated as potential alternative base models. PS PFF ¶¶ 305, 307, 311-313, 315-316, 376-379 (and record citations therein).</P>
                        <P>8. Despite its differentiation from the Crawford Model, particularly with regard to the SGRP as the dependent variable in the Tyler Model and in the absence of a need for fixed effects, the Tyler Model is an improvement of the fee-based regression approach, not a departure. PS PFF ¶ 317 (and record citations therein).</P>
                        <P>9. The Tyler Model does not cherry-pick or otherwise overstate an allocation share for Program Suppliers, for whom Dr. Tyler presented testimony. PS PFF ¶ 308-309 (and record citations therein).</P>
                    </EXTRACT>
                    <P>Applying his model in the foregoing manner, Tyler estimates royalty shares (and standard errors) for each year as follows:</P>
                    <GPH SPAN="3" DEEP="193">
                        <GID>EN28JN24.010</GID>
                    </GPH>
                    <PRTPAGE P="54200"/>
                    <HD SOURCE="HD3">1. Criticisms of the Tyler Model</HD>
                    <HD SOURCE="HD3">a. Criticisms of the Tyler Model by SDC Expert Witness Dr. Erdem</HD>
                    <P>Dr. Erdem opines that, notwithstanding Dr. Tyler's claim that his model is differentiated to address defects in the approach used by Dr. Crawford, the Tyler Model “essentially carries the same flaws.” Erdem WRT ¶ 43. But before examining alleged flaws in the Tyler Model, Dr. Erdem acknowledges that, in his opinion, the other regression experts' modeling is more “egregious” than Tyler's model. Erdem WRT ¶ 121. More particularly, Dr. Erdem recognizes that Dr. Tyler has made what Dr. Erdem understands to be the following salutary changes from the approach used by Dr. Crawford:</P>
                    <EXTRACT>
                        <P>1. A change in the dependent variable from the log of royalties into a fees/revenue ratio.</P>
                        <P>
                            2. The removal of fixed effects.
                            <SU>83</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>83</SU>
                                 Dr. Erdem opined that the inclusion of fixed effects obscured the more impactful predictive effects of other independent variables on the royalty-based related dependent variable.
                            </P>
                        </FTNT>
                        <P>
                            3. Division of each claimant category into “Canada” and “non-Canada” zone minutes.
                            <SU>84</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>84</SU>
                                 The experts' treatment of issues relating specifically to the Canada Zone is set forth 
                                <E T="03">infra</E>
                                 in this determination.
                            </P>
                        </FTNT>
                        <P>4. Removal of the effect of “the number of subscribers” by “divid[ing] the . . . fees paid by a metric [gross receipts] that scales with the number of subscribers.”</P>
                    </EXTRACT>
                    <FP>Erdem WRT ¶¶ 43, 61.</FP>
                    <P>
                        However, according to Dr. Erdem, despite the positive significance in these model changes, the core principle of the Tyler Model remains unchanged from other regressions, because “the dependent variable Dr. Tyler uses is still driven by fees [and] attempt[s] to estimate the relationship between fees and programming minutes.” Erdem WRT ¶ 43.
                        <SU>85</SU>
                        <FTREF/>
                         More granularly, Dr. Erdem criticizes Dr. Tyler's use of the SGRP as the dependent variable because it “basically boils down to the number of DSEs.” In this regard, Dr. Erdem further opines:
                    </P>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             This is a reprise of the overarching criticism that Dr. Erdem made in the 2010-13 Determination, which was rejected by the Judges.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>This is because a system's royalty fees are calculated by multiplying their revenues by a specified amount that increases as the system adds more DSEs, so dividing the fees by revenue will produce a number that correlates strongly with the number of DSEs the system carried. As a result, Dr. Tyler is essentially saying that DSEs equate to market value.</P>
                    </EXTRACT>
                    <FP>
                        Erdem WRT ¶ 122. Dr. Erdem asserts that this change in the dependent variable from the log of royalties to the SGRP does not cure the fundamental problem in 
                        <E T="03">all</E>
                         fee-based regressions, to wit: fee-based regressions are “trying to calculate market value when no market exists, using variables determined by regulation.” Erdem WRT ¶ 122.
                    </FP>
                    <HD SOURCE="HD3">b. Criticisms of the Tyler Model by SDC Expert Witness Dr. Rubinfeld</HD>
                    <P>
                        Dr. Rubinfeld testifies about the deficiencies in all the fee-based regressions, but he pointedly criticizes Dr. Tyler for characterizing his regression as a 
                        <E T="03">hedonic</E>
                         regression. Rubinfeld WRT ¶ 71. Dr. Rubinfeld levies this objection because he is of the opinion that Dr. Tyler's dependent variable, the SGRP, does not equate or analogize to a “market price”—a necessary element for a regression to qualify as hedonic. Rubinfeld WRT ¶ 71. Thus, according to Dr. Rubinfeld, Dr. Tyler's dependent variable, the SGRP, falls victim to the same deficiency as the other regressions, in that there is “no reason to believe that a regression based on statutory royalty fees—whether in dollar terms or expressed as a percentage of gross receipts—will identify the marginal value of programming that would prevail if the royalty fees were determined in a free market.” Rubinfeld WRT ¶ 75.
                    </P>
                    <P>
                        However, Dr. Rubinfeld 
                        <E T="03">approvingly cites Dr. Tyler's testimony</E>
                         (in the same vein as Dr. Erdem) for its critique of the modeling undertaken by Dr. Crawford. In this regard, Dr. Rubinfeld notes:
                    </P>
                    <EXTRACT>
                        <P>1. Dr. Tyler examines Dr. Crawford's regression model to the 2014-2017 data available in the current proceeding and finds a “serious” underlying modeling problem in the fact that “the Crawford Model estimates zero shares for JSC in 2014 (as well as the other years) . . . .”</P>
                        <P>
                            2. Dr. Tyler analyzes the troubling pattern of the regression's “residuals” in Dr. Crawford's model—again using 2014-2017 data—and finds that the latter's regression model is “not well specified for the 2014-2017 data.” 
                            <SU>86</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>86</SU>
                                 More technically, Dr. Rubinfeld (like Dr. Erdem) finds the “hammer-shaped pattern of residuals violates the classical zero conditional mean of the disturbance assumption for the OLS estimator to be unbiased.” Erdem WRT ¶ 93. This means that the residuals exhibit non-random data points, whereas a well-specified regression would contain have random error terms. In (perhaps) somewhat less technical terms, Dr. Rubinfeld is agreeing with Dr. Tyler that the unexplained portions of the Crawford Model are actually correlated with one or more omitted independent variables.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>Rubinfeld WRT ¶ 93.</FP>
                    <P>
                        In sum, Dr. Rubinfeld does not find economic support for Dr. Tyler's regression model, but does find common cause with Dr. Tyler' broad criticism of other fee-based regressions.
                        <SU>87</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>87</SU>
                             Another SDC expert witness, Mr. John Sanders, likewise does not “endorse” Dr. Tyler's modeling, but relies on Dr. Tyler's critiques to discredit the fee-based regressions proffered by other experts. 
                            <E T="03">See, e.g.,</E>
                             Sanders WRT ¶ 3 nn.4, 9, &amp; 20. Mr. Sanders also notes the divergence of Dr. Tyler's estimated share for PTV and, respectively, SDC content, from the results of other fee-based regressions as, in his opinion, indicative of the unreliability of such regressions in these proceedings. Sanders WRT ¶¶ 11, 18.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">c. Criticisms of the Tyler Model by CTV Expert Witness Dr. Bennett</HD>
                    <P>As an initial criticism, Dr. Bennett avers that Dr. Tyler's use of his SGRP as the dependent variable, instead of royalties, may potentially and illogically fail to link “variation in the composition of minutes [to] value unless that variation is also accompanied with a change in . . . the SGRP.” Bennett WRT ¶ 124. To make this point, Dr. Bennett hypothesizes a scenario in which two minimum-fee-paying CSOs make subscriber-increasing changes in distantly retransmitted stations, thus increasing royalties, but each maintains the same SGRP because royalties have not increased (remaining at the minimum fee level). Bennett WRT ¶ 125.</P>
                    <P>
                        Moving to another critique, Dr. Bennett opines that Dr. Tyler's regression sample “is based on a relatively small and non-representative sample of the CSOs whose royalty payments comprise the aggregate of the royalty pool.” Bennett WRT ¶ 135. Dr. Bennett does not suggest that this small sample is unique to Dr. Tyler among the regression experts, acknowledging that this applies to “the other witnesses relying on regressions for 2014-2017.” Bennett WRT ¶ 136.
                        <SU>88</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             Although Dr. Bennett does not state here why the sample is so truncated, the Judges understand this point to be based on the growing number of CSOs, without any distant retransmissions and thus no subscriber groups, which Dr. Bennett indicates increased over the 2015-17 period.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">d. Criticisms of the Tyler Model WDT by JSC Expert Witness Dr. Majure</HD>
                    <P>In addition to his general criticisms of all fee-based regressions, Dr. Majure levies criticisms that he aims most particularly against Dr. Tyler's regression approach. Dr. Majure acknowledges that “[p]rior to WGNA's conversion, there was some variation in the royalty rate a CSO would pay for incremental content,” such that only “[t]he regressions that rely on data for 2015-2017 have little to no connection with how much CSOs value the content.” Majure WRT ¶¶ 75, 77. Thus, he opines that “only after the WGNA conversion [the regressions] do not—and cannot—estimate the value of a minute of content to CSOs.” Majure WRT ¶ 75.</P>
                    <P>
                        Dr. Majure maintains that the Tyler Model well-demonstrates the foregoing 
                        <PRTPAGE P="54201"/>
                        point, and that the Tyler Model essentially estimates only “the equation given by the statutory formula . . . .” Majure WRT ¶ 78. Thus, he opines that the SGRP in the Tyler Model does not establish a “price” that can be explained and applied as in a bona fide hedonic regression. Majure WRT ¶¶ 78-79 (“For example, [in the Tyler Model] the `price' calculated for the subscriber groups of a CSO carrying a full DSE or less than a full DSE across all subscriber groups would be 1.064 percent of the subscriber group's revenues multiplied by its total number of DSEs.”).
                    </P>
                    <P>However, Dr. Majure is careful to acknowledge that “the statutory formula could lead to variation in Dr. Tyler's `price' beyond what comes from the DSE value” in 2014 but “this is not the case after 2014 [because] after 2014, the vast majority of subscriber groups belong to CSOs that paid the minimum fee, leaving little variation in the percentage of royalties they would owe.” Majure WRT ¶ 80. Thus, Dr. Majure appears to recognize that for 2014 the Tyler Model presented an acceptable proxy for “price” as its the dependent variable.</P>
                    <HD SOURCE="HD3">e. Criticisms of the Tyler Model WDT by JSC Expert Witness Mr. Harvey</HD>
                    <P>Although Mr. Harvey opines that the Tyler Model, like the other regression models, is unable to correctly value JSC programming for the 2015-17 period, he acknowledges that the Tyler Model is superior to the others in one respect: it calculates annual coefficients rather than “pooled” coefficients for all four years (2014-2017). Harvey WRT ¶¶ 28, 35.</P>
                    <P>But Mr. Harvey is otherwise decidedly critical of the Tyler Model—maintaining first that it does not “reliably estimate[e] [JSC] value[ ] in 2015-2017,” because “[s]ixty-six percent (4 of 6) of the compensable sports coefficients are not statistically significantly different than zero.” Harvey WRT ¶ 45 &amp; tbl.9.</P>
                    <P>
                        Next, Mr. Harvey separates out minimum fee systems from the Tyler Model, in order to isolate those CSOs making retransmission decisions that Mr. Harvey asserts had economic consequence in terms of royalty payments. Harvey WRT ¶ 46 &amp; tbl.10. He then turns to various “sensitivity tests” undertaken by Dr. Tyler, that were not contained in the Tyler Written Direct Testimony but which were produced in discovery by Program Suppliers. Harvey WRT ¶ 68. Looking at these tests, Mr. Harvey notes that Dr. Tyler “selected a specification that, among his many sensitivity analyses, resulted in one of the lowest shares for JSC and one of the highest for Program Suppliers.” Harvey WRT ¶ 70. See also Harvey WRT fig.6.
                        <SU>89</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             To be clear, figure 6 generated by Mr. Harvey shows that the share allocations arising from the proffered Tyler Model were neither higher than all the Program Supplier shares nor lower than all the JSC shares generated by the sensitivity tests. Moreover, Mr. Harvey does not state why the sensitivity test results should have led Dr. Tyler to alter his share allocations, nor does Mr. Harvey state why Dr. Tyler should have abandoned the Tyler Model merely because the shares differed in the sensitivity test, albeit not in a manner that even Mr. Harvey avers had called into question the model's robustness.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">f. Criticisms of the Tyler Model by CCG Expert Witness Dr. George</HD>
                    <P>At the outset, Dr. George, avers that Dr. Tyler's model “diverges from economic theory” through his consideration of the SGRP, rather than a measure of royalties, as the dependent variable affected by claimant programming minutes. George WRT at 11-12. More particularly, Dr. George maintains that this change in the dependent variable:</P>
                    <EXTRACT>
                        <FP>removes the link between the value of distant signal programming to [CSO] and royalty cost that lies at the heart of the theoretical framework [and] effectively replicates the regulatory formula [rather than] reflect value.</FP>
                    </EXTRACT>
                    <FP>George WRT at 12. Further to this point, Dr. George asserts that the inclusion of the SGRP as the dependent variable “attenuate[s]” the differentiated marginal value of assorted types of programs. She explains that by looking at royalties from all retransmitted programming as a proportion of gross receipts, the Tyler Model “understates the value of high-quality, differentiated program and overstates the value of undifferentiated, low-quality programming.” George WRT at 12.</FP>
                    <P>
                        Another criticism levied against the Tyler Model by Dr. George is that (as with the Johnson Model, discussed 
                        <E T="03">infra</E>
                        ) it suffers from the consequential defect of:
                    </P>
                    <EXTRACT>
                        <FP>
                            includ[ing] no fixed effects at all [and the] coefficients [thus] are estimated using variation across different cable systems . . . the variation most likely to be contaminated by the effect of unobserved factors, also known as bias from omitted variables . . . 
                            <E T="03">[the coefficients therefore] cannot be relied on to reflect underlying value.</E>
                        </FP>
                    </EXTRACT>
                    <FP>George WRT at 13 (emphasis added).</FP>
                    <HD SOURCE="HD3">g. Criticisms of the Tyler Model by PTV Expert Witness Dr. Johnson</HD>
                    <P>
                        Although Dr. Johnson finds that he and Dr. Tyler agree on a number of points, 
                        <E T="03">see</E>
                         Johnson WRT ¶ 26, Dr. Johnson takes issue with the following aspects of Dr. Tyler's WDT.
                    </P>
                    <P>
                        At the outset, Dr. Johnson criticizes Dr. Tyler's use of the SGRP as the dependent variable in the Tyler Model because, according to Dr. Johnson, “the SGRP does not capture the CSO decision-making process and identify their valuation of such programming,” because the SGRP essentially replicates the statutory formula without regard to “the type of programming . . . on the signals the CSO retransmits.” Johnson WRT ¶ 34. Thus, according to Dr. Johnson, the SGRP dependent variable in the Tyler Model fails to capture the “chain of logic” of the correlation in the fee-based regressions, 
                        <E T="03">i.e.,</E>
                         that “[t]o the extent . . . a CSO's bundle of programming includes more valuable programming, the price of that bundle will be higher, the CSO's gross receipts will be higher, and thus the amount of royalties that the CSO pays will be higher.” Johnson WRT ¶ 35.
                    </P>
                    <P>Next, Dr. Johnson looks at the “sensitivity tests” Dr. Tyler applied to his own model and notes “the extreme variability in Dr. Tyler's regression results” uncovered by these tests relative to Dr. Johnson's more stable results, which, according to Dr. Johnson “suggests that modeling royalty amounts rather than the statutory royalty rate is more appropriate.” Johnson WRT ¶ 40.</P>
                    <HD SOURCE="HD3">
                        2. The Judges' Analysis and Findings Regarding the Tyler Model 
                        <SU>90</SU>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             The Judges' analysis and findings in this section are separate and apart from their analysis and findings on the specific issues considered in separate sections of this determination.
                        </P>
                    </FTNT>
                    <P>The Judges make the following findings with regard to the Tyler Model:</P>
                    <EXTRACT>
                        <P>
                            1. Dr. Tyler's measurement of “an additional minute” of programming content, as contrasted with a “value relative to a reference or base category” in other regressions, is appropriate, but neither approach is superior 
                            <E T="03">inter se.</E>
                        </P>
                        <P>
                            2. The base fee calculations of minimum-fee-only CSOs do provide some “insight” into how those CSOs might actually value different program categories, but that “insight” is limited, because it is predominantly informative as to ordinal rankings of relative value, rather than cardinal measures, as required in these proceedings. 
                            <E T="03">See</E>
                             2010-13 Determination at 3578 (“the Judges do not place much weight on the relative rankings of the program categories”); 
                            <E T="03">cf. Phonorecords III,</E>
                             Initial Ruling and Order after Remand at 38 (July 1, 2022) (distinguishing the benefit of an economic model's “insight” from a useful “real-world relationship”).
                        </P>
                        <P>
                            3. A CSO whose base fee calculations are more proximate to the minimum fee it eventually paid would be more probative of CSOs' willingness-to-pay than when there is a large gap between the calculated base fee and the paid minimum fee, because the CSO could have understood that the base fee might bind. However, the record provides 
                            <PRTPAGE P="54202"/>
                            insufficient evidentiary basis to apply this point in the present proceeding.
                        </P>
                        <P>4. On the present factual record, the Tyler Model's SGRP is preferable to the log of royalties, or royalties themselves, as the dependent variable in a fee-based regression, because it does not require the use of questionable controls and fixed effects, and remains appropriate even in the absence of such controls and fixed effects. However, the log of royalties, or royalties themselves, are appropriate dependent variables, provided the factual record and the specifications of the regression are appropriate.</P>
                        <P>
                            5. The Tyler Model is not a hedonic regression as generally understood by economists, because it is not based on actual market prices. Dr. Tyler at times acknowledges this point, by describing his SGRP as a “type” of price, rather than an actual price and by also describing the SGRP as “closer” to the definition of a traditional hedonic model. However, the approach taken by the Tyler Model is in the nature of a hedonic regression, in that it utilizes a similar approach by creating a useful proxy for price proxy in the form of a budget constraint, 
                            <E T="03">i.e.,</E>
                             the SGRP. (
                            <E T="03">See also</E>
                             the discussion regarding “relative marketplace value” supra and the section, 
                            <E T="03">infra,</E>
                             comparing the Tyler Model to a “fee generation” approach).
                        </P>
                        <P>6. The Tyler Model's use of weighting of each CSO's gross receipts is appropriate of the CSOs because the decisions by CSOs with larger gross receipts will have a greater impact on the royalty pool making the programming category information they provide more important.</P>
                        <P>7. The Tyler Model, calculating coefficients for each year, is superior to the other regression models in this proceeding to the extent those models were originally proffered as “pooled” models, using one coefficient for the entire 2014-2017 period. (However, this advantage is mitigated where there is evidence or testimony that such “pooled” models were themselves subsequently recalculated on an “unpooled” basis either by the proffering regression expert or by other expert witnesses in their rebuttal testimonies.)</P>
                        <P>8. The Tyler Model provides sufficient variation among the CSOs' decisions because it contains approximately 20,000 data points for observation, and more than 2,000 distinct pricing relationships. 4/19/23 Tr. 5436 (Tyler).</P>
                        <P>9. The Tyler Model is superior to the other fee-based regressions by not requiring as a control variable an estimate of the number of subscribers in a subscriber group, which cannot be estimated without measurement error. PS PFF ¶¶ 300, 360-362 (and record citations therein). This issue is a critical reason why the Judges give greater weight to the Tyler Model vis-à-vis the other regression models, and thus necessitates getting “into the weeds” for a more detailed explanation.</P>
                        <P>
                            The control for the number of subscribers is very important in the other fee-based regressions where the dependent variable is a functional form of royalties, because the number of subscribers clearly would have a substantial effect on the level of royalties (
                            <E T="03">i.e.,</E>
                             more subscribers = more royalties). Moreover, the number of subscribers must be controlled because the number of subscribers could also be positively correlated with the number of minutes. Thus, it must be controlled in order to isolate the “effect” of interest, which is the impact of different program category minutes on the royalties. 
                            <E T="03">However, there is no data available regarding the number of subscribers in a subscriber group, and the other fee-based regression experts are forced to make an estimate by “proportionally assigning the number of overall CSO subscribers to each subscriber group based on the gross receipts for each subscriber group.”</E>
                             Tyler WRT ¶ 41 (emphasis added).
                        </P>
                        <P>The problem with this estimate is two-fold, inaccuracy and impact on the regression. As Dr. Tyler explains:</P>
                        <P>
                            The estimate is “inaccurate because allocating the number of subscribers based on the distribution of gross receipts is akin to assuming that customers in each subscriber group are paying the same monthly rates on average. [T]his assumption is flawed because, as Dr. Johnson acknowledges, CSOs may broadcast one set of stations to one set of subscribers and a different set of stations to another set of subscribers [and] cable prices vary across customer type, geography, and over time. . . . The only way that subscriber groups would have the same average prices is if they all bought the same products at the same prices in the same proportions across groups. Thus, one would expect the average prices 
                            <E T="03">to be different</E>
                             across subscriber groups, 
                            <E T="03">not the same</E>
                             as assumed by Dr. Johnson and Dr. George.” Tyler WRT ¶¶ 42-43; 45-46.
                            <SU>91</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>91</SU>
                                 Dr. Tyler provides an empirical example of the varying subscription rates among a CSO's subscribers. Tyler WRT ¶ 44.
                            </P>
                        </FTNT>
                        <P>
                            This inaccurate estimate of the number of subscribers is also 
                            <E T="03">impactful</E>
                             on the other fee-based regressions that must use the number of subscribers as a control variable. Dr. Tyler explains:
                        </P>
                        <P>For example, assume that customers in suburbs have a higher average price than downtown customers, such that Dr. George and Dr. Johnson undercount subscribers in the suburbs and overcount subscribers in urban areas. The types of distantly retransmitted signals that are broadcast to these two types of customers are likely to vary. Thus, the use of inaccurate subscriber group numbers would lead to a mismeasurement of the incremental value of the minute categories in the regression analysis.</P>
                        <P>In short, the use of inaccurate subscriber group numbers is potentially a serious problem for Dr. George and Dr. Johnson. The use of “filled-in” data when actual numbers are not available may have introduced bias into their results and this could have important consequences for their estimates. Tyler WRT ¶¶ 49, 52.</P>
                        <P>10. Because the Tyler Model is not based on the Crawford Model, it is not tainted by the potential “specification searching” that haunts the Crawford Model through its consumption of “phantom degrees of freedom,” as discussed in the 2010-13 Determination. Moreover, there is no persuasive evidence that Dr. Tyler engaged in anything that could be construed as specification searching.</P>
                        <P>11. The Tyler Model is also not the subject of the criticisms levied against the other fee regressions. For example. Dr. Erdem applauds the Tyler Model for its abandonment of the royalty-based dependent variable, the unnecessity and removal of fixed effects and the use of a dubious measure of the number of subscribers as a control variable.</P>
                        <P>
                            12. The overarching criticism that Dr. Erdem does levy against the Tyler Model are insufficient to damage its usefulness. Specifically, Dr. Erdem states the obvious as a criticism: “[T]rying to calculate market value when no market exists . . . .” Erdem WRT ¶ 122. But that is simply a restatement of the problem created by the structure of section 111. As the Judges explain in more detail elsewhere in this determination, as they explained in the 2010-13 Determination and as acknowledged by the D.C. Circuit, the regressions identify market-based behavior among CSOs, in the form of revealed preferences for different program categories, and such behavior is relevant evidence useful for estimating relative marketplace value. And, with specific reference to the Tyler Model, the SGRP is reflective of, first, the budget constraint that limits the CSOs' distant retransmittals and, second, the program categories they select when so constrained. (This point is discussed further 
                            <E T="03">infra</E>
                             in the discussion of the Tyler Model to a fee-generation approach.)
                        </P>
                        <P>
                            13. The other SDC expert, Dr. Rubinfeld, likewise applauds Dr. Tyler's approach to the problem, agreeing with him that there exist serious modeling problems in connection with the Crawford Model and those based on that model. However, Dr. Rubinfeld—like Dr. Erdem—restates the statutory problem—the absence of a “market price,” in order to argue that the Tyler Model is not a true “hedonic” regression. (Dr. Majure makes the same argument.) As noted 
                            <E T="03">supra,</E>
                             the Judges find that the Tyler Model is not a true “hedonic” regression, as Dr. Tyler (albeit sometimes grudgingly) seems to concede. However, as discussed in more detail elsewhere in this determination, the Judges find the Tyler regression to be a “Hedonic-inspired” regression, useful in this proceeding to identify an appropriate market-factor driven allocation of royalty shares.
                        </P>
                        <P>14. Dr. Bennett's attacks on Dr. Tyler for originally engaging in an erroneous critique of the Crawford Model is inconsequential. Dr. Tyler acknowledged his error and withdrew the portion of his original WDT that contained his erroneous critique of the Crawford Model. There is no reason to consider this issue relevant, and, if anything, it indicates that Dr. Tyler is willing to acknowledge a mistake.</P>
                        <P>15. More broadly, the Judges do not find the criticisms by Dr. Bennett or by Dr. George that relate to Dr. Tyler's other criticisms of the Crawford Model to be relevant to the issues pertaining to the Tyler Model itself.</P>
                        <P>
                            16. Dr. Bennett's Tyler Model-specific criticism—regarding the impact of channel lineup changes by two hypothetical CSOs paying the minimum fee—is of no 
                            <PRTPAGE P="54203"/>
                            consequence in the Judges' analysis, because the Judges—as discussed elsewhere in this determination—are focusing on the above-minimum-fee CSOs in their application of the Tyler Model. More specifically, the Judges credit the testimony of JSC's expert, Mr. Harvey, who separated out the minimum-fee-only systems from the Tyler Model, in order to isolate those CSOIs making transmission decisions that had economic consequences in terms of royalty payments. 
                            <E T="03">See</E>
                             Harvey WRT ¶ 46 &amp; tbl.10.
                        </P>
                        <P>17. The Judges do not question the Tyler Model for selection a specification that resulted in “one of the lowest shares for JSC and one of the highest for Program Suppliers.” Absent a showing of specification searching, which is not even alleged against Dr. Tyler, these results are not indicative of any wrongdoing.</P>
                        <P>
                            18. Dr. Majure's criticism that the Tyler Model essentially estimates only “the equation given by the statutory formula” is incorrect. 
                            <E T="03">See</E>
                             the discussion of the Tyler Model as related to a “fee generation” approach, 
                            <E T="03">infra.</E>
                        </P>
                        <P>19. The absence of a “reference category (a/k/a “numeraire” or index) in the Tyler Model is not a fault. As noted above, the Tyler Model measures the minimum willingness to pay for an additional minute of distant programming across each program category, not the value of a minute of one program replacing minutes from a reference category.</P>
                        <P>
                            20. Any greater precision or stability in the Johnson Model compared with the Tyler Model is a consequence of Dr. Johnson's decision to remove “fixed effects” from his model where, unlike in the Tyler Model, the dependent variable was royalty-based, not the SGRP. That is, Dr. Johnson obtained more precision, but at the expense of generating “omitted variable bias.” Although this econometric jargon suggests an analysis “deep in the weeds,” it is of great importance: Precision and stability are not particularly helpful if the model is measuring the wrong thing—here, with the Johnson Model more in the nature of 
                            <E T="03">predicting</E>
                             the royalty level by omitting “fixed effects” rather than focusing on the 
                            <E T="03">effect</E>
                             of program category minute on royalties (subject to the cost constraint reflected in the SGRP).
                        </P>
                    </EXTRACT>
                    <HD SOURCE="HD2">D. CCG's Regression Approach: The George Model</HD>
                    <P>
                        Dr. Lisa George, a CCG expert witness,
                        <SU>92</SU>
                        <FTREF/>
                         explicitly relied on Dr. Crawford's approach from the 2010-13 proceeding, “[b]ecause [Dr.] Crawford's approach was determined by the Copyright Royalty Board to be `highly useful in estimating relative values' . . . . .” George WDT at 26-27.
                        <SU>93</SU>
                        <FTREF/>
                         More particularly, Dr. George followed Dr. Crawford's approach by “estimat[ing] a regression model at the subscriber group level with fixed effects and [royalties as] a logged dependent variable.” George WDT at 27.
                    </P>
                    <FTNT>
                        <P>
                            <SU>92</SU>
                             Dr. George was received as expert witness in the “field of economics, with experience in econometrics, media markets, and industrial organization.” 4/18/23 Tr. 5111 (George).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>93</SU>
                             The Judges must emphasize here the fact that the SDC provided to CCG (and all of the other participants), in voluntary discovery in the 
                            <E T="03">present</E>
                             proceeding, promptly after the filing of written direct statements, copies of materials from the 2010-13 
                            <E T="03">satellite</E>
                             allocation proceeding that at the least suggested Dr. Crawford may have engaged in inappropriate specification searching in the development of his regression framework. However, neither Dr. George nor any other CCG witness specifically addressed in written rebuttal testimony the discovery from the 2010-13 satellite proceeding suggesting Dr. Crawford's potential specification searching. (However, Dr. George more generally explained how she was able to evaluate Dr. Crawford's regression work, even though she did not address the discovery suggestive of Dr. Crawford's specification searching and of dissembling in his testimony before the Judges in the 2010-13 proceeding. 
                            <E T="03">See</E>
                             George WRT at 50-54.)
                        </P>
                    </FTNT>
                    <P>
                        However, Dr. George adjusted the specifications in her model in a manner that differentiated her model from Dr. Crawford's model in two ways to reflect: (1) changes in the distant signal market; and (2) to address comments from the Judges in the 2010-13 Determination. George WDT at 27. The key differentiators are (1) Dr. George's inclusion of separate “system accounting period fixed effects” rather than Dr. Crawford's “interacted system-accounting period fixed effects” and (2) the elimination of an interacting of controls for the (a) top multi-system operators (MSOs) with (b) lagged subscribers (
                        <E T="03">i.e.,</E>
                         subscribers from the preceding accounting period). George WDT at 27.
                    </P>
                    <P>
                        More particularly, Dr. George significantly reduced the number of fixed effects in her preferred regression model compared to Dr. Crawford's number of fixed effects. Specifically, Dr. George testifies that her preferred model “includes one fixed effect for each system plus one for each accounting period (number of systems 
                        <E T="03">plus</E>
                         8 [six-month accounting periods]),” whereas Dr. Crawford's model included “one fixed effect for every system every accounting period (number of systems 
                        <E T="03">times</E>
                         8 [six-month accounting periods])”. George WDT at 27 (emphasis added). According to Dr. George, this deviation for Dr. Crawford's approach was measured and beneficial:
                    </P>
                    <EXTRACT>
                        <P>
                            Since fixed effects operate by narrowing the variation used to identify coefficients, my specification is less restrictive than [Dr.] Crawford's. In other words, I make use of variation 
                            <E T="03">within cable systems over time</E>
                             but not across cable systems. [Dr.] Crawford's specification did not make use of variation 
                            <E T="03">within cable systems over time</E>
                             or across cable systems, 
                            <E T="03">identifying coefficients using only variation within systems each accounting period.</E>
                        </P>
                    </EXTRACT>
                    <FP>George WDT at 27 (emphasis added).</FP>
                    <P>
                        As in the Crawford Model, Dr. George's dependent variable is the natural log 
                        <SU>94</SU>
                        <FTREF/>
                         of royalty fees and, as in the Crawford Model, is related by the regression to the subscriber groups' respective distant programming minutes for each claimant's program category. George WDT at 51. The regression process produces an estimate of coefficients, one for each claimant program category, showing the effect of one additional programming minute on the natural log of royalty payments. George WDT at 51. She then uses these coefficients to calculate, in dollars, the “average marginal value” of an additional programming minute for each claimant category. George WDT at 51-52.
                    </P>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             Technically, the “natural log” (shorthand for logarithm) is “[a] mathematical function defined for a positive argument; its slope is always positive but with a diminishing slope tending to zero,” and it “is the inverse of the exponential function X = ln(ex).” James H. Stock &amp; Mark W. Watson, 
                            <E T="03">Introduction to Econometrics</E>
                             821 (3d ed. 2015). Practically, for purposes of applied econometrics, using the logarithmic functional form, which shows the 
                            <E T="03">percentage</E>
                             changes in the variables, may be more practical.
                        </P>
                    </FTNT>
                    <P>To calculate shares, Dr. George likewise adopts the method used by Dr. Crawford and, indeed, consistently across fee-based regression models. That is, she multiplies these average marginal values by compensable programming minutes for each subscriber group, thus producing a value of compensable programming for each claimant program category. For each category, she uses that category's values as a numerator in a fraction where the denominator is the sum of the totals over each claimant.</P>
                    <P>
                        Dr. George reported the following claimant shares:
                        <PRTPAGE P="54204"/>
                    </P>
                    <GPOTABLE COLS="7" OPTS="L2,i1" CDEF="s25,15,15,15,15,15,15">
                        <TTITLE>Table 22—Implied Claimant Shares, 2014-2017</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">
                                Program suppliers
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Joint sports 
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Commercial TV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Public TV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Devotional
                                <LI>claimants</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Canadian
                                <LI>claimants</LI>
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">2014</ENT>
                            <ENT>
                                20.86
                                <LI>(1.99)</LI>
                            </ENT>
                            <ENT>
                                25.64
                                <LI>(5.16)</LI>
                            </ENT>
                            <ENT>
                                14.88
                                <LI>(2.13)</LI>
                            </ENT>
                            <ENT>
                                30.21
                                <LI>(2.74)</LI>
                            </ENT>
                            <ENT>
                                1.91
                                <LI>(0.49)</LI>
                            </ENT>
                            <ENT>
                                6.49
                                <LI>(0.95)</LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2015</ENT>
                            <ENT>
                                31.71
                                <LI>(1.75)</LI>
                            </ENT>
                            <ENT>
                                3.61
                                <LI>(0.94)</LI>
                            </ENT>
                            <ENT>
                                12.04
                                <LI>(1.72)</LI>
                            </ENT>
                            <ENT>
                                36.56
                                <LI>(1.89)</LI>
                            </ENT>
                            <ENT>
                                2.41
                                <LI>(0.55)</LI>
                            </ENT>
                            <ENT>
                                13.67
                                <LI>(1.91)</LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2016</ENT>
                            <ENT>
                                29.53
                                <LI>(1.61)</LI>
                            </ENT>
                            <ENT>
                                3.45
                                <LI>(0.90)</LI>
                            </ENT>
                            <ENT>
                                11.43
                                <LI>(1.65)</LI>
                            </ENT>
                            <ENT>
                                41.59
                                <LI>(1.99)</LI>
                            </ENT>
                            <ENT>
                                1.70
                                <LI>(0.39)</LI>
                            </ENT>
                            <ENT>
                                12.30
                                <LI>(1.75)</LI>
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2017</ENT>
                            <ENT>
                                26.11
                                <LI>(1.43)</LI>
                            </ENT>
                            <ENT>
                                3.23
                                <LI>(0.85)</LI>
                            </ENT>
                            <ENT>
                                10.19
                                <LI>(1.49)</LI>
                            </ENT>
                            <ENT>
                                47.03
                                <LI>(2.08)</LI>
                            </ENT>
                            <ENT>
                                1.40
                                <LI>(0.32)</LI>
                            </ENT>
                            <ENT>
                                12.03
                                <LI>(1.73)</LI>
                            </ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Note:</E>
                             The table reports the implied claimant shares of distant signal royalties each year derived from the regression model, which includes system and accounting period fixed effects. Standard errors in parentheses
                        </TNOTE>
                    </GPOTABLE>
                    <FP>Highlighting an important aspect of her analysis, Dr. George states that “[a]s expected, estimated shares for 2014 are substantially different from those for 2015-2017 due to exit of WGNA.” George WDT at 57.</FP>
                    <P>Delving deeper into her regression equation, Dr. George explains that she includes a number of control variables. As she explains, “[T]hese control variables are included in the econometric model based on the expected economic relationship with royalty payments [and] [e]ach of these terms has been included in prior regression models for these proceedings.” George WDT at 54.</P>
                    <P>Specifically, Dr. George includes, explicitly or implicitly, the following controls:</P>
                    <FP SOURCE="FP-1">CSOs paying minimum fees</FP>
                    <FP SOURCE="FP-1">CSOs paying into the 3.75 fund</FP>
                    <FP SOURCE="FP-1">CSOs paying into the Syndex fund</FP>
                    <FP SOURCE="FP-1">Canada Zone System in Canadian re-transmission zone</FP>
                    <FP SOURCE="FP-1">Number of permitted stations in the subscriber group</FP>
                    <FP SOURCE="FP-1">Number of distant stations in the subscriber group</FP>
                    <FP SOURCE="FP-1">Number of local stations in the subscriber group</FP>
                    <FP SOURCE="FP-1">Activated channels in the prior accounting period (lagged channels in subscriber group)</FP>
                    <FP SOURCE="FP-1">Subscribers in prior accounting period (lagged subscribers in subscriber group)</FP>
                    <FP SOURCE="FP-1">Median income in primary county served by the system</FP>
                    <FP SOURCE="FP-1">
                        System operated by top MSO, 
                        <E T="03">i.e.,</E>
                         Comcast, Verizon, AT&amp;T, Charter, Cox, Time Warner, Cablevision, Altice.
                    </FP>
                    <FP>George WDT at 53 tbl.19. Dr. George explained her reasons for including these controls as follows:</FP>
                    <EXTRACT>
                        <P>[I]indicators for systems paying minimum fees, syndicated exclusivity surcharges, or 3.75 fees as well as the number of permitted stations carried in the subscriber group [are] all variables expected to be correlated with royalty payments.</P>
                        <P>An indicator for systems in the Canadian Zone is needed because re-transmission rules are different in this region and may affect subscribers and royalty payments.</P>
                        <P>The (lagged) number of subscribers is an important control because royalties increase with gross receipts, which in turn increase with the number of subscribers. The number of subscribers is entered in lagged form to avoid the possibility of reverse causality biasing the coefficients on program minutes. (Channels activated enters as a lag for the same reason.)</P>
                        <P>The number of distant stations is included to ensure that the coefficients on programming minutes are estimated all else equal. In other words, estimates of the . . . coefficients should measure how a change in claimant minutes affects royalty payments holding constant the total number of distant minutes broadcast, which is a function of the number of distant signals re-transmitted.</P>
                        <P>Indicators for each of the top MSO's (Comcast, Verizon, AT&amp;T, Charter, Cox, Time Warner, Cablevision and Altice) are included to account for potential differences in strategies that might affect the demand for system offerings not otherwise included in the econometric model. For example, changes in strategy by Time Warner Cable systems acquired by Charter Communications would be captured by the MSO indicators. While [Dr.] Crawford included indicators for only the top six MSO's, I add Cablevision and Altice because the largest transaction in the 2014-2017 period was the Altice acquisition of Cablevision, which was the 7th largest MSO at the time of acquisition.</P>
                    </EXTRACT>
                    <FP>George WDT at 53-54.</FP>
                    <P>To determine whether her regression model was robust to certain specification changes, Dr. George conducted sensitivity checks whereby she made certain changes to her model. Specifically, she conducted the following three robustness/sensitivity checks:</P>
                    <EXTRACT>
                        <P>(1) Changing her regression model specifications to include “interacted system-accounting period fixed effects (number of systems times 8).”</P>
                        <P>(2) Changing her regression model specifications to include “not only indicators for the top MSO's but also these indicators interacted with lagged subscribers.”</P>
                        <P>
                            (3) Changing her regression model to include “both adjustments [
                            <E T="03">i.e.,</E>
                             (1) and (2) above] . . . thus correspond[ing] to the model estimated by [Dr.] Crawford for his 2010-2013 analysis.”
                        </P>
                    </EXTRACT>
                    <FP>George WDT at 58.</FP>
                    <P>
                        Dr. George found that the estimated shares in these three robustness/specification tests “are close to those derived from the preferred model.” George WDT at 59; 
                        <E T="03">see also id.</E>
                         at tbls.25-26. She also notes that the confidence intervals are tighter in the third alternative robustness/sensitivity checks, 
                        <E T="03">see</E>
                         George WDT tbl.27, reflecting the smaller standard errors contained in that check, which she attributes to the fact that the changed specifications in that checks are “restricting the variation on which coefficients are estimated.” George WDT at 61-62. Despite her acknowledgement that this greater precision is “useful,” 
                        <SU>95</SU>
                        <FTREF/>
                         Dr. George is willing to tolerate “the point estimates from [her preferred] baseline model because they make use of more variation in the data while still precisely estimated.” George WDT at 62.
                    </P>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             The Judges understand that the usefulness of this greater precision is that the increased types of fixed effects limit the variation in the regression to variation caused by the difference in programming category minutes, whereas Dr. George prefers to obtain additional data points in order to observe more variation, notwithstanding that relaxing fixed effects in these manners opens the door for bias, in the form of variations caused by unobserved variables otherwise captured by the fixed effects. The Judges discuss this tradeoff in greater detail elsewhere in this determination.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">1. Criticisms of the George Model</HD>
                    <HD SOURCE="HD3">a. Criticisms of the George Model by SDC Expert Witness Dr. Erdem</HD>
                    <P>
                        Beyond his criticisms of the Crawford Model that are derivatively applicable to Dr. George's model, Dr. Erdem levies further criticisms of the George Model. He asserts that although she has altered and reduced the number of fixed effects from the Crawford Model, her alterations do nothing to redeem her approach. Rather, he notes that Dr. 
                        <PRTPAGE P="54205"/>
                        George's specifications continue to remain very close to those in versions that Dr. Crawford ran in the previous proceeding.
                    </P>
                    <P>But, Dr. Erdem acknowledges that, unlike in the Crawford Model, Dr. George applies two separate fixed effects for accounting period and system ID, and yet he finds this to be a difference that fails to rescue her model from the overfitting defects that he claims to pervade Dr. Crawford's regression approach. Dr. Erdem also opines that. Dr. George retains some variables from the Crawford Model which lack a “clear basis for their helpfulness in the model, such as the lag of subscribers (subscribers in the previous accounting period).” Erdem WRT ¶ 41. Finally, he opines that Dr. George aggravates an already-present overfitting problem by adding “other variables such as median county income,” without adequately supporting her decisions. Erdem WRT ¶ 41.</P>
                    <HD SOURCE="HD3">b. Criticisms of the George Model by SDC Expert Witness Dr. Rubinfeld</HD>
                    <P>
                        Dr. Rubinfeld likewise notes that although Dr. George essentially “applied Dr. Crawford's specification to the 2014-2017 data,” she “replaced system-period fixed effects with separate system and period fixed effects [and dropped] [s]ome explanatory variables . . . . ” But, like Dr. Erdem, he did not find that these alterations salvaged her model from the defects that, in his opinion, pervade the Crawford Model and, indeed, all fee-based regressions. Rubinfeld WRT ¶ 94.
                        <SU>96</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             Another SDC Expert, Mr. Sanders, essentially echoes and refers to the critiques by Drs. Erdem and Rubinfeld. But Mr. Sanders also notes that Dr. George's approach is remarkable when compared with other fee-based regressions proffered in this proceeding, in that “the various regressions yield significantly divergent results which raise[] the questions not just of which ones are wrong but whether any of them could be right,” and he particularly notes the divergence among the SDC share across the fee-based regressions. Sanders WRT ¶ 18.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">
                        c. Criticisms of the George Model by JSC Expert Witness Mr. Harvey 
                        <SU>97</SU>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             The criticism of the George WDT by the two other JSC expert witnesses, Drs. Majure and Asker, relate to broader themes common to the fee-based regression, discussed separately in this determination. Mr. Harvey also raises the broad-based criticisms that are discussed separately herein.
                        </P>
                    </FTNT>
                    <P>
                        Mr. Harvey opines that Dr. George introduced “multicollinearity” 
                        <SU>98</SU>
                        <FTREF/>
                         into her regression by including “a variable on the independent side of [her] regression equation[ ] that controls for the number of distant stations broadcast to the subscriber group.” Harvey WRT ¶ 170. Mr. Harvey understands that this control variable was likely introduced “to control for non-compensable broadcast minutes, such as Big-3 minutes,” but he asserts that the regression should have been specified by “simply includ[ing] the `Big-3' variables . . . achiev[ing] the same stated goal more directly while avoiding problems of multicollinearity.” Harvey WRT ¶ 174.
                    </P>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             For a definition of “multicollinearity,” 
                            <E T="03">see</E>
                             2010-13 Determination at 3562 n.47.
                        </P>
                    </FTNT>
                    <P>
                        There is a formal statistical test to identify multicollinearity called the variance inflation factor (VIF). Harvey WRT ¶ 176. When he ran the VIF test on the George Model, Mr. Harvey found meaningful multicollinearity between these variables. Harvey WRT ¶ 182. Accordingly, Mr. Harvey performed a sensitivity test on the George Model in which he removed the distant stations and permitted stations variables. Harvey WRT ¶ 183. The resultant change in the coefficients for the program categories translated into revised share allocations that included substantially higher JSC shares, as set forth in the table below: 
                        <SU>99</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             Mr. Harvey also administered two other sensitivities to address this multicollinearity: (1) adding a control variable for non-compensable minutes to the model and (2) including compensable claimant minutes in the regression and dropping the number of permitted and distant stations. In both tests, he reports that the multicollinearity fades, and the share allocations also change, with JSC shares again increasing compared to the JSC shares in the George Model. Harvey WRT ¶¶ 185-187.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="7" OPTS="L2,p7,7/8,i1" CDEF="s50,12,12,12,12,12,12">
                        <TTITLE>Table 31—George Regression Model Share Estimates Exclude Distant and Permitted Station Variables</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">
                                Educational 
                                <LI>%</LI>
                            </CHED>
                            <CHED H="1">
                                Joint Sports 
                                <LI>%</LI>
                            </CHED>
                            <CHED H="1">
                                Devotional 
                                <LI>%</LI>
                            </CHED>
                            <CHED H="1">
                                Canadian 
                                <LI>%</LI>
                            </CHED>
                            <CHED H="1">
                                Commercial TV 
                                <LI>%</LI>
                            </CHED>
                            <CHED H="1">
                                Program
                                <LI>suppliers </LI>
                                <LI>%</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">2014</ENT>
                            <ENT>7.0</ENT>
                            <ENT>71.8</ENT>
                            <ENT>1.1</ENT>
                            <ENT>10.5</ENT>
                            <ENT>3.3</ENT>
                            <ENT>6.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2015</ENT>
                            <ENT>15.5</ENT>
                            <ENT>18.6</ENT>
                            <ENT>2.5</ENT>
                            <ENT>40.6</ENT>
                            <ENT>4.9</ENT>
                            <ENT>17.9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2016</ENT>
                            <ENT>18.6</ENT>
                            <ENT>18.7</ENT>
                            <ENT>1.8</ENT>
                            <ENT>38.4</ENT>
                            <ENT>4.9</ENT>
                            <ENT>17.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2017</ENT>
                            <ENT>21.5</ENT>
                            <ENT>18.0</ENT>
                            <ENT>1.5</ENT>
                            <ENT>38.5</ENT>
                            <ENT>4.5</ENT>
                            <ENT>15.9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2014-2017</ENT>
                            <ENT>12.0</ENT>
                            <ENT>48.9</ENT>
                            <ENT>1.4</ENT>
                            <ENT>22.8</ENT>
                            <ENT>3.9</ENT>
                            <ENT>11.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">% Change in Total vs Base Model</ENT>
                            <ENT>−67.8</ENT>
                            <ENT>290.7</ENT>
                            <ENT>−22.5</ENT>
                            <ENT>124.9</ENT>
                            <ENT>−69.0</ENT>
                            <ENT>−57.2</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Sources:</E>
                        </TNOTE>
                        <TNOTE>• Electronic file “programs/208_george_regressions.do”.</TNOTE>
                    </GPOTABLE>
                    <HD SOURCE="HD3">d. Criticisms of the George Model by CTV's Expert Witnesses Dr. Marx and Dr. Bennett</HD>
                    <P>CTV's experts criticize the George Model for the following reasons:</P>
                    <EXTRACT>
                        <P>1. Because of the dramatic increase in the number of minimum-fee-only CSOs, the George Model relies too heavily on royalty payments that do not reflect the revealed preferences of CSOs. CTV PFF ¶¶ 289, 302 (and record citations therein).</P>
                        <P>2. The “pooling” of data to generate common coefficients within each claimant category skews the share allocations because of the sharp distinction between 2014 and 2015-2017 due to the WGNA conversion. Moreover, the “precision” generated by lumping all the data points together across these four years is overhyped, because it is a statistical precision unreflective of reality, and Dr. George did not perform any statistical tests to confirm that pooling was appropriate. CTV PFF ¶¶ 331, 334 (and record citations therein); Bennett WRT, figs.12-13; see also4/18/23 Tr. 5309, 5366-68 (George).</P>
                        <P>3. Dr. Bennett unpooled Dr. George's calculations, revealing the lack of actual precision compared with her pooled approach. CTV PFF ¶¶ 335-36, 342 (and record citations therein).</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">e. Criticisms of the George Model by Program Suppliers' Expert Witness Dr. Tyler</HD>
                    <P>Dr. Tyler levied the following criticisms at the George Model:</P>
                    <EXTRACT>
                        <P>1. Royalties in any functional form are inferior as the dependent variable compared with the SGRP in the Tyler Model. PS PFF ¶¶ 351-52 (and record citations therein).</P>
                        <P>2. Pooling of data across all four royalty years is distortionary and improper. PS PFF ¶ 363 (and record citations therein).</P>
                        <P>
                            3. Dr. George's reliance on the Crawford Model, without regard to the potential specification searching that may have marred its genesis, calls into question the reliability of the George Model. By way of example, Dr. Tyler takes note of the “hammer-shaped” graphical plotting of residuals in the George Model, which would typically be random rather than concentrated (in “hammer-shaped” form), as indicative of one or more model specification errors, such as the omission of important independent variables or improper or mismatched functional forms (
                            <E T="03">e.g.,</E>
                             the misapplication of the linear form or 
                            <PRTPAGE P="54206"/>
                            an improper log transformation of data). PS PFF ¶ 365.
                        </P>
                    </EXTRACT>
                    <HD SOURCE="HD3">
                        2. The Judges' Analysis and Findings Regarding the George Model 
                        <SU>100</SU>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             The Judges' analysis and findings in this section are separate and apart from their analysis and findings on the specific issues considered in separate sections of this determination.
                        </P>
                    </FTNT>
                    <P>The Judges make the following findings with regard to the George Model:</P>
                    <EXTRACT>
                        <P>1. The George Model reasonably altered the Crawford Model by estimating a model with fewer fixed effects, in an attempt to increase the number of observations lost after the WGNA conversion, by attempting to balance precision with an acceptable increase in omitted variable bias.</P>
                        <P>2. The George Model reasonably included control variables in order to isolate the effect of interest, the correlation between program category minutes and royalties.</P>
                        <P>3. Dr. George utilized appropriate sensitivity tests that modified her fixed effects, which showed a level of robustness in the George Model.</P>
                        <P>4. But Dr. George's tolerance for greater bias, in the form of omitted variable bias, eliminated the benefit created by the Crawford Model that gave the Crawford Model a level of primary weight vis-à-vis other methodologies for estimating relative marketplace value.</P>
                        <P>5. There is no sufficient evidence that the George Model suffers from overfitting, and her decision to include certain control variables, such as a control for “median county income,” was a reasonable exercise of discretion that an econometrician could make in specifying her model.</P>
                        <P>6. The George Model reasonably utilized the Big 3 network minutes as a reference category (a/k/a numeraire or index). Contrary to Mr. Harvey's critique, this which was unrelated to the separate control in the George Model for the number of distant stations, which was included in order to avoid a cause of changes in the number of minutes that would bias the relationship between program category minutes and royalties which was the “effect” the regression was seeking to evaluate.</P>
                        <P>7. The pooling of all four years over the 2014-2017 period in the George Model was inappropriate, given the substantial break in market conduct created by the WGNA conversion commencing in 2015.</P>
                        <P>8. Dr. Bennett's recalculation of an unpooled version of the George Model is a more probative model.</P>
                        <P>9. Dr. Bennett's further revision of the George Model, correcting for an admitted error in her JSC programming mis-categorization, is more accurate than the George Model originally proffered by Dr. George.</P>
                        <P>10. The non-random (hammer-shaped) residuals in the George Model are suggestive of omitted variables or misspecification of functional form, as in the Crawford Model upon which the George Model is predicated, and appear to be examples of the problems that may have arisen because of Dr. Crawford's alleged specification search.</P>
                    </EXTRACT>
                    <HD SOURCE="HD2">E. PTV'S Regression Approach: The Johnson Model</HD>
                    <P>
                        Dr. Johnson, PTV's expert witness,
                        <SU>101</SU>
                        <FTREF/>
                         constructed a fee-based regression model based on the framework of a “Waldfogel-type” regression. Johnson WDT ¶ 55. He also acknowledges that he reviewed Dr. Crawford's testimony from the 2010-13 proceeding, and that his model “generally follows the framework used by [Dr.] Crawford” and, parenthetically, he notes a general consistency with the model proffered by Dr. Joel Waldfogel in a prior proceeding. Johnson WDT ¶ 57. 
                        <E T="03">See also</E>
                         3/21/23 Tr. 367-68 (“[T]he starting point . . . was to look at the prior work, particularly [Dr.] Crawford's Waldfogel-type regression model that was adopted in the prior proceeding. . . . However, I did not, and my assignment was not to just simply blindly accept Dr. Crawford's work, but to put it to the test, understand what it did, understand how it worked, and then build that model and determine whether it could apply here.”).
                        <SU>102</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             Dr. Johnson was received as an expert in “economics and econometrics.” 3/21/23 Tr. 362 (Johnson).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             However, Dr. Johnson testified that he did not review—or even have access to—Dr. Crawford's underlying regression workpapers from the 2010-13 
                            <E T="03">satellite</E>
                             allocation proceeding (regarding the same regression model as in the 2010-13 
                            <E T="03">cable</E>
                             allocation proceeding), even though PTV's counsel had received those workpapers in voluntary disclosures made by the SDC. 3/21/23 Tr. 340-41 (Johnson). (The hearing record does not indicate whether or not PTV's counsel provided those workpapers to Dr. Johnson.). 
                            <E T="03">See also</E>
                             3/21/23 Tr. 617 (Johnson) (Dr. Johnson acknowledging that he also never saw designated testimony filed in the present proceeding by the SDC comprising their experts' testimony in the satellite proceeding, with Dr. Crawford's documents attached).
                        </P>
                    </FTNT>
                    <P>Dr. Johnson also “assessed the Judges' deliberation from the previous proceeding,” and “address[ed] econometric modeling concerns . . . raised by the Judges in the previous proceeding [and] changes in the industry from the 2010-2013 to the 2014-2017 period.” Johnson WDT ¶ 57.</P>
                    <P>Dr. Johnson identifies the following aspects of his regression model:</P>
                    <EXTRACT>
                        <P>1. The regression analyzes each subscriber group in each six-month accounting period.</P>
                        <P>2. The dependent variable is the “natural log” of the base royalties accrued by a CSO for each subscriber group in an accounting period.</P>
                        <P>3. The explanatory variables include—as the variable of interest—the number of minutes of each claimant group's programming content distantly retransmitted to that subscriber group in that accounting period.</P>
                        <P>4. The coefficients for this explanatory variable for each claimant group's content, which estimate the percentage change in base royalties (the dependent variable) associated with an additional minute of that type of content.</P>
                        <P>5. The control variables below:</P>
                        <P>a. A control for the number of subscribers in each subscriber group and accounting period, because, “[in] addition to being driven by CSOs' distant retransmission decisions, royalties paid also increase with the number of subscribers (and associated gross receipts) in each subscriber group.” By adding a control variable for the number of subscribers, the regression accounts for this relationship.</P>
                        <P>
                            b. A control for the number of distant broadcast stations retransmitted by each CSO to its subscriber groups because it “creates a `control group' against which the 
                            <E T="03">relative</E>
                             marketplace valuations for each claimant group at issue are estimated[,]” with this control group consisting of “programming that is either `off-air,' `Big 3' network programming that is not compensable or associated to any relevant claimant group, or content for which program information was not specified in the data, including `To Be Announced' programs.”
                        </P>
                        <P>
                            c. An indicator variable for CSOs that paid the minimum fee, in order to account for the possibility that decision-making is systematically different between CSOs that paid the minimum fee (
                            <E T="03">i.e.,</E>
                             those that potentially could have retransmitted distant signals without experiencing an increase in their royalty payment) and CSOs that paid royalties above the minimum fee (and thus, would have faced an incremental cost to any additional distant signal). This indicator variable does not separate out the model's reported coefficients, but “allows [the] model” to generate information “to account for these differences . . . . ”
                        </P>
                        <P>d. An indicator variable distinguishing between subscriber groups that also generated 3.75 fees (in addition to the base fee payments included in the regression) and subscriber groups that did not generate 3.75 fees.</P>
                    </EXTRACT>
                    <FP>
                        Johnson WDT ¶¶ 55-56.
                        <SU>103</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             Note that the Johnson Model includes far fewer control variables than the George Model. 
                            <E T="03">See</E>
                             text following this footnote.
                        </P>
                    </FTNT>
                    <P>
                        Dr. Johnson also emphasizes what he has 
                        <E T="03">omitted</E>
                         from his regression model that had been included in Dr. Crawford's model. First, Dr. Johnson omits a set of controls in the form of “system-accounting period fixed effects.” Although Dr. Johnson acknowledged that these fixed effects had attempted to establish a relative value unbiased by factors irrelevant to the correlation at interest (the effect of programming minutes on the log of royalties) by isolating and comparing variation only in “a given CSO's retransmission decisions across its subscriber groups,” Dr. Johnson wanted to address the Judges' statement that in the 2010-13 Determination that they were “troubled” by Dr. Crawford's inadequate response to the argument that these controls “effectively 
                        <PRTPAGE P="54207"/>
                        discarded” approximately 15% of his observations [generated by] “approximately half of all systems in his data set . . . . ” Johnson WDT ¶ 59. Dr. Johnson claimed that the same issue exists to a greater extent in the present proceeding, because “49 percent of CSOs that retransmitted at least one distant signal reported only one subscriber group,” thus excluding them from the regression through the inclusion of these “system-accounting period fixed effects.” Johnson WDT ¶ 59.
                        <SU>104</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             To be clear, in the 2010-13 proceeding, the Judges found that Dr. Crawford's use of these fixed effects and other controls did 
                            <E T="03">not</E>
                             “diminish the Judges' reliance on Professor Crawford's regression analysis.” More particularly, the Judges explained that Dr. Crawford's “use of “system-accounting period fixed effects” was the “result of a tradeoff,” necessitated by Dr. Crawford's use of a “subscriber group analysis [which] reduced the number of observations in [Dr.] Crawford's data set.” Although this decision could result in an “overfitting” of the model (see 2010-13 Determination at 3565 defining “overfitting”), his use of data from the entire population of Form 3 CSOs provided him with a wealth of data that mitigated a potential problem with regard to potential overfitting arising from sampling that provided too little data relative to the number of parameters.” 2010-13 Determination at 3566-67 &amp; n.65. The Judges discuss elsewhere in this determination the impact of the decision by Dr. Johnson (and Dr. George) to make a different trade-off in their regression models through their handling of this specific fixed effects issue, particularly in the context of the purpose of these fee-based regressions as “explanatory” of an isolated “effect,” rather than “predictive” of the total royalties paid.
                        </P>
                    </FTNT>
                    <P>
                        Second, Dr. Johnson also omits from his regression several so-called “lagged” variables included by Dr. Crawford, because these “lagged” variables “assume[ ] that outcomes from an earlier point in time affect outcomes in the present time.” Johnson WDT ¶ 59 &amp; n.84. Whatever merit lie in these lagged variables was a moot point for Dr. Johnson, because he found that the available data was insufficient to measure this “lagged” effect, and because the data did not allow for subscriber groups to be “consistently tracked over time” (due to, most noteworthily, the WGNA conversion and the cable system acquisitions by Charter Communication). More particularly, and by way of example, Dr. Johnson explained that there was insufficient data to construct a “prior period” for the first six-month period of 2014, which (if he had retained the lagged subscriber variable) would have “effectively discard[ed] data on CSO distant retransmission decisions [for] about one-eighth of all data.” Johnson WDT ¶ 59.
                        <SU>105</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             That is, if the lagged variable control was included despite the unavailability of data for the second accounting period of 2013, the model would not have generated results in a consistent manner for the first accounting period of 2014, and one accounting period reflects 
                            <FR>1/8</FR>
                             of the eight six-month accounting periods in the four-year 2014-2017 period.
                        </P>
                    </FTNT>
                    <P>
                        Further, Dr. Johnson excluded from his model the following additional controls included by Dr. Crawford in his model, which Dr. Johnson found to be “redundant or inappropriate . . . [and] also hind[rances] to the model's ability to perform the task at hand”: 
                        <SU>106</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             Dr. Johnson also discarded controls from the Crawford Model “for whether a CSO lies in the area where it is permissible to carry Canadian signals (“Canada zone”).” The Judges consider the Canada zone issues separately, 
                            <E T="03">infra.</E>
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>1. A control for county-level median income, which Dr. Crawford had included to account for variation in demand for cable services by impacting the number of subscribers, the total CSO revenue and, accordingly, “the royalty paid by that CSO. Dr. Johnson omitted this control because he found it to be redundant and confounding, in that it seeks to control for the number of subscribers, which is already included in the model at the more informative subscriber group level. This subscriber count at the subscriber group level, according to Dr. Johnson, implicitly takes into account of variations in demand and the impact of relatively different values in high-demand areas.</P>
                        <P>
                            2. Controls for the number of local stations and the (lagged) number of activated channels. Although Dr. Crawford opined that these controls would have the salutary effect of “account[ing] for other features of the cable service on which distant signals may be offered which could influence the number of subscribers to that service,” Dr. Johnson found these controls unnecessary and potentially problematic because (1) Dr. Crawford did not explain how the second of these controls, 
                            <E T="03">i.e.,</E>
                             the number of local and “activated” channels would impact CSOs' decision-making process with respect to distant channels and (2) as proffered proxies for factors that might “influence the number of subscribers,” they too are redundant and potentially confounding, given the presence in the regression model of a direct control for the number of subscribers.
                        </P>
                        <P>3. Controls for the six largest MSOs, which Dr. Crawford included “to capture potential differences in factors not included in the econometric model that could shift demand for bundles that include imported distant broadcast signals.” Dr. Johnson notes that Dr. Crawford provided no explanation as to what “factors” these controls were intended to reflect, and Dr. Johnson asserts that these controls are redundant and potentially confounding. Dr. Johnson avers that potential differences between and among the six largest MSOs “could shift demand,” and thus “[r]eflect[ ] valuable information for the model's estimation of relative value.”</P>
                    </EXTRACT>
                    <FP>Johnson WDT  60.</FP>
                    <P>Dr. Johnson further explains that his regression (like the regressions of Dr. George and Dr. Crawford, and the 2014 Bayesian regression by Dr. Marx) calculated the relative coefficients for the six compensable program categories by relating them to a “control group” of program minutes that are “non-compensable” in section 111 proceedings. Specifically, Dr. Johnson testified:</P>
                    <EXTRACT>
                        <P>
                            The number of distant broadcast stations [compensable and non-compensable] retransmitted by each CSO represents the universe of that CSO's distantly retransmitted content. . . . [T]he difference between the universe of content and that corresponding to the claimant groups at issue is content that 
                            <E T="03">does not</E>
                             correspond to any claimant group at issue. This non-claimant content “control group” is a mix of programming that is either “off-air,” “Big 3” network programming that is not compensable or associated to any relevant claimant group, or content for which program information was not specified in the data, including “To Be Announced” programs. [The] model is specified in a way that allows for the “control group” content to have 
                            <E T="03">absolute</E>
                             value to subscribers (and thus to cable operators), even if it is not compensable in this proceeding. However, using this content as a control group allows my model to estimate 
                            <E T="03">relative</E>
                             valuations for the compensable claimant groups.
                        </P>
                    </EXTRACT>
                    <FP>
                        Johnson WDT  55 n.76.
                        <SU>107</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             This “control group” is alternatively denominated by the experts in this proceeding as a “numeraire,” a “reference group,” and a “benchmark.” The Judges discuss the use of this device to stablish coefficients in their Analysis, 
                            <E T="03">infra.</E>
                        </P>
                    </FTNT>
                    <P>Utilizing the foregoing inputs, Dr. Johnson calculates regression coefficients estimated by his model, as well as the associated standard errors. Johnson WDT fig.11. In words, Dr. Johnson helpfully describes these coefficients, which are the common output of fee-based regressions, as</P>
                    <EXTRACT>
                        <FP>measur[ing] the percent change in royalties associated with an additional minute of each claimant's programming, after controlling for the other relevant factors present in the regression [and] represent[ing] the relative value of each claimant group's content on a per-minute basis.</FP>
                    </EXTRACT>
                    <FP>
                        Johnson WDT ¶ 61. Dr. Johnson, in the model he recommends (his “baseline” model), and like Dr. George and Dr. Crawford—but unlike Dr. Tyler—did not generate separate coefficients for each of the four years. Crawford WDT fig.14. (However, Dr. Johnson did an annualized break-out as well. 
                        <E T="03">See</E>
                         3/21/23 Tr. 467-68 (Johnson).)
                    </FP>
                    <P>
                        Dr. Johnson reports that the estimated regression coefficients in his preferred “baseline” model “are all statistically significant, at the 99 percent level or higher.” Johnson WDT ¶ 62. In lay terms, he again helpfully explains that this level of statistical significance means that “given the data analyzed, [the] regression can reject with 99 percent (or higher) certainty the 
                        <PRTPAGE P="54208"/>
                        hypothesis that an additional minute of programming of each of the claimant groups has no effect on royalties.” Johnson WDT ¶ 62. According to Dr. Johnson, his regression can estimate coefficient value with this high level of “precision” because the model is based on “over 18,000 subscriber group-level observations . . . . ” Johnson WDT ¶ 62.
                    </P>
                    <P>Next, Dr. Johnson uses these coefficient values to generate his estimated royalty shares, in dollars, undertaken in all fee-based regressions. Specifically, and as in regressions proffered in previous proceedings and in this case, he multiplies the coefficient by the total number of compensable minutes for the respective program category. This product generates the shares of base royalties associated with each claimant group in each year. Johnson WDT ¶ 63.</P>
                    <P>In the figure below, Dr. Johnson presents the implied shares of the Basic Fund royalty, but excluding the 3.75 Fund and the Syndex Fund royalties that can also accrue to one or more of the six claimant groups:</P>
                    <BILCOD>BILLING CODE 1410-72-P</BILCOD>
                    <GPH SPAN="3" DEEP="321">
                        <GID>EN28JN24.011</GID>
                    </GPH>
                    <P>Dr. Johnson explains why the implied relative share values are starkly different:</P>
                    <BILCOD>BILLING CODE 1410-72-C</BILCOD>
                    <EXTRACT>
                        <P>[A]lthough the relative value of a minute of [JSC] content, on average, is typically larger than that of other content types, the quantity of compensable [JSC] content is relatively small (and decreased substantially after the WGN conversion). As a result, the implied royalty share for Sports claimants is smaller than . . . for . . . Program Suppliers, which had a lower per-minute value but much more distantly retransmitted content during the relevant period.</P>
                    </EXTRACT>
                    <FP>Johnson WDT ¶ 66.</FP>
                    <P>
                        In addition to his foregoing proffered regression model, Dr. Johnson performed what he described as a sensitivity analysis, to test the robustness of that model against alternative specifications and to assess the “key drivers” of the results of his model. Johnson WDT ¶ 68.
                        <SU>108</SU>
                        <FTREF/>
                         Specifically, Dr. Johnson conducted two such analytical tests.
                    </P>
                    <FTNT>
                        <P>
                            <SU>108</SU>
                             Dr. Johnson also asserted that he performed two “other sensitivities,” on missing CCG programming data and program descriptions that were ambiguous as to the claimant category to which they belonged, respectively. Johnson WDT ¶ 49 n.64 &amp; ¶ 50 n.68. But although he tried to categorize these tests in this manner, by his own acknowledgement, the “purpose of those tests [was to] assess[ ] the effects of different approaches to treating the imperfections in the available data.” Johnson WDT ¶ 68 n.102.
                        </P>
                    </FTNT>
                    <P>
                        First, he looked at the subset of CSOs from his proffered model that only “paid above the minimum fee.” Johnson WDT ¶ 68. His purpose in performing this test was to address the concern in the 2010-13 Determination that the “carriage decisions of CSOs . . . pay[ing] minimum fees [were] `potentially less informative than discretionary decisions by CSOs to incur an 
                        <E T="03">additional</E>
                         royalty expense in order to distantly retransmit particular stations.' ” Johnson WDT ¶ 68 (citing 2010-13 Determination at 3575). This first sensitivity test, according to Dr. Johnson, found “positive relative valuations” for the coefficients of all six claimant categories, although the valuations were “not statistically significant” for the JSC and SDC content. Johnson WDT ¶ 69 fig.14, cols. [a]-[c]; and app. K.
                        <SU>109</SU>
                        <FTREF/>
                         Apparently 
                        <PRTPAGE P="54209"/>
                        focusing on the absence of statistical significance for the JSC and SDC content, Dr. Johnson concludes that this sensitivity test shows the appropriateness—indeed, the “importance”—of his proffered model's inclusion of “CSOs that paid minimum fees,” because exclusion of such CSOs “would cause the model to lose precision with respect to” the JSC and SDC claimant content. Johnson WDT ¶ 69. In further support of his interpretation of this sensitivity test results, Dr. Johnson adds that CSOs paying only the minimum fee nonetheless “still make affirmative distant retransmission decisions that can be informative about the relative value of content.” Johnson WDT ¶ 69 &amp; n.103.
                    </P>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             Dr. Johnson does not report share allocations for minimum-fee-only CSOs in his WDT. However, in response to criticism of his direct testimony, Dr. Johnson included in his WRT figures showing a close relationship between: (a) the allocation shares based on the subscriber group Base Fees calculated (but not paid) by these minimum-fee-only CSOs on an annualized (unpooled) basis for 2014-2017; and (b) the allocation shares in his proffered baseline model (presented on an unpooled basis) for all 
                            <PRTPAGE/>
                            CSOs considered in his analysis. Johnson WRT app. D, figs.D-6 and D-7.
                        </P>
                    </FTNT>
                    <P>
                        In his second sensitivity/robustness analysis, referred to 
                        <E T="03">supra,</E>
                         Dr. Johnson “allow[s] the coefficients to vary from year to year.” Johnson WDT ¶ 68; 
                        <E T="03">see also id.</E>
                         at fig.14, cols. [a], [d]-[g]. He opines that this analysis “indicates . . . there is a statistically significant difference” in the coefficient values between 2014 and 2015-2017 for JSC program content. Johnson WRT ¶ 121 fig. K-3 (notes).
                    </P>
                    <P>According to Dr. Johnson, this second sensitivity test shows the following:</P>
                    <EXTRACT>
                        <P>
                            1. Relative marketplace values for the PTV, SDC, CCG, CTV and Program Suppliers claimant categories were 
                            <E T="03">not</E>
                             statistically different across the 2014 to 2017 period.
                        </P>
                        <P>
                            2. However, the relative marketplace value of JSC content significantly declined from 2014, when WGNA was the most distantly retransmitted signal (broadcasting high volumes of MLB, NBA, and NFL game content), to the 2015-2017 period, after WGN converted to a cable network, and the volume of such games was concomitantly significantly reduced.
                            <SU>110</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>110</SU>
                                 The coefficient for JSC content in the 2015-2017 period remained high, but was not statistically significant. Johnson WDT ¶ 70 &amp; fig.14.
                            </P>
                        </FTNT>
                        <P>
                            3. This second sensitivity test demonstrates that Dr. Johnson's proffered baseline model has “appropriately captur[ed]” the declining value of JSC content in the average “over the 
                            <E T="03">entire 2014-2017 period</E>
                            . . . .”
                        </P>
                    </EXTRACT>
                    <FP>
                        Johnson WDT ¶¶ 70-71; 
                        <E T="03">see also id.,</E>
                         fig.15.
                    </FP>
                    <HD SOURCE="HD3">
                        1. Criticisms of the Johnson Model 
                        <SU>111</SU>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             An overarching procedural critique of the manner in which Dr. Johnson generated his model—alleging that he engaged in improper econometric activities, in the form of what is known as “specification searching” and George WRT at its related questionable activities, “data mining” and “p-hacking”, is separately discussed elsewhere in this determination.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">a. Criticisms of the Johnson Model by CCG Expert Witness Dr. George</HD>
                    <P>Dr. George levies the following criticisms of the Johnson Model:</P>
                    <EXTRACT>
                        <P>1. The Johnson Model produces biased results because it excludes 3.75% fees, failing therefore to reflect the full willingness-to-pay of all claimant categories, either in the base fee or the separate 3.75% calculations made by Dr. Johnson. George WRT at 23-24.</P>
                        <P>2. The Johnson Model is “subject to bias from unobserved market characteristics and time trends” because Dr. Johnson abandoned all system effects and accounting-period effects, whether separately considered (as in the George Model) or interacted (as in the Crawford Model), without appropriately considering how that abandonment would likely generate omitted variable bias. The omitted variables risk inclusion of bias regarding variations in programming. Moreover, Dr. Johnson misconstrued the 2010-13 Determination as justification for this error. George WRT at 24-25.</P>
                        <P>3. Dr. Johnson's substitution of “contemporaneous” for “lagged” subscribers “undermines causal inference” because “[l]agged control variables . . . common in applied regression . . . minimize the potential for unobserved shocks [that can] bias coefficients . . . such as the acquisition of a cable system by a large MSO . . . . ” Further, the lagged subscriber input has been used in fee-based regressions since Dr. Waldfogel's regression in the 2004-05 proceeding and Dr. Johnson wrongly claims that “lagged subscriber” data was unavailable, because they are readily available from Cable Data Corporation. George WRT at 26-27.</P>
                        <P>
                            4. The Johnson Model excludes controls—included in past proceedings—for unobservable factors that undermine causal interpretation, specifically excluding controls for market income, the number of local stations offered, and MSO ownership of CSOs. Dr. Johnson fails to recognize that “these controls establish the `all else equal' conditions that allow coefficient estimates to take a causal interpretation as value per minute.” 
                            <SU>112</SU>
                            <FTREF/>
                             Because “it is not possible to express, let alone control for, all the factors that vary across cable systems,” the econometrician must judiciously use control variables (and fixed effects, discussed 
                            <E T="03">supra</E>
                            ), or otherwise bear “the burden . . . to justify why coefficients are not absorbing the effects of omitted variables and warrant the desired causal interpretation.” George WRT at 27-30.
                        </P>
                        <FTNT>
                            <P>
                                <SU>112</SU>
                                 For example, Dr. George notes that FCC data indicates that cable subscription prices (and thus royalties) are lower in less wealthy markets. Likewise, Dr. Crawford showed in 2010-2013 that “top MSO's earned higher revenues per subscriber than other systems, suggesting that large MSO's are able to charge higher prices for cable packages.” George WRT at 28.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <HD SOURCE="HD3">b. Criticisms of the Johnson Model by PTV Expert Witness Dr. Bennett</HD>
                    <P>Dr. Bennett lodges the following criticisms specific to the Johnson Model:</P>
                    <EXTRACT>
                        <P>1. The base fees and the 3.75% Fees reported by CSOs are decoupled from each other and are often less than the CSOs' actual royalty payments. Bennett WRT ¶¶ 66-69, figs.24-26. This is problematic because CSO carriage decisions underlying the base fees and the 3.75% fees are “inextricably linked,” in that the cost factor in the decision whether to add a station is based on the total royalty cost, which includes both the (1) the base fee or minimum fee, as applicable, and (2) the 3.75% fee. But by treating the two royalty funds separately, the Johnson Model materially increases PTV's overall share, compared to what it would be if the two royalty funds were jointly considered. Bennett WRT ¶¶ 74-78, figs.27-28.</P>
                        <P>2. Dr. Johnson provides no basis for extrapolating from the subset of Subscriber Groups with positive Base Rate fees to the broader royalty pool. Bennett WRT ¶¶ 70-73.</P>
                        <P>3. The Johnson Model excludes fixed effects, which means that his regressions do not account for omitted variable bias. But Dr. Johnson introduces the risk of such bias based on a trumped-up concern that the Judges noted in the 2010-13 Determination but which had no impact. Moreover, the resulting bias in the regression coefficient is caused by eliminating fixed effects that would have impacted royalties but were unrelated to program category minutes, for example, where different CSOs charge different subscription prices because of differences in the number of specialty channels they provide in their basic service. Similar omitted variables arise when fixed effects are eliminated because of uncontrolled differences in subscription revenue (and thus section 111 royalties) between and within MSOs. Bennett WRT ¶¶ 79-89, figs.29-35.</P>
                        <P>
                            4. Dr. Johnson's decision to eliminate fixed effects was particularly puzzling, because he had the endorsed Dr. Crawford's “regression framework” as “appropriate” for present purposes and acknowledges that he “generally follows the framework used by [Dr.] Crawford.” Nonetheless, he eliminated Dr. Crawford's fixed effects, inflating PTV's shares as reported in the Johnson WDT. 
                            <E T="03">See</E>
                             Bennett WRT ¶¶ 90-92, figs.36-37.
                        </P>
                    </EXTRACT>
                    <HD SOURCE="HD3">c. Criticisms of the Johnson Model by PTV Expert Witness Dr. Marx</HD>
                    <P>Dr. Marx essentially echoes the criticisms of Dr. Bennett with regard to Dr. Johnson's allegedly improper removal of fixed effects from the regression. She emphasizes that Dr. Johnson did not appear to test or evaluate the size or direction of the bias created by eliminating fixed effects, even for 2014, which was “a year that in most significant respects was similar to 2010-2013, which is the time period for which the Judges found the Crawford regression with fixed effects to be `highly useful.'” Marx WRT ¶ 39.</P>
                    <HD SOURCE="HD3">d. Criticisms of the Johnson Model by Program Suppliers Expert Witness Dr. Tyler</HD>
                    <P>
                        Dr. Tyler does not raise any specific criticisms of the Johnson Model. Rather, he criticizes it in the same way he criticizes all the other regressions that use a form of royalties as the dependent 
                        <PRTPAGE P="54210"/>
                        variable (as explained 
                        <E T="03">supra,</E>
                         in the Judges' summary of Dr. Tyler's advocacy for the model he has proffered in this proceeding). 
                        <E T="03">See</E>
                         Tyler WRT ¶ 29. To summarize, Dr. Tyler rebutted the Johnson Model by asserting the following:
                    </P>
                    <EXTRACT>
                        <P>1. The Johnson Model needed to avoid the substantial degree of variability, causing a loss of observations.</P>
                        <P>2. The Johnson Model, like the George Model, “guesses” at the number of subscribers in each Subscriber Group, introducing potential bias into the regression.</P>
                        <P>3. The Johnson Model, like the George Model, has “hammer-shaped” residuals, which indicate that a regression is misspecified.</P>
                        <FP>
                            <E T="03">See</E>
                             Tyler WRT ¶¶ 29-55.
                        </FP>
                    </EXTRACT>
                    <HD SOURCE="HD3">e. Criticisms of the Johnson Model by SDC Expert Witnesses Dr. Asker, Dr. Majure, and Mr. Harvey</HD>
                    <P>JSC's several expert economic witnesses levy the following criticisms at the Johnson Model:</P>
                    <EXTRACT>
                        <P>1. The Johnson Model (like the George Model) improperly engages in the pooling of data across the 2014-2017 period to estimate a single coefficient for each program category. According to the JSC economic witnesses, such pooling generally results in “unreliable” coefficients and, specifically, led in this case to an underestimation of JSC's 2014 share. More particularly, three JSC experts testified as follows:</P>
                        <P>
                            a. Dr. Asker testified that “there was a significant change in behavior following the conversion of WGNA in 2015. . . . To adopt a specification that doesn't recognize that change and then allow the regression to adjust . . . is a considerable flaw.” 3/30/23 Tr. 2431 (Asker); 
                            <E T="03">see also</E>
                             Asker WRT ¶ 103.
                        </P>
                        <P>b. Dr. Majure testified that “[t]he data are very different between these two periods, reflecting changes in distant signal carriage patterns from the exit of WGNA. Given the differences in the data, it is important to run separate regressions on the different time periods.” Majure WRT ¶ 38.</P>
                        <P>c. According to Mr. Harvey, the Johnson Model estimates that JSC went from the highest per minute value in 2014 to the lowest in 2015-2017 and, moreover, CSOs would pay less for a minute of JSC content during 2015-2017 than for a minute of any of the other claimant categories. Harvey WRT ¶ 37 tbl.5; 3/28/23 Tr. 1883-87, 1889-90 (Harvey).</P>
                        <P>d. Mr. Harvey further testified that for the 2015-2017 period data alone, using the Johnson Model (and the George Model) generated JSC sports coefficients that were not statistically significant and, according to Mr. Harvey, were thus unreliable in that the data implied that JSC programming had no value in those years. Harvey WRT ¶¶ 37-38 &amp; tbl.5.</P>
                        <P>e. Mr. Harvey calculated that when a 2015-17 coefficient is estimated only for systems paying more than the minimum fee, the Johnson Model then estimates a statistically significant negative coefficient for JSC content. Harvey WRT ¶ 38 &amp; tbl.6; 3/28/23 Tr. 1895-96 (Harvey).</P>
                        <P>2. The Johnson Model lacks “robustness” and is “unstable.” According to Mr. Harvey, these defects are evidence that Dr. Johnson had engaged in a specification search (discussed elsewhere in this Determination). But Mr. Harvey asserts that even if Dr. Johnson had not engaged in an intentional specification search, his many specifications generated results that evidenced the lack of robustness and stability. 3/28/23 Tr. 2091 (Harvey); Harvey WRT ¶ 155 &amp; tbl.26; see also JSC PFF ¶ 196.</P>
                        <P>3. Reiterating a criticism rejected in the 2010-13 Determination, the Johnson Model (like the George Model) wrongly utilizes a log-linear specification, with the dependent variable (royalties) expressed in log form and the subscriber count variable expressed in linear form. Harvey WRT ¶ 170; 3/28/23 Tr. 1965-66 (Harvey).</P>
                        <P>
                            4. The Johnson Model wrongly omits fixed effects (as also noted by other witnesses, discussed 
                            <E T="03">supra</E>
                            ). According to Mr. Harvey, applying the fixed effects contained in the George Model triples Dr. Johnson's estimate of the JSC share. Harvey WRT ¶ 111 &amp; tbl.5.
                        </P>
                    </EXTRACT>
                    <HD SOURCE="HD3">
                        f. Criticisms of the Johnson Model by SDC Expert Witness Dr. Erdem 
                        <SU>113</SU>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             In addition to the specific criticisms by Dr. Erdem of the particulars of the Johnson Model, Dr. Erdem criticizes Dr. Johnson for engaging in the improper process of specification searching (also described as “data mining” and “p-hacking”). The Judges consider that issue separately in this Determination.
                        </P>
                    </FTNT>
                    <P>Dr. Erdem levies the following criticisms at the Johnson Model:</P>
                    <EXTRACT>
                        <P>
                            1. The specifications in the Johnson Model (
                            <E T="03">i.e.,</E>
                             Dr. Johnson's preferred “baseline” model) is but “a stripped-down version” of the fatally flawed Crawford Model, shorn of “numerous control variables such as MSO indicators and the lag of subscribers and . . . fixed effects . . . . ” Erdem WRT ¶ 42.
                        </P>
                        <P>2. When the Johnson Model's regression was run “using the CCG data that Dr. George used for her regressions . . . PTV shares decreased by eight points [and] [e]very other claimant . . . had their implied shares . . . with] JS[C] [gaining] a five-point increase in shares.” This allegedly indicated that “[t]he processed data that PTV used for their regression was clearly made to benefit their shares . . . . ” Erdem WRT ¶¶ 98-99.</P>
                        <P>
                            3. All of Dr. Erdem's sensitivity tests showed a similar tendency, 
                            <E T="03">i.e.,</E>
                             compared to the Johnson Model, “all the sensitivities . . . [gave] PTV lower implied shares.” Erdem WRT ¶ 101.
                        </P>
                    </EXTRACT>
                    <HD SOURCE="HD3">
                        2. The Judges' Analysis and Findings Regarding the Johnson Model 
                        <SU>114</SU>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             The Judges' analysis and findings in this section are separate and apart from their analysis and findings on the specific issues considered in separate sections of this determination.
                        </P>
                    </FTNT>
                    <P>The Judges make the following findings with regard to the Johnson Model:</P>
                    <EXTRACT>
                        <P>1. Although Dr. Johnson used the Crawford Model as his “starting point,” he made changes to the Crawford Model.</P>
                        <P>2. A major change Dr. Johnson made to the Crawford Model was to eliminate all “fixed effects” in the Johnson Model.</P>
                        <P>
                            3. By removing all “fixed effects,” Dr. Johnson altered the Crawford Model by eliminating the protection against “omitted variable bias.” That is, Dr. Johnson failed to capture the effects of differences among systems (CSOs) and across accounting -periods that impacted the dependent variable in the Johnson Model, 
                            <E T="03">i.e.,</E>
                             the log of royalties. The absence of these “fixed effects” therefore rendered significantly reduces the evidentiary usefulness of the Johnson Model.
                            <SU>115</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>115</SU>
                                 The irony of this criticism is that Dr. Johnson relied on the Crawford Model as a “starting point” for his modeling, deemphasizing the need to develop an independent economic theory, and ignored the potential specification searching in Dr. Crawford's modeling, but removed the feature of the Crawford Model (“fixed effects”) that was the 
                                <E T="03">positive</E>
                                 basis for the Judges' elevation of the regression approach to a position of evidentiary primacy in the 2010-13 Determination.
                            </P>
                        </FTNT>
                        <P>4. A purpose in Dr. Johnson's removal of “fixed effects” from his regression model was to generate what he understood to be a sufficient number of observations of CSO decisions regarding program category retransmittal decisions (through their retransmitted channel selections) to generate the variation needed for a useful regression. These additional observations were required because, after the WGNA conversion, there was a significant reduction in the number of CSOs with two or more subscriber groups, reducing the variation created by the “fixed effects” control in the Crawford Model. But, as Dr. Marx, for example, has explained, this attempt at greater “precision” came at the unacceptable expense of the generation of “omitted variable bias” discussed above.</P>
                        <P>
                            5. Dr. Johnson's further claim—that he eliminated “fixed effects” in response to a statement in the 2010-13 Determination that the Judges were troubled by the resulting loss of 15% of the otherwise observable CSO decisions—is a red herring. The Judges in the 2010-13 Determination did 
                            <E T="03">not</E>
                             rely on the loss of such observations as a basis for diminishing the evidentiary weight of the Crawford Model. And regardless, if the lost number of observations increased in the present proceeding because of the aforementioned reduction in useful subscriber groups, the more appropriate response was not to inject “omitted variable bias” into the regression, but rather to utilize other approaches (as, for example, in the Tyler Model).
                        </P>
                        <P>
                            6. Dr. Johnson's inclusion in his regressions of data regarding the programming decisions of the vast majority of CSOs paying the minimum fee or less significantly reduces the evidentiary weight of the Johnson Model for the three-year 2015-2017 period. (This finding of course also applies to the George and Tyler Models.) These decisions did not 
                            <E T="03">reveal their preferences</E>
                             in a cardinal manner, that is, these CSOs did not reflect relative values because their choices did not affect the actual fees paid. At most, their decisions reflected ordinal values, in terms of which program categories they valued more than others, but 
                            <PRTPAGE P="54211"/>
                            not how much more, which is necessary for the distribution of the royalty fund.
                            <SU>116</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>116</SU>
                                 In the 2010-13 Determination by contrast, as Dr. Marx has explained, the Judges found there was a sufficiently high percentage of CSOs paying 
                                <E T="03">above</E>
                                 the minimum fee and thus making decisions with an economic (royalty) impact that served as a strong evidentiary basis for allocating shares.
                            </P>
                        </FTNT>
                        <P>
                            7. But Dr. Johnson properly relied on the data relating to the subset of CSOs in his model that only paid 
                            <E T="03">above</E>
                             the minimum fee. The Judges credit that data as reflective of actual economic decision-making that is useful in determining the allocation shares in this proceeding. This cohort of CSOs can properly be viewed as essentially the only CSOs who provide revealed preference information as to the variation in relative values among the program categories (in contrast with CSOs who did not retransmit any distant local stations or those with “excess capacity”), which in that sense is a cohort unto itself, rather than a sub-sample. On the other hand, this cohort can also reasonably be viewed as but a small sample of all the CSO, which reduces the evidentiary weight of their preferences. Both perspectives on the revealed preferences of these above-minimum-fee-paying CSOs are properly considered in weighting the various strands of useful evidence in order to allocate royalty shares in this proceeding.
                        </P>
                        <P>8. The probative value of the Johnson Model is incomplete and thus weakened, because it excludes the 3.75% fees paid by most of the claimants, thus not reflecting the full willingness-to-pay of all claimant categories. Further, Dr. Johnson's separation of the basic royalty fund and the 3.75% royalty fund materially increased PTV's overall share.</P>
                        <P>9. The probative value of the Johnson Model is weakened because it wrongly substitutes “contemporaneous” for “lagged” subscribers. This substitution is incorrect because: (a) lagged controls minimize the subsequent impact of potential unobserved factors such as the acquisition of a CSO by a large MSO; (b)”lagged” subscribers were used since the Waldfogel regression in the 2004-05 proceeding; and (c) contrary to Dr. Johnson's assertion, “lagged subscriber” data was available from Cable Data Corporation, the source of much of the data utilized in the regressions proffered in this and prior allocation proceedings.</P>
                        <P>
                            10. The probative value of the Johnson Model is weakened because its omission of certain control variables lessens its ability to identify the causal interpretation of interest, 
                            <E T="03">i.e.,</E>
                             the correlation between program category minutes and the log of royalties. Specifically, the evidentiary weight of the Johnson Model is compromised by its exclusion of control variables for market income, the number of local stations offered and MSO ownership of CSOs. In this regard, Dr. Johnson has essentially ignored the 2010-13 Determination which explains at length why the inclusion of an MSO control variable is necessary. 2010-13 Determination at 3566-67 (describing “differences . . . among the six largest MSOs in terms of their average receipts per subscriber . . . . suggest[ing] . . . important differences . . . regarding their signal carriage strategies, pricing, and other relevant dimensions,” and contrasting “a regression without the six MSO Interaction variables [where] unobserved differences in average revenue per subscriber could bias estimates of relative value of different programming.”).
                            <SU>117</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>117</SU>
                                 One might fairly ask: Why rely on Dr. Crawford's specification decisions now, after raising the concerns about his potential specification searching? The answer is that Dr. Crawford's detailed and persuasive explanation for adding this additional control variable in the course of specifying his model was a reason why the Judges did not agree with the SDC in the 2010-13 proceeding that it was evidence of inappropriate specification searching. The troublesome facts were generated 
                                <E T="03">subsequently,</E>
                                 in the discovery phase of the companion 2010-13 
                                <E T="03">satellite</E>
                                 proceeding.
                            </P>
                        </FTNT>
                        <P>11. The Johnson Model improperly “pools” data across the 2014-2017 period to estimate a single coefficient for each program category. Although “pooling” in this manner is not inherently improper in these allocation proceedings, when there is a sharp demarcation in the relevant data, as existed here as of 2015 upon the WGNA conversion, “pooling” data to generate a single coefficient obscures reality. The most consequential impact of “pooling” was the underestimating of the JSC share for 2014 and its overestimation for the years 2015-2017.</P>
                    </EXTRACT>
                    <HD SOURCE="HD1">IX. A General Criticism of the Regressions: Dr. Erdem's Eight-Model Argument In Rebuttal to the Use of the Proffered Regressions</HD>
                    <P>
                        Undaunted by the Judges' findings in the 2010-13 Determination discussed 
                        <E T="03">supra,</E>
                         Dr. Erdem endeavors to convince the Judges to reverse course by once more presenting an argument that all fee-based regressions should be rejected as probative evidence of relative market value, as that standard has been defined by the Judges and their predecessors.
                        <SU>118</SU>
                        <FTREF/>
                         To this end, Dr. Erdem presented in rebuttal eight models as pedagogical tools only (not as proposed models for use in allocating shares). He and the SDC aver that his are “simple models,” demonstrating that “all fee-based regression models” do not estimate “any plausible measure of fair market value,” 
                        <SU>119</SU>
                        <FTREF/>
                         but rather are “leveraged on correlations driven predominantly by geography (location of cable systems and the subscriber groups) and other features of the copyright royalty system . . . .” SDC PFF ¶ 44 (quoting Erdem WRT ¶ 2).
                        <SU>120</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             Nothing in the prior determinations precludes the Judges from considering what appear to be new arguments by Dr. Erdem, because the Judges' (and their predecessors') reliance on fee-based regressions constitutes a factual finding, not a legal conclusion, and thus there is no “precedent” that precludes a new line of factual expert argument. 
                            <E T="03">See</E>
                             2010-13 Determination at 3557 &amp; n.26 (distinguishing “legal precedent” from the oxymoronic concept of a “factual precedent.” 
                            <E T="03">See also</E>
                             17 U.S.C. 803(a) (directing the Judges to act on the basis of both: (1) “a written record” which includes record evidence; and (2) prior “determinations and interpretations” of identified judicial and administrative entities.).
                        </P>
                        <P>
                             However, factual matters that the Judges decided in the 2010-13 Determination need not be fully revisited in this proceeding, in the absence of any new persuasive argument to the contrary. Such factual matters include: (1) the rejected sweeping claim that fee-based regressions do not embody economic principles such as profit maximization (
                            <E T="03">see</E>
                             2010-13 Determination at 3560), (2) the rejected characterization of fee-based regressions as merely “volume analyses” (
                            <E T="03">see id.</E>
                             at 3560-61), (3) the rejected argument that it was wrong for fee-based regressions to ignore distant local signals that CSOs chose not to carry (
                            <E T="03">see id.</E>
                             at 3563), and (4) the rejected argument that the fee-based regressions used the wrong form for the control variable for number of subscribers (
                            <E T="03">see id.</E>
                             at 3563-64).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             It is not lost on the Judges that Dr. Erdem uses the phrase “fair market value” here, rather than the actual standard of “relative marketplace value.” In the 2010-13 Determination, the Judges explicitly distinguished the two concepts. 2010-13 Determination at 3555 n.17 (“Because the royalties at issue in this proceeding are regulated and not derived from any actual market transactions, they do not correspond with absolute dollar royalties that would be generated in a market and thus would not reflect absolute “fair market value.”) 
                            <E T="03">See also</E>
                             the Judges' discussion of the “relative marketplace value” standard, 
                            <E T="03">supra.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>120</SU>
                             Elsewhere in his testimony, Dr. Erdem offers a more sinister conclusion from his “eight-model” analysis: “[A]s I will show, it is precisely these modeling choices that allow the analyst to select a model based on expected or desired results.” Erdem WRT ¶ 51. Thus, his argument is that the very structure of the fee-based regressions provides all the expert witnesses, not just the two he singled out, Drs. Crawford and Johnson, with the opportunity to engage in specification searches.
                        </P>
                    </FTNT>
                    <P>The Judges go through each of the eight models below. Also set forth below are the rejoinders to these models presented comprehensively through the submission by CCG and the testimony of CCG's economic expert, Dr. George.</P>
                    <HD SOURCE="HD2">A. Erdem's Rebuttal Model 1</HD>
                    <P>
                        Model 1 shows “a negative correlation between the number of minutes retransmitted on a distant basis and the amount of subscriber group base fees.” SDC PFF ¶ 45 (citing Erdem WRT ¶¶ 52-53). This means, according to Dr. Erdem, that subscriber groups retransmitting 
                        <E T="03">fewer</E>
                         distant minutes tend to pay 
                        <E T="03">more</E>
                         in royalty fees. Erdem WRT ¶ 53. Dr. Erdem interprets these negative coefficients as a “hedonic” regression, implying that CSOs place 
                        <E T="03">negative</E>
                         value on retransmission of distant signals.” SDC PFF ¶ 45 (citing Erdem WRT ¶ 53) (emphasis added).
                        <SU>121</SU>
                        <FTREF/>
                         Given the perverse nature of this result, the SDC maintains that its negative value puts the lie to the claim that the number of minutes has something “to do with value,” but rather shows that the regression coefficients are artifacts “of the regulatory structure.” SDC PFF ¶ 45.
                        <SU>122</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             The Judges discuss elsewhere in this determination the concept and label of a hedonic regression and their significance in this proceeding.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             Dr. Erdem states that to test the hypothesis of a positive correlation, on average, between royalties 
                            <PRTPAGE/>
                            and minutes, he would need to “control[] for appropriate variables.” Erdem WRT ¶ 52. However, there is no sufficient indication in the record that Dr. Erdem applied control variables, or any other controls through fixed effects with regard to his Model 1.
                        </P>
                    </FTNT>
                    <PRTPAGE P="54212"/>
                    <P>
                        Dr. Erdem advances what he argues is an alternative explanation for the inverse relationship between minutes and royalties that he claimed to identify: “[This] result can be explained by distance between the signal and the subscriber group [because] I argue that the number of subscribers reduce with distance, implying that the signal is being re-transmitted to fewer subscribers over longer distances.” Erdem WRT ¶ 53. 
                        <E T="03">See also</E>
                         Erdem WRT ¶ 59 (“91% of systems are retransmitting the same signal on a local basis to some subscriber groups and on a distant basis to other subscriber groups[,] . . . [and] on average 76% of the channels that are distant to a subscriber group are retransmitted as local to another subscriber group”); SDC PFF ¶¶ 46-47; 
                        <E T="03">see also</E>
                         Bennett ACWDT ¶ 33 (Across 2014-2017, nearly 95% of the distant signals imported were within 150 miles of the community served, and over 97% were within 200 miles.).
                    </P>
                    <HD SOURCE="HD2">B. Erdem's Rebuttal Model 2</HD>
                    <P>
                        In his second rebuttal model, Dr. Erdem analyzed the relationship between claimant category minutes and base royalty fees. He testified that, quite similar to the results from his Model 1, he found that a negative or statistically insignificant relationship largely persists (except for JSC minutes). As with Model 1, Dr. Erdem interprets this result through the lens of a hedonic regression, finding that it implies that CSOs place a negative value on all distant retransmissions of local programming, except for JSC. Erdem WRT ¶ 54. And also as with Model 1, Dr. Erdem recognizes that these results are “counterintuitive” in the context of reflecting value, but rather are a function of the fragmentation of subscriber groups. Erdem WRT ¶ 54. 
                        <E T="03">See also</E>
                         SDC PFF ¶ 48.
                        <SU>123</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             Again, Dr. Erdem does not indicate whether he applied control variables, and, if he did, what they were.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">C. Erdem's Rebuttal Model 3</HD>
                    <P>
                        In his third rebuttal model, Dr. Erdem tested the effect of the number of subscribers in a subscriber group (the independent variable) on subscriber group royalty fees and found a strong positive correlation. Erdem WRT ¶ 58. Dr. Erdem, again viewing the modeling as a hedonic regression, has a ready and what he describes as an obvious explanation for this positive correlation: [C]able systems place a high positive value on the number of subscribers in a subscriber group.” Erdem WRT ¶ 58. As alternatively stated by Dr. Erdem, “[W]e may need to treat the number of subscribers as a measure of volume.” Erdem WRT ¶ 58. Relatedly, Dr. Erdem opines that “there is a negative correlation between the number of subscribers in a subscriber group and the number of distant minutes the subscriber group receives”—meaning that, for the more populous subscriber groups, fewer distant signals (and minutes) are retransmitted to them and, thus, the more sparse the number of subscribers in a subscriber group, the greater the number of distant signal minutes. According to Dr. Erdem, this negative correlation is inconsistent with the positive correlation between distant minutes and royalties posited by the theoretical underpinnings of the fee-based regressions. 
                        <E T="03">See</E>
                         Erdem WRT ¶ 59.
                        <SU>124</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             The Judges note Dr. Tyler's testimony, discussed elsewhere in this determination, that there is no data identifying the number of subscribers in a subscriber group, in the course of his positive differentiation of the Tyler Model from the other regression models (which unlike the Tyler Model, must estimate the number of such subscribers in an inaccurate manner). It is not apparent from the record that Dr. Erdem had estimated the number of such subscribers in an accurate manner.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">D. Erdem's Rebuttal Model 4</HD>
                    <P>
                        Dr. Erdem's Model 4 seeks to address a finding from his Model 3: “[T]he relationship between the number of subscribers and royalty fees is positive.” Erdem WRT ¶ 58 &amp; fig.4. Keeping with his interpretive context, which treats these regressions as hedonic in nature, Dr. Erdem posits that “[a]n analyst . . . will conclude that [CSOs] place a high positive value on the number of subscribers in a subscriber group,” such that “we may need to treat the number of subscribers as a measure of volume.” Erdem WRT ¶ 58. 
                        <E T="03">But</E>
                         he then asks, rhetorically: Could it be that, on average, 
                        <E T="03">subscriber groups with fewer subscribers receive more distant minutes of programming?</E>
                         Erdem WRT ¶ 58 (emphasis added). Dr. Erdem then turns to his next pedagogical regression model, Model 4, to address this issue.
                    </P>
                    <P>Dr. Erdem's Model 4 indeed demonstrated a “negative correlation between the number of subscribers in a subscriber group and the number of distant minutes the subscriber group receives.” Erdem WRT ¶ 59. Dr. Erdem explained his intuitive explanation for this negative correlation:</P>
                    <EXTRACT>
                        <P>
                            One of the principal reasons why a rational CSO 
                            <E T="03">might</E>
                             choose to use subscriber groups is because the cable system's reach straddles the edge of the 35-mile radius in which a station is considered “local” for cable royalty purposes. In this situation, a signal is “local” to some subscribers and “distant” to other subscribers. The cable system can save money by 
                            <E T="03">breaking its subscribers into geographically based subscriber groups</E>
                             so that it is paying for the distant retransmission only for the subscribers receiving it on a “distant” basis.
                        </P>
                    </EXTRACT>
                    <FP>
                        Erdem WRT ¶ 59 (emphasis added). Dr. Erdem then presents the data (discussed 
                        <E T="03">supra</E>
                        ) regarding the localized emphasis on “distant” retransmission contiguous to the 35-mile legal boundary between local and distance transmissions. Erdem WRT ¶¶ 59-60.
                    </FP>
                    <P>
                        Dr. Erdem recognizes that the several regression experts sought to remove this cost-based negative effect of the number of subscribers in a subscriber group on the number of distant minutes a subscriber group receives. First, he noted that Dr. Tyler, with his SGRP divided the dollar value of fees (the numerator in Dr. Tyler's SGRP) by “a metric that scales with the number of subscribers,” 
                        <E T="03">i.e.,</E>
                         total receipts. (the denominator in Dr. Tyler's SGRP). Second, as an alternative approach, Drs. George and Johnson (and apparently Dr. Crawford previously) introduced a control variable to remove the influence of the number of subscribers (whose increasing numbers would increase receipts and potentially increase royalties either through higher binding base fees or by triggering a base fee obligation in excess of the minimum fee that would otherwise bind). Erdem WRT ¶ 61.
                        <SU>125</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             Note that when discussing Model 7 considered 
                            <E T="03">infra,</E>
                             Dr. Erdem admits that “inclusion of a variable for subscribers . . . could be justified as a volume-based control.” Erdem WRT ¶ 69.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">E. Erdem's Rebuttal Model 5</HD>
                    <P>
                        Dr. Erdem then apparently adds to his pedagogical model the control variable that Drs. George and Johnson include, “controlling for the number of subscribers.” When Dr. Erdem does so (using lagged and unlagged subscriber numbers, respectively in his modeling), he finds that his “correlation between total minutes and royalty fees is now 
                        <E T="03">positive.</E>
                        ” Erdem WRT ¶ 62 &amp; fig.6 (emphasis added). He emphasizes that what he terms the “fixed price” for the retransmissions in his modeling is “based primarily on the type and number of signals and revenues for the subscriber group,” despite the fact that “[r]evenues are largely based on the number of subscribers.” Erdem WRT ¶ 62.
                    </P>
                    <P>
                        What still remains uncontrolled, Dr. Erdem, notes, is the “impact . . . from the number of distant signals.” Erdem 
                        <PRTPAGE P="54213"/>
                        WRT ¶ 62. He notes the perhaps self-evident point that “[t]he more signals there are, the more minutes there are, so I would expect a positive relationship after controlling for subscribers.” Erdem WRT ¶ 62.
                    </P>
                    <HD SOURCE="HD2">F. Erdem's Rebuttal Model 6</HD>
                    <P>
                        Dr. Erdem then breaks the retransmitted minutes into their respective programming categories, and proceeds to test whether the positive correlation between total minutes and royalties (which the regression experts understood to exist) continues to hold on a per-category basis. Erdem WRT ¶ 63. He finds that this positive relationship between minutes and royalties—
                        <E T="03">on a program category basis</E>
                        —
                        <E T="03">remains positive and is statistically significant</E>
                         for four of the six category participants—PTV, Program Suppliers, JSC, and the SDC. However, his modeling resulted in mainly positive but statistically insignificant results for CTV and CCG, and, for a minority of CCG observations, a negative relation. (Dr. Erdem's modeling also showed negative correlations for “network programming” (not a category at issue). Erdem WRT ¶¶ 63-64 &amp; fig.7. Dr. Erdem interpreted these results to mean that “the control for the number of subscribers lifted the coefficients for program categories into positive territory by removing the influence of the number of subscribers, but not enough to give all categories a positive and statistically significant coefficient.” Erdem WRT ¶ 64.
                    </P>
                    <P>
                        Dr. Erdem asserts that these results “pose a problem for any analyst hoping to interpret the model as a hedonic regression.” Erdem WRT ¶ 65. More particularly, continuing from the binary perspective of whether the fee-based regressions are hedonic or not, he unambiguously opines that these regressions are invalid because they are 
                        <E T="03">not</E>
                         hedonic, in that “[t]he price is not actually varying based on the valuation of minutes,” but rather varying based on “other factors such as the type of signal or the revenue-per-subscriber for the subscriber group or system.” Erdem WRT ¶¶ 65-66.
                    </P>
                    <P>Dr. Erdem then states that the regression analyst who nonetheless “wishes” to describe his or her regression as hedonic must manipulate the negative coefficients into positive coefficients, so that they “appear” plausible as proxies for prices. Erdem WRT ¶ 67.</P>
                    <P>It is in this context that Dr. Erdem accuses the regression experts of “leveraging” the “negative coefficients for network programming” (which are ineligible for an allocation of the royalties to be divided in this proceeding). Erdem WRT ¶ 68. To generate this leverage, Dr. Erdem asserts that the fee regression analysts engage in two manipulations (1) they add another control variable for “the number of distant signals, which correlates directly with the total number of minutes” and (2) they exclude the variable for “the number of distant minutes of network programming,” “render[ing] all category coefficients `relative' to the negative coefficient for network programming.” Erdem WRT ¶ 68. Dr. Erdem emphasizes the elementary point that “[b]ecause any number is positive in relation to the largest negative number, the exclusion of the variable for network programming has the effect of lifting the variables for all category minutes comfortably into positive territory, creating an apparent positive and statistically significant correlation where there previously was none in some categories.” Erdem WRT ¶ 68.</P>
                    <HD SOURCE="HD2">G. Erdem's Rebuttal Model 7</HD>
                    <P>To the adjustments included through Models 1-6, Dr. Erdem now injects a control for “the number of distant stations on royalty fees.” Also, his Model 7 “drops network distant minutes in order to get relative numbers” in the manner undertaken by the fee regression experts. Erdem WRT ¶ 69.</P>
                    <P>
                        Although (as noted 
                        <E T="03">supra</E>
                        ) Dr. Erdem concedes that the prior “inclusion of a variable for subscribers . . . could be justified as a volume-based control,” he finds “no econometric justification for seeking to value category minutes relative to the negative coefficient value of network programming.” Erdem WRT ¶ 69. He states that as a 
                        <E T="03">general</E>
                         matter, “even if one believed that the coefficients were related to value, there could be no justification for trying to measure value relative to an 
                        <E T="03">arbitrarily</E>
                         chosen category with a negative value.” Erdem WRT ¶ 69 (emphasis added).
                    </P>
                    <P>Dr. Erdem also characterizes the negative coefficient for network programming as “an artifact of the operation of the copyright royalty system, not a measure of how much anyone values programming, and certainly not a measure of how programming would be valued in the free market.” Erdem WRT ¶ 70. Alternately stated, he declares that [t]here is no intuitive reason why network programming would be expected to have negative market value when retransmitted on a distant basis.” Erdem WRT ¶ 70.</P>
                    <P>
                        Dr. Erdem does acknowledge that, through what he calls this excluded network minute “manipulation,” all the coefficients in the categories of interest (for the distant retransmission that is permitted by law) now become positive. Erdem WRT ¶ 70 (“This is exactly how Professor Crawford's model—and, by extension, Dr. George's model and Dr. Johnson's model—works.”).
                        <SU>126</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             To be clear, Dr. Erdem does not lodge this criticism at Dr. Tyler's model.
                        </P>
                    </FTNT>
                    <P>From this point forward, Dr. Erdem maintains that the fee-based regression experts “are free from the constraints of econometric reasoning.” More particularly, he asserts they can, without appropriate justifications use various (1) control variables, (2) fixed effects, (3) transformations and functional forms, and (3) unspecified miscellaneous fine-tuning, all in the service of “generat[ing] whatever coefficients [they] desire or expect.” Erdem WRT ¶ 71.</P>
                    <HD SOURCE="HD2">H. Erdem's Rebuttal Model 8</HD>
                    <P>
                        The final model, Model 8, is actually not a “model” at all, but rather Dr. Erdem's more particular catalog of “manipulations” in which a fee-based regression expert 
                        <E T="03">could</E>
                         engage, with a model built up through Dr. Erdem's Models 1-7. Without linking any of the following “manipulations” specifically to any of the experts in this proceeding, Dr. Erdem states in this “Model 8” that the following “manipulations” are possible:
                    </P>
                    <EXTRACT>
                        <P>1. “bringing in variations in the number of subscribers to increase or decrease the effect on the dependent variable. For example, we can try the lagged number of subscribers;”</P>
                        <P>2. “add[ing] interactions with the number of subscribers” (as he states Dr. Crawford did in his model); and</P>
                        <P>3. “add[ing] fixed effects, which controls for any variation due to inherent characteristics of a subscriber group.”</P>
                    </EXTRACT>
                    <FP>
                        Dr. Erdem does not assert that such additions would be 
                        <E T="03">ad hoc,</E>
                         but rather that, consistent with the fundamental defect he finds in the fee-based regressions, they would “merely leverage the features of the copyright royalty system.” Erdem WRT ¶ 72.
                    </FP>
                    <HD SOURCE="HD2">
                        I. Dr. George's and CCG's Rejoinder to Erdem's Modeling Exercise 
                        <E T="51">127</E>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             CCG and Dr. George, among the other regression experts and parties, were the ones who responded to Dr. Erdem's testimony, apparently because Dr. Erdem's pedagogical modeling was based on “Dr. George's methodology and production.” Erdem WRT ¶ 51 n.23.
                        </P>
                    </FTNT>
                    <P>
                        At a high level,
                        <SU>128</SU>
                        <FTREF/>
                         CCG takes issue with the SDC's emphasis on the 
                        <PRTPAGE P="54214"/>
                        assertion that fee-based regressions are predominantly rooted in correlations with (a) the 
                        <E T="03">geographic location</E>
                         of CSOs and their constituent subscriber groups and (b) statutory features of the copyright royalty system. In this regard, CCG essentially attacks this assertion as much ado about nothing, because the reason 
                        <E T="03">why</E>
                         CSOs and their subscriber groups retransmit signals as they do does not bear on the fundamental point of the regressions, 
                        <E T="03">i.e.,</E>
                         to identify 
                        <E T="03">what</E>
                         the CSOs actually retransmit in order to appropriately compensate copyright owners. Dr. George emphasizes that whether or not subscriber group configurations are geographic artifacts, they nonetheless reflect the strategic profit-maximizing decisions of CSOs as to where they will transmit distant signals. It is this profit maximizing retransmission decision that is the kernel of information that provides insight into “what would determine relative market value absent regulation.” 
                        <E T="03">See</E>
                         George WDT at 15-17, 27-28; The Canadian Claimant Groups' Reply to Proposed Findings of Fact and Conclusions of Law (CCG RPFF) ¶¶ 21-22.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             This high-level “General Criticism” also responds specifically to Dr. Erdem's Model 4 discussed 
                            <E T="03">supra,</E>
                             regarding “geographic” effects, which are “key” elements of Dr. Erdem's general critique of fee-based regressions. 
                            <E T="03">See</E>
                             4/6/23 Tr. 3643-44 (Rubinfeld) (identifying “changes in the 
                            <PRTPAGE/>
                            number or size of subscriber groups” as a “key issue.”).
                        </P>
                    </FTNT>
                    <P>
                        More broadly, CCG characterizes Dr. Erdem's eight-model analysis as incomplete and economically flawed. In this regard, Dr. George criticizes Dr. Erdem's rebuttal pedagogical modeling because therein he analyzes relationships in the data 
                        <E T="03">across</E>
                         CSOs, whereas the George Model emphasizes variation 
                        <E T="03">within</E>
                         CSOs to identify coefficients. Thus, CCG and Dr. George essentially attack Dr. Erdem's modeling as a straw man exercise. CCG RPFF ¶ 22; George WDT at 27-28.
                    </P>
                    <P>
                        At the conceptual economic level,
                        <SU>129</SU>
                        <FTREF/>
                         Dr. George takes note of the point (identified by the Judges 
                        <E T="03">supra</E>
                        ) that Dr. Erdem has contextualized his analysis in the wrong economic and legal standard:
                    </P>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             All the economic experts in this proceeding agree that the initial step in building a regression model is to identify “a theory that describes the variables to be included in the study.” American Bar Association, 
                            <E T="03">Econometrics, Legal, Practical and Technical Issues</E>
                             8 (1st ed. 2005) (“
                            <E T="03">ABA Econometrics</E>
                            ”). 
                            <E T="03">See also</E>
                             Stock &amp; Watson, 
                            <E T="03">supra</E>
                             note 92, at 282 (“
                            <E T="03">First,</E>
                             a core or base set of regressors should be chosen,” which includes the “variables of primary interest” and the “control variables” suggested by, inter alia, “economic theory.”) (emphasis added); Kennedy, 
                            <E T="03">supra,</E>
                             at 391 (identifying as “Rule 1” of applied econometrics: “Use common sense and 
                            <E T="03">economic theory.</E>
                            ”) (emphasis added).” Perhaps even more pertinent here is Professor Kennedy's “Rule 2,” which states that an econometrician must avoid attempting to “produce[ ] the right answer 
                            <E T="03">to the wrong question.” Id.</E>
                             at 391.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            SDC's false criticism that regressions are not driven “by any plausible measure of fair market value” suggests that measuring fair market value was a goal of regression. . . . 
                            <E T="03">No pro-regression expert</E>
                             claims that correlations are driven by 
                            <E T="03">“fair market value.”</E>
                             As the Judges wrote in the prior proceeding: “In this proceeding, the Judges distinguish between 
                            <E T="03">`relative values'</E>
                             (to describe the allocation shares), and 
                            <E T="03">absolute `fair market values.'</E>
                             Because the royalties at issue in this proceeding are regulated and not derived from any actual market transactions, they do not correspond with absolute dollar royalties that would be generated in a market and thus would 
                            <E T="03">not</E>
                             reflect absolute `fair market value.' ”
                        </P>
                    </EXTRACT>
                    <FP>CCG RPFF ¶ 12 (quoting 2010-13 Determination at 3555 n.17) (emphasis added).</FP>
                    <P>
                        More granularly, CCG asserts that the negative correlations in 
                        <E T="03">Dr. Erdem's</E>
                         modeling between royalties (the dependent variable) and, respectively, (a) total distant minutes (Model 1), (b) claimant distant minutes (Model 2), and (c) subscriber group size (Model 3), do not, as Dr. Erdem claims, reveal a modeling “hurdle” or “problem” that bedevils the fee-based regressions. Rather, it is claimed that Dr. Erdem's first three pedagogical rebuttal models fail to consider that CSOs configure their subscriber groups strategically to maximize profits and therefore will only retransmit distant signals to groups of subscribers when the anticipated benefit (essentially, more new or retained subscriptions) exceeds the anticipated costs (royalties). CCG RPFF ¶ 24 (citing, from the 2010-13 proceeding, Crawford CWDT ¶¶ 66-68; Israel WDT ¶¶ 12-14.).
                    </P>
                    <P>
                        CCG also takes note of the finding in Dr. Erdem's Model 3 
                        <SU>130</SU>
                        <FTREF/>
                         of “a positive relationship between the number of distant signals and subscriber group royalties,” suggestive of the regression experts' hypothesis that cable systems place a high positive value on the number of subscribers in a subscriber group.” CCG RPFF ¶ 24. Unsurprisingly, CCG and Dr. George do not disagree with his finding.
                        <SU>131</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             CCG misidentifies this point as within Dr. Erdem's Model 4. CCG RPFF ¶ 24.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             As noted 
                            <E T="03">supra</E>
                             regarding CCG's and Dr. George's “General Criticisms” of Dr. Erdem's pedagogical modeling, they dispute his assertion in Model 4 that fee-based regressions do not reflect the category-by-category preferences of CSOs as revealed by the minutes of program categories retransmitted.
                        </P>
                    </FTNT>
                    <P>CCG and Dr. George then address Dr. Erdem's next point regarding: (1) the purportedly problematic “negative correlations” in Models 4 and 6 “between the number of subscribers in a subscriber group and the number of distant minutes the subscriber group receives” (Erdem WRT ¶ 59); and (2) the attempt to control for the number of subscribers considered in Model 5 (Erdem WRT ¶ 62). In defending the use of a control for the “number of subscribers” as an important feature for a fee-based regression, CCG states:</P>
                    <EXTRACT>
                        <P>
                            The negative correlations documented in Dr. Erdem's models are not “problems.” The negative correlation with subscriber group size results from the strategic choices of cable systems to minimize the cost associated with distant signal carriage. The negative coefficient for one category of minutes reflects the fact that programming minutes per station sum to a total of 24 hours per day. The goal of the regression is to evaluate how royalty expenditure correlates with claimant programming on distant signals retransmitted, 
                            <E T="03">all else equal.</E>
                             A control variable for the 
                            <E T="03">number of subscribers</E>
                             in a subscriber group creates these all-else-equal conditions.
                        </P>
                    </EXTRACT>
                    <FP>CCG RPFF ¶ 25 (citing George WDT at 52-54; George WRT at 60) (emphasis added).</FP>
                    <P>Turning to Dr. Erdem's pedagogical rebuttal Model 7, Dr. George and CCG assert that Dr. Erdem has changed the fee-based regression modeling in two ways by (1) “excluding the variable for network minutes” and (2) “including a variable for the number of distant signals.” CCG RPFF ¶ 26. Regarding the alleged error in Dr. Erdem's exclusion of the network minutes variable, CCG avers:</P>
                    <EXTRACT>
                        <P>
                            Since all stations broadcast approximately 24 hours per day, and subscriber groups must have whole numbers of distant signals, programming minutes sum to a constant equal to the number of distant signals times 24 hours per day for 6 months. Dr. Erdem has . . . effectively forc[ed] one of the program categories to produce a negative coefficient. [Dr.] Crawford and [Dr.] George address th[is] . . . by 
                            <E T="03">specifying a model with a control for . . . a reference category of “big-3” network minutes.</E>
                             Network minutes are a convenient 
                            <E T="03">reference choice</E>
                             because they are non-compensable and no coefficient for this category need be estimated.
                        </P>
                    </EXTRACT>
                    <FP>
                        CCG RPFF ¶ 26 (citing George WRT at 31-32, 57-58, 63-64) (emphasis added).
                        <SU>132</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             Moreover, Dr. George pointed out that, at first, Dr. Tyler made the same mistake as Dr. Erdem, neglecting to include or address this reference category when critiquing the Crawford Model. When he realized his error, Dr. Tyler withdrew his attempted replication of the Crawford Model. 
                            <E T="03">See</E>
                             George WRT at 31-32; 
                            <E T="03">see also</E>
                             Bennett WRT ¶¶ 127-134.
                        </P>
                    </FTNT>
                    <P>
                        Turning to her objection to Dr. Erdem's second alteration identified in the immediately preceding paragraph, 
                        <E T="03">viz.,</E>
                         removing of the control for the number of distant signals, Dr. George responded as follows:
                    </P>
                    <EXTRACT>
                        <P>
                            [R]emoving the control for distant stations changes the interpretation of program coefficients so that they no longer show the effect of an additional program minute taking away a minute of network or off-air 
                            <PRTPAGE P="54215"/>
                            programming. . . . removing the control for distant signals [thus] alters the “all else equal” framework of the model so that program coefficients no longer isolate the effect of additional program minutes, but instead also capture the (omitted) incremental value of additional distant signals.
                        </P>
                    </EXTRACT>
                    <FP>
                        George WRT at 57-58 (emphasis omitted); 
                        <E T="03">see also id.</E>
                         at 63-64.
                        <SU>133</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             Dr. George had the opportunity to express this criticism in her WRT because Dr. Erdem had made this particular criticism in his amended 
                            <E T="03">direct</E>
                             testimony (which he later incorporated it into his eight-model exercise.)
                        </P>
                    </FTNT>
                    <P>
                        Finally, in responding to Dr. Erdem's conclusory Model 8, CCG concludes by describing Dr. Erdem's pedagogical exercise as merely his recapitulation and criticism of “his own incomplete models,” rather than “a criticism of the well-specified Crawford [M]odel or those presented in this proceeding.” CCG RPFF ¶ 21. 
                        <E T="03">See also</E>
                         George WRT at 53 “(just as there is the potential for experts to `cherry-pick' results, there is the potential for adversaries to `cherry-pick' their critiques.”).
                    </P>
                    <HD SOURCE="HD2">J. The Judges' Analysis and Conclusions</HD>
                    <P>The Judges find that Dr. Erdem's pedagogical eight-model approach does not support an abandonment of the Judges' long-standing reliance on fee-based regressions as evidence of relative market value in these section 111 allocation proceedings. The Judges make this finding based on the following:</P>
                    <EXTRACT>
                        <P>The Judges agree with SDC's counsel that Dr. Erdem's eight-model analysis is not substantively any different than what he presented in the 2010-13 proceeding. As such, it does not raise new factual arguments.</P>
                        <P>
                            1. Dr. Erdem acknowledges at the outset that his critique is intended to show that the fee-based regressions fail to generate “fair market value.” This is a consequential error on his part, because (a) the Judges' long-existing standard is “relative marketplace value,” (b) the Judges expressly distinguished their standard from “fair market value” in the 2010-13 Determination, and (c) Dr. Erdem did not attempt to explain his switch in standards. Accordingly, it appears to the Judges that Dr. Erdem expressly characterized his eight-step modeling approach in a manner that attempted to answer “the wrong question,” in violation of Professor Kennedy's econometric “Rule #2” discussed 
                            <E T="03">supra.</E>
                        </P>
                        <P>2. Dr. Erdem's approach is to build up from models which lack control variables, and then to posit that the relationships he finds are inconsistent with the hypothesis behind the fee-based regressions. But that approach leaves out all the control variables that the fee-based regression experts have included in their models, essentially causing Dr. Erdem's simple models to be burdened by omitted variables, which cause regressions to suffer from the eponymously named “omitted variable bias.” Moreover, in Models 1 and 2, Dr. Erdem is thus not even engaged in “multiple regression” analysis, because he is analyzing only the effect of a single independent variable.</P>
                        <P>3. Related to the immediately preceding criticism, Dr. Erdem's rebuttal modeling approach thus reflects his own modeling choices and approach, not one utilized by the fee-based regression experts. Thus, his approach is in the nature of a straw man argument. Moreover, his approach does not appear to be so much pedagogical in nature, but rather more of an attempt to utilize his rebuttal testimony to set forth the rudiments of an alternative modeling exercise—after SDC had declined to proffer any such modeling approach in its original or amended written direct statement (when it was fully aware of the points it subsequently raised on rebuttal through Dr. Erdem's eight-model approach).</P>
                        <P>4. Dr. Erdem does not clearly explain how he estimated the number of subscribers in a subscriber group. If he did so by the same estimation approach as Drs. George, Johnson, and Marx (via Dr. Crawford) then his criticism is as questionable as their analyses in this regard. Moreover, the deficiency of this criticism underscores the relative strength of the Tyler Model, which did not require a control for the number of subscribers, given its use of SGRP as the dependent variable.</P>
                        <P>
                            5. The Judges cannot credit Dr. Erdem's criticism of the relationship between the negative coefficients he discussed and the use of a “reference category” of “Big-3” network minutes in the fee-based regressions. The Judges are struck by the fact that Dr. Erdem ignored the rationale given by Dr. George (and other regression experts), 
                            <E T="03">viz.,</E>
                             that a “reference category” serves as a measure of value generated by the regression but not a value at issue under the statutory scheme, and thus the six categories of value can be measured against that “reference category.” (Other experts have characterized such a “reference category” approach as an “index” or “numeraire.” 
                            <SU>134</SU>
                            <FTREF/>
                            ). Any sufficient criticism of this approach would need to address the “reference category” purpose head-on, rather than ignore it.
                        </P>
                        <FTNT>
                            <P>
                                <SU>134</SU>
                                 
                                <E T="03">See, e.g.,</E>
                                 4/11/23 Tr. 4141-42 (Marx) (referring to “the Big 3 network programming”—which is already available on local affiliates in the CSO system and therefore has the lowest coefficient—as the “numeraire” that allows for the six category values coefficient values to be positive in relationship to those “numeraire”/”reference category” minutes.)
                            </P>
                        </FTNT>
                        <P>6. Further, with regard to the reference category issue, the Judges agree with Dr. George that Dr. Erdem's rejection of a referenced category/numeraire effectively forced program categories at issue in this proceeding to produce a negative coefficient, because in a 24-hour day, absent this control, any increase in one royalty-generating category's minutes would necessarily reflect a decrease in another category's minutes.</P>
                    </EXTRACT>
                    <P>
                        Separate and apart from the Judges' evaluation of Dr. Erdem's testimony, as discussed above, the Judges note an aspect of Dr. Erdem's testimony that called into question its reliability. By way of brief background, Dr. Erdem testified in the 2010-13 proceeding as well as the present proceeding, and his testimony was consistently reliable and thought-provoking, regardless of whether the Judges ultimately agreed with his opinions. But he also inexplicably endorsed in his testimony the present Bortz Survey as “very useful.” 4/5/23 Tr. 3465 (Erdem). Dr. Erdem's testimony in this regard was inexplicable—and jarring—because SDC did not seek to have Dr. Erdem qualified as a survey expert, he was not received as such by the Judges, and, perhaps even more unsettling, he pronounced his endorsement of the Bortz Survey “sight unseen,” that is, 
                        <E T="03">he endorsed it without reading it.</E>
                         4/5/23 Tr. 3466 (Erdem) ([Q]: “[I]n your initial testimony that was submitted in this proceeding, you expressed your support for the Bortz Survey 
                        <E T="03">sight unseen,</E>
                         correct? [Dr. Erdem] 
                        <E T="03">That's correct.</E>
                        ”) (emphasis added)). Nonetheless, Dr. Erdem continued to attempt to justify this testimony in colloquy with Judge Strickler:
                    </P>
                    <EXTRACT>
                        <P>
                            <E T="03">Q:</E>
                             Dr. Erdem, but you are not qualified as a survey expert. How can you weigh the value of a survey . . . . I understand [you] to say while there may be no perfect way to estimate relative market value, you say I'll tell you one way that isn't, and that's these fee-based regressions. I understand your testimony. But why would we credit your testimony about the survey being appropriate when it comes to that issue? 
                            <E T="03">You're just a lay witness.</E>
                        </P>
                        <P>
                            <E T="03">Dr. Erdem: You are correct, Your Honor, I am not a survey expert</E>
                             as an economist.
                        </P>
                    </EXTRACT>
                    <FP>4/5/23 Tr. 3476 (colloquy) (emphasis added). Dr. Erdem could have chosen to stop there, but he elected to keep digging, seeking to justify his Bortz Survey endorsement:</FP>
                    <EXTRACT>
                        <P>
                            <E T="03">Dr. Erdem:</E>
                             I am involved in projects and analyses that rely on survey methodologies and survey data. I have 
                            <E T="03">a team</E>
                             that supports me in those.
                        </P>
                        <STARS/>
                        <P>
                            <E T="03">Judge Strickler:</E>
                             Before you gave your testimony in this case about the Bortz Survey being an appropriate tool to measure relative market value, did you consult with that survey team?
                        </P>
                        <P>
                            <E T="03">Dr. Erdem:</E>
                             I did, Your Honor. You may recall the name Hilary Johnson, who is my director. She is a statistician by training. And I also have a Ph.D. statistician who supported me in the 2010-'13 proceeding. He reviewed the materials. . . . I had conversations with him about methodology. So I had 
                            <E T="03">a team</E>
                             that supported me in my reports.
                        </P>
                        <P>
                            <E T="03">Judge Strickler:</E>
                             Well, I don't remember you saying anything in your testimony that you relied on your survey team in any way. Hilary Johnson's name I recall, [but] [s]he 
                            <PRTPAGE P="54216"/>
                            didn't testify in her written testimony . . . about the survey at all, did she?
                        </P>
                        <STARS/>
                        <P>
                            <E T="03">Dr. Erdem:</E>
                             Correct.
                        </P>
                        <P>
                            <E T="03">Judge Strickler:</E>
                             Why didn't she give testimony that the Bortz Survey was a good and proper way to estimate value if she's an expert in this field and you're not?
                        </P>
                        <P>
                            <E T="03">Dr. Erdem:</E>
                             That's a good question.
                        </P>
                        <P>
                            <E T="03">Judge Strickler:</E>
                             That's why I asked it.
                        </P>
                        <P>
                            <E T="03">Dr. Erdem:</E>
                             [W]e didn't specifically focus on the methodology aspects of Bortz Survey, you are correct in that.
                        </P>
                        <P>
                            <E T="03">Judge Strickler:</E>
                             Thank you, Doctor.
                        </P>
                    </EXTRACT>
                    <FP>4/5/23 Tr. 3476-79 (colloquy) (emphasis added).</FP>
                    <P>The foregoing rather remarkable testimony damaged Dr. Erdem's credibility, suggesting he would be willing to testify regarding matters as to which he lacked both expertise and knowledge. Moreover, it is ironic that he would attempt to salvage his Bortz Survey opinion by reference to his “team” of other professionals with the necessary background to offer such an opinion, only to admit in short order under questioning from the bench that they did not “specifically focus on the methodology aspects of the Bortz Survey.” His testimony in this regard is rich with irony because Dr. Erdem is the witness who has most forcefully attacked Dr. (John) Johnson of PTV for delegating work to his team of professionals without personal involvement or knowledge of the work of the team.</P>
                    <P>Thus, separate and apart from the enumerated points set forth above that lead to the Judges' finding that Dr. Erdem's eight-model analysis is insufficient to invalidate the use of fee-based regressions, his foregoing survey-related testimony casts doubt as to his credibility.</P>
                    <P>In sum, the Judges find that Dr. Erdem's eight-model pedagogical exercise is insufficient to discredit fee-based regressions as a form of evidence on which the Judges may rely.</P>
                    <HD SOURCE="HD1">X. Sub-Category Values</HD>
                    <P>JSC, through its statistical expert, Mr. Harvey, ran what he described as “validity tests” that decomposed certain program categories to isolate the coefficients attributable to the decomposed elements. Specifically, he concentrated on (1) paid programming (including “infomercials”) within the Program Suppliers category and (2) the rare NFL football games that appeared on distantly retransmitted local stations (as opposed to being broadcast on network or cable stations, which are noncompensable in these section 111 proceedings). Harvey WRT ¶¶ 71-90.</P>
                    <P>
                        With regard to paid programming, Mr. Harvey separated the paid programming out of the Program Suppliers category and created a new category for paid programming. Joint Sports Claimants' Post-Hearing Brief in Support of Proposed Royalty Allocations at 32-33 (and citations therein) (JSC PHB). Performing this task on the Johnson Model, Mr. Harvey calculated that the coefficient for paid programming is larger than the coefficients for the other Program Suppliers content, PTV content, SDC content, and CCG content, and that, on average, the Johnson regression would assign paid programming a share of about 6.8% of the royalty pool per year. JSC PFF ¶ 176. For further perspective, Mr. Harvey computed that this paid programming share is greater than the share of royalties that the Johnson Model assigned to the approximately 2,000 annual JSC games, and approximately three times greater than all the 2015-2017 royalties for all JSC content. 
                        <E T="03">Id.</E>
                    </P>
                    <P>In response, Program Suppliers argues that Mr. Harvey failed to properly place his findings within the context of the regression approaches in these proceedings. Specifically, PTV's expert, Dr. Johnson, testified that it was incorrect to decompose the entire category of Program Suppliers' programming and focus on any one sub-category, because the regressions offer “average relative valuations” for entire categories. More granularly, Program Suppliers take note of the following testimony on this issue by PTV's expert, Dr. Johnson:</P>
                    <EXTRACT>
                        <P>
                            [I]t is an average relative valuation, so I don't think that's an appropriate use of the model. But his theory is that paid-programming has no value at all, but he didn't remove them from the model. 
                            <E T="03">If he had simply removed the minutes that he thinks are problematic, he would have found that the estimates really don't change very much at all.</E>
                             So I just don't think that's a valid critique.
                        </P>
                    </EXTRACT>
                    <FP>3/21/23 Tr. 605 (Johnson).</FP>
                    <P>As a second response, Program Suppliers assert that Mr. Harvey's paid programming argument is “cherry-picked,” because he admitted to running other “validity tests whose subject matters and results he and JSC did not produce in these proceedings.” PS PFF ¶ 346 (and record citations therein).</P>
                    <P>
                        CCG, relying on the testimony of its economic expert, Dr. George, also levied Program Suppliers' first criticism above, asserting that Mr. Harvey's validity test on paid programming ignores the very purpose of the fee-based regressions: to estimate the 
                        <E T="03">average</E>
                         relative values of the six programming categories at issue. CCG PFF ¶ 148 (and record citations therein). CCG adds, in this regard, that none of the economic expert witnesses who proffered fee-based regressions in this proceeding has maintained that it was the purpose or capacity of their models to precisely estimate the relative value of sub-groups of programs. 
                        <E T="03">Id.</E>
                    </P>
                    <P>At the hearing, Dr. George provided further detail with regard to this criticism:</P>
                    <EXTRACT>
                        <P>So the paid programming is fixed hours at night. There's just not independent variation with other Program Supplier category. So . . . when [Mr. Harvey] breaks this up, he effectively forces one of the coefficients to be negative because . . . you can't really independently increase paid programming without decreasing the other Program Suppliers' programming.</P>
                        <STARS/>
                        <P>[T]he coefficients for claimant programming . . . reflect an average. So right now the values per minute are telling us the average of the different—like the diversity of this kind of programming. So, Program Supplier programming has different sorts of things. And so the value per minute is an average [a]nd we're applying it to quantities. And so if I were to design a regression that really wanted to get at the value of paid versus non-paid programming, I could do that, but it would be a pretty different model.</P>
                    </EXTRACT>
                    <FP>4/18/23 Tr. 5163, 5166-67 (George).</FP>
                    <P>
                        In their post-hearing filings, JSC responds by emphasizing more narrowly that this “validity” test reveals the pitfall of the regression models' use of retransmission decisions by 
                        <E T="03">minimum fee-paying</E>
                         CSOs:
                    </P>
                    <EXTRACT>
                        <P>
                            The failure of the regressions to accurately capture revealed preferences from 
                            <E T="03">Minimum Fee CSOs</E>
                             is clearly demonstrated by Mr. Harvey's validity tests, which reveal that the regressions would attribute substantial value to programming with no value (
                            <E T="03">i.e.,</E>
                             infomercials) . . . .
                        </P>
                    </EXTRACT>
                    <FP>JSC PHRB at 16-17 (and citations therein) (emphasis added).</FP>
                    <P>
                        With regard to the rare NFL game that appeared on a distantly retransmitted station (as opposed to a broadcast or cable network), Mr. Harvey performed an additional “validity” test. Specifically, he separated NFL games from other JSC content, in order to ascertain whether the regression models had the capacity to realistically estimate the relative value of NFL programming. JSC PFF ¶ 180. Mr. Harvey found that across the Johnson, George, and Tyler Models, the NFL retransmissions had lower coefficients than other JSC programming (and sometimes negative coefficients). JSC PFF ¶¶ 181-85 (and record citations therein). Based on these results, Mr. Harvey opined that these regression models were unable to identify realistic values because the high value of NFL games on television is common knowledge and undisputed, 
                        <PRTPAGE P="54217"/>
                        and should have been confirmed by this validity test. JSC PFF ¶ 180.
                    </P>
                    <P>
                        In response, Program Suppliers and Dr. Tyler first reiterate the same points they made with regard to Mr. Harvey's “validity test” pertaining to paid programming, 
                        <E T="03">i.e.,</E>
                         (1) that the regressions offer average relative values across a category, (2) the program category is too small to generate meaningful results, and (3) the test was “cherry-picked” out of a number of validity tests that Mr. Harvey elected not to disclose. But Program Suppliers specifically hones in on the second criticism above, that the program category is simply too small. In this regard, Program Suppliers maintain:
                    </P>
                    <EXTRACT>
                        <P>
                            During the 2014-17 time period, WNBC (one of the handful of distant signals that Mr. Harvey chose to highlight) carried just one compensable regular season NFL game, meaning that compensable regular season 
                            <E T="03">NFL content accounted for less than one one-hundredth of one percent of the content on that station.</E>
                        </P>
                    </EXTRACT>
                    <P>
                        PS PHB at 3 &amp; 25 (citing to PS PFF ¶ 174 (and record citations therein)). 
                        <E T="03">See also</E>
                         3/29/23 Tr. 2062-64 (Harvey) (admitting to this percentage calculation).
                    </P>
                    <P>
                        Regarding this NFL “validity test,” CCG made the same argument it made in criticism of Mr. Harvey's “validity test” relating to paid programming, described 
                        <E T="03">supra.</E>
                         In her oral testimony, Dr. George elaborated more broadly regarding the attempt to decompose JSC programming into the rarely retransmitted NFL games, stating that Dr. Harvey failed to appreciate that because “there's a fixed number of regular season and post-season games in the NFL . . . we don't have independent variation there [and] our 24 model isn't capable of [that] separation . . . and it doesn't need to. 4/18/23 Tr. 5162 (George).
                    </P>
                    <P>In his oral testimony, Dr. Johnson had a response to Mr. Harvey's NFL de-composition of JSC programming that was consonant with the former's response regarding the paid programming issue. Dr. Johnson testified:</P>
                    <EXTRACT>
                        <P>Mr. Harvey argues that he can change the model and try to separate out NFL or playoffs. He says: Look, I get nonsensical results. I get negative values for these things. The problem is . . . he is trying to parse the regression so finely that he has got less than .01 and .04 of the total minutes that are used in the entire estimation. . . . The model wasn't intended to only estimate isolated values for NFL and playoffs. It's an average relative valuation for the claimants. It can do that well. And that's the purpose of the model.</P>
                    </EXTRACT>
                    <FP>
                        3/21/23 Tr. 605-06 (Johnson).
                        <SU>135</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             The Judges find no merit in the allegation that Mr. Harvey may have “cherry-picked” which “validity tests” to produce. The issue here is the importance, 
                            <E T="03">vel non,</E>
                             of his validity tests. In that regard, the Judges find that the tests he discussed in his WRT, including but not limited to the ones highlighted here, all suffer from the problems inherent in de-composing the regression results. Moreover, because Mr. Harvey is a JSC witness, it was incumbent upon JSC to bear the burdens of production and persuasion regarding the impact of these de-composed sub-categories on the regression results, burdens which they have not satisfied.
                        </P>
                    </FTNT>
                    <P>The Judges find that Mr. Harvey's “validity tests” do not serve to invalidate the usefulness and relevance of the regressions proffered in this proceeding. There are several reasons for this finding.</P>
                    <P>
                        First, the Judges agree with the criticisms that Mr. Harvey's “validity tests” fail to appreciate the fact that the regressions are estimated 
                        <E T="03">average</E>
                         valuations. When an average is de-composed, looking at any one element in the average fails to consider the average itself and, depending on the question at hand, may offer an interpretation that is off-point.
                        <SU>136</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             For example, consider the grade point 
                            <E T="03">average</E>
                             (GPA) of a college student for a semester, where the student received 3 As in English Literature, World History, and Economics, and one C in biology. Assuming an A = 4.0 points and a C = 2.0 points, the student has a GPA of 3.5. This is the relevant data point if one wants to know generally whether the student is performing well. But if the question is whether the student is showing an aptitude to perform well in medical school, the de-composition is more appropriate, because the 2.0 in biology is the more relevant data point. Here, there is no reason why the paid programming or the NFL data points should be separated out, when the purpose of the regression is to obtain the average.
                        </P>
                    </FTNT>
                    <P>
                        Second, if it in fact is the case that paid programming, by some other metric, or by the use of common sense, can clearly be found to have far less value than other program types, the fact that the regression provides paid programming with value via the averaging function of the regression does not mean that the Program Suppliers category (where paid programming is situated) received an inflated coefficient. In this regard, the Judges note Dr. Johnson's testimony, cited above, in which he notes that Mr. Harvey did not even attempt to show how, if at all, the coefficients in the regression would have changed if he had simply removed the paid programming minutes from the regression.
                        <SU>137</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             It appears that there would be no change. A simple thought experiment is instructive. Assume the Program Suppliers category consists of two types of programs: (1) situation comedies and (2) paid programming. For simplicity, assume equal subscriber minutes for both categories and that each situation comedy has the same value to a CSO as any other situation comedy, and each Paid Programming segment has the same value as another such segment to a CSO. Also assume a reality, such as Mr. Harvey has not unreasonably posited, that all paid programming has zero value to a CSO.
                        </P>
                        <P>Because the regression is constructed to correlate royalties with minutes of programming, none of the minutes attributable to paid programming would correlate with royalties because it is assumed CSOs do not value paid programming. So, all the royalties attributable to Program Suppliers would have been generated by the situation comedies. However, the total subscriber minutes would include both situation comedy and paid programming minutes, reducing the per minute coefficient value (and diluting (by 50%) the value generated by the situation comedies).</P>
                        <P>Consider some hypothetical numbers: Situation comedies and paid programming each accounted for 262,800 minutes (50% of the 525,600 minutes in a year). The regression, de-composed, gives situation comedies, hypothetically, a .0005 coefficient. But paid programming gets a zero coefficient. The average coefficient across both categories is .00025 which, when multiplied by the number of annual programming minutes (as the regressions do) of 525,600, yields 131.4, and that is the figure that would be compared to the figure similarly computed for the other claimant categories.</P>
                        <P>
                            What if we excluded paid programming from the regression? There would be 262,800 minutes of situation comedy programming, with a coefficient value of .0005, as assumed. What would be the figure to be used for allocation purposes? It would be 262,800 × .0005, which also equals 131.4. Thus, there is no reason to assume zero-value paid programming is inflating the value of the category in which it is situated if the validity/reality assumption of zero value is correct. (Economists will recognize this result as analogous to the point made by Nobel laureate George Stigler in his explanation of block-booking of movies by a studio to a theatre. 
                            <E T="03">See</E>
                             G. Stigler, 
                            <E T="03">United States</E>
                             v. 
                            <E T="03">Loew's Inc.: A Note on Block-Booking,</E>
                             1963 Sup. Ct. Rev. 152 (1963)).
                        </P>
                    </FTNT>
                    <P>
                        Third, Mr. Harvey indicates that the paid programming issue is a factor (or perhaps more of a factor) as it pertains to minimum-fee-only CSOs, as noted 
                        <E T="03">supra.</E>
                         But because the Judges are relying on the results from the cohort of above-minimum-fee-only CSOs, Mr. Harvey's point in this regard is of less importance.
                    </P>
                    <P>
                        Further, the program categories were configured by the parties. Although the parties have raised the issue of whether the definitions of the program categories should be changed, the categorizations in this proceeding are the same as the parties have long utilized. The Judges understand these program categories to have been designed to reduce transaction costs, so that each sub-category, or each program, does not make its own claim for royalties, rendering the process prohibitively costly. (The bifurcation of the process into allocation (formerly Phase I) and distribution (formerly Phase II) proceedings is in furtherance of the reduction in transaction costs.) 
                        <SU>138</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             If paid programming indeed contributes little or nothing in royalties, the Program Suppliers' representative may address that in the distribution (Phase II) process, but that is of no moment in this proceeding.
                        </P>
                    </FTNT>
                    <PRTPAGE P="54218"/>
                    <P>However, these tests do underscore the importance of integrating the Bortz Survey as an approach to ascertaining relative marketplace value. It may be the case that a small number of games has value, outside of what is measured by the regression, in retaining subscribers, a measure of value which might be captured by the Bortz Survey, but not by the regressions.</P>
                    <P>More broadly, the question of the value of different sub-categories of programming takes on salience when the issue is whether certain types of programming have a relative marketplace value independent of the number of minutes they contribute to the category in which they are situated. And an entire category may have value not reflected in the minutes of programming associated with that category and its programming. That is, because these various categories and sub-categories are bundled together in the local stations that are distantly retransmitted, minutes alone may well not reflect the relative values of key drivers of the decision of a CSO to retransmit a station with a bundle of programming category content. For this reason, the Judges are also utilizing the results of the Bortz Survey, which reflect (albeit imperfectly) how CSOs value different types of programming.</P>
                    <HD SOURCE="HD1">XI. Regression Decision</HD>
                    <HD SOURCE="HD2">A. Regression Analyses</HD>
                    <P>
                        In the 2010-13 Determination, the Judges placed “primary reliance” on a regression analysis 
                        <SU>139</SU>
                        <FTREF/>
                         to allocate royalty shares among the six program categories. 2010-13 Determination at 3610. In particular, they found a regression model presented by CTV's econometric expert, Dr. Gregory Crawford, “on balance . . . to be highly useful in estimating relative values in this proceeding.” 
                        <E T="03">Id.</E>
                         at 3569. Accordingly, the Judges gave greater weight to regression analysis than they had in prior proceedings, both in absolute terms and relative to other evidence and approaches, such as surveys and descriptive industry witness testimony. An important reason for the Judges' increased reliance on regression analysis was that this methodology approached the relative marketplace value from the perspective of what CSOs actually 
                        <E T="03">had</E>
                         done in terms of deciding which distant signals to retransmit on their systems.” 
                        <E T="03">Id.</E>
                         at 3610 (emphasis in original).
                    </P>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             For an overview of the general concept of regressions, 
                            <E T="03">see</E>
                             2010-13 Determination at 3556.
                        </P>
                    </FTNT>
                    <P>
                        The general form of this regression model is identified, alternatively, as a “fee-based” regression, a “Waldfogel-style” regression, and, subsequent to the 2010-13 proceeding, a “Crawford-style” regression.
                        <SU>140</SU>
                        <FTREF/>
                         At a high level, a fee-based regression is characterized by the following elements:
                    </P>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             The Judges use these monikers interchangeably in this determination.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>1. It attempts to correlate variation in the program category composition of distant signal bundles with the royalties paid by CSOs to estimate the relative marketplace value of programming;</P>
                        <P>2. It regresses observed royalty payments for the bundle on the numbers of minutes in each programming category; and</P>
                        <P>3. It may employ econometric controls in the form of “control variables” and “fixed effects” in order to isolate the correlation between the dependent variable (some measure of royalties) and the independent (explanatory) variable of interest (the number of programming minutes) from the controlled other drivers of CSO payments.</P>
                    </EXTRACT>
                    <FP>
                        <E T="03">See</E>
                         2010-13 Determination at 3557 (record citations omitted).
                    </FP>
                    <P>
                        In proceedings prior to the 2010-13 Determination, the Judges (and their predecessors) relied on fee-based regressions but did not place a 
                        <E T="03">primary</E>
                         weight on this approach. In the allocation proceeding for 1998-99 royalties, a Copyright Arbitration Royalty Panel (CARP) relied on such a regression model put forth by an economist, Dr. Gregory Rosston, not as a primary allocation measure, but rather as corroboration of the allocation shares generated by the Bortz survey. 
                        <E T="03">See</E>
                         1998-99 CARP Report at 46. Subsequently, in the allocation proceeding for 2004-05 royalties, the Judges relied on the fee-based regression model advanced by Dr. Joel Waldfogel (the now eponymous “Waldfogel-regression”) as “generally reasonable” and thus “helpful to some degree” because it “more fully delineat[es] all of the boundaries of reasonableness with respect to the relative value of distant signal programming” and “provid[es] some additional useful, independent information about how cable operators may view the value of adding distant signals based on the programming mix on such signals.” 
                        <E T="03">2</E>
                        004-05 Distribution Order at 57063, 57068. Accordingly, the Judges found, as did their predecessors in the 2004-05 proceeding, that the fee-based regression approach served to “corroborate” some aspects of the Bortz survey and that it also served “to provide an independent reasoned basis” for departing in one respect from the Bortz methodology. 
                        <E T="03">Id. at</E>
                         57069.
                    </P>
                    <P>
                        Chronologically, the 2010-13 Determination was the next allocation decision to consider the evidentiary weight to be given to a fee-based regression. In that case, the Judges elevated the regression methodology, namely the model proffered by Dr. Gregory Crawford (the Crawford Model), to a primary body of evidence in terms of explanatory power. The Judges noted that the Crawford Model, like the Rosston and Waldfogel regressions that preceded it, contained a useful differentiating feature: In contrast with the survey approach, regression modeling “analyzed value from the perspective of what CSOs 
                        <E T="03">actually had done</E>
                         in terms of deciding which distant signals to retransmit on their systems.” 2010-13 Determination at 3610.
                        <SU>141</SU>
                        <FTREF/>
                         But why did the Judges elevate the fee-based regression approach from the junior status of 
                        <E T="03">corroborative tool</E>
                         to a position of evidentiary primacy?
                    </P>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             By contrast, the survey approach, as in the Bortz Survey proffered in this proceeding, asked each CSO-employed survey respondent, for a given year: “What percentage, if any, of [a] fixed dollar amount 
                            <E T="03">would your system have spent</E>
                             for each category or programming?” Bortz Survey, app. B, attached to Trautman WDT (emphasis added).
                        </P>
                    </FTNT>
                    <P>The answer mainly lies in the improved way in which the Crawford Model was constructed. Explaining this answer requires the Judges to present a brief tutorial on regressions, based upon the testimony of the econometricians in this proceeding, the textbooks they cited, and the background information set forth in the 2010-13 Determination.</P>
                    <P>
                        Regression analysis is a “method of determining the relationship between two or more variables, and it can be a valuable tool for resolving factual disputes.” 2010-13 Determination at 3556 (citation omitted). When a regression attempts to identify the correlation between a “dependent variable” 
                        <SU>142</SU>
                        <FTREF/>
                         and more than one “independent variable,” 
                        <SU>143</SU>
                        <FTREF/>
                         the approach is known as a “multiple regression analysis.” 
                        <SU>144</SU>
                        <FTREF/>
                         This is the technique that was employed by Dr. Crawford (and Dr. George) in the 2010-13 proceeding and in the present proceeding by Drs. George, Johnson and Tyler.
                        <SU>145</SU>
                        <FTREF/>
                         Multiple regression “is the technique used in most econometric 
                        <PRTPAGE P="54219"/>
                        studies, because it is well-suited to the analysis of diverse data necessary to evaluate competing theories about the relationships that may exist among a number of explanatory facts.” 2010-13 Determination at 3556 (citing 
                        <E T="03">ABA Econometrics, supra</E>
                         note 127, at 4). The basic notation for a multiple regression would be, for example:
                    </P>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             Typically, the dependent variable has been a functional form of royalties, see 2010-13 Determination at 3557 n.27, but in this proceeding, Dr. Tyler specifies a different dependent variable, the SGRP.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             An “independent variable” serves to explain the dependent variable and is therefore also described as an “explanatory” variable. 2010-13 Determination at 3567.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             Multiple regression analysis “is the technique used in most econometric studies, because it is well suited to the analysis of diverse data necessary to evaluate competing theories about the relationships that may exist among a number of explanatory facts.” 2010-13 Determination at 3556 (citing 
                            <E T="03">ABA Econometrics, supra</E>
                             note 127, at 4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             Dr. Marx utilized a Bayesian regression (described in detail 
                            <E T="03">infra</E>
                            ) for 2014 that builds upon the multiple regression work done by Dr. Crawford for 2013.
                        </P>
                    </FTNT>
                    <FP SOURCE="FP-2">
                        Y = a + bX + cZ + 
                        <E T="03">u</E>
                    </FP>
                    <EXTRACT>
                        <FP>where</FP>
                        <FP SOURCE="FP-2">Y is the dependent variable</FP>
                        <FP SOURCE="FP-2">X is an independent (explanatory) variable</FP>
                        <FP SOURCE="FP-2">Z is a different independent (explanatory) variable</FP>
                        <FP SOURCE="FP-2">a is the intercept with the vertical axis (on a graphed regression)</FP>
                        <FP SOURCE="FP-2">b is the coefficient (value) of X</FP>
                        <FP SOURCE="FP-2">c is the coefficient (value) of Z</FP>
                        <FP SOURCE="FP-2">
                            <E T="03">u</E>
                             is the error term, a/k/a the “regression residual” (reflecting unobserved factors that determine Y)
                        </FP>
                    </EXTRACT>
                    <FP>
                        <E T="03">See</E>
                         2010-13 Determination at 3556 n.23; Stock &amp; Watson, 
                        <E T="03">supra</E>
                         note 92, at 158-59. If econometricians are specifically interested in the impact of, say, independent (explanatory) variable X on dependent variable Y, they will hold constant the effect of any other independent (explanatory) variable, such as Z in the above example, which reclassifies Z as a “control variable.” 
                        <SU>146</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             For the definition of a “control variable” 
                            <E T="03">see</E>
                             2010-13 Determination at 3558 n.33.
                        </P>
                    </FTNT>
                    <P>Because of changes in generated data as a result of statutory changes that occurred subsequent to the determination covering the 2004-05 royalty years, Dr. Crawford was able to construct a fee-based regression with more granular detail. The Judges explained this change in data generation in their 2010-13 Determination:</P>
                    <EXTRACT>
                        <P>
                            Between the time of the last adjudicated cable royalty allocation proceeding and the present [2010-13] proceeding, Congress passed the Satellite Television and Localism Act of 2010 (STELA). Before STELA, cable operators were required to pay for the carriage of distant signals on a system-wide basis, even though each signal was not made available to every subscriber in the cable system. . . . STELA . . . amend[ed] section 111(d)(1) of the Copyright Act, which details the method by which cable operators can calculate royalties on a community-by-community or 
                            <E T="03">subscriber-group basis. Id.</E>
                             From the 2010/1 accounting period and all periods thereafter, cable operators have been required to pay royalties based upon where a distant broadcast signal is offered rather than on a system-wide basis.
                        </P>
                    </EXTRACT>
                    <FP>2010-13 Determination at 3554 (emphasis added).</FP>
                    <P>
                        This statutory change permitted the participants in these section 111 allocation proceedings to analyze relative value 
                        <E T="03">at the subscriber-group level.</E>
                         2010-13 Determination at 3554 (citing Corrected Written Direct Testimony of Gregory Crawford, Ex. 2004 (Crawford CWDT) ¶ 66). More particularly, Dr. Crawford's regression “looked for a correlation in a subscriber group between changes in the number of minutes of programming the subscribers watched by categories and changes in the percentage of royalties the subscriber group paid while holding constant other potential explanatory variables (called control variables).” 2010-13 Determination at 3558. As Dr. George succinctly explained in her testimony in the present proceeding, “[w]ith [Dr.] Crawford's specification, coefficients are identified using only variation 
                        <E T="03">within systems</E>
                         in each accounting period.” George WDT at 9 (emphasis added).
                    </P>
                    <P>Dr. Crawford's approach thus required the existence of at least two subscriber groups in a cable system in order for the retransmission (and thus the programming) decisions of a cable systems operator (CSO) to be used in the regression. The purpose of so limiting the regression was to focus on the relationship at interest in the regression, which is the association between the minutes of per-category programming retransmitted and the CSO's royalties calculated at the subscriber group level. However, by so doing, the Crawford Model reduced the number of observations that it could utilize. In the 2010-13 proceeding, the Crawford model was criticized by the SDC and one of its experts, who argued that his regression approach was “compromised” by this limitation, which “ `effectively discarded' approximately 15% of his observations by disregarding observations from systems with a single subscriber group . . . `approximately half of all systems in his data set' . . . .” 2010-13 Determination at 3566 (citations omitted).</P>
                    <P>
                        But what the SDC saw as vice, Dr. Crawford (and ultimately, the Judges) understood as virtue. That is, Dr. Crawford included this combined control limiting the observations to intra-cable system subscriber group variations in a particular six-month accounting period in his regression to avoid introducing (
                        <E T="03">i.e.,</E>
                         to control for) effects on royalties of different business strategies among CSOs (“system” effects) and different economic conditions over time (“accounting period” effects). In a regression, these two joint interactive controls are examples of a particular form of control known as a “fixed effect.” 
                        <SU>147</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             For the definition of “fixed effects,” see 2010-13 Determination at 3563 n.52. Graphically, the inclusion of “fixed effects” generates different intercepts, such that “a” in the example 
                            <E T="03">supra</E>
                             would have a different value for each “fixed effect.” (Econometricians sometimes describe “fixed effects” as a type of “control variable,” but they are more often specifically characterized as “indicator” or “dummy” variables. 
                            <E T="03">See</E>
                             2010-13 Determination at 3562 n.45.
                        </P>
                    </FTNT>
                    <P>
                        Additionally, while his regression was a work in process, Dr. Crawford added another fixed effect for the “top-six” MSOs 
                        <SU>148</SU>
                        <FTREF/>
                         for similar reasons, 
                        <E T="03">i.e.,</E>
                         to control for their variable “average receipts . . . signal carriage strategies, pricing, and other relevant dimensions.” 2010-13 Determination at 3567 (record citations omitted).
                    </P>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             “MSO” is an acronym for a “multi-system operator,” for example Verizon, 3/21/23 Tr. 347 (Johnson), and refers to “an operator of multiple cable or direct-broadcast satellite television systems [and is] usually reserved for companies that own multiple cable systems, such as Altice USA, Charter Communications, Comcast and Cox Communications . . . .” 
                            <E T="03">List of Multiple-System Operators,</E>
                             Wikipedia, 
                            <E T="03">https://en.wikipedia.org/wiki/List_of_multiple-system operators</E>
                             (last visited Aug. 10, 2023).
                        </P>
                    </FTNT>
                    <P>More broadly, Dr. Crawford explained that his fee-based regression was intended to explain the association between program category minutes and royalties paid. To that end, it was necessary to control for other factors, specifically including “the numbers of local and distant stations, the number of activated cable channels, and the size of the CSO.” 2010-13 Determination at 3558 (record citations omitted). These were in addition to other independent variables that Dr. Waldfogel identified as “control variables”, including “the number of subscribers, local median income, and the number of local channels.” 2010-13 Determination at 3557.</P>
                    <P>In the present proceeding, Dr. George has well stated the role of control variables in multiple regressions relied upon by Dr. Crawford and by experts in the present proceeding:</P>
                    <EXTRACT>
                        <P>
                            The purpose of control variables is to account for factors other than coefficients of interest that might affect the dependent variable. In the case at hand, control variables are chosen to account for market factors other than distant signal programming minutes that might affect royalty payments. Of particular concern are factors that affect demand for cable services, which in turn can affect the number of subscribers, system revenue, and royalty payments. Failing to control for factors that shift demand and are correlated with programming minutes can lead to 
                            <E T="03">bias</E>
                             in the . . . coefficients that are of primary interest. Income, the number of local stations and (lagged) number of activated channels are all factors that might affect the number of subscribers or revenue so are included as controls.
                        </P>
                    </EXTRACT>
                    <FP>
                        George WDT at 52. Indeed, as the Judges explained in the 2010-13 
                        <PRTPAGE P="54220"/>
                        Determination, Dr. Crawford's approach was designed so as to accept some loss of precision (
                        <E T="03">i.e.,</E>
                         a greater variance and larger standard errors) in exchange for less bias (by excluding other independent variables). This tradeoff is an inevitable problem for an econometrician, and how an econometrician balances these impacts 
                        <E T="03">is just as much an art as it is a science.</E>
                         2010-13 Determination at 3565 &amp; n.59. The Judges noted though, that the tradeoff was moderated because Dr. Crawford “used the universe of all programming on all distant signals, rather than a sampling” which created a “rich data set” that served to “mitigate” the impact of his fixed effects “so that his parameters remained relatively precise.” 2010-13 Determination at 3569.
                    </FP>
                    <P>
                        Accordingly, in the 2010-13 Determination, the Judges essentially agreed with Dr. Crawford's modeling decision to include his fixed effects, because he threaded the needle, minimizing bias while maintaining a sufficiently precise relationship between per-category programming minutes and royalties generated. 
                        <E T="03">Indeed, a key reason the Judges elevated the Crawford Model to primary evidentiary status was that “his use of a fixed effects approach avoided the criticism that he had omitted key variables.”</E>
                         2010-13 Determination at 3569 (citing Crawford CWDT ¶ 107; 2/28/18 Tr. 1398 (Crawford)) (emphasis added).
                    </P>
                    <P>
                        According to all the experts utilizing fee-based regressions, in whole or in part, this econometric virtue extended through 2014. But in 2015, a 
                        <E T="03">commercial earthquake</E>
                         struck the retransmission market: WGNA, by far the most distantly retransmitted channel, converted from a broadcast station into a cable channel. See, 
                        <E T="03">e.g.,</E>
                         Majure WDT ¶ 75 (JSC expert witness noting that “[t]he removal of the widely carried WGNA materially changed the manner in which CSOs used the section 111 license.”). This metamorphosis had several dramatic effects, one of which was the diminished evidentiary value of Dr. Crawford's new approach of limiting the observations to subscriber group variations within a cable system (accomplished by imposing his systems-accounting period fixed effects.) 
                        <SU>149</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             The WGNA conversion also (1) substantially reduced the number of CSOs paying the base fee (and concomitantly increased the converse, the number of CSOs paying only the minimum fee) and (2) drastically reduced the number of JSC subscriber-minutes distantly retransmitted.
                        </P>
                    </FTNT>
                    <P>
                        After the WGNA conversion, commencing in 2015, the number of cable systems with more than one subscriber group declined significantly. Moreover, what had been a robust source of data for analysis of variation of distantly retransmitted program categories among the local channels distantly retransmitted by CSOs had shrunk. To address the loss of this robust set of data, the fee-based regression experts in the present proceeding each constructed a model that, although 
                        <E T="03">premised</E>
                         on the Crawford Model, sought a work-around for this significant change.
                    </P>
                    <P>
                        Dr. Johnson addressed the problem by 
                        <E T="03">eliminating all fixed effects</E>
                         from his preferred model, 
                        <E T="03">i.e.,</E>
                         the “baseline” model presented in his WDT. In doing so, the Johnson Model was able to generate observable data points that showed programming variations not just among subscriber groups within a cable system in a specific accounting period (as the Crawford Model had done), but also program variations among subscriber groups 
                        <E T="03">across</E>
                         systems and 
                        <E T="03">across (not within)</E>
                         the six-month accounting periods in the SOAs.
                    </P>
                    <P>
                        Curiously, Dr. Johnson's justification for this change was that it allowed for an increase in the number of observations for his regression, thus addressing what he understood to be a key concern of the Judges in the 2010-13 Determination. 
                        <E T="03">Compare</E>
                         Johnson WDT ¶ 59 (“Professor Crawford's model was criticized because it `effectively discarded' approximately 15% of his observations . . . which totaled approximately half of all systems in his data set”) 
                        <E T="03">with id.</E>
                         at ¶ 62 (touting his model for containing “18,000 subscriber group-level observations”).
                    </P>
                    <P>
                        The Judges in that proceeding did not find the level of number of Dr. Crawford's observations to be a debilitating problem, declining to find that the Crawford Model was overfit. Rather, the Judges instead found that Dr. Crawford's balancing of a minimization of explanatory bias with an acceptable loss of measurement precision was appropriate to the task the regression was seeking to measure, 
                        <E T="03">i.e.,</E>
                         the correlation between program category minutes and the log of royalties paid. In so finding, the Judges had acknowledged the value of the fixed effects (and the control variables) in his model in allowing for the isolation of the correlation. 2010-13 Determination at 3569.
                    </P>
                    <P>
                        Accordingly, Dr. Johnson's claimed justification for eliminating all of these important fixed effects rings hollow. Moreover, their absence from his model increased the bias in his measurements, which meant that the correlation was subject to mismeasurement. More particularly, the bias in question is what econometricians and statisticians in general refer to as “omitted variable bias.” Here, the “omitted variables” are the ones that the Crawford Model had accounted for with its fixed effects, but which Dr. Johnson injects into his model by eliminating the fixed effects. Accordingly, by this change, the Johnson Model became 
                        <E T="03">less</E>
                         probative of the claimed correlation between program category minutes and royalties, and for that reason alone the Judges place less weight on the Johnson Model in this proceeding than they did on the Crawford Model in the 2010-13 Determination.
                    </P>
                    <P>
                        Dr. George, unlike Dr. Johnson, did not eliminate all fixed effects. Rather, as discussed 
                        <E T="03">supra,</E>
                         she eliminated some, retained and/or modified others, and included new fixed effects. Most importantly, the George Model modified Dr. Crawford's “systems-accounting period fixed effects.” Whereas the Crawford Model limited the observed data points to differences among subscriber groups within a cable system 
                        <E T="03">during</E>
                         an accounting period, Dr. George relaxed that fixed effect. Specifically, she only limited the number of observed data points by separately fixing the effect at the “systems” level and at the “accounting period” levels. So, for example, if there were two subscriber groups in the Verizon Buffalo cable system, the Crawford Model would only observe the variations between them in a given (six-month) accounting period. By contrast, the George Model would: (1) observe variations between those two subscriber groups 
                        <E T="03">in</E>
                         the given (six-month) accounting period; and also (2) beyond the (six month) accounting period. Thus, Dr. George maintained a fixed effect that still controlled for the difference in CSO business practices and a fixed effect control for changes over time (the “accounting period” control), but, unlike Dr. Crawford, she did not combine the two fixed effects.
                    </P>
                    <P>Alternately stated, Dr. George sought to address the loss of observable data points caused by the 2015 WGNA conversion by making a different tradeoff in the inevitable bias/variance dilemma faced by the econometrician in this context. She opted for somewhat more bias, accepting somewhat less precision, in order to generate what she understood to be a useful number of observations for her regression to analyze.</P>
                    <P>
                        Although Dr. George makes a less draconian change from the Crawford Model than the Johnson Model does in this regard, she nonetheless introduces “omitted variable bias” into her regression. That is, by allowing variations over time (within a cable system) to impact the correlation, the 
                        <PRTPAGE P="54221"/>
                        George Model treats temporal changes as reflective of a correlation between program category choices and royalties.
                        <SU>150</SU>
                        <FTREF/>
                         In sum, the George Model introduces omitted variable bias that was absent from the Crawford Model, but to a lesser degree than the Johnson Model. Accordingly, 
                        <E T="03">ceteris paribus,</E>
                         the Judges give more evidentiary weight to the George Model than to the Johnson Model.
                    </P>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             This bias is particularly pertinent vis-à-vis the cleave between 2014 and the 2015-2017 period, given the WGNA conversion that shook the distantly retransmitted sector. Moreover, Dr. George (like Dr. Johnson) “pooled” her data and applied it to generate one set of coefficients spanning the entire four-year (2014-17) period. By relaxing the fixed effects to obscure the impact of changes over time, the George Model failed to appropriately address the WGNA-conversion effect.
                        </P>
                    </FTNT>
                    <P>
                        By contrast, Dr. Tyler's approach circumvents this fixed effects dilemma. As explained 
                        <E T="03">supra,</E>
                         the Tyler Model does not use royalties (linear or log form) as the dependent variable. Rather, the Tyler Model uses the SGRP as the dependent variable. Recall that the SGRP is a fraction: the dollar amount of base fee royalties calculated by a subscriber group divided by the SG's gross receipts. The Tyler Model then looks at the variability in this SGRP across all cable systems. So, what happens to the effects arising from different CSOs (the “systems” effects) and the changes over time (the “accounting period” effect) for which Drs. Crawford and George (but not Dr. Johnson) sought to control with “fixed effects”? As Dr. Tyler explains, the system and temporal (“accounting period”), indeed, essentially all fixed effects, are rendered inapplicable when the dependent variable is the SGRP, rather than a form of royalties:
                    </P>
                    <EXTRACT>
                        <P>The Crawford Model used fixed effects. The inclusion of fixed effects would make sense if the SGRPs varied across CSOs due to unobserved factors in the marketplace (other than and apart from choices related to stations, and the minutes in those stations). If that were the case, the use of . . . fixed effects would focus the model on the economic decision-making by a CSO for an accounting period across subscriber groups, having controlled for these unobserved factors.</P>
                        <P>However, my model . . . instead . . . us[es] SGRP for the dependent variable. The SGRPs for each subscriber group are specified by statute (following the carriage decisions made by CSOs)—an industry characteristic that greatly reduces (and possibly eliminates) concerns over unobserved factors that might impact SGRPs.</P>
                    </EXTRACT>
                    <FP>Tyler ACWDT ¶ 87 n.71. Program Suppliers added an equivalent explanation of this point in their post-hearing briefing:</FP>
                    <EXTRACT>
                        <P>Substantial irrelevant variability exists across the royalty amounts calculated for each subscriber group. For example, greater royalty amounts might be determined for a subscriber group for no other reason than one subscriber group has more subscribers or higher prices, or both, than another subscriber group. PFF ¶¶ 290, 351. And those prices may vary based on factors like cable networks carried, customer service, bundling with internet and phone, or other factors unrelated to distant signal carriage. PFF ¶ 290. A regression model using royalty amounts calculated as the dependent variable must control for these sources of variability in an attempt to isolate the incremental value of minutes by category type. PFF ¶ 290. Unlike royalty dollar amounts, SGRP does not vary across CSOs due to unobserved factors in the marketplace—other than from choices related to distant signals. Thus, because the Tyler Model uses the more targeted SGRP, and not royalties, the Tyler Model can more precisely measure the incremental value of various types of minutes within each year. PFF ¶¶ 291-92. With less irrelevant variability to explain in the dependent variable, the Tyler Model can focus on the relationships at issue in a way that other models, which use royalties as the dependent variable, cannot. PFF ¶¶ 291-92. Furthermore, because SGRP does not vary for reasons unrelated to distant signal carriage, fixed effects (meant to control for unobserved sources of irrelevant variability) are not necessary. PFF ¶ 292.</P>
                    </EXTRACT>
                    <FP>PS PHB at 38.</FP>
                    <P>
                        Thus, the Judges understand that other demand effects (such as the impact on demand from differences in, 
                        <E T="03">e.g.,</E>
                         service quality, pricing, etc.) impact the gross receipts, not the royalty decisions.
                        <SU>151</SU>
                        <FTREF/>
                         The Judges further note that—although other parties and their experts criticize the Tyler Model for not including fixed effects and note how shares would change in fixed effects were added—none of the partis or experts addresses Dr. Tyler's point, discussed supra, that when the dependent variable is the SGRP rather than a form of royalties, fixed effects are unnecessary because there is no variable omitted that will impact the dependent variable.
                    </P>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             Critics of the Tyler Model maintain that by avoiding the fixed effects problem in this manner, the Tyler Model throws out the baby with the bathwater, in that it fails to correlate the royalties paid with the discrete categories of program minutes, which is the entire point of the exercise. That is, the Tyler Model allegedly fails to uncover the variation in royalties associated with different categories of programming minutes. (And, as some econometric critics of the Tyler Model have testified, it merely “reproduces the statutory formula.”). As explained 
                            <E T="03">infra,</E>
                             the Tyler Model, like the other regression approaches, multiplies its derived coefficients by the number of program minutes associated with each of the six program categories, generating allocation shares on a per-program category basis.
                        </P>
                    </FTNT>
                    <P>Another way to understand the evidentiary problem caused by eliminating or relaxing the fixed effects (as in the Johnson and George Models (but not the Tyler Model)) is to consider a crucial point made in the 2010-13 Determination and again in this proceeding—the difference between an “explanatory” regression and a “prediction” regression. In this regard, the Judges stated in the 2010-13 Determination:</P>
                    <EXTRACT>
                        <P>
                            The Waldfogel-type regression is an example of modeling utilized to 
                            <E T="03">explain the effects</E>
                             of different program categories on the 
                            <E T="03">relative</E>
                             payment of royalties—rather than an attempt to 
                            <E T="03">predict</E>
                             the level of royalties. Thus, . . . the choice of variables can reasonably be based on the “underlying theoretical model.” [G. Shmueli, 
                            <E T="03">To Explain or to Predict?,</E>
                             25 
                            <E T="03">Statistical Science</E>
                             289, 290-91, 297 (2010)]; 
                            <E T="03">see also</E>
                             F.M. Fisher, 
                            <E T="03">Econometricians and Adversary Proceedings,</E>
                             81 J. Am. Stat. Ass'n 277, 279 (1986) (“There is a natural view that models are supposed to do nothing other than 
                            <E T="03">predict</E>
                             . . .” resulting in the “danger” of ignoring “better models that do not fit or 
                            <E T="03">predict</E>
                             quite so well but are in fact informative about the phenomena being investigated.”) (emphasis added).
                        </P>
                    </EXTRACT>
                    <FP>2010-13 Determination at 3564. As in that prior proceeding, the purpose of the fee-based regressions is to “explain” the posited correlation between distantly retransmitted program minutes and royalties. It is unsurprising that other variables may be more useful as “predictors” of royalties, but that is quite another matter. In this regard, in the 2010 Determination the Judges approvingly cited the following testimony by Dr. Crawford:</FP>
                    <EXTRACT>
                        <P>
                            Dr. Erdem misunderstands the purpose of an econometric analysis in this proceeding . . . . For the goal of 
                            <E T="03">prediction,</E>
                             the focus is on finding the explanatory variables that 
                            <E T="03">best predict the outcome of interest</E>
                             . . . . [I]f the goal is to predict stock prices[,] and the price of tea in China helps, then . . . include it in the model (and don't worry about the economic interpretation of its coefficient).
                        </P>
                        <P>
                            <E T="03">That is not the purpose in this proceeding,</E>
                             however. In this proceeding, experts are using econometric analyses to help the Judges determine . . . relative marketplace value . . . . The dependent variable in these regressions, the royalties cable operators pay for the carriage of the distant signals, are informative of this relationship . . . . The key explanatory variables in this relationship, the minutes of programming of the various types carried on distant signals, are informative as the impact they have on royalties reveals the 
                            <E T="03">relative</E>
                             market value of each programming type. Other explanatory variables are included in the model to control for other possible determinants of cable operator royalties. This helps improve the statistical fit of the regression (to “reduce its noise”), providing more precise estimates of the impact of programming minutes that are the focus of the analysis. . .
                        </P>
                        <P>
                            The goal here is to find the econometric model that can best reveal relative 
                            <PRTPAGE P="54222"/>
                            marketplace value. Doing so means crafting the econometric model to reflect 
                            <E T="03">the institutional and economic features</E>
                             of the environment that is generating the data being used . . . . Crawford WRT ¶¶ 91-94 (footnotes omitted) (emphasis added).
                        </P>
                    </EXTRACT>
                    <FP>2010-13 Determination at 3564. No critic of the regression approach has persuasively addressed this finding in the 2010-13 Determination that relies on the distinction between a regression designed for “prediction” and a regression designed to measure the “effect” of a variable of interest, has persuasively addressed this finding in the 2010-13 Determination that relies on the distinction between a regression designed for “prediction” and a regression designed to measure the “effect” of a variable of interest,</FP>
                    <P>Consistent with this testimony, the Judges held that it is not their “statutory task . . . to identify and rank all the causes of a change in total royalties.” Rather, the Judges' “legal, regulatory, and economic task . . . is to determine the relative market value of different categories of programming,” and thus correlations between royalties and other independent variables, for example, between royalties and the number of subscribers, “is not in furtherance of that objective.” 2010-13 Determination at 3564.</P>
                    <P>
                        The WGNA conversion not only reduced the number of subscriber groups, as discussed 
                        <E T="03">supra,</E>
                         but also significantly reduced the number of CSOs that actually paid the base fee, as opposed to the minimum fee. A number of experts captured this undisputed effect, and Dr. Marx's testimony below in this regard is clear and illustrative:
                    </P>
                    <P>For necessary context, it is instructive at the outset of this section to consider how the minimum fee issue was addressed in the 2010-13 Determination. There, the Judges found as follows:</P>
                    <EXTRACT>
                        <P>1. “[A] CSO's decision to distantly retransmit any particular station, when that CSO is otherwise obligated to pay the minimum royalty fee, does not indicate a direct correlation between the decision to retransmit and the decision to incur a royalty obligation.” 2010-13 Determination at 3568.</P>
                        <P>2. “[D]uring the 2010-2013 period, on average 527 out of the 1,004 Form 3 CSOs analyzed (52.5%) chose to retransmit the exact or fewer number of signals than the regulated fees permitted [and] 83 paid the minimum fee yet elected not to retransmit any local stations. . . . Those decisions reveal that the CSO has concluded (whether by analysis or resort to a heuristic) that any of the marginal costs (physical or opportunity) associated with retransmission likely exceed the value to the CSO of such retransmission, even accounting for minimum royalties, which the CSO must pay in any event.” 2010-13 Determination at 3568.</P>
                        <P>
                            3. “Although there is no 
                            <E T="03">marginal royalty cost</E>
                             associated with th[e] decision [to retransmit stations when . . . obligated to pay only the minimum royalty], the CSO's decision as to 
                            <E T="03">which</E>
                             stations to retransmit remains a function of choice, preference, and ranking. Thus, the CSO in this context would still have the incentive to select distant local stations for retransmission that are more likely to maximize CSO profits, through either an increase in subscribership or, as Ms. Hamilton emphasized, by avoiding the loss of subscribers through the preservation of `legacy carriage' through the non-analytical heuristic of maintaining the status quo.” 2010-13 Determination at 3569.
                        </P>
                        <P>
                            4. “There are substantial economic bases for this finding. Because the `tax' of the minimum fee is paid regardless of whether distant retransmission occurs, that `tax' is also in the nature of a sunk cost. Fundamental economic analysis provides that a seller should ignore sunk costs when making marginal decisions (although they should try to recoup these costs if the buyers' willingness-to-pay allows it). Nonetheless, a CSO that decides to distantly retransmit a station when the 
                            <E T="03">marginal</E>
                             royalty cost is zero has revealed that the particular station contains programming that would increase marginal value to that CSO, over and above the next best alternative `retransmittable' local station and above any other marginal costs (
                            <E T="03">e.g.,</E>
                             physical retransmission costs or the opportunity cost of foregoing a different type of cable channel in the CSO's channel lineup).” 2010-13 Determination at 3569.
                        </P>
                        <P>5. “CSOs that pay only the minimum royalty fee and elect to distantly retransmit one station might have elected to pay a positive fee in the absence of the minimum fee. For example, assuming Program Suppliers' programs were more valuable to a CSO than the minimum fee and disproportionately more valuable than any other program category, that CSO would have retransmitted a station that disproportionately included Program Supplier content and willingly paid the minimum fee (or more).” 2010-13 Determination at 3659.</P>
                        <P>
                            6. ”[A]n analysis of the CSOs paying only the minimum fee might provide some useful information. However, . . . the record does not provide an adequate basis to incorporate any “relative value” differences based on a distinction between CSOs that do and do not pay only the minimum fee.” 2010-13 Determination at 3582. 
                            <E T="03">See also id.</E>
                             at 3575 (“[T]he Judges find no basis in the record by which they could or should make a reasonable `relative value' adjustment based on whether a CSO did or did not pay only the minimum fee.”).
                        </P>
                        <P>7. “[T]he data regarding the carriage decisions of CSOs who pay only the minimum fee should not be disregarded [because] even when a CSO is obligated to pay the minimum royalty fee, it still has the incentive to select stations for distant retransmission that it believes will maximize the benefits (or, in economic terms, utility) to the CSO. However, because carriage decisions are not tied even indirectly to a contemporaneous discretionary decision to pay royalties (beyond the mandatory minimum 1.064% for the first DSE), they strike the Judges as potentially less informative than discretionary decisions by CSOs to incur an additional royalty expense in order to distantly retransmit particular stations.” 2010-13 Determination at 3575.</P>
                    </EXTRACT>
                    <P>
                        The Judges consider these minimum-fee-related points in the context of the present factual record, which reveals a dramatically different retransmittal landscape for the final three years of the period at issue, 2015 through 2017.
                        <SU>152</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             The Judges discuss the minimum fee issues separately and in depth elsewhere in this determination.
                        </P>
                    </FTNT>
                    <P>
                        There is a sub-group within the minimum-fee-only CSOs that decided not to distantly retransmit any local signals despite their duty to pay the minimum fee. Exactly what this decision indicates as to their revealed preferences is unclear from the record. One industry witness suggests that some or all of these CSOs had alternative uses for their bandwidth, for, 
                        <E T="03">e.g.,</E>
                         other cable programming or internet traffic. Written Rebuttal Testimony of Lynne Costantini, Trial Ex. 7304, at 4-5 (Costantini WRT); 3/27/23 Tr. 1597-1605 (Costantini). But several other witnesses testified that bandwidth concerns no longer existed in the 2014-2017 period, because cable television had converted from analog to digital signals. Written Direct Testimony of Allan Singer, Trial Ex. 7108, ¶ 15 n.1 (Singer WDT); Written Rebuttal Testimony of Allan Singer, Trial Ex. 7109, ¶ 8 n.1; (Singer WRT); 4/3/23 Tr. 2764-65 (Singer); Written Rebuttal Testimony of Melinda Witmer, Trial Ex. 7115, ¶ 13 n.3 (Witmer WRT); 4/10/23 Tr. 4069-70 (Witmer).
                    </P>
                    <P>
                        Other evidence indicated that CSOs that previously retransmitted WGNA until its conversion to a cable channel simply found no other value in alternative out-of-market local channel programming sufficiently attractive to existing or potential new subscribers that was worth retransmitting. Of course, this argument raises its own questions, because, given that the marginal royalty cost is zero, the presumption of economic rationality strongly suggests that, 
                        <E T="03">ceteris paribus,</E>
                         these CSOs would have distantly retransmitted some out-of-market local channels' programming.
                        <SU>153</SU>
                        <FTREF/>
                         But the reasonable presumption of economic rationality requires the presumption that these CSOs were incentivized not to distantly retransmit additional stations. 
                        <PRTPAGE P="54223"/>
                        One logical reason would be that they saw no value at all in retransmitting those stations and programming, such that any organizational effort in that regard would be a soft cost sufficient to preclude such transmissions. In this regard, the Judges again take note of Ms. Hamilton's designated testimony, in which she emphasized the 
                        <E T="03">de minim</E>
                        is nature of the revenues at issue with regard to these potential retransmissions.
                        <SU>154</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             This point also applies to CSOs that distantly retransmitted some local stations, but had excess capacity, 
                            <E T="03">i.e.,</E>
                             the capacity to distantly retransmit more of these stations and still not pay more than the minimum fee.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             Ms. Hamilton's point would tend to explain more than why some CSOs do not retransmit any signals. It may explain, for example, why Bortz Survey respondents have a myriad of job titles, and why the respondents are not consistently the same from year-to-year (
                            <E T="03">i.e.,</E>
                             that no one is really dedicated to this function). Her point would also seem to explain why the CSO decisions from 2010-13 and from 2014 were so consistent: because concomitant with Ms. Hamilton's 
                            <E T="03">de minimis</E>
                             argument is her point that the CSOs focused on preserving existing subscribers whose subscription decisions might turn on the continued presence of niche programming from distantly retransmitted stations. Indeed, Ms. Hamilton seems to have been prescient: After 2014, the abandonment of all distant retransmissions by CSOs that had only distantly retransmitted WGNA is consistent with her emphasis on legacy carriage. (That is, viewers who had valued WGNA enough to subscribe to a CSO on that basis were no longer legacy viewers who could be retained once WGNA converted.) 
                        </P>
                        <P>The Judges are also struck by the absence of evidence that would be compelling, to wit, the absence of evidence that any CSO has marketed its service to any subscribers who might be induced to remain or become subscribers based on the program offerings by out-of-market stations they distantly retransmit. The Judges decline to take administrative notice that CSOs (or their subscribers) actually contemplate these offerings when considering subscription decisions; in fact, the Judges' own “reality filter” would suggest that the opposite presumption would be more realistic.</P>
                    </FTNT>
                    <P>
                        But the foregoing points hardly end this analysis. When CSOs have “excess-capacity” to retransmit signals/programming at zero marginal royalty cost, or when a CSO has declined to exercise its section 111 “privilege” to retransmit any signals or programming, they have differentiated themselves from above-minimum-fee-paying CSOs in a manner that is of both significant economic and of evidentiary importance. The minimum-fee-paying CSOs have revealed a marginal willingness-to-pay of zero for the distant retransmittal of local broadcast stations. The several parties and their economic experts opposing the regression approach in this proceeding make a reasonable objection that it is improper to treat the calculated-but-unpaid base fees of these CSOs as any evidence of the revealed preferences and willingness-to-pay of a minimum-fee-only CSO. But, assuming, arguendo, that this reasonable objection is entirely correct,
                        <SU>155</SU>
                        <FTREF/>
                         what is the appropriate way to consider the decisions of CSOs who do not reveal a positive value for such distant retransmittals?
                    </P>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             It is not entirely correct. As noted by Dr. Tyler, discussed 
                            <E T="03">infra,</E>
                             the calculated-but-unpaid base fees of CSOs that ultimately pay the minimum fee would have some probative weight as those base fees approach the minimum fee, given the uncertainty, 
                            <E T="03">ex ante</E>
                             royalty payment, as to whether the base fee or the minimum fee would ultimately bind. However, the record does not provide the Judges with disaggregated data sufficient to analyze the minimum-fee-paying CSOs on this basis.
                        </P>
                    </FTNT>
                    <P>
                        The Judges find that these CSO decisions can be construed in two ways. First, they can be considered to reveal a zero value for these retransmittals, given that the marginal royalty cost of retransmittal is zero through a retransmittal of 1.0 DSE. And second, they could be construed as simply not providing any useful data regarding the value the CSOs assign to these retransmittals, because that value, although perhaps positive, is still less than the (non-royalty) cost of retransmitting.
                        <SU>156</SU>
                        <FTREF/>
                         But in either construal, the relevant takeaway is that these CSO decisions do not provide the Judges with any useful information 
                        <SU>157</SU>
                        <FTREF/>
                         regarding the relative value of the retransmittal of the various programming categories, the determination of which is the statutory task assigned to the Judges under section 111.
                    </P>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             These non-royalty costs include, but are not necessarily limited to, (1) the physical cost of retransmittal and (2) the transaction costs and opportunity costs associated with expending effort making retransmittal choices regarding distant local stations that had 
                            <E T="03">de minimis</E>
                             value (the choices, if not the stations and programming themselves) relative to the other decision-making undertaken by CSOs.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             That is, a zero value for all retransmitted programming is invariant and thus uninformative of relative value, and an absence of a revealed value fails to provide absolute value as well as relative value.
                        </P>
                    </FTNT>
                    <P>So understood, why should the decisions of these minimum-fee-only CSOs serve to diminish the economic and evidentiary usefulness of the decisions of the other CSOs who pay base fees above the minimum fee. That is, it is misleading, to say the least, to categorize the base-fee-paying CSOs as merely a small cohort of the larger population of CSOs, when they are differentiated by the key marker for section 111 purposes: whether they assign a relative value to the retransmittals and thus relative values to the retransmitted programs. The Judges find it more accurate and appropriate to consider the base-fee-paying CSOs essentially as a separate cohort of CSOs whose decision-making is pertinent to a regression analysis in this statutory context.</P>
                    <P>
                        Indeed, this is precisely how the Judges perceived the issue in the 2010-13 Determination. There, only a minority of CSOs, 47.5% paid above the minimum fee, but their decisions were extrapolated to the entire market. 2010-13 Determination at 3568 (“during the 2010-2013 period, on average 527 out of the 1,004 Form 3 CSOs analyzed (52.5%) chose to retransmit the exact or fewer number of signals than the regulated fees permitted [and] 83 paid the minimum fee yet elected not to retransmit any local stations”—meaning that less than half of CSOs “voluntarily paid a royalty greater than the minimum fee.”). Nonetheless, the Judges deemed that minority of CSOs sufficient to justify using the 
                        <E T="03">entirety</E>
                         of the base fee calculations (whether paid or unpaid) to establish relative marketplace value.
                    </P>
                    <P>
                        But that extrapolation was hardly precise in the context of the slight majority presence of minimum-fee-only CSOs, a context which could have suggested a need for a proportionate weighting of the decisions of the base-fee-paying CSOs.
                        <SU>158</SU>
                        <FTREF/>
                         But, when the base-fee-only CSOs are considered as the separate and only cohort actually revealing their relative programming valuations, rather than a mere 
                        <E T="03">subsample</E>
                         of the entire population of CSOs, then their revealed preferences are seen to reflect 100% of the information regarding relative value generated from CSO decision-making. Implicitly, that is what the Judges did in the 2010-13 Determination.
                    </P>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             Dr. Marx noted that the 52.5% of CSOs not covered in the Crawford Model included many that had only one subscriber group and would have been excluded from Dr. Crawford's regression anyway, so 80% of all the CSOs eligible for inclusion in the Crawford Model (and their programming and royalty data) were in the regression. There are two problems with this point. First, because only 80-85% of the CSOs were covered, even then the evidentiary weight of the decision-making of those CSOs should have been discounted proportionately, if proportionality is relevant. Indeed, in this proceeding, Dr. Marx testified that, in her opinion, whether to consider the revealed preferences of some CSOs should be a matter of “degree,” which is distinct from treating some proportion as a tipping point sufficient to be used 
                            <E T="03">en toto.</E>
                             Second, the reason why “only” 47.5% of the CSOs were included in the Crawford Model is not really relevant to the question of why this minority cohort should generate the entirety of revealed preference value for regression purposes.
                        </P>
                    </FTNT>
                    <P>
                        Further, the Judges are mindful of the testimony by Dr. Marx (herself no fan of the application of the fee-based regression for the 2015-2017 period) that “
                        <E T="03">the most informative observations</E>
                         in a Crawford-style regression are 
                        <E T="03">ones in which a CSO elects to pay more than the minimum fee</E>
                         in royalties in order to carry additional distant signals . . . .” Marx WRT ¶ 64 (emphasis added).
                        <SU>159</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             Dr. Marx also equates a CSO paying above the minimum fee with a CSO that “pays the minimum fee with no capacity for carrying additional signals.” Marx WRT ¶ 64. The Judges disagree. Such a minimum-fee-paying CSO is not revealing a 
                            <PRTPAGE/>
                            preference in the same manner as a CSO paying above the minimum fee, but rather is taking full advantage of the zero-marginal-royalty cost feature of the minimum fee obligation. The Judges find it more appropriate to treat such minimum-fee/no-excess-capacity CSOs in the same manner as an excess-capacity CSO because the actual marginal cost of their respective retransmittal preferences is zero.
                        </P>
                    </FTNT>
                    <PRTPAGE P="54224"/>
                    <P>
                        Colloquially, the issue may be characterized as whether the Judges should let the perfect be the enemy of the good. Here, the “perfect” fact pattern would be where all or most of the data is generated by CSOs paying above the minimum fee. That is not the factual context here. But there is “good” evidence from the CSOs who did retransmit enough programming to trigger the base fees of their subscriber groups, and that the Judges do not ignore that data.
                        <SU>160</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             Even information from data that includes CSOs paying only the minimum fee has an evidentiary purpose, as noted 
                            <E T="03">infr</E>
                            a regarding an adjustment to the allocations based on the Tyler Model.
                        </P>
                    </FTNT>
                    <P>
                        Accordingly, the Judges will give due weight to the minority of CSOs that, in the 2015-2017 period, paid above the minimum fee and thus revealed their preferences by paying an additional royalty in order to retransmit one or more additional stations. To be clear, in their weighing of this evidence, the Judges perceive the above-minimum-fee CSOs as providing evidence from three perspectives: (1) reflecting 100% of all the CSOs who 
                        <E T="03">did</E>
                         reveal their preferences in a cardinal manner, which supports the assignment of due weight to their station and programming choices; and (2) reflecting only a minority of the revealed preferences of the CSOs that found the value in distant retransmissions of local broadcast stations sufficient to add such stations to their lineup—a lower percentage which therefore would support a lower evidentiary weight; and (3) reflecting the revealed preference of an even smaller slice of CSOs and their programming, thus supporting the lowest level of evidentiary weight among these three perspectives.
                        <SU>161</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             As noted 
                            <E T="03">supra,</E>
                             the Judges will discuss 
                            <E T="03">infra</E>
                             the evidentiary weights they apply, in combination with the evidentiary weights they give to all of the probative evidence.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">B. A Separate Criticism: The Tyler Model as a “Fee Generation” Model</HD>
                    <P>Two parties, SDC and PTV, ask the Judges to reject the Tyler Model by characterizing it as “similar” to a “fee generation” approach to the section 111 royalty allocation issue, asserting that this approach is improper and has been rejected previously by the Judges and their predecessors. SDC and JSC are incorrect, and this criticism deserves its own separate section.</P>
                    <P>The fee generation approach has been defined as “a valuation method that attempts to measure the amount of royalties actually generated by a particular claimant group.” Report of the Copyright Arbitration Royalty Panel to the Librarian of Congress, Docket No. 2001-8 (CARP CD 98-99) at 60. In its attempt to characterize the Tyler Model as a fee generation approach, SDC maintains as follows:</P>
                    <EXTRACT>
                        <P>
                            [Dr. Tyler's] approach could be viewed as 
                            <E T="03">similar</E>
                             in notion to the “fee generation” approaches that the Judges and their predecessors rejected in days long past (
                            <E T="03">see, e.g., 2004-05 Distribution Order,</E>
                             75 FR at 57071-73 (“[F]ee generation is not persuasive as the best method for determining relative marketplace value because of the Canadian Claimants' failure to firmly link the relationship between section 111 royalties to that value”)).
                        </P>
                    </EXTRACT>
                    <FP>
                        SDC PFF ¶ 138. 
                        <E T="03">See also</E>
                         6/12/23 Tr. 6007 (SDC counsel's closing argument) (describing the Tyler Model as “a fee-generation methodology.”).
                    </FP>
                    <P>Similarly, PTV argues:</P>
                    <EXTRACT>
                        <P>Dr. Tyler's regression resembles the fee generation methodology, which attempts to assess relative value based on statutory royalties generated by cable retransmissions. [The] [j]udges have repeatedly considered and rejected the fee generation methodology because the statutory royalties do not relate to the relative value of the distantly retransmitted programming.</P>
                    </EXTRACT>
                    <FP>PTV PFF ¶ 159.</FP>
                    <P>
                        Of course, to assert, as SDC and PTV do, that the Tyler Model may merely “resemble,” or be “similar to” a fee generation model, is also to say that the Tyler Model is 
                        <E T="03">not</E>
                         a fee generation model. Moreover, the Judges disagree with these fee-generation-based arguments for two further reasons. First, the assertion that the Judges have rejected the fee generation methodology is simply wrong. Second, the argument (that the Tyler Model's passing resemblance to a fee-generation approach invalidates its use) fails to address the particular merit of this approach given the evidentiary record.
                    </P>
                    <P>With regard to the prior rulings regarding fee-generation approaches, Program Suppliers accurately and compellingly demonstrate the incorrectness of the claim that these rulings have rejected a fee-generation approach and precluded its use (or the use of any similar model) in these allocation proceedings. Specifically, Program Suppliers emphasize the Judges' most recent ruling on this issue, in the 2010-13 proceeding:</P>
                    <EXTRACT>
                        <P>
                            [T]he Judges ruled that fees-based regression analyses are distinguishable from analyses of fees-generated. In their post-Initial Determination Order Denying Rehearing [in the 2010-13 proceeding] . . . the Judges specifically rejected the claim that fee-based regressions are the same as “fee generation” approaches. They held that fee-based regressions “identif[y] a positive statistical relationship between (a) royalties paid by CSOs; and (b) program categories on distant local stations that had been retransmitted to subscribers by CSOs. 
                            <E T="03">Clearly, any `fee generation' approach that did not make use of this regression approach is distinguishable.” See Order Denying Rehearing</E>
                             at 5 (emphasis added).
                        </P>
                    </EXTRACT>
                    <P>
                        Even if the Tyler Model could be likened to a fee generation approach, SDC and PTV are wrong to suggest that such approaches have been categorically rejected by the Judges and their predecessors. Again, the Judges considered and rejected the identical argument in their 
                        <E T="03">Order Denying Rehearing:</E>
                    </P>
                    <EXTRACT>
                        <P>
                            [N]either the Judges nor their predecessors have categorically rejected use of the broad category of fee generation approaches to ascertain relative value in section 111 allocation proceedings. As the Librarian concluded when accepting in full the CARP Report for the 1998-99 distribution years: “[W]hile it is true that fees generated do not measure the absolute value of programming, it does not mean that they are not capable of measuring 
                            <E T="03">the relative value</E>
                             of programming between the claimant groups.” 
                            <E T="03">Librarian's Order,</E>
                             69 FR at 3618 (emphasis added). In that Order, the Librarian expressly noted that `there does exist precedent,' in the 1990-1992 CARP Report, for using the “fee generation” approach to determine relative market value. 
                            <E T="03">Id.</E>
                             When the Judges succeeded to the CARP's jurisdiction, they likewise stated that “we are not persuaded that we are precluded from ever considering fee generation as a distribution methodology. . . .” 
                            <E T="03">2000-03 Determination,</E>
                             75 FR at 26805. In fact, in the [Initial 2010-13] 
                            <E T="03">Determination,</E>
                             the Judges acknowledged the ongoing use of a fee generation approach in particular instances, notwithstanding that it had been “generally discounted” in some prior cases. 
                            <E T="03">See Determination</E>
                             at 48 n.45; 78 n.145.
                        </P>
                    </EXTRACT>
                    <FP>
                        Program Suppliers' Reply to Proposed Findings of Fact and Conclusions of Law (PS RPFF) ¶ 88 (and record citations therein). 
                        <E T="03">See also id.</E>
                         ¶ 96. Program Suppliers have also properly relied on the earlier rulings of the Judges and their predecessors in this regard. 
                        <E T="03">See</E>
                         2000-03 Distribution Order at 26805 (after detailing the “origins” and the “history” of the fee generation approach, the Judges stated this approach 
                        <E T="03">never</E>
                         had been “flatly rejected . . . as a 
                        <E T="03">methodology,</E>
                        ” and the Judges thus held that they were “not persuaded that we are precluded from ever considering fee generation as a distribution methodology. . . .”); 1998-99 Librarian Order at 3606, 3618 
                        <PRTPAGE P="54225"/>
                        (the CARP panel rejecting opposition to “the fee generation method” because “there does exist precedent” for using this methodology). More broadly, the Judges' predecessors have long understood the appropriateness of incorporating fee-generation models in the precise process in which the present Judges are now engaged—analyzing, weighing, and combining 
                        <E T="03">multiple</E>
                         approaches to the allocation of royalties—when, as now, the Judges cannot identify only “a 
                        <E T="03">single</E>
                         formula or rationale adequate to reach our determination and allocations in [the] proceeding.” 1979 Cable Royalty Distribution Determination, 47 FR 9879, 9892 (Mar. 8, 1982) (considering a fee generation approach together with eight other allocation methods) (emphasis added).
                    </FP>
                    <P>
                        As to the second point, assuming arguendo the Tyler Model bears a passing resemblance to a fee-generation approach, the Judges find, on this evidentiary record, such affinity constitutes virtue rather than vice. A key criticism of the Tyler model's fee-generation resemblance is premised on the fact that both appear to “ignore[ ] variation relevant to revealing CSO preferences” among program categories. CTV PFF ¶ 354 (and record citations therein); 
                        <E T="03">accord</E>
                         CCG PFF ¶ 186 (and record citations therein) (“Dividing the royalty payment by gross receipts removes the variation different signals contribute to revenue.”). However, that argument misapprehends Dr. Tyler's approach. It is decidedly not merely a “measure [of] the amount of royalties actually generated by a particular claimant group,” which is the definition of a fee-generation model, as set forth 
                        <E T="03">supra.</E>
                         Rather, the Tyler Model calculates coefficients that “represent the incremental impact on the SGRP for each type of compensable minute.” Tyler ACWDT ¶ 90. Further, the Tyler Model then weights these coefficient values by total receipts, Tyler ACWDT ¶ 88, and then multiplies these weighted coefficients by the number of minutes of each claimant's program category. Tyler ACWDT ¶ 144. That is quite different from the basic fee-generation approach.
                    </P>
                    <P>But the proponents of the other fee-based regressions are onto something in their observation that the Tyler Model generates less variation than would otherwise be captured when the dependent variable is royalty-specified rather than specified as the SGRP. However, the Judges see this distinguishing feature of the Tyler Model as an improvement over the other fee-based regressions proffered in the present case.</P>
                    <P>From the perspective of the parties proffering fee-based regressions, the only way to estimate the appropriate variations among program categories is by utilizing a royalty-based parameter (the log of royalties to be precise) as the dependent variable. That is, these more traditional forms of fee-based regressions posit that there is an ascertainable and measurable correlation between program category minutes and the log of royalties, detectable once sufficient fixed effects and control variables are specified. So, there is a black-and-white debate: Which is the preferrable dependent variable for the fee-based regressions in the present case, a royalty based variable or Dr. Tyler's SGRP?</P>
                    <P>
                        Recall that the first step in any regression modeling is to identify an economic theory which will guide the selection of model specifications. What is that economic theory? Perhaps the more salient phrasing of this question is: What economic theory is 
                        <E T="03">most consonant</E>
                         with the record evidence of the industry details? Let's take stock:
                    </P>
                    <EXTRACT>
                        <P>1. The royalties paid by CSOs for 1.0 DSE is a minimum of 1.064% of gross receipts, with two marginally lower brackets of percentage rates for additional DSEs, flattening out at 0.330% at 5.0 DSE. A CSO needs to decide how many, if any, local broadcast stations to distantly retransmit.</P>
                        <P>To answer this question, all the economist witnesses attempt to zero-in on what, in their respective opinions, would constitute economically rational decision-making. However, in identifying what is rational, they implicitly assume a CSO would be able to determine if it is retransmitting a profit-maximizing or a sub-optimal bundle of distant programming, but there is no record evidence as to how a CSO would know this.</P>
                        <P>
                            More particularly, there is no evidence of a measure of estimated subscribers retained, obtained, or lost, or of a change in subscription rates, 
                            <E T="03">caused</E>
                             by distant retransmission decisions. Are such changes even occurring because of the configuration of distantly retransmitted stations? On this, the record is barren.
                            <SU>162</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>162</SU>
                                 The Judges also find it telling that there is no evidence in this proceeding, nor apparently in any other allocation proceeding, that any CSO has solicited subscriptions by touting its distantly retransmitted lineup. That this dog has not barked speaks loudly as to the 
                                <E T="03">de minimis</E>
                                 impact of the distant retransmission market. Also absent from the record is any evidence that there is a derived-demand effect at play. That is, there is no evidence that consumers make subscription decisions based on the programming content of distant retransmissions. In this regard, a corollary to the need for identifying an economic theory from the record evidence to guide this Determination is the concomitant need for a “reality filter,” by which the Judges can address the reality that the market in question is relatively miniscule (although substantial royalty dollars are most certainly at stake!).
                            </P>
                        </FTNT>
                        <P>
                            2. But, as all the witnesses acknowledge, over the last three years of the relevant period, 2015-2017, the overwhelming percentage of CSOs pay only the minimum fee, and the vast majority of section 111 royalties are generated by those minimum-fee-paying CSOs. That is, most CSOs do not even retransmit enough distant signals to trigger a base fee obligation. Moreover, a large minority of those CSOs elect not to retransmit any signals, demonstrating, as Dr. George notes, that they have a 
                            <E T="03">zero</E>
                             willingness-to-pay for programming that is royalty costless. 
                            <E T="03">Why have these changes occurred</E>
                            ?
                        </P>
                        <P>3. The answer is to be found in the evidentiary record. An industry expert witness, Sue Ann R. Hamilton (whose 2010-13 testimony was properly designated as evidence in this proceeding by Program Suppliers), stated (as summarized in the 2010-13 Determination) that:</P>
                        <P>
                            [A] CSOs' selection of stations for distant retransmission is marked by 
                            <E T="03">inertia,</E>
                             not by an affirmative analysis and weighing of alternative stations, [because: (1)] distant retransmission costs represent 
                            <E T="03">a non-material expenditure for CSOs</E>
                             compared with their other more expensive programming and carriage decisions [and (2)] 
                            <E T="03">CSOs</E>
                             are more concerned with 
                            <E T="03">losing</E>
                             existing subscriber [`legacy distant carriage'] if they drop certain stations and the associated programs than they are with whether or not any new retransmitted station and its associated programs might 
                            <E T="03">entice</E>
                             new subscribers[, or with] adjusting the roster of distantly retransmitted stations.
                        </P>
                        <FP>2010-13 Determination at 3567 (emphasis added).</FP>
                        <P>
                            4. Ms. Hamilton's testimony regarding the CSO's primary concern over retaining legacy subscribers proved prescient when CSOs did not meaningfully substitute for the lost sports programming on WGNA, but rather just retransmitted fewer stations and programs, and thus defaulted to a binding minimum fee rather than a calculated base fee. That is, the phenomena that Ms. Hamilton described has been validated by the impact of the WGNA conversion. JSC professional and college team sports that were retransmitted on WGNA clearly were valuable, both in terms of the regressions (with the highest coefficients) and in terms of the survey results. But when WGNA converted to a cable station, despite the high value of JSC programming (its coefficient fell but remained higher than other category coefficients), JSC programming value vis-à-vis the retransmission sector, as measured by the regression methodologies, dropped precipitously, because the number of subscribers to whom JSC sports were transmitted dropped by over 90%. Although at first blush it may seem odd given the high value of JSC programming that CSOs did not “backfill” that loss, Ms. Hamilton's “inertia” and “legacy” arguments explain the absence of such a “backfill.” 
                            <SU>163</SU>
                            <FTREF/>
                             Such inertia, and the 
                            <PRTPAGE P="54226"/>
                            loss of WGNA as a legacy channel, apparently made it not worth the effort for CSOs to search for and retransmit a sufficient number of replacement channels and programs.
                        </P>
                        <FTNT>
                            <P>
                                <SU>163</SU>
                                 The loss of WGNA should be contrasted with the loss years earlier of TBS, another sports-based superstation that had been distantly retransmitted. That loss did not eliminate all such sports-based-superstation retransmittals, because WGNA remained available. But after WGNA transformed 
                                <PRTPAGE/>
                                itself into a cable station, there was no other sports-based superstation to substitute in order to satisfy legacy viewers of such programming. (Also, recall that the JSC is simply a representative of the major professional sports leagues and the NCAA, and the record does not reflect that they suffered any economic loss because of the reduction of subscriber minutes distantly retransmitted. Indeed, the Judges take administrative notice that their games have been aired on ESPN and other cable stations, national networks, and regional sports networks. The Judges decline to assume that these leagues and associations voluntarily abandoned local broadcasting and thereby deprived themselves of profits, but rather they assume these sports leagues and associations moved to these more lucrative distribution methods.)
                            </P>
                        </FTNT>
                        <P>5. In the context of this backdrop, Dr. Erdem's drumbeat that CSOs' priority is to minimize their costs takes on a bit more significance. CSOs appeared to be relatively less concerned with the “demand side” for distantly retransmitted channels and programming, and thus, relatively more concerned with the “supply side,” particularly with the royalty costs.</P>
                        <P>
                            6. In this more 
                            <E T="03">cost-centric</E>
                             context, Dr. Tyler's regression appears to the Judges to better reflect the 
                            <E T="03">realities</E>
                             of the market than the other fee-based regressions. The Tyler Model does not put the cart before the horse; that is, it does not place priority on program category (“demand side”) decisions. Rather, it prioritizes the “budget constraint” (“supply side”) decisions of CSOs, by which they calculate the percentage of their subscriber group's gross receipts they will pay in royalties.
                        </P>
                        <P>
                            7. However, for those CSOs transmitting above 1.0 DSE, they have economic decisions to make regarding the mix of programming they will transmit via their signal decisions. Given the economics and reality of this retransmission market, as described above, only 
                            <E T="03">then</E>
                             will the relative value of program categories be of 
                            <E T="03">material</E>
                             economic importance. It is at this stage that the Tyler Model generates information as to relative value, through the Tyler model's coefficients.
                        </P>
                        <P>8. To return to the issue at hand, as its critics assert: Does the Tyler Model identify fewer variations across program categories compared to the other regression models? Apparently, the answer is yes. But those other regressions, although not without evidentiary value, do not appear to be as consonant with the evidentiary record as the Tyler Model.</P>
                    </EXTRACT>
                    <HD SOURCE="HD2">C. The Economics of the Tyler Model</HD>
                    <P>
                        The foregoing points help to focus on the underlying economics of the Tyler Model. By using the SGRP as the dependent variable, the Tyler Model reflects economic principles relating to the value of a “public good,” which is a good “for which the marginal costs of providing it to an additional person are strictly zero and for which it is impossible to exclude people from receiving the good.” Joseph E. Stiglitz &amp; Jay L. Rosengard, 
                        <E T="03">Economics of the Public Sector</E>
                         107 (4th ed. 2015). But when the good is excludable, but still bears a marginal cost of zero (non-rivalrous in “econo-speak”), it is considered an “impure” (or “quasi-”) public good. 
                        <E T="03">See also</E>
                         3/27/23 Tr. 1496 (Boyle) (a PTV expert witness with a Ph.D. in applied economics agreeing that there are “characteristics” and “elements” of a “quasi-public good” in these distantly retransmitted channels and programs.).
                    </P>
                    <P>
                        Unlike “private goods” (rivalrous and excludable), the demand curve for public goods, impure or otherwise, “can be thought of as a `marginal willingness-to-pay' curve [which], at each level of output of the public good, . . . says how much the individual would be willing to pay for an extra unit of the public good.” Stiglitz &amp; Rosengard, 
                        <E T="03">supra,</E>
                         at 107. This is consistent with the economic logic of the Tyler Model. 
                        <E T="03">See</E>
                         Tyler ACWDT ¶ 67 (“Even though the amount of the royalty is determined by statute—and so constitutes a measure of 
                        <E T="03">minimum</E>
                         willingness to pay as opposed to the outcome of a negotiation—the estimated incremental royalties for the different program types relative to one another provide insight into how the CSOs would actually value these program categories in an unregulated market.”) (emphasis added). Also, the Tyler Model's SGRP is in the nature of an economist's “budget line” (a/k/a “budget constraint”), limiting the combinations of goods that a buyer can purchase. 
                        <E T="03">See</E>
                         Robert S. Pindyck &amp; Daniel L. Rubinfeld, 
                        <E T="03">Microeconomics</E>
                         82 (8th ed. 2013).
                        <SU>164</SU>
                        <FTREF/>
                         The Tyler Model's SGRP identifies the percentage of total costs (including profits, which reflect opportunity costs) incurred by CSOs across their subscriber groups in the form of section 111 royalties. With that percentage/budget line established, the Tyler Model then allocates the portions of the weighted category minutes attributable to that SGRP calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             The Judges examined two of the expert witnesses at the hearing regarding the concept of the “budget line” as it relates to the estimation of section 111 royalties. See 3/23/23 Tr. 1080-86 (PTV's Johnson); 4/3/23 Tr. 2671-73 (JSC's Majure). Dr. Johnson found the concept applicable to the regressions at issue, but Dr. Majure disagreed.
                        </P>
                    </FTNT>
                    <P>In sum, there is a real economic and market-based foundation for the Tyler Model in the context of the present record relating to the 2014-2017 retransmission market. Moreover, the Tyler Model is essentially a fee-based regression, with characteristics of the fee-generation approach, constructed in a manner that reflects both Ms. Hamilton's persuasive testimony and the reduction in distant retransmissions following the WGNA conversion.</P>
                    <HD SOURCE="HD1">XII. Canada Zone</HD>
                    <P>CTV maintains that Dr. George's calculation of the CCG share is incorrect for two related reasons: (1) the George Model as specified implies that CCG had compensable programming outside the Canada Zone; and (2) the George Model overrepresents the Canada Zone. CTV PFF ¶ 330.</P>
                    <P>
                        This problem arises because the George Model assumes that CCG programming would be available and valuable throughout the United States (
                        <E T="03">i.e.,</E>
                         outside of the Canadian Zone) if one assumes the inapplicability of this geographic limitation in the section 111 license for purposes of estimating relative marketplace value for CCG programming. Dr. George explains why this assumption is adopted in the George Model:
                    </P>
                    <EXTRACT>
                        <P>
                            It is in most circumstances right to infer that programming on distant signals re-transmitted has higher value than other programming not transmitted. The primary exception is when cable systems are prohibited from carrying particular signals, such as the case with 
                            <E T="03">Canadian signals outside of the Canadian re-transmission zone.</E>
                        </P>
                        <FP>. . .</FP>
                        <FP>Failing to control for the fact that transmission of Canadian stations is prohibited outside of the Canadian re-transmission zone introduces downward bias in the value of Canadian Claimant programming since the absence of carriage is equated with zero value.</FP>
                        <FP>. . .</FP>
                        <FP>It is worth repeating that the underlying economic framework is what governs model specification. The prohibition on distant signal carriage on its face imposes a restriction on cable system choices so must be reflected in the model. No further “evidence” is needed, or, in fact, possible, since we cannot observe prohibited carriage.</FP>
                    </EXTRACT>
                    <FP>George WRT at 16, 25-26 (emphasis added).</FP>
                    <P>Program Suppliers, through Dr. Tyler, makes the same argument as CTV, and responds to Dr. George's point above as follows:</P>
                    <EXTRACT>
                        <P>Within the Canada zone, CSOs can choose among all of the content categories. But outside the Canada zone, CSOs do not have the option of choosing CCG content. There is a difference between having something available and not chosen versus not having something available at all. Estimating the relationships separately when the Canadian minutes are available or not recognizes this, and this approach makes more economic sense.</P>
                    </EXTRACT>
                    <PRTPAGE P="54227"/>
                    <FP>PS PFF ¶ 297 (and record citations therein).</FP>
                    <P>
                        Dr. Bennett, on behalf of CTV, calculated and tabulated the impact on allocation shares of the difference between the approaches of Drs. George and Tyler as summarized above: 
                        <SU>165</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             Dr. Bennett also accounted for the fact that the George Model “assigns too much weight to the minutes within the Canada Zone . . . because [the George Model] bases [its] weights on the minutes within [its] non-representative regression sample (which is over-representative of the Canada Zone) instead of on the contribution that each zone makes to the aggregate royalty pool.” Bennett WRT ¶ 54. 
                            <E T="03">See also id.</E>
                             ¶ 50 &amp; fig.17.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="162">
                        <GID>EN28JN24.012</GID>
                    </GPH>
                    <P>
                        Based on the foregoing, the Judges find that the George Model of Canadian programming's relative marketplace value is not adequately proven by her assumptions regarding the value of such signals if Canadian signals had been made available outside the Canada Zone. Rather, such values are speculative, and no extrapolations can be credibly made from the royalty data. To be clear, the Judges are not saying that programming on Canadian signals would not have value outside of the Canada Zone. But, like the programming retransmitted by minimum-fee-only CSOs, the value of retransmitted programming is not subject to accurate measurement via a revealed preference approach that is the economic concept behind these regressions. Indeed, because this point applies even with regard to minimum-fee-only CSOs who 
                        <E T="03">actuall</E>
                        y retransmitted distant programming, a fortiori it applies to the hypothetical retransmission of programming outside of the Canada Zone. Further, not only is the 
                        <E T="03">value</E>
                         of any hypothetical retransmission outside the Canada Zone speculative, there is also no showing that, as a technical matter, such transmissions further away from the Canada Zone would be feasible. 
                        <E T="03">See</E>
                         SDC PFF ¶ 219 (“[W]hile the statutory limitation restricting carriage of Canadian television stations to within 150 miles of the U.S.-Canada border or north of the forty-second parallel (the “Canadian Zone”) is set forth in section 111(c)(4) and could therefore be rendered inapplicable in a hypothetical market without the section 111 compulsory license, 
                        <E T="03">the laws of physics</E>
                         would still operate as a practical physical limitation on Canadian station broadcast signals, absent an alternative (and more costly) delivery method such as fiber or satellite feeds.”) (emphasis added).
                        <SU>166</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             The Judges note CCG's argument that in prior proceedings, including one applying the fee-generation approach, the Judges and their predecessors did not make this geographic distinction. 
                            <E T="03">See</E>
                             CCG PFF ¶ 567-568 (and cases cited therein). But those cases either did not involve regression analysis or did not rely on the regression approach (Dr. Rosston's model) as anything other than corroboration. In the regression context, the Judges find it too speculative to assign value by correlating royalties to distant minutes that were never retransmitted. Moreover, although the Tyler Model, on which the Judges place the most evidentiary weight among the regression models, resembles a fee-generation approach, it is 
                            <E T="03">not</E>
                             a fee-generation approach, as discussed 
                            <E T="03">supra.</E>
                             As the Judges have also noted 
                            <E T="03">supra,</E>
                             a benefit of the Tyler Model is that it better looks at the actual nature of the market and uses the evidence available over the years in question. To allow for value to be estimated by consideration of hypothetical programming retransmission outside of the Canada Zone would be inconsistent with this “real-world” rationale for crediting the Tyler Model. Additionally, because the regression approach, unlike the constant sum survey approach, is based on what CSOs actually retransmitted, in order to identify their market-based revealed preferences from those actual decisions, a grafting of the hypothetical retransmission of Canadian signals onto that approach appears inconsistent to the Judges. However, the Judges emphasize that these critiques apply 
                            <E T="03">only</E>
                             to the regression models of relative marketplace value, and are not intended to address any other adjustments that have been proffered in connection with the Bortz Survey, or with any other evidence, in this proceeding.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">XIII. The Judges' Allocation of Shares Pursuant to the Regression Approach</HD>
                    <P>
                        The Judges have considered all of the regression models proffered by the parties in this proceeding. None of the models were excluded from consideration. Based on the Judges' analysis and conclusions regarding each model, as set forth 
                        <E T="03">supra,</E>
                         and comparing each of them, the Judges find the Tyler Model to be the most appropriate regression model in this record.
                        <SU>167</SU>
                        <FTREF/>
                         To recapitulate the principal reasons:
                    </P>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             The Judges also considered variations proffered by Drs. Johnson and George on their preferred models in their direct and rebuttal testimonies. Although some of those iterations mitigated certain problems in their models, none of them was sufficient to overcome the Judges' preference for the Tyler Model.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>1. On the present factual record, the Tyler Model's SGRP is preferable to the log of royalties, or royalties themselves, as the dependent variable in a fee-based regression.</P>
                        <P>2. The Tyler Model avoids the conundrum of the variance/bias dilemma that is of particular concern in this case for other proffered regression models. By contrast, Drs. George and Johnson found themselves on the horns of this dilemma. They require fixed effects to avoid bias by isolating the effect of program category minutes on royalties. But given the post-WGNA conversion, the use of fixed effects, as in the model applied in the prior proceeding, would not generate enough observations. And yet relaxing or eliminating fixed effects to obtain more observations weakens the isolation of the effect of interest, the impact of program minutes on royalties, and creates bias.</P>
                        <P>3. Among the control variables which the Tyler Model does not require is the control for the number of subscribers in a subscriber group, which is required in the other fee-based regressions, but cannot be estimated without measurement error.</P>
                        <P>
                            4. The Tyler Model utilizes as a useful analogy to price a price proxy in the form of a budget constraint, 
                            <E T="03">i.e.,</E>
                             the SGRP.
                            <PRTPAGE P="54228"/>
                        </P>
                        <P>
                            5. Although the Tyler Model is not based on a hedonic regression,
                            <SU>168</SU>
                            <FTREF/>
                             it can reasonably be described as a “hedonic-inspired” regression.
                            <SU>169</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>168</SU>
                                 Dr. Tyler at times appears to describe his approach as a “hedonic” regression, 
                                <E T="03">see</E>
                                 Tyler ACWDT ¶¶ 10(e), 85, perhaps on the mistaken belief that such a label was necessary to enhance his approach.
                            </P>
                        </FTNT>
                        <FTNT>
                            <P>
                                <SU>169</SU>
                                 
                                <E T="03">Cf.</E>
                                 Final rule and order, 
                                <E T="03">Determination of Royalty Rates and Terms for Making and Distributing Phonorecords (Phonorecords III),</E>
                                 84 FR 1918, 1947-48, 1950 (Feb. 5, 2019) (the Judges relied in part upon an economic model that was admittedly not an established model (the Shapley Model), but rather was a Shapley-“inspired” model), 
                                <E T="03">vacated and remanded on other grounds sub nom. Johnson</E>
                                 v. 
                                <E T="03">Copyright Royalty Board,</E>
                                 969 F.3d 363 (D.C. Cir. 2020).
                            </P>
                        </FTNT>
                        <P>6. The Tyler Model's use of weighting by each CSO's gross receipts is appropriate.</P>
                        <P>7. The Tyler Model calculates coefficients for each year, rather than “pooling” the data to generate a single coefficient for each program category across all four years.</P>
                        <P>8. The Tyler Model provides sufficient variation among the CSOs' decisions.</P>
                        <P>9. There is no credible evidence (or even a credible allegation) that Dr. Tyler engaged in anything that could be construed as specification searching. In fact, the SDC and JSC experts—who criticize the other regression models (including Dr. Marx's) for ignoring the impact of potential specification searching—acknowledge that the Tyler Model alone is free from this infirmity. The Judges agree, because the absence of specification searching in connection with the Tyler Model allows it to be transparent and, specifically, free from the consumption of “phantom degrees of freedom.”</P>
                        <P>10. The alleged superficial resemblance of the Tyler Model to a fee-generation model is not only factually off-the-mark and legally irrelevant, the shared characteristics of the two models in fact better reflect the real-world decision-making of CSOs, as described in Ms. Hamilton's testimony.</P>
                    </EXTRACT>
                    <P>
                        However, as also discussed 
                        <E T="03">supra,</E>
                         the Judges cannot simply adopt (for all circumstances) the Tyler Model to the extent it includes the base fees of CSOs who only paid the minimum fee from 2015-2017. Rather, for those years, the Judges, for the most part, rely on Dr. Tyler's calculation of allocation shares as derived from the coefficients he calculated for the CSOs paying more than the minimum fee.
                    </P>
                    <P>
                        In applying Dr. Tyler's approach, the Judges first note that, for 2014, the allocation of shares can be identified by reference to all the CSOs, including those who paid the minimum fee, as explained, for example by Dr. Marx. 
                        <E T="03">See</E>
                         Marx ACWDT ¶ 34 (“data on programming minutes and royalties based on the carriage of distant signals for 2014 are a close match to comparable data from the 2010-2013 proceeding.”) The allocation shares for 2014 in the Tyler Model, using the data for all CSOs in the regression, are the following:
                    </P>
                    <GPOTABLE COLS="7" OPTS="L2,i1" CDEF="s25,12C,12C,12C,12C,12C,12C">
                        <TTITLE>Allocation Shares for 2014 in the Tyler Model</TTITLE>
                        <BOXHD>
                            <CHED H="1">Year</CHED>
                            <CHED H="1">
                                Program 
                                <LI>suppliers</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                JSC
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CTV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                PTV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                SDC
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CCG
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">2014</ENT>
                            <ENT>
                                26.6
                                <LI>(3.8)</LI>
                            </ENT>
                            <ENT>
                                37.2
                                <LI>(7.5)</LI>
                            </ENT>
                            <ENT>
                                11.3
                                <LI>(2.6)</LI>
                            </ENT>
                            <ENT>
                                14.0
                                <LI>(1.7)</LI>
                            </ENT>
                            <ENT>
                                4.3
                                <LI>(0.9)</LI>
                            </ENT>
                            <ENT>
                                6.5
                                <LI>(0.9)</LI>
                            </ENT>
                        </ROW>
                        <TNOTE>(standard errors in parentheses).</TNOTE>
                    </GPOTABLE>
                    <FP>
                        <E T="03">See</E>
                         Tyler ACWDT fig.3.2.
                    </FP>
                    <P>
                        However, for the years 2015-2017, the Judges principally rely on Dr. Tyler's allocation share calculations pertaining only to the CSOs who paid more than the minimum fee, 
                        <E T="03">i.e.,</E>
                         those whose preferences were revealed by their retransmission decisions. These allocation shares as calculated by Dr. Tyler are the following:
                    </P>
                    <GPH SPAN="3" DEEP="167">
                        <GID>EN28JN24.013</GID>
                    </GPH>
                    <P>
                        Dr. Tyler noted that these 2015-2017 share allocations were not “strikingly” different from the share allocations he recommended by reliance on his regression results for all CSOs, even if they paid only the minimum fee. Tyler ACWDT ¶ 103. Moreover, as a theoretical economic matter, Dr. Tyler opined that he was not aware of “any logic, a priori,” that there would be any difference in “
                        <E T="03">relative</E>
                         marketplace values” as between “Above Minimum Fee CSOs” and “Positive Carriage Minimum Fee CSOs” (
                        <E T="03">i.e.,</E>
                         including excess capacity CSOs). 
                        <E T="03">Id.</E>
                         In this regard, compare Tyler ACWDT fig.6.3 (above) with Tyler ACWDT fig.3.2 (below):
                    </P>
                    <GPH SPAN="3" DEEP="152">
                        <PRTPAGE P="54229"/>
                        <GID>EN28JN24.014</GID>
                    </GPH>
                    <P>However, Figure 6.3 reports an anomalous increase in the share allocated to the CCG claimants. This anomaly is explainable.</P>
                    <P>
                        CCG programming is unique among the program categories in this proceeding because it is limited in geographic scope to CSOs located within a 150-mile belt below the U.S./Canadian border. 
                        <E T="03">See</E>
                         CCG PFF ¶ 59 (“Under the section 111 compulsory license, it is prohibited for a cable company to distantly retransmit a Canadian broadcast signal to communities located more than 150 miles from the United States-Canada border and also south of the 42nd parallel.”) (citing 17 U.S.C. 111(c)(4)(A)).
                    </P>
                    <P>
                        As such, the data reported in Tyler ACWDT fig.6.3—limited to CSOs paying above the minimum fee—would reflect the unique value of Canadian programming in that region. More particularly, CCG programming is uniquely valuable in the Canada Zone in good measure because of the retransmittal of French language programming, a niche sub-category. 
                        <E T="03">See</E>
                         CCG PFF ¶ 20 (“The programming on Canadian French-language stations plays an important role for Americans living in the northeast United States and either speak French or have French ancestry. . . . An example . . . is in the successful grassroots campaign of Sanford, Maine residents who lobbied the Metrocast cable company and their local government to restore carriage of the CBC's French-language station CKSH.”); 
                        <E T="03">see generally id.</E>
                         ¶ 19 (noting the distinct nature of French language programming in demand by CSOs to serve residents of “New York, Vermont, Maine, New Hampshire, and Massachusetts—that have a sizeable proportion of residents with connections to the French language through a current spoken language or ancestry.”); 
                        <E T="03">see also</E>
                         Written Direct Testimony of Beverley Kirshenblatt, Trial Ex. 7400, p. 6 (Kirshenblatt WDT) (the CBC programming on Canadian stations retransmitted into the Canada Zone is provided “in English, French, and eight Indigenous languages . . . broadcast . . . from around the world [as] a pan-Canadian service reflect[ing] Canada and Canadians in both official languages . . . and is a significant contributor to the cultural fabric of Canada through the promotion and creation of a variety of programming.”).
                    </P>
                    <P>
                        Thus, in 
                        <E T="03">addition</E>
                         to the demand for the usual complement of distantly retransmitted programming that exists throughout the wider United States, in the Canada Zone there exists this additional demand. Such greater demand means that CSOs would choose to pay more than the minimum fee by adding CCG stations, and thus Canadian claimant programming, to their channel lineup. Accordingly, CSOs in the Canada Zone would very likely be overrepresented in the cohort of above-minimum-fee-paying CSOs in Tyler ACWDT fig.6.3.
                    </P>
                    <P>
                        The problem this creates, for present purposes, is that the Judges are allocating a royalty pool for which, over the period 2015-2017, 
                        <E T="03">more than 90% of the funding came from minimum-fee-only CSOs.</E>
                         Thus, while the data from above-minimum-fee-paying CSOs (
                        <E T="03">i.e.,</E>
                         in Tyler ACWDT fig.6.3) provides useful economic evidence of CSOs' revealed preferences for other claimant categories, with regard to CCG content and value, this data is distortionary as applied to the Judges' task of allocating 
                        <E T="03">all U.S. royalties.</E>
                    </P>
                    <P>Confirmatory of this distinction is the fact that CCG itself has not proposed that it receive the anomalously high allocations suggested by the data in Tyler ACWDT fig.6.3 (23.2% in 2015, 31.1% in 2016, and 34.6% in 2017). Rather, CCG has proposed that it receive 14.8% for 2015, 13.7% for 2016, and 13.6% for 2017. CCG PFF ¶ 617 fig.53. Further, CCG filed its Proposed Findings of Fact on June 15, 2023, and it was aware of the higher CCG shares in Tyler ACWDT fig.6.3 since that document was filed on September 2, 2022. And yet at no time did CCG ever seek to adopt the higher CCG share set forth in Tyler ACWDT fig.6.3.</P>
                    <P>Accordingly, in their allocations based on the Tyler Model regression, for 2015-2017, the Judges utilize the CCG shares reported at Tyler ACWDT, Fig.3.2. The difference in shares, compared to the CCG share in Tyler ACWDT 6.3, is allocated proportionately among the other five categories, as set forth in the table for Adjustment A below:</P>
                    <GPOTABLE COLS="7" OPTS="L2,i1" CDEF="s50,12,12,12,12,12,12">
                        <TTITLE>Adjustment A Table</TTITLE>
                        <BOXHD>
                            <CHED H="1">Year</CHED>
                            <CHED H="1">
                                Program 
                                <LI>suppliers</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                JSC
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CTV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                PTV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                SDC
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CCG
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">2014</ENT>
                            <ENT>26.6</ENT>
                            <ENT>37.2</ENT>
                            <ENT>11.3</ENT>
                            <ENT>14.0</ENT>
                            <ENT>4.3</ENT>
                            <ENT>6.5</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2015</ENT>
                            <ENT>46.29</ENT>
                            <ENT>2.37</ENT>
                            <ENT>12.76</ENT>
                            <ENT>14.34</ENT>
                            <ENT>10.95</ENT>
                            <ENT>13.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2016</ENT>
                            <ENT>39.25</ENT>
                            <ENT>1.63</ENT>
                            <ENT>16.68</ENT>
                            <ENT>18.43</ENT>
                            <ENT>10.41</ENT>
                            <ENT>13.6</ENT>
                        </ROW>
                        <ROW>
                            <PRTPAGE P="54230"/>
                            <ENT I="01">2017</ENT>
                            <ENT>42.79</ENT>
                            <ENT>0.65</ENT>
                            <ENT>12.84</ENT>
                            <ENT>18.41</ENT>
                            <ENT>10.11</ENT>
                            <ENT>15.2</ENT>
                        </ROW>
                        <TNOTE>The Judges recalculated the shares of the other five claimant categories by: (1) calculating the percentage each category represents of all the categories' shares except CCG; (2) multiplying each percentage by the reduction in the CCG share generated by replacing the CCG column of Tyler ACWDT fig.6.3 with Tyler ACWDT fig.3.2; and (3) adding that product to the shares of each claimant category.</TNOTE>
                    </GPOTABLE>
                    <P>
                        A further adjustment is still required. As noted 
                        <E T="03">supra</E>
                         regarding the PTV share, the Judges are adopting the downward adjustments made by Dr. Bennett to reflect the presence of Must Carry PTV stations. 
                        <E T="03">See</E>
                         Bennett WRT fig.52. The Judges apply those adjustments, and recalculate the shares of the other parties as set forth in the table for Adjustment B below:
                    </P>
                    <GPOTABLE COLS="7" OPTS="L2,p7,7/8,i1" CDEF="s25,12,12,12,12,12,12">
                        <TTITLE>Adjustment B Table</TTITLE>
                        <BOXHD>
                            <CHED H="1">Year</CHED>
                            <CHED H="1">
                                Program
                                <LI>suppliers </LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                JSC 
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CTV 
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                PTV 
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                SDC 
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CCG 
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">2014</ENT>
                            <ENT>26.80</ENT>
                            <ENT>37.48</ENT>
                            <ENT>11.38</ENT>
                            <ENT>13.36</ENT>
                            <ENT>4.33</ENT>
                            <ENT>6.55</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2015</ENT>
                            <ENT>47.67</ENT>
                            <ENT>2.44</ENT>
                            <ENT>13.14</ENT>
                            <ENT>11.78</ENT>
                            <ENT>11.28</ENT>
                            <ENT>13.70</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2016</ENT>
                            <ENT>40.75</ENT>
                            <ENT>1.69</ENT>
                            <ENT>17.32</ENT>
                            <ENT>15.32</ENT>
                            <ENT>10.81</ENT>
                            <ENT>14.12</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2017</ENT>
                            <ENT>44.07</ENT>
                            <ENT>0.67</ENT>
                            <ENT>13.23</ENT>
                            <ENT>15.96</ENT>
                            <ENT>10.41</ENT>
                            <ENT>15.66</ENT>
                        </ROW>
                        <TNOTE>
                            The Must Carry adjustment in Bennett WRT fig.52 was based on the PTV shares of all CSO royalties, whereas the Judges are applying this adjustment to the shares of CSO royalties attributable to shares generated by CSOs paying above the minimum fee (subject to the prior adjustment for CCG, discussed 
                            <E T="03">supra</E>
                            ). So, for 2014, the percentage point adjustment to the PTV share is the percentage point adjustment in Bennett WRT fig.52. For 2015-2017, the percentage point adjustment to the PTV share is calculated for each year by (1) finding the percentage of PTV shares reflected by the PTV shares from Tyler WRT fig.6.3 ÷ PTV's shares from Tyler WRT fig.3.2, (2) multiplying that percentage by the percentage point adjustment in Bennett WRT fig.52, and (3) subtracting that product from the PTV share from the table above.
                        </TNOTE>
                        <TNOTE>The shares of the other claimants are adjusted upward by: (1) calculating the percentage each category represents of all the categories' shares except PTV, (2) multiplying each percentage by the Bennett Must Carry adjustment (reduced as set forth above), and (3) adding that product to the shares of each claimant category.</TNOTE>
                    </GPOTABLE>
                    <P>There remains a final adjustment. The Judges note that PTV argued that a significant number of its stations were retransmitted by CSOs together with WGNA prior to the WGNA conversion, thereby generating a base fee royalty and an expressly revealed preference and willingness-to-pay. PTV further notes that post the WGNA conversion, many of these CSOs continued to retransmit the same PTV station, but this did not trigger the base fee because the minimum fee applied (with WGNA gone). PTV maintains that the pre-WGNA conversion carriage is probative of the fact that the post-WGNA conversion evidences economic value as if it were generating base fee royalties. PTV PFF ¶ 60 (and record citations therein). The Judges agree.</P>
                    <P>On this issue, there is evidence in the form of Mr. Harvey's analysis done on behalf of JSC. Specifically, Mr. Harvey reported:</P>
                    <EXTRACT>
                        <P>The number of PTV Only systems increased after the WGNA conversion from 44 at the end of 2014 to 173 by the end of 2017. PTV Only Systems that had carried WGNA and PTV in 2014 account for three-fifths of that increase.</P>
                    </EXTRACT>
                    <FP>Harvey WDT ¶ 106. The Judges find that Mr. Harvey's reporting demonstrates that 44% of the PTV stations that were identified as retransmitted by minimum-fee-paying CSOs after the WGNA conversion had been transmitted pre-conversion and generated base fee royalties. That is persuasive evidence of ongoing marketplace value. Accordingly, the Judges use that factual finding to increase by 44% the PTV share modification, as set forth in the table for Adjustment C below:</FP>
                    <GPOTABLE COLS="7" OPTS="L2,i1" CDEF="s25,12,12,12,12,12,12">
                        <TTITLE>Adjustment C Table—Applying The PTV Adjustment To Reflect WTP of CSOs That Maintained PTV Carriage After WGNA Conversion</TTITLE>
                        <BOXHD>
                            <CHED H="1">Year</CHED>
                            <CHED H="1">
                                Program 
                                <LI>suppliers </LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                JSC 
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CTV 
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                PTV 
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                SDC 
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CCG 
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">2015</ENT>
                            <ENT>44.87</ENT>
                            <ENT>2.30</ENT>
                            <ENT>12.37</ENT>
                            <ENT>16.96</ENT>
                            <ENT>10.62</ENT>
                            <ENT>12.90</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2016</ENT>
                            <ENT>37.51</ENT>
                            <ENT>1.56</ENT>
                            <ENT>15.94</ENT>
                            <ENT>22.06</ENT>
                            <ENT>9.95</ENT>
                            <ENT>13.00</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2017</ENT>
                            <ENT>40.39</ENT>
                            <ENT>0.61</ENT>
                            <ENT>12.12</ENT>
                            <ENT>22.98</ENT>
                            <ENT>9.54</ENT>
                            <ENT>14.35</ENT>
                        </ROW>
                        <TNOTE>The Judges recalculated the shares of the other five claimant categories by: (1) calculating the percentage each category represents of all the categories' shares except PTV, (2) multiplying each percentage by the increase in the PTV share generated by adjusting to reflect WTP of CSOs that maintained PTV carriage after WGNA conversion, and (3) subtracting that product from the shares of each claimant category.</TNOTE>
                    </GPOTABLE>
                    <P>
                        Returning to Tyler ACWDT fig.6.3, upon which the Judges principally rely, the Judges' decision to utilize and adjust the share allocations therein is strengthened by consideration of the confidence intervals at various levels of statistical significance, relating to those share allocations. That is, those confidence intervals serve to confirm the reasonableness of their share allocation approach. In that regard, as set forth in the table below, only one claimant category, JSC, has a negative low range bound in its confidence interval at the 90%, 95%, and 99% confidence intervals. Moreover, the negative value diminishes, as the confidence interval widens. The Judges 
                        <PRTPAGE P="54231"/>
                        do not find that this one lower bound issue is sufficient to call into question the usefulness of the share allocations on which they rely.
                    </P>
                    <P>Additionally, at the 55% confidence interval, this lower bound in fact turns positive, as also noted in the table below.</P>
                    <GPOTABLE COLS="6" OPTS="L2,p7,7/8,i1" CDEF="s50,8,r50,r50,r50,r50">
                        <TTITLE>55%/90%/95%/99% Confidence Intervals for Claimant Shares From Tyler Only CSOs Paying More Than Minimum Fee Model</TTITLE>
                        <BOXHD>
                            <CHED H="1">Claimant</CHED>
                            <CHED H="1">Share</CHED>
                            <CHED H="1">
                                55% Confidence
                                <LI>interval</LI>
                            </CHED>
                            <CHED H="1">
                                90% Confidence
                                <LI>interval</LI>
                            </CHED>
                            <CHED H="1">
                                95% Confidence
                                <LI>interval</LI>
                            </CHED>
                            <CHED H="1">
                                99% Confidence
                                <LI>interval</LI>
                            </CHED>
                        </BOXHD>
                        <ROW EXPSTB="05" RUL="s">
                            <ENT I="21">
                                <E T="02">2015</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Program Suppliers</ENT>
                            <ENT>
                                41.0%
                                <LI>(2.4%)</LI>
                            </ENT>
                            <ENT>39.19% to 42.81%</ENT>
                            <ENT>37.05% to 44.95%</ENT>
                            <ENT>36.3% to 45.7%</ENT>
                            <ENT>34.82% to 47.18%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">JSC</ENT>
                            <ENT>
                                2.1%
                                <LI>(1.5%)</LI>
                            </ENT>
                            <ENT>0.97% to 3.23%</ENT>
                            <ENT>−0.37% to 4.57%</ENT>
                            <ENT>−0.84% to 5.04%</ENT>
                            <ENT>−1.76% to 5.96%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">CTV</ENT>
                            <ENT>
                                11.3%
                                <LI>(2.2%)</LI>
                            </ENT>
                            <ENT>9.64% to 12.96%</ENT>
                            <ENT>7.68% to 14.92%</ENT>
                            <ENT>6.99% to 15.61%</ENT>
                            <ENT>5.63% to 16.97%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">PTV</ENT>
                            <ENT>
                                12.7%
                                <LI>(0.8%)</LI>
                            </ENT>
                            <ENT>12.10% to 13.30%</ENT>
                            <ENT>11.38% to 14.02%</ENT>
                            <ENT>11.13% to 14.27%</ENT>
                            <ENT>10.64% to 14.76%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">SDC</ENT>
                            <ENT>
                                9.7%
                                <LI>(1.2%)</LI>
                            </ENT>
                            <ENT>8.79% to 10.61%</ENT>
                            <ENT>7.73% to 11.67%</ENT>
                            <ENT>7.35% to 12.05%</ENT>
                            <ENT>6.61% to 12.79%</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">CCG</ENT>
                            <ENT>
                                23.2%
                                <LI>(0.9%)</LI>
                            </ENT>
                            <ENT>22.52% to 23.88%</ENT>
                            <ENT>21.72% to 24.68%</ENT>
                            <ENT>21.44% to 24.96%</ENT>
                            <ENT>20.88% to 25.52%</ENT>
                        </ROW>
                        <ROW EXPSTB="05" RUL="s">
                            <ENT I="21">
                                <E T="02">2016</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Program Suppliers</ENT>
                            <ENT>
                                31.3%
                                <LI>(3.0%)</LI>
                            </ENT>
                            <ENT>29.04% to 33.57%</ENT>
                            <ENT>26.37% to 36.24%</ENT>
                            <ENT>25.42% to 37.18%</ENT>
                            <ENT>23.57% to 39.03%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">JSC</ENT>
                            <ENT>
                                1.3%
                                <LI>(1.9%)</LI>
                            </ENT>
                            <ENT>−0.13% to 2.735%</ENT>
                            <ENT>−1.83% to 4.43%</ENT>
                            <ENT>−2.42% to 5.02%</ENT>
                            <ENT>−3.59% to 6.19%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">CTV</ENT>
                            <ENT>
                                13.3%
                                <LI>(3.4%)</LI>
                            </ENT>
                            <ENT>10.73% to 15.87%</ENT>
                            <ENT>7.71% to 18.89%</ENT>
                            <ENT>6.64% to 19.96%</ENT>
                            <ENT>4.54% to 22.06%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">PTV</ENT>
                            <ENT>
                                14.7%
                                <LI>(0.8%)</LI>
                            </ENT>
                            <ENT>14.10% to 15.30%</ENT>
                            <ENT>13.38% to 16.02%</ENT>
                            <ENT>13.13% to 16.27%</ENT>
                            <ENT>12.64% to 16.76%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">SDC</ENT>
                            <ENT>
                                8.3%
                                <LI>(1.0%)</LI>
                            </ENT>
                            <ENT>7.55% to 9.06%</ENT>
                            <ENT>6.66% to 9.95%</ENT>
                            <ENT>6.34% to 10.26%</ENT>
                            <ENT>5.72% to 10.88%</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">CCG</ENT>
                            <ENT>
                                31.3%
                                <LI>(1.4%)</LI>
                            </ENT>
                            <ENT>30.04% to 32.16%</ENT>
                            <ENT>28.80% to 33.40%</ENT>
                            <ENT>28.36% to 33.84%</ENT>
                            <ENT>27.49% to 34.71%</ENT>
                        </ROW>
                        <ROW EXPSTB="05" RUL="s">
                            <ENT I="21">
                                <E T="02">2017</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Program Supplier</ENT>
                            <ENT>
                                33.0%
                                <LI>(2.2%)</LI>
                            </ENT>
                            <ENT>31.34% to 34.66%</ENT>
                            <ENT>29.38% to 36.62%</ENT>
                            <ENT>28.69% to 37.31%</ENT>
                            <ENT>27.33% to 38.67%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">JSC</ENT>
                            <ENT>
                                0.5%
                                <LI>(1.0%)</LI>
                            </ENT>
                            <ENT>−0.26% to 1.26%</ENT>
                            <ENT>−1.15% to 2.15%</ENT>
                            <ENT>−1.46% to 2.46%</ENT>
                            <ENT>−2.08% to 3.08%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">CTV</ENT>
                            <ENT>
                                9.9%
                                <LI>(2.0%)</LI>
                            </ENT>
                            <ENT>8.39% to 11.41%</ENT>
                            <ENT>6.61% to 13.19%</ENT>
                            <ENT>5.98% to 13.82%</ENT>
                            <ENT>4.75% to 15.05%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">PTV</ENT>
                            <ENT>
                                14.2%
                                <LI>(0.8%)</LI>
                            </ENT>
                            <ENT>13.60% to 14.80%</ENT>
                            <ENT>12.88% to 15.52%</ENT>
                            <ENT>12.63% to 15.77%</ENT>
                            <ENT>12.14% to 16.26%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">SDC</ENT>
                            <ENT>
                                7.8%
                                <LI>(1.0%)</LI>
                            </ENT>
                            <ENT>7.05% to 8.56%</ENT>
                            <ENT>6.16% to 9.45%</ENT>
                            <ENT>5.84% to 9.76%</ENT>
                            <ENT>5.22% to 10.38%</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">CCG</ENT>
                            <ENT>
                                34.6%
                                <LI>(2.1%)</LI>
                            </ENT>
                            <ENT>33.01% to 36.19%</ENT>
                            <ENT>31.15% to 38.05%</ENT>
                            <ENT>30.48% to 38.72%</ENT>
                            <ENT>29.19% to 40.01%</ENT>
                        </ROW>
                        <TNOTE>Source: Derived from data in Tyler ACWDT fig.6.3.</TNOTE>
                        <TNOTE>
                            <E T="02">Note:</E>
                             standard errors in parentheses.
                        </TNOTE>
                    </GPOTABLE>
                    <P>
                        The Judges take note of the 55% confidence level because, as they stated in the 2010-13 Determination, there is nothing sacrosanct about the three confidence levels of 90%, 95%, and 99% when a court is considering econometric analyses. In this regard, the Judges take note of the position of the United States Supreme Court regarding the limited evidentiary value of confidence intervals/statistical significance. 
                        <E T="03">See Matrixx Initiatives, Inc.</E>
                         v. 
                        <E T="03">Siracusano,</E>
                         563 U.S. 27, 40 (2011) (“the premise that statistical significance is the only reliable indication of causation . . . is flawed.”).
                    </P>
                    <P>In this regard, the Judges stated in the 2010-13 Determination:</P>
                    <EXTRACT>
                        <P>
                            A statistical significance level of .01, .05 and .1 . . . is “often referred to inversely as the . . . confidence level,” equivalent to 99%, 95% and 90%, respectively. [ABA Econometrics at 18]. Although “[s]ignificance levels of five percent and one percent are generally used by statisticians in testing hypotheses . . . this does not mean that only results significant at the five percent level should be presented or considered [because] [l]ess significant results may be suggestive, even if not probative, and suggestive evidence is certainly worth something.” [F. M. Fisher, 
                            <E T="03">Multiple Regression in Legal Proceedings,</E>
                             80 Colum. L. Rev. 717-718 (1980)]. Thus, “[in] multiple regressions, one should never eliminate a variable that there is a firm foundation for including, just because its estimated coefficient happens not to be significant in a particular sample.” 
                            <E T="03">Id.</E>
                             However, care must be taken not to confuse the “significance level” with the “preponderance of the evidence” standard, because “the significance level tells us only the probability of obtaining the measured coefficient if the true value is zero,” so one cannot “subtract[ ] the significance level from one hundred percent” to determine whether a hypothesis is more or less likely to be correct. 
                            <E T="03">Id. See also</E>
                             D. Rubinfeld, 
                            <E T="03">Econometrics in the Courtroom,</E>
                             85 Col. L. Rev. 1048, 1050 (1985) (“[I]f significance levels are to be used, it is inappropriate to set a fixed statistical standard irrespective of the substantive nature of the litigation.”); D. McCloskey &amp; S. Ziliak, 
                            <E T="03">The Standard Error of Regressions,</E>
                             34 J. Econ. Lit. 97, 98, 101 (1996) (“statistically significant” means neither “economically significant” nor “significant [in] everyday usage [where] `significant' means `of practical importance' . . . .”).
                        </P>
                    </EXTRACT>
                    <PRTPAGE P="54232"/>
                    <FP>2010-13 Determination at 3571 n.78. The Judges apply the foregoing principles here. To be clear, the Judges are not substituting the significance levels/confidence levels for the preponderance of evidence (marginally greater than 50%) standard. Rather, the Judges are looking to various levels of statistical significance/confidence intervals to determine the probability of obtaining Dr. Tyler's measured coefficient if the true value was in fact zero. And, the Judges are not wedded to the convention of the 90%, 95% and 99% confidence levels, because they agree with Dr. Rubinfeld, whose treatise is cited above, for the proposition that “if significance levels are to be used, it is inappropriate to set a fixed statistical standard irrespective of the substantive nature of the litigation.”</FP>
                    <P>
                        The nature of this litigation, as the D.C. Circuit has held (discussed elsewhere in this determination) is an intensely practical endeavor, one in which mathematical precision is not possible, and where “rough justice” is the norm. In this regard, the Judges also follow—in addition to the Supreme Court holding in 
                        <E T="03">Matrixx</E>
                        —the guidance of two scholars (also quoted above in the 2010-13 Determination) who have written extensively to caution, as a matter of economic ethics, against a fixation on statistical significance:
                    </P>
                    <EXTRACT>
                        <P>Statistical significance is not equivalent to economic significance nor to . . . legal . . . significance. . . . The core problem is that statistical significance is neither necessary nor sufficient for testing . . . material fact in a court of law. . . .</P>
                    </EXTRACT>
                    <FP>
                        Stephen T. Ziliak &amp; Deirdre McCloskey, 
                        <E T="03">Lady Justice Versus Cult of Statistical Significance,</E>
                         in George F. DeMartino &amp; Deirdre McCloskey, 
                        <E T="03">The Oxford Handbook of Professional Economic Ethics</E>
                         352-53 (2016). The need to avoid overreliance on low levels of statistical significance (
                        <E T="03">i.e.,</E>
                         large confidence intervals) has been emphasized by Dr. Kennedy, in his textbook cited by the parties and the Judges in this proceeding. 
                        <E T="03">See</E>
                         Kennedy, 
                        <E T="03">supra,</E>
                         at 366 (listing as one of his “Ten Commandments of Applied Econometrics”: “Do not confuse statistical significance with meaningful magnitude.”).
                    </FP>
                    <P>
                        Accordingly, the Judges note specifically that the table above shows, with regard to the confidence intervals for Dr. Tyler's shares, 
                        <E T="03">only positive numbers</E>
                         for 
                        <E T="03">all</E>
                         claimant categories in 2015 at the 55% level. Further, the table also shows 
                        <E T="03">only positive numbers</E>
                         for all claimant categories for 
                        <E T="03">all</E>
                         confidence levels in 
                        <E T="03">all</E>
                         years except for JSC, with a lower bound value for JSC of only −0.13 in 2016 and −0.26 in 2017.
                        <SU>170</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             The negative JSC number at the higher confidence intervals may be the consequence of the lower number of minutes in the regression after the full WGNA conversion. As noted supra with regard to small sub-categories of programming, when there are very few minutes in the regression, the estimates can be inaccurate.
                        </P>
                    </FTNT>
                    <P>Although the Judges find these data to be persuasive in demonstrating that Dr. Tyler's shares are reasonable, they are concerned that the intervals remain somewhat wide, and they do not simply dismiss out-of-hand the one negative lower bound at the higher confidence intervals. Relatively wide ranges in regression results have been a previous concern in these proceedings, as noted with regard to the Waldfogel Model applied to the 2004-05 proceeding:</P>
                    <EXTRACT>
                        <P>[W]hile the Waldfogel regression analysis provides useful information, we also find that there are limits to that usefulness in corroborating the Bortz survey, largely stemming from the wide confidence intervals for the Waldfogel coefficients. Thus, the implied share of royalties calculated by Dr. Waldfogel would change substantially if the true value of the variable was at one end of the confidence interval rather than at the point estimate value used by Dr. Waldfogel in his calculations. . . . Nevertheless, while one may question the precision of the results on this basis, it only cautions against assigning too much weight to its corroborative value.</P>
                    </EXTRACT>
                    <FP>2004-05 Distribution Order at 57063, 57068.</FP>
                    <P>
                        The reconciliation is different here than in the 2004-05 proceeding, because here the Judges are considering the regression evidence and the Bortz Survey evidence as essentially equally weighted and useful (but not flawless) evidence, rather than treating the regression evidence as merely corroborative of the survey evidence. Likewise, the reconciliation will be different than in the 2010-13 proceeding, because the Judges are not giving any 
                        <E T="03">primacy</E>
                         to the regression evidence in this proceeding, given how the changes in the retransmission sector after the WGNA conversion have affected the available data. But the overall point remains: As in prior proceedings, the Judges take note of the wide confidence intervals (and the negative JSC coefficient at the lower bound), as one reason to balance the shares implied by the Tyler Model, as adjusted above, against the results of the Bortz Survey, also as adjusted.
                    </P>
                    <HD SOURCE="HD1">XIV. 3.75% Fund</HD>
                    <P>In the 2010-13 Determination, the Judges made no distinction within the regression approaches themselves between allocation shares attributable to the Basic Fund and to the 3.75% Fund. Rather, as here, the Judges first made their overall allocation share decision after applying all the useful evidence, including evidence from the surveys and regressions. Only then did the Judges consider how to allocate the claimants' royalty shares as between the Basic Fund and the 3.75% Fund.</P>
                    <P>
                        Specifically, the Judges in the 2010-13 Determination engaged in the following approach in reconciling the 3.75% Fund with the Basic Fund: (1) The Basic Fund percentage allocations were made without disaggregating royalties attributable to the 3.75% Fund and (2) the 3.75% Fund percentage allocations were made by “reallocat[ing] the PTV share from [the Basic Fund] proportionally among the categories that participate in that fund.” 2010-13 Determination at 3611. In reaching this ruling, the Judges “considered and rejected PTV's arguments that the allocations of Basic Fund royalties must be adjusted to account for PTV's non-participation in the 3.75% Fund.” 
                        <E T="03">Id.</E>
                         (It is undisputed that PTV cannot receive any share from the 3.75% Fund.)
                    </P>
                    <P>
                        In the present case, all the parties, except PTV, made arguments and presented testimony proposing that the Judges make the 3.75% Fund allocations in the same manner as in the 2010-13 Determination.
                        <SU>171</SU>
                        <FTREF/>
                         PTV, however, through the Johnson Model, has departed from the prior approach and calculated, via regression analysis, separate allocations for the Basic Fund and for the 3.75% Fund. According to PTV, this is warranted because, even though it was not the method used previously, the Judges have acknowledged the “need to allocate the Basic Fund and the 3.75% Fund separately.” PTV PHRB at 36-37. But PTV elides the fact that Dr. Johnson's separate modeling of the two rates is not how the separate allocations were accomplished in the 2010-13 Determination, as noted 
                        <E T="03">supra.</E>
                    </P>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             CTV, through its counsel, proposed an alternative method for allocating the 3.75% Fund in its RPHB at 64-65. However, this proposed alternative was not linked to any portion of the record, directly or indirectly. Factual assertions cannot be made after the close of evidence and, in any event, cannot be made by counsel. The Judges therefore do not consider CTV's alternative 3.75% Fund proposal. 
                            <E T="03">See Johnson</E>
                             v. 
                            <E T="03">Copyright Royalty Board,</E>
                             969 F.3d 363, 383 (D.C. Cir. 2020) (rejecting the Judges' reliance on a party's proposal made “for the very first time 
                            <E T="03">after</E>
                             the evidentiary record was closed.”).
                        </P>
                    </FTNT>
                    <P>As other parties note, the approach sought by PTV and Dr. Johnson is not only inconsistent with the Judges' prior approach, but also inconsistent with the facts and with economic theory. As Dr. George comprehensively explained:</P>
                    <EXTRACT>
                        <PRTPAGE P="54233"/>
                        <P>
                            Dr. Johnson's model produces biased results because it excludes 3.75% fees. Dr. Johnson's model relates base rate royalties rather than total royalties to claimant programming minutes. . . . [T}his approach 
                            <E T="03">does not align with the economic theory</E>
                             that supports regression estimates in these proceedings. Specifically, 
                            <E T="03">profit maximization</E>
                             dictates that systems add distant signals if the full incremental value exceeds the full incremental cost. By 
                            <E T="03">excluding</E>
                             royalties associated with 3.75% fees, coefficient estimates do not reflect the 
                            <E T="03">full</E>
                             cost of distant signal carriage and hence do not reflect the full 
                            <E T="03">value</E>
                             of claimant programming. Stated another way, a cable system's choice to carry a signal subject to 3.75% fees reveals the system's willingness to pay for signals to be 
                            <E T="03">higher</E>
                             than the royalty expenditure Dr. Johnson includes in his regression. Omitting 3.75% fees from the dependent variable will produce regression coefficients that systematically 
                            <E T="03">overstate</E>
                             the value of public television programming not subject to 3.75% fees and systematically 
                            <E T="03">understate</E>
                             the value of other programming.
                        </P>
                        <P>
                            Dr. Johnson 
                            <E T="03">separately</E>
                             estimates his regression model using 
                            <E T="03">only</E>
                             fees paid to the 3.75% fund. This model suffers from the 
                            <E T="03">same</E>
                             problem as considering base rate royalties alone: the dependent variable does not reflect the full incremental costs of carriage, so the model produces biased estimates of program values. These estimates also cannot be used to estimate the relative market value of programming because they do not reflect the economic 
                            <E T="03">choices</E>
                             of systems in the cable marketplace.
                        </P>
                    </EXTRACT>
                    <FP>
                        George WRT at 23-24 (emphasis added). 
                        <E T="03">See also</E>
                         Commercial Television Claimants' Post-Hearing Brief in Support of Proposed Royalty Allocations at 48 (CTV PHB) (“Dr. Johnson's isolation of the base and 3.75% fees is inconsistent both with basic economic intuition and statistical evidence of a correlation between those carriage decisions and thus does not account for the link between these retransmission decisions.”); PS PHB at 55 (“There is no rational economic reason to exclude decisions relating to the carriage of non-permitted stations in assessing CSO preferences.”).
                    </FP>
                    <P>
                        The Judges agree that it makes no economic sense to separate out the two royalty fund payments when the CSOs would economically make no distinction between the two funds when identifying their royalty costs and benefits. (That is, money is fungible, and the CSOs would be indifferent as to how their royalty payments were divided between the two funds.) Further, the Judges are struck by the fact that PTV and Dr. Johnson did not take note of this point when proposing their novel approach, and that PTV's novel approach just so happened to significantly increase PTV's allocation share in the Basic Fund. 
                        <E T="03">See</E>
                         CTV PHB at 48 (and record citations therein) (“[I]f Dr. Johnson had estimated his regression using both the base fee and 3.75% fee, the implied shares for PTV would have dropped by more than 5% . . . from 2015 to 2017.”). 
                        <E T="03">See also</E>
                         Johnson WRT tbl.4 (acknowledging a five-percentage point increase in PTV's Basic Fund over the 2014-2017 period, from 43.5% to 48.5% (an 11.5% increase in PTV's share), by separating out the allocations for the two funds).
                    </P>
                    <P>Accordingly, nothing was persuasively presented in the regression analyses to support a deviation by the Judges from establishing the 3.75% fund allocations as they adopted in the 2010-13 Determination.</P>
                    <HD SOURCE="HD1">XV. Industry Experts</HD>
                    <HD SOURCE="HD2">A. Assumptions Regarding CSO Behavior</HD>
                    <P>
                        PTV offered industry expert testimony Lynne Costantini who testified that cable companies evaluate whether to add, delete or maintain channels on their lineups by analyzing the overall value a particular channel adds to their content offerings and the ability of the programs on the channel to attract and retain pay TV subscribers, within the context of the programming mix on the then-current lineup, as well as technological and economic constraints.
                        <SU>172</SU>
                        <FTREF/>
                         Written Direct Testimony of Lynne Costantini, Trial Ex. 7301, at 5 (Costantini WDT); 3/27/23 Tr. 1591-92 (Costantini). She then offered her opinion that, based on the aforementioned programming goals of CSOs, the relative value to cable companies of programs included in PTV Distant Broadcast Stations had increased. Costantini WDT at 8-10. Several other industry experts attested to the value of programming that attracts and retains subscribers. See, 
                        <E T="03">e.g.,</E>
                         Written Direct Testimony of Kate Alany, Trial Ex. 7302, at 2 (Alany WDT); Singer WDT at 7-8; Written Direct Testimony of Daniel Hartman, Trial Ex. 7110, at 7-9 (Hartman WDT); Witmer WRT at 7; Written Direct Testimony of Alex Paen, Trial Ex. 7603, at 13.
                    </P>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             This testimony is consistent with the Judges' findings in prior distribution proceedings 2010-13 Determination at 3590 (“CSO executives' valuations reflect their conclusions regarding the extent to which the category of programming contributes to the return on that investment; 
                            <E T="03">i.e.,</E>
                             helps the cable system attract and retain subscribers.”).
                        </P>
                    </FTNT>
                    <P>
                        Sue Ann Hamilton, an industry expert whose testimony on behalf of Program Suppliers in the 2010-13 Cable Proceeding has been submitted as designated testimony in this proceeding, testified that a CSO's selection of stations for distant retransmission is marked by inertia, not by an affirmative analysis and weighing of alternative stations. Written Direct Testimony of Sue Ann Hamilton (2010-2013), Trial Ex. 7061, at 7 (Hamilton WDT (2010-13)). She identified two reasons for CSO inertia. First, distant retransmission costs represent a non-material expenditure for CSOs compared with their other more expensive programming and carriage decisions. 
                        <E T="03">Id.</E>
                         at 9. Second, she testified that CSOs are more concerned with losing existing subscribers if they drop certain stations and the associated programs than they are with whether or not any new retransmitted station and its associated programs might entice new subscribers. 
                        <E T="03">Id.</E>
                         In industry jargon, CSOs are more concerned with legacy distant signal carriage than with adjusting the roster of distantly retransmitted stations. 
                        <E T="03">Id.</E>
                         at 15. Thus, Ms. Hamilton implied, any correlation between program categories and royalties is spurious, because it is “inconsistent with [her] understanding of how CSOs actually make distant signal carriage decisions.” 
                        <E T="03">Id.</E>
                    </P>
                    <P>
                        The Judges again find that Ms. Hamilton was a knowledgeable and credible witness, particularly with regard to the 
                        <E T="03">de minimis</E>
                         impact of distantly retransmitted stations on CSOs and the importance of “legacy carriage.” Moreover, the Judges take note that CSO time and effort are themselves finite resources (opportunity costs), and, as Ms. Hamilton implied, it would behoove a rational CSO to expend more of those resources making carriage and programming decisions with a greater financial impact.
                        <SU>173</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             Given the low value of retransmitted stations, a CSO might rationally emphasize the value of “legacy carriage” as a heuristic (without further analytical effort), assuming as Ms. Hamilton implies, that eliminating a distantly retransmitted legacy station and its programs is more likely to cause a loss in subscribers than a change in station lineup is likely (without further and costly analytical effort) to increase the number of subscribers.
                        </P>
                    </FTNT>
                    <P>
                        Based on the entirety of the record, the Judges do not find that the relative unimportance of distantly retransmitted stations to a CSO has deprived the regressions in evidence of value in this proceeding. Even if CSOs emphasize legacy carriage over potential increases in value from adding or substituting different local stations for distant retransmission, otherwise well-constructed regressions remain a reliable approach to capture the relative values of those legacy-based decisions. The Judges are mindful that regression analyses provide benefit because they look for a correlation between economic actors' choices (the independent explanatory variables) and the dependent variables as potential circumstantial evidence of a causal 
                        <PRTPAGE P="54234"/>
                        relationship, but they do not purport to explain what lies behind such a potential causal relation.
                    </P>
                    <HD SOURCE="HD2">B. Value</HD>
                    <HD SOURCE="HD3">1. Volume of Programming Minutes</HD>
                    <P>
                        Several industry expert witnesses testified that, from a distributor's perspective, the value and volume of certain categories of programming are not correlated. See, 
                        <E T="03">e.g.</E>
                         Witmer WRT at 11; 4/10/2023 Tr. 4050:11-4051:8 (Witmer); 4066:1-3, Singer WDT at 19; Singer WRT at 8; Hartman WDT at 23; Written Rebuttal Testimony of Daniel Hartman, Trial Ex. 7111, at 9 (Hartman WRT); Written Direct Testimony of John S. Sanders, Trial Ex. 7500, at 25 (Sanders WDT).
                        <SU>174</SU>
                        <FTREF/>
                         Such testimony was generally offered to challenge the regression analyses that look to the relationship between the total royalties paid by cable operators for carriage of distant signals and the quantity of programming minutes by programming category a reliable methods to assign relative market value. A similar indication, that value and volume of certain categories of programming are not necessarily correlated, was also expressed by industry experts who testified on behalf of proponents of regression analyses using minutes of programming. For instance, Lynne Costantini, industry expert offered by PTV, testified that “you don't sell programming or buy programming based upon the number of minutes.” 3/28/23 Tr. 1735-36 (Costantini). However, industry experts also cautioned against simply looking at the price of programming and not weighing the volume of licensed content available to consumers when assessing relative marketplace value. 4/19/23 Tr. 5406-07 (Homonoff).
                    </P>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             At the same time, several of the same JSC experts conceded that there is a relationship between price, or willingness to pay, and quantity of live team and professional sports 
                            <E T="03">games.</E>
                             4/3/23 Tr. at 2798-99 (Singer); 4/05/23 Tr. at 3317, 3318 (Warren); 4/10/23 Tr. at 4072-73 (Witmer).
                        </P>
                    </FTNT>
                    <P>
                        Based on the entirety of the record, the Judges are not persuaded by industry expert testimony that the value and volume of programming are not correlated. The industry expert evidence is set against the more well-established sound economic reasoning underlying the regression analyses in this proceeding. The explanation for the Judges finding logical economic bases to rely on allocations based on programming minutes by programming category from the regression analyses is addressed 
                        <E T="03">supra.</E>
                    </P>
                    <P>That is not to say that regressions correlating program category minutes and a measure of royalties is necessarily the only way to determine value. As discussed elsewhere in this determination, and as confirmed by some of the industry testimony, the Judges recognize that certain categories of programming, particularly JSC programming, bundled together with programming from other claimant categories, can have a value (in terms of retaining or adding subscribers) necessarily that is not well-correlated with overall program minutes. To the extent that this bundling of programming with varying values is not smoothed out by the averaging undertaken by the regressions, survey analysis would be an appropriate tool to identify such value to a CSO within a station bundle.</P>
                    <HD SOURCE="HD3">2. Unique Niche Content</HD>
                    <P>
                        CCG, JSC, and SDC assert that the regression analyses fail to adequately capture the value of “niche” programming or to appropriately reflect the testimony of industry expert fact witnesses concerning the salient market conditions in the cable industry during the years at issue in this proceeding. CCG PFF at 178-79 and record citations therein; SDC PFF at 64 and record citations therein; JSC PFF at 58-59 and record citations therein.
                        <SU>175</SU>
                        <FTREF/>
                         The Judges were urged to test the validity of regression analyses against other evidence of value, as a “reality filter.” 
                        <SU>176</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             JSC also asserted that regression analysis was unreliable as it overvalued certain content types in relation to JSC content, pointing to valuations of paid programming, devotional content, and public television content. JSC PFF at 60-65 and record citations therein
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             Asker WRT at 45 (“It is standard practice in econometric research to test the external validity of findings whenever alternative methods are available to answer the same question.”); Harvey WRT at 38-41; 3/28/23 Tr. 1910:3-1911:3 (Harvey) (agreeing with Judge Strickler that “validity test” is synonymous with “reality filter”); 4/18/23 Tr. at 5168:8-5169:8 (George) (urging that the reality filter should reflect the relevant marketplace being considered/measured), See also, CCG PPFCOL at 31 and record citations therein.
                        </P>
                    </FTNT>
                    <P>
                        JSC's industry expert witnesses testified that JSC content is unique as “perishable” content. 4/3/23 Tr. 2750 (Singer). That is, each live game is a singular, real-time event. Mr. Singer asserted that JSC content is largely unique in the marketplace as among the last regularly scheduled “tune-in” programs. He added that live sports competitions are mostly only important while they are taking place, do not lend themselves to recording, and are not compelling on replay. He further stated that sports are popular with a passionate segment of customers of the type that television distributors focus on retaining. Singer WRT at 4-5.
                        <SU>177</SU>
                        <FTREF/>
                         Such sentiments, offered as an indication of the unreliability of regression analyses and their results, were reiterated by additional JSC industry expert witnesses. 4/5/23 Tr. 3349-50 (Hartman); Witmer WRT at 9; 4/10/23 Tr. 4061-62 (Witmer); Hartman WDT at 10; JSC PFF at 134-41 and record citations therein.
                    </P>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             Mr. Singer asserted that games are particularly valuable cases of retransmission to geographic areas with deep affinity to specific teams. Singer WDT at 17-18. Several examples of such transmissions were cited to by JSC. JSC PFF at 28-30 and record citations therein. This assertion was disputed by Program Suppliers as merely anecdotal. PS PFF at 43-44 and record citations therein.
                        </P>
                    </FTNT>
                    <P>SDC points to similar assertions from industry experts regarding the value of its niche content. Written Direct Testimony of Toby Berlin, Trial Ex. 7508, at 7-10; Written Rebuttal Testimony of John S. Sanders, Trial Ex. 7501, at 27 (Sanders WRT); SDC PFF at 76-79 and record citations therein. Program Suppliers noted that niche programming is not limited to devotional content, and that non-JSC “Other Sports” programming is valued as niche programming. PS PFF at 18-19, citing 4/10/23 Tr. at 3824-25 (Berlin), and other record citations therein. Similarly, CCG observed that its programming, including French content, qualifies as unique and valuable niche programming that attracts and retains subscribers. CCG PFF at 178-79, citing Kirshenblatt WDT at 10-18.</P>
                    <P>
                        The Judges find Mr. Singer and Mr. Berlin to be particularly credible witnesses in relation to their testimony regarding the unique value of JSC content and SDC content in relation to the other content categories during the relevant time period. Based on the entirety of the record, the Judges are persuaded that evidence of the unique value of CCG, JSC, and SDC content serves as a limitation on the applicability of certain proposed regression analyses and their resulting proposed allocation results. These validity test or reality filter findings do not negate valid application of regression analyses as a basis for allocation. However, these factors are taken into account within the Judges' weighting of the allocation methodologies, including application of the Bortz survey, as addressed 
                        <E T="03">infra.</E>
                    </P>
                    <HD SOURCE="HD3">3. Streaming and Availability on Other Platforms</HD>
                    <P>
                        JSC testified that the value of programming is diminished when that same type of content is available elsewhere, especially for cheaper or no cost. 4/3/23 Tr. 2749 (Singer); 4/5/23 Tr. 
                        <PRTPAGE P="54235"/>
                        3357 (Hartman); Hartman WDT at 18-19. The JSC industry expert witnesses testified that there is a lower risk of losing any subscribers when such content is not carried. Witmer WRT at 14; 4/5/23 Tr. 3378:12-24 (Hartman); Hartman WDT at 18-19. These sentiments were echoed by PTV's industry expert Lynne Costantini. Costantini WDT at 7; 3/28/23 Tr. 1718-19 (Costantini).
                    </P>
                    <P>SDC pointed to testimony of a similar dilutive effect from streaming, regarding Program Suppliers' programming. SDC noted that syndicated series and movies, represented in Program Suppliers content, historically had often exclusively run on broadcast stations, but were increasingly becoming available on streaming platforms, which grew in popularity during the relevant period. SDC PFF at 108, citing Costantini WDT at 7; Hartman WRT at 10-11. SDC also argued that its content did not suffer from a dilutive effect from streaming, as streaming services were not designed to cater to devotional audiences, thus preserving the retentive value of SDC content to CSOs. SDC PFF at 109-10 and record citations therein.</P>
                    <P>Program Suppliers asserted that while syndicated shows and movies are available on streaming platforms, that does not necessarily detract from the value of such programs on distant signals. It noted that that as streaming rose, the volume of Program Supplier content carried on distant signals rose as well. 4/19/23 Tr. at 5408 (Homonoff).</P>
                    <P>
                        CCG testified that while significant CCG content was offered through streaming, it was generally only after exclusive premier via broadcast. Kirshenblatt WDT at 11-13; 
                        <E T="03">see also</E>
                         Written Direct Testimony of Tom Cox, Trial Ex. 7401, at 1-2. PTV offered testimony that during the relevant years significant portions of PBS programming were offered and viewed free through various digital streaming options. PTV also testified that PBS sold streaming devices related to such free streaming content. 3/27/23 Tr. 1545-50 (Alany).
                    </P>
                    <P>
                        CTV offered that during the relevant period, the dilutive effects of streaming were not present for original live and local CTV programming or for JSC programming, which was largely unavailable on streaming platforms. Written Rebuttal Testimony of Robert Papper, Trial Ex. 7206, at 45 (Papper WRT); Written Rebuttal Testimony of Mike Vaughn, Trial Ex. 7205, at 4. CTV PFF at 11-15, and record citations therein. CTV's industry experts, as well as Professor Marx, were especially convincing in distinguishing the effects that streaming had on CTV content versus other types of programming. 
                        <E T="03">See, e.g.,</E>
                         4/11/23 Tr. 4240:22-4241:12; Tr. 4234:6-10 (Marx).
                    </P>
                    <P>The Judges find credible evidence that Program Suppliers' content was more predominantly available through streaming channels during the relevant period. Therefore, based on the entirety of the record, the Judges find evidence of dilutive effects to be persuasive as an indicator of decreased relative value of Program Suppliers content. Additionally, the Judges find that CTV content, especially original live local news content, was generally not diluted by streaming and that this is a persuasive indicator of relative increased value of CTV content. The Judges apply these factors into their weighting of allocation methodologies. Duplication</P>
                    <P>
                        Industry executives testified that duplicative content does not add value as it does not further CSOs' goals of subscriber retention. Singer WRT at 15-16; Hartman WRT at 12; Witmer WRT at.15. JSC asserted that a significant proportion of the programming on distant PBS signals was duplicative of what was already available from CSOs to subscribers, and reiterated that such duplication did not provide value. Harvey CWDT at 51; Witmer WRT at 14; 4/10/23 Tr. 4064:18-4065:4 (Witmer).
                        <SU>178</SU>
                        <FTREF/>
                         JSC pointed to a study that found rates of duplication for these programs to be as high as 98.9%. Harvey CWDT at 55 tbl.28. Mr. Papper also asserted that programming on PTV stations is mostly duplicative and much of it at the exact same time. Papper WRT at 15. Mr. Papper provides specific examples to demonstrate duplicative airing of programming, all demonstrating higher duplication than the overall result average. 
                        <E T="03">Id</E>
                         at 16-41. Mr. Papper notes that the duplication was a bit lower in 2016 and 2017, but there still is significant duplication of programming. 
                        <E T="03">Id.</E>
                         at 41. In contrast, duplication with CTV signals was perceived as minimal. 
                        <E T="03">Id.</E>
                         at 42. Mr. Papper argues the large amount of duplicative programming rarely provides a good reason to import a distant PTV signal unless there really is not a local one. He argues this is supported by the data in which during the 2014-2017 period, only slightly more than a third of the systems and slightly over a quarter of the subscriber groups had both a distant and local PTV signal. 
                        <E T="03">Id.</E>
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             SDC offered a similar view of PTV content. 
                            <E T="03">See</E>
                             SDC PPFCOL at 112, record citations therein.
                        </P>
                    </FTNT>
                    <P>
                        The assertions against finding value of duplicative programming were criticized for treating programs as duplicative even if they did not air at the same time on both the distant and the local signal or even if the distant and local signals aired different episodes of the same program. Johnson WRT Ex. 7303 at 40-44.
                        <SU>179</SU>
                        <FTREF/>
                         Dr. Johnson argued that different episodes of the same program are distinct programming, and a single episode of a program can create incremental value if shown at a different time. Dr. Johnson conducted an analysis of duplication and found that only approximately 20 percent of PTV programs were retransmitted to subscriber groups at the same time as a local broadcast. 
                        <E T="03">Id.</E>
                         at 41. JSC addressed the former point by the minimal value of time-shifted programming does not accrue to retaining cable subscribers. 4/3/23 Tr. 2764:13-19 (Singer).
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             PTV's witness Ms. Alany acknowledged duplication as an issue, suggesting that local public television stations may adjust programming schedules in order to avoid or minimize duplication, but did not offer any evidence of such adjustments having taken place. Alany WDT at 21; 3/27/23 Tr. 1557:20-25 (Alany).
                        </P>
                    </FTNT>
                    <P>Based on the entirety of the records, the Judges find that significant duplicative content does not, in general, have the same value as non-duplicative programming. The industry experts presented reliable testimony that simultaneous or near simultaneous programming does not enhance the ability to attract and retain customers. However, the Judges also find that time shifted programming does have some value to customers, affording them greater flexibility in their viewing, and therefore provides customer retention value to CSOs. The Judges address this factor in making adjustments to regression methodologies (the Bennett adjustment) and in the Judges' weighting of the allocation methodologies.</P>
                    <HD SOURCE="HD3">4. Bandwidth</HD>
                    <P>
                        Ms. Costantini testified that CSOs' programming decisions should reflect the highest and best use of scarce bandwidth, and that all decisions to carry programming are thus necessarily indicative of value. Regarding bandwidth issues, Ms. Costantini challenged the testimony of other industry experts (addressed below) by asserting that bandwidth considerations were a significant factor in the programming decision-making of cable companies during the relevant time period. Costantini WRT at 3-6. She testified that during the relevant period, many cable companies provided three distinct products: pay TV, broadband internet (important to support internet video products) and IP phone, each of which competed within the CSO that was seeking the most profit able uses of 
                        <PRTPAGE P="54236"/>
                        appropriate amounts of bandwidth. Ms. Costantini testified that CSOs placed more value on broadband internet than CSO television programming. Costantini WRT at 4; 3/27/23 Tr. 1597-1605 (Costantini). In support of this view, she pointed to her professional experience while seeking cable distribution during the period 2012-2016, including negotiations with CSOs that oftentimes cited bandwidth allocation as a reason not to carry a new channel. Costantini WRT at 5-6. However, Ms. Costantini also testified to an inability to determine whether “most or many or the majority” of CSOs even provided internet service (bandwidth) during the relevant time period. 3/27/23 Tr. 1613 (Costantini).
                    </P>
                    <P>Ms. Witmer testified that during the relevant period, advances in digital technology meant that bandwidth was no longer a significant driver of carriage decisions. Witmer WRT at 7 n.3. Ms. Witmer asserted that deployment of switched digital technology, headend consolidations, and reclamation of analog bandwidth cable channels opened up considerable digital bandwidth on systems that enabled the launch of more channels and other consumer products such as telephone and broadband services. Several other industry experts also testified that bandwidth was no longer a constraint during the relevant period. Singer WDT at 7; Singer WRT at 5; 3/30/23 Tr. 2595:13-2597:24 (Majure); 4/3/23 Tr. 2764:20-2765:14 (Singer).</P>
                    <P>Based on the entirety of the record, the Judges are not persuaded that bandwidth remained a significant concern for most CSOs who the record established employed more advanced technology than in previous periods. Bandwidth allocation may have been a legitimate but un-specific concern for smaller CSOs that had not employed improved digital technologies in the early years of the relevant time period. However, on the current record, the Judges are not able to perceive any reliable scope of bandwidth being a significant concern for CSOs in relation to programming decisions. Therefore, the issue does not impact the Judges consideration of the methodologies or resulting allocations offered this proceeding.</P>
                    <HD SOURCE="HD3">5. Other Factors: Cost, Acclaim, Trust</HD>
                    <P>
                        Ms. Alany's offered testimony to indicate relative market value of PTV content is demonstrated by production cost and quality/acclaim of content as well as the level of trust that PBS enjoys in the public eye. See, 
                        <E T="03">e.g.,</E>
                         Alany WDT at 6-12, citing PBS Trust Brochures 2014-2018; 3/27/23 Tr. 1535:16-1537:1 (Alany). Other industry experts also offered similar testimony regarding production cost matters and quality/acclaim. 4/13/23 Tr. at 4918-21 (Paen).
                    </P>
                    <P>In response, other expert witnesses argued that such characteristics do not equate to the ability to attract and retain subscribers and economic value. Singer WRT at 17-18; Hartman WRT at 13-15; Witmer WRT at 16. Ms. Witmer, on behalf of JSC, added that the notion that costs of such programming should be considered in royalty share allocation is contrary to the standard for determining the share allocation, namely what would a cable system pay for the content absent the section 111 license. Witmer WRT at 15.</P>
                    <P>Based on the entirety of this record, the Judges are not persuaded that issues of production cost, quality/acclaim of content or the level of trust that a producer enjoys in the public eye are meaningful toward the Judges' determination of relative market value. The Judges understand that, at some level, programming cost and acclaim may impact value. However, the present record does not equip the Judges to evaluate these factors on a comparative level. Sufficiently established studies of comparative public trust in a producer's content especially, news content, might be properly presented as a valid indication of relative market value. However, the present record, including PBS-commissioned trust survey, does not provide a reliable basis for determining the ability to attract and retain subscribers or for adjusting the Judges' determination of relative market value. In this regard the Judges note that PTV did not adequately correlate levels of public trust with what CSO might be willing to pay for programming. Therefore, these factors do not impact the Judges' weighting of the main methodologies or resulting allocations offered this proceeding.</P>
                    <HD SOURCE="HD2">C. Industry Experts Regarding Bortz Survey Respondents' Identity and Capacity</HD>
                    <P>
                        In her rebuttal and hearing testimony, for PTV, Ms. Costantini challenged the Bortz survey by asserting that the survey likely did not reach the correct executive that is most responsible for carriage programming decision-making in more than 75 percent of the surveyed cable systems across the four years for the following reasons. Costantini WRT at 6-10, 18-47; 3/27/23 Tr. 1621-25, 1595-96 (Costantini). She maintained that the survey likely did not interview the individuals most responsible for programming carriage decisions for these cable systems. 
                        <E T="03">Id.</E>
                         She appeared to accept that Bortz Media used the 
                        <E T="03">Television &amp; Cable Factbook (Factbook)</E>
                         to identify contacts for each respective system, particularly telephone numbers, and that Bortz Media usually selected the senior-most executive from that cable system to list as the 
                        <E T="03">initial</E>
                         point of contact or the survey questionnaire. Costantini WRT at 6-7. However, she indicated the approach was faulty because the 
                        <E T="03">Factbook</E>
                         does not specifically identify programming carriage decision-makers. She stated that in her experience job position titles at cable companies are insufficient without other data points to assess whether the individual is likely to be most responsible for programming decisions. She testified that in the majority of instances, the description of Bortz respondents' positions do not indicate programming decision-making responsibilities. Costantini WRT at 8.
                    </P>
                    <P>Ms. Costantini also noted that while some respondents are unlikely to be most responsible for programming carriage decisions, especially for larger cable companies, in some instances, they may provide valuable input regarding programming carriage to the ultimate decision-makers. She added that the persons holding regional management positions are not necessarily more likely to be most responsible for making programming decisions and that at larger cable companies persons holding regional management positions would not be the persons most responsible for making programming decisions. 3/27/23 Tr. 1621-22 (Costantini). She also found that it would be highly unlikely for the title or position of the person most responsible for making programming decisions at a cable system to change year to year, as was alleged to be the case in the Bortz survey. Costantini WRT at 9. These factors led Ms. Costantini to opine that Bortz likely did not interview the persons most responsible for programming carriage decisions for more than 75% of the surveyed cable systems across the four survey years. A summary of these issues was included as Table 1 to her rebuttal testimony. Costantini WRT at 18-47.</P>
                    <P>
                        Ms. Costantini added that the 
                        <E T="03">Factbook</E>
                         data are potentially unreliable as a foundation from which Bortz could ascertain the persons most responsible for making programming decisions at the surveyed CSOs. Costantini WRT at 6-7. She also found fault with the Bortz survey's failure to attempt to independently validate the respondents' roles and responsibilities utilizing publicly available sources such as LinkedIn or cable companies' websites, or by asking other questions to confirm they were speaking to the appropriate person. Costantini WRT at 6-7.
                        <PRTPAGE P="54237"/>
                    </P>
                    <P>Ms. Costantini testified that the questions asking respondents to assign importance, cost, and value to programming on distant broadcast stations are inconsistent with how programming carriage decisions are made by cable companies. Costantini WRT at 10. She maintained that station carriage decisions are not made based upon inclusion or exclusion of a category or genre of programming, but rather on the entire bundle of the distant broadcast station's programming schedule. Costantini WRT at 9.</P>
                    <P>
                        Ms. Costantini opined that the Bortz survey questions lacked the qualitative and quantitative specificity needed for respondents to accurately answer questions and that respondents would not necessarily understand the terminology used in the questions, and that the questions do not sufficiently address the interplay and overlap across some categories. Costantini WRT at 12-13. A similar concern was also asserted by Sue Ann Hamilton who testified in the 2010-13 Cable Proceeding that the programming categories adopted in royalty distribution proceedings are unique and “quite different from the industry understanding of what programming typically falls in a particular programing genre.” Hamilton WDT (2010-13) at 10. Oral Testimony of Sue Ann Hamilton (2010-13), Trial Ex. 7063, at 4309, 4312; Written Rebuttal Testimony of Sue Ann Hamilton (2010-13), Trial Ex. 7062, at 17-18 (Hamilton WRT (2010-13)). For example, she testified that “most cable operators” would not recognize that pre- and post-game interviews and highlight compilation telecasts would fall into the Program Suppliers category, or that locally produced high school team sports would fall into the Commercial Television category. 
                        <E T="03">Id.</E>
                         at 11. Ms. Hamilton further opined that cable operators were not likely to differentiate between network and non-network sports telecasts and that migration of live team sports programming to regional cable networks further complicates the equation. See Hamilton WRT (2010-13) at 17-18.
                    </P>
                    <P>Ms. Costantini criticizes the Bortz Survey for not providing enough information and time for the respondents to answer the questions accurately. Ms. Costantini expressed doubt that any respondent could accurately answer the survey questions in the course of the telephone interview. She also testified that it is highly doubtful that the respondent would need access to extensive information that would not be readily available to most respondents. Costantini WRT at 10-13.</P>
                    <P>
                        Mr. Singer and Ms. Witmer, testifying on behalf of JSC, disagreed with Ms. Costantini regarding inappropriate respondents in the Bortz survey. They testified that, while ultimate responsibility for carriage decisions may be at the corporate level, the individuals with the knowledge of why specific distant signals were carried, and why they were valuable to the system in a specific area, would be at the local or regional level. 4/3/23 Tr. 2769-73 (Singer); 4/10/23 Tr. 4054-55, 4061 (Witmer). Mr. Trautman also agreed with this assessment, adding that there is no one-size-fits-all standard for what position or level within a cable system is going to be associated with the person most responsible for programming decisions. 4/3/23 Tr. 2845-46; 2849 (Trautman).
                        <SU>180</SU>
                        <FTREF/>
                         Mr. Singer noted that the relevant titles at cable systems for individuals responsible for programming were “all over the place” and that there was not necessarily just one person responsible for programming carriage decisions at CSOs. 3/20/23 Tr. 2770-71 (Singer). Ms. Witmer also testified that the titles of relevant executives were a legacy of the history of lots of small systems that rolled up into bigger consolidated systems, and often had various titles, and they were not necessarily consistent from one system to the next. 4/10/23 Tr. 4060-61 (Witmer).
                    </P>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             JSC also noted that in a prior proceeding the Judges noted that it is not unreasonable to think that CSOs have maintained an institutional memory of the requirements of these proceedings. JSC RPFF at 32 and citations therein.
                        </P>
                    </FTNT>
                    <P>
                        Mr. Trautman testified that use of the Factbook as an initial point of contact or the survey questionnaire is a feature, not a flaw, of the Bortz survey that is an effective tool for assuring survey respondents are qualified. 4/3/23 Tr. 2848-49 (Trautman). He added that while the initial target is often not the survey respondent because ultimately, the survey's goal is to speak with the person most responsible for carriage decisions. 
                        <E T="03">Id.</E>
                    </P>
                    <P>Regarding the alleged difficult of accurately answer the survey questions or understand the categories at issue, Ms. Witmer testified that the respondents would have been able to answer the questions. She further testified that the categories of programming listed in the questionnaire make sense to her as a cable executive. She explained that it is common in the cable industry for channels to have different kinds of content on them, but that people working the cable industry and the programming area would be more than capable of understanding the categories of content separate and apart from particular linear channels. 4/10/23 Tr. 4052-55 (Witmer).</P>
                    <P>Regarding the alleged complexity of addressing the complexity of the Bortz questions, JSC pointed to designated testimony from the 2010-13 proceeding from Mr. Hartman who explained that “when you look at the type of linear channels that we negotiate for, they really do fall into categories.” Mr. Hartman also testified that “it's our day-to-day job to kind of know . . . that type of programming.” 2010-13 Hartman Oral Testimony Tr., Trial Ex. 7056, at 74-75.</P>
                    <P>
                        While Ms. Costantini raises some reasonable concerns about the Bortz survey, including concerns that the titles of some respondents may not be indicative of those 
                        <E T="03">most</E>
                         responsible for programming carriage decisions, the Judges observe that her criticisms were routinely accompanied by significant caveats, such as being 
                        <E T="03">generally</E>
                         applicable, and focused on 
                        <E T="03">larger</E>
                         cable companies. Furthermore, the Judges note her acknowledging that “there are lots of corner cases” regarding appropriate titles of respondents.
                        <SU>181</SU>
                        <FTREF/>
                         3/27/23 Tr. at 1621-22 (Costantini). Based on the entirety of the record, the Judges are not persuaded that the issue of the respondents' titles is reason to disregard reliance on the Bortz survey. Furthermore, the Judges find that use of the 
                        <E T="03">Factbook</E>
                         as a starting point in pursuing the appropriate respondents is not unreasonable. The Judges do not discount the reasonable concerns that were established regarding titles, which is a factor the Judges take into account within the Judges' weighting of the Judges' reliance on the various allocation methodologies.
                    </P>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             The reference to 
                            <E T="03">lots</E>
                             of “corner cases” represents the use of an engineering term indicating a situation that occurs outside normal operating parameters. 
                            <E T="03">See Corner Case,</E>
                             Wikipedia, 
                            <E T="03">https://en.wikipedia.org/wiki/Corner_case</E>
                             (last visited Aug. 28, 2023).
                        </P>
                    </FTNT>
                    <P>
                        Additionally, the Judges find some aspects of Ms. Costantini's criticism of the Bortz survey questions are undermined by her testimony, which depicted a high level of competency as a cable industry executive who possessed a detailed understanding of nuances underlying the questions in the Bortz survey. The Judges note Ms. Costantini's testimony of her own prior roles in which she held significant responsibility for programming carriage decisions for the Time Warner cable system and was [REDACTED] 3/27/23 Tr. at 1642-43 (Costantini). Ms. Costantini's written and oral testimony indicated that 
                        <E T="03">she</E>
                         would be capable of providing meaningful responses to the sort of questions posed in the Bortz 
                        <PRTPAGE P="54238"/>
                        survey, including while in roles that she was not the person most responsible for programming carriage decisions.
                    </P>
                    <P>With regard to the categories in the Bortz survey questions and the categories in this proceeding, the Judges observe that they have not changed for decades, giving CSOs time to acquaint themselves fully with the programming comprising each agreed category. In the Judges view, it is not unreasonable to conclude that, even with changes in personnel, the CSOs have maintained an institutional awareness of the subjects and categories at issue in the survey and in this proceeding, and therefore that the Bortz respondents had adequate ability to understand the relevant terminology in the Bortz questions.</P>
                    <P>Based on the entirety of the record, the Judges find that the industry experts that responded to the Bortz survey were sufficiently equipped to offer reliable evidence indicative of relative marketplace value. The Judges do not find that the respondents' capacity to accurately answer the survey questions or understand the categories at issue serves as a reason to disregard the Bortz survey. Furthermore, the Judges do not find that respondents' capacity serves as a significant negative factor in the weighting of the various allocation methodologies at issue in this proceeding.</P>
                    <P>
                        In sum, the Judges agree that the Bortz surveys are far from a perfect measure of relative market value, as discussed 
                        <E T="03">infra.</E>
                         However, based on the entirety of the record, the Judges find that despite the offered criticisms, the surveyed cable system executives were sufficiently identified, competent and familiar with the subject matter to provide reasonably reliable responses.
                        <SU>182</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             Regarding faulting the survey for excluding PTV-only CSOs from the 2014 through 2017 surveys received in this proceeding, the Judges address and account for the issue 
                            <E T="03">infra/supra</E>
                             (addressing application of adjustment).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">XVI. Changed Circumstances</HD>
                    <P>
                        The Judges may vary from prior decisions when there are (1) changed circumstances from a prior proceeding or (2) evidence on the record before the Judges that requires prior conclusions to be modified regardless of whether there are changed circumstances.
                        <SU>183</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             2010-13 Determination at 3557 citing 1998-99 Librarian Order at 3613-14.
                        </P>
                    </FTNT>
                    <P>
                        In the 2014-2017 period, several widely agreed upon changed circumstances have taken place including (1) WGNA's conversion to a cable network,
                        <SU>184</SU>
                        <FTREF/>
                         (2) the reclassification of PTV signals from exempt to non-exempt,
                        <SU>185</SU>
                        <FTREF/>
                         and (3) the rise in streaming on alternative platforms.
                        <SU>186</SU>
                        <FTREF/>
                         Additionally, the Judges observe that the record regarding the conduct and development of the survey and regression methodologies has become more detailed than in prior proceedings. Based on the agreed upon record and Judges' findings here and throughout the determination, the Judges find that significant changed circumstances occurred across the relevant period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Harvey CWDT ¶ 7. (Distant signal carriage patterns in 2014 closely resembled those from the 2010-2013 period. By contrast, starting in 2015, following the conversion of WGNA from a superstation to a cable network at the end of 2014, CSOs significantly decreased their use of the section 111 license, with the vast majority of systems electing to carry far fewer distant signals.); 
                            <E T="03">See also,</E>
                             Marx WRT ¶¶ 6, 60; Marx ACWDT at 16, 20-26, ¶ 43; Bennett ACWDT at 11.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Marx ACWDT ¶¶ 76-77, pp.28-29.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Witmer WRT ¶ 33, p.14; Costantini WDT ¶ 20, p.7; Alany WDT at 12.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">XVII. Survey Evidence and Expert Testimony Relying On Surveys</HD>
                    <HD SOURCE="HD2">A. Background</HD>
                    <P>
                        Three of the six parties in this proceeding rely on survey evidence to support their arguments concerning the allocation of shares of the subject royalty funds. For more than 40 years, a survey approach has been offered in royalty distribution proceedings before the CRB and its predecessor bodies (the CRT and CARP), more recently in 
                        <E T="03">Distribution of the 2004 and 2005 Cable Royalty Funds</E>
                         
                        <SU>187</SU>
                        <FTREF/>
                         and 
                        <E T="03">Distribution of Cable Royalty Funds,</E>
                         Docket No. CONSOLIDATED 14-CRB-0010-CD (2010-2013).
                        <SU>188</SU>
                        <FTREF/>
                         In the latter proceeding, data from three separate surveys administered to cable system operators (CSOs) were offered during the hearing, and then analyzed by the Judges in connection with their final allocation distribution. 
                        <E T="03">See</E>
                         2010-13 Determination at 3582; 4/3/2023 Tr. 2825 (Trautman). In this proceeding, only one survey was conducted for use in possible litigation in connection with royalty distribution pursuant to section 111 of the Copyright Act, produced during discovery in accordance with applicable regulations,
                        <E T="51">189 190</E>
                        <FTREF/>
                         and then offered by a party during the hearing. In particular, JSC, as supported by fact and expert testimony, argues that a constant sum survey (in which survey respondents allocate a fixed sum across different categories, at least in this case, adding up to 100 percent) is well-suited to revealing relative market values of distant signal programming to CSOs. Specifically, JSC argues that the Bortz Surveys,
                        <SU>191</SU>
                        <FTREF/>
                         which it commissioned and offered for the years 2014 through 2017, reliably reveal market value relevant to this proceeding.
                        <SU>192</SU>
                        <FTREF/>
                          
                        <E T="03">See, e.g.,</E>
                         JSC PHB at 43-71; 4/3/2023 Tr. 2822-23 (Trautman). CTV and SDC also make arguments that rely on the Bortz Surveys, as did some of their experts who testified during the hearing. 
                        <E T="03">See, e.g.,</E>
                         CTV PHB at 1-3, 42-79; Settling Devotional Claimants' Post-Hearing Brief at 64-85 (SDC PHB). Yet, CCG, Program Suppliers and PTV, supported by testimony of their experts, oppose reliance on the Bortz Surveys. 
                        <E T="03">See, e.g.,</E>
                         Post-Hearing Brief of The Canadian Claimants Group at 50-77 (CCG PHB); PS PHB at 9-10, 57-77; PTV PHB at 38-71, 81-82.
                    </P>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             See 
                            <E T="03">2</E>
                            004-05 Distribution Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>188</SU>
                             
                            <E T="03">See</E>
                             2010-13 Determination at 3552, 3582.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Order 27 Granting in Part and Denying in Part PTV Motion to Compel JSC to Produce Documents (Feb. 15, 2023); Order 30 On Public Television's Order to Enforce Order 27 (Mar. 31, 2023); Order 31 Further to Order 30 on Public Television's Motion to Enforce Order 27 (Apr. 12, 2023).
                        </P>
                        <P>
                            <SU>190</SU>
                             The Judges entered a Protective Order on February 17, 2022, pursuant to a Joint Motion filed by all participants. Order No. 27 created a subset of further restricted information consisting of the identities or other personally identifiable information (PII) of Bortz Survey respondents for the years 2014-2017. 
                            <E T="03">See</E>
                             Order 27 at 5 n.6, 57.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             JSC presented the Bortz Survey in documentary form in a report, entitled “Cable Operator Valuation of Distant Signal Non-Network Programming: 2014-17” (Bortz Report). During the hearing, the Bortz Report was received into evidence as Trial Ex. 7101. 3/20/2023 Tr. 305, 316.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>192</SU>
                             JSC offered the first Bortz Survey to the CRT in 1983. 4/3/2023 Tr. 2824-25 (Trautman); Bortz Rep. app. A; 2010-13 Determination at 3582.
                        </P>
                    </FTNT>
                    <P>
                        In addition, CTV called as an expert witness, Prof. Robert A. Papper,
                        <SU>193</SU>
                        <FTREF/>
                         who testified as to trends in the local television news industry, and particularly his opinion as to the impact of those trends on the relative value of CTV programming during the period 2014-2017. His opinion relied in large part on the results of an annual survey that he has directed for many years, which is called the Radio Television Digital News Association Annual Survey (RTDNA Survey),
                        <SU>194</SU>
                        <FTREF/>
                         especially articles and studies (mainly authored or co-authored by Prof. Papper) that concern the results of the RTDNA Surveys for the period 2014-2017. RTDNA Survey information, and the articles and studies on which Prof. Papper relied, are appended to his written direct testimony. 
                        <E T="03">See, e.g.,</E>
                         4/11/23 Tr. 4361-63 (Papper); Written Direct 
                        <PRTPAGE P="54239"/>
                        Testimony of Robert Papper, Trial Ex. 7201 (Papper WDT); Papper WRT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>193</SU>
                             Prof. Papper was qualified as an expert in broadcast and digital journalism. 4/11/23 Tr. 4370 (Papper). He was retained by the National Association of Broadcasters on behalf of CTV (
                            <E T="03">i.e.,</E>
                             the CTV claimants in this proceeding). Papper WDT at 1.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>194</SU>
                             The RTDNA survey was conducted for at least two decades before Prof. Papper began to administer it in 1994. 4/11/23 Tr. 4367 (Papper).
                        </P>
                    </FTNT>
                    <P>
                        An issue was raised as to whether or not large portions of Prof. Papper's testimony should be viewed as the introduction of a survey or surveys, governed by 37 CFR 351.10(e) and, if so, whether CTV has complied with the production requirements set forth therein. Indeed, before the hearing, Program Suppliers filed their Motion 
                        <E T="03">in Limine</E>
                         to Exclude Portions of the Testimony of Professor Robert A. Papper (MIL) (eCRB no. 27485). In denying the MIL, the Judges determined, 
                        <E T="03">inter alia,</E>
                         that the written direct and rebuttal testimonies, including the portions subject to the MIL, “express detailed opinions based in large part on certain RTDNA Surveys, allowing Professor Papper to be examined on his opinions,” but that “would not necessarily mean that the surveys were offered or received into evidence.” Order 29 at 8. Application of section 351.10(e) was not required at that time. 
                        <E T="03">Id.</E>
                         Program Suppliers made similar objections to portions of the Papper testimonies during the hearing. 
                        <E T="03">See</E>
                         4/11/23 Tr. 4354-55, 4366 (Papper); 4/12/23 Tr. 4445-52 (Papper). Subsequently, Program Suppliers filed their Motion to Strike Portions of the Written and Oral Testimony of Robert A. Papper (eCRB no. 28213). As discussed in Order 39 denying the motion to strike, the RTDNA Surveys were not conducted for the purpose of litigation or offered independently during the hearing as evidence. Rather, the RTDNA Surveys were relied on by Prof. Papper in forming and presenting his expert opinions, and the weight to be accorded data from the RTDNA Surveys shall be determined within the context of evaluating Prof. Papper's expert opinions.
                    </P>
                    <HD SOURCE="HD2">B. The Bortz Surveys</HD>
                    <HD SOURCE="HD3">1. Conduct of the Bortz Surveys for 2014 Through 2017</HD>
                    <P>
                        During the hearing, JSC called James M. Trautman, Managing Director of Bortz Media &amp; Sports Group, Inc. (aka Bortz Media), to sponsor the Bortz Surveys, and their report (Bortz Report) which formed part of Mr. Trautman's written direct testimony. Indeed, the Bortz Surveys, including their report, were prepared under Mr. Trautman's direct supervision at the request of Major League Baseball, the National Football League, National Basketball Association, Women's National Basketball Association, National Hockey League and the National Collegiate Athletic Association (
                        <E T="03">i.e.,</E>
                         JSC in this proceeding). Written Direct Testimony of James M. Trautman, Trial Ex. 7100, at 1 (Trautman WDT); 4/3/2023 Tr. 2816-20 (Trautman). For nearly forty years, Mr. Trautman has supervised market research addressing a wide range of issues, for a variety of clients, affecting the cable and satellite television industries, including issues related to the valuation of television programming. Mr. Trautman has had primary responsibility for management of previous CSO studies conducted by Bortz Media for JSC and has testified concerning these studies in several proceedings before the Judges of the CRB and their predecessors. In the 2010-13 cable royalty distribution proceeding, he was qualified as an expert; and in this proceeding, he was qualified as an expert in market research, including survey research, applied market analysis and valuation in the cable and broadcast television industries. 4/3/2023 Tr. 2821 (Trautman).
                    </P>
                    <P>
                        As explained by Mr. Trautman, the Bortz Survey is a telephone survey. He further testified that each Bortz Survey offered in this proceeding is a survey of local CSOs and was designed to address the relative value that distant signal programming has to cable operators, or would have in a free market. 
                        <E T="03">See</E>
                         4/3/2023 Tr. 2821-22 (Trautman). As explained by Dr. Mathiowetz,
                        <SU>195</SU>
                        <FTREF/>
                         the Bortz Survey may be termed an establishment survey because respondents answered questions of behalf of a business or other entity rather than themselves. 4/10/2023 Tr. 3835 (Mathiowetz).
                    </P>
                    <FTNT>
                        <P>
                            <SU>195</SU>
                             Dr. Nancy Mathiowetz was called by JSC as an expert witness at the hearing, and was qualified as an expert in survey research methodology, questionnaire design and statistics. Dr. Mathiowetz has testified before on behalf of JSC. 4/10/2023 Tr. 3828, 3835 (Mathiowetz); Mathiowetz CWDT; 2010-13 Determination at 3587.
                        </P>
                    </FTNT>
                    <P>
                        After a Bortz Survey was first offered in a royalty proceeding in 1983, changes have been made to the design of the survey, sometimes in consultation with experts outside Bortz Media or its predecessor company. Changes were made for the Bortz Surveys offered in this proceeding, as compared to those offered in prior royalty proceedings, including the most recent proceedings for distribution of 2010-2013 royalties. 
                        <E T="03">See</E>
                         4/3/2023 Tr. 2824 (Trautman); 4/4/2023 Tr. 3013 (Trautman); 2010-13 Determination at 3582. For example, in 2015-2017, the number of cable systems eligible for inclusion in the Bortz survey had decreased, falling from 788 (in 2014) to 328-361 (for 2015-2017). Bortz Media responded by shifting from sampling eligible systems for 2014 (as it had also done in earlier surveys) to attempting what it refers to as a census of all eligible systems for the surveys conducted for 2015, 2016 and 2017.
                        <SU>196</SU>
                        <FTREF/>
                         Thus, for 2015-2017, Bortz Media states that all eligible systems had an opportunity to respond to the surveys. 
                        <E T="03">See</E>
                         Bortz Rep. at 21. Furthermore, in response to additional changes in the cable industry, Bortz Media modified its questionnaire in 2015-2017 to account for WGNA's conversion to a cable network, which has already been discussed with respect to the regression evidence received in this proceeding.
                        <SU>197</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>196</SU>
                             Dr. Mathiowetz testified that she treated each of the Bortz Surveys for 2015 through 2017 as a sample rather than a census. She testified that while the Bortz Survey goal was to include each eligible CSO, there is a different expectation with respect to those Bortz Surveys and the data collection effort compared to, for example, that of the decennial census in the United States in which the goal is to measure absolutely every single person in the country. 4/10/2023 Tr. 3842-47 (Mathiowetz). Thus, when Dr. Mathiowetz made computations of standard errors for the Bortz Survey for 2015 through 2017, she treated each survey as a sample. 4/10/2023 Tr. 3844 (Mathiowetz).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>197</SU>
                             Specifically, Bortz Media used two survey instruments for the 2014 cable operator survey. There was one form for survey respondents whose cable systems carried distant signals in addition to, or other than, WGNA. Appendix B (entitled “Survey Instruments”) to the Bortz Report contains the additional distant signals (ADS) questionnaire that was used with those survey respondents. There was a second form for respondents whose cable systems carried WGNA as their only distant signal (also included in the Bortz Report, app. B). When using the second form, respondents were provided with specific information about (and asked to value only) the compensable programming on WGNA. For the years 2015 through 2017, only the ADS questionnaire was used because WGNA was no longer a distant signal. Bortz Rep. at 24-25. Similarly, changes were made to the Bortz weighting and projection approach for 2015-2017 to account for the changes to the distant signal landscape in that time period. 
                            <E T="03">See id.</E>
                             at 21 (citing Bortz Rep., Section II).
                        </P>
                    </FTNT>
                    <P>
                        As in earlier surveys, for the 2014-2017 period at issue in this proceeding, Bortz Media surveyed so-called “Form 3” cable systems. Form 3 systems are those that had at least $527,600 in semiannual gross receipts from retransmitting broadcast signals to their subscribers.
                        <SU>198</SU>
                        <FTREF/>
                         According to the Cable 
                        <PRTPAGE P="54240"/>
                        Data Corporation (CDC), which compiles data from the statements of account (SOAs) that cable systems file with the Copyright Office, Form 3 systems accounted for more than 95 percent of total royalty payments made by cable operators from 2014-2017. Furthermore, Form 3 systems, unlike the smaller Form 1 and 2 systems, are well-suited for Bortz surveys because they identify in their SOAs the distant signals that they retransmitted. Bortz Rep. at 20. Nevertheless, inasmuch as some Form 3 cable systems carry either no distant signals, or carry only distant signals representing a single programming category (
                        <E T="03">i.e.,</E>
                         only PTV signals or only Canadian signals), Bortz Media determined that it would not be possible to obtain a comparative value judgment from survey respondents regarding their distant signal programming. Therefore, as it has done in connection with surveys offered in previous proceedings, Bortz Media did not interview, or attempt to interview, those systems in connection with the 2014-2017 Bortz Surveys. 
                        <E T="03">Id.</E>
                    </P>
                    <FTNT>
                        <P>
                            <SU>198</SU>
                             As indicated by Dr. Mathiowetz in her written direct testimony, pursuant to section 111 of the Copyright Act, cable systems are classified into three tiers based on the level of gross receipts that they receive from their subscribers for the retransmission of over-the-air broadcast signals. Small-sized and medium-sized systems pay a flat royalty fee. With respect to large cable systems (that use “Form 3” when filing their SOAs at the United States Copyright Office), royalties are calculated as a percentage of their gross receipts based on the distant signals they retransmit. Yet, without regard to what (if any) distant signals a system retransmits, all Form 3 systems must pay at least a minimum royalty fee. 
                            <E T="03">See</E>
                             Mathiowetz CWDT at 6-7 (citing 2010-13 Determination at 3553 and 17 U.S.C. 111(d)(1)(B)-(C)). 
                            <E T="03">See also</E>
                             United States Copyright Office, Statement of Account, SA3 (Long Form), 
                            <E T="03">https://www.copyright.gov/forms/sa3.pdf</E>
                             (current) (for use when a system's “semiannual gross receipts 
                            <PRTPAGE/>
                            for secondary transmissions (the figure you give in space K of the form) is $527,600 or more. . . .”); United States Copyright Office, Old Cable Statement of Account Forms, 
                            <E T="03">https://www.copyright.gov/licensing/saold.html.</E>
                        </P>
                    </FTNT>
                    <P>The level of copyright royalty payments played an additional role with respect to the 2014 Bortz Survey. As discussed above, for the 2014 survey, Bortz Media attempted to contact what it terms “a stratified random sampling of Form 3 cable systems,” with the stratification based on copyright royalty payments. Bortz Rep. at 20. JSC's expert witness, Dr. Mathiowetz testified that as in the proceeding for 2010-2013 royalties, her opinion is that “the use of a stratified sample results in an efficient sample that assures the resulting sample mirrors the population of interest.” Corrected Written Direct Testimony of Nancy Mathiowetz, Ph.D., Trial Ex. 7107, at 7 (Mathiowetz CWDT). In this case, Bortz Media obtained data from records compiled by CDC, indicating the royalty amounts paid by all Form 3 systems, based on SOAs filed by cable systems for the first accounting period of each survey year. Bortz Media then constructed a sampling plan so that proportionately more systems with large royalty payments were sampled relative to systems with small royalty payments. Specifically, the stratified sample included 361 Form 3 cable systems that collectively paid approximately 86 percent of the total Form 3 royalties. Bortz Media reasoned that cable systems that carried distant signals in 2014 were overwhelmingly paying copyright royalties that were derived directly from the distant signals they actually chose to carry, and further, while systems paying the largest royalties were typically larger systems (as measured by subscribers served), they also reported carrying more distant signals on average. Thus, Bortz Media concluded that, in general, systems paying more royalties were making more use of the section 111 license. Bortz Rep. at 20-21.</P>
                    <P>
                        Once the CSOs for inclusion in the surveys were identified, Bortz Media used the 
                        <E T="03">Television &amp; Cable Factbook</E>
                         (
                        <E T="03">Factbook</E>
                        ), as it has in the past, to identify contacts for each respective system, particularly telephone numbers. The 
                        <E T="03">Factbook</E>
                         usually lists approximately three to six managers or executives for each system. Bortz Media usually selects the senior-most executive from that cable system to list as the initial point of contact or the survey questionnaire. 4/3/2023 Tr. 2844-55 (Trautman); Bortz Rep. at A-17 n.57.
                    </P>
                    <P>
                        Bortz Media retained Sandra Grossman (then, of THA Research) to conduct telephone interviewing for the 2014-2017 cable operator surveys. Ms. Grossman specializes in conducting executive interviews, particularly in the cable industry. Indeed, she has provided market research to cable television industry clients for more than two decades, during which she and her company have been retained by Bortz Media or its predecessor for 17 cable operator surveys, starting with the 2001 survey and continuing through the 2017 survey received in this proceeding. Ms. Grossman personally conducted approximately 65 percent of the interviews for the 2014-2017 surveys. It is unclear whether Ms. Grossman relied solely on the information compiled by Bortz Media from the 
                        <E T="03">Factbook</E>
                         to contact potential respondents, or whether she also performed internet searches to obtain contact information. Three or four additional interviewers were supervised by Ms. Grossman, and each specialized in surveying professional and managerial personnel, with at least five years of such experience. Interviewers were instructed to call back each cable system as often as necessary to obtain a completed interview or refusal. For almost every completed interview, no more than three direct contacts with the eventual respondent were required. Tr. 2841-45, 3258 (Trautman); Bortz Rep. at A15-17.
                    </P>
                    <P>Interviewers were instructed that once they had made contact with a cable system, they should ask first for the system executive identified in advance as most likely to have responsibility for programming decisions, and to confirm that he individual was the person “most responsible for programming carriage decisions made” by the system. The interviewers were instructed that if the identified executive did not fit the description, the interviewer was to ask for the person who was most responsible for programming carriage decisions. Calls were placed to the cable system until the individual on the telephone indicated that he or she was the individual most responsible for programming carriage decisions. In all cases, the eventual survey respondents were required to confirm that they were most responsible for programming carriage decisions made by their systems. Bortz Rep. at A-17.</P>
                    <P>
                        Indeed, the ADS questionnaire which, as discussed above, was used for many respondents for 2014, and all respondents for 2015-2017, comprised four questions for the respondent.
                        <SU>199</SU>
                        <FTREF/>
                         Question 1 asked the respondent, “Are you the person most responsible for programming carriage decisions made by your system during [the year in question] or not?” Bortz Rep. app. B. If the response was no, the questionnaire (
                        <E T="03">e.g.,</E>
                         for 2014) instructs the interviewer, “ASK TO SPEAK WITH PERSON MOST RESPONSIBLE FOR THE SYSTEM'S PROGRAMMING CARRIAGE DECISIONS IN 2014. REPEAT INTRODUCTION AND Q.1.” 
                        <E T="03">Id.</E>
                    </P>
                    <FTNT>
                        <P>
                            <SU>199</SU>
                             The WGNA questionnaire used for 2014 had differences in wording specific to carriage of WGNA. 
                            <E T="03">See</E>
                             Bortz Rep. at 83-86.
                        </P>
                    </FTNT>
                    <P>
                        After the survey respondents were qualified, the interviewers proceeded to the next questions. Questions 2 and 3 in the cable operator survey are designed by Bortz Media as preliminary questions intended to focus respondents on the particular distant signals carried by the system in the survey year, the types of programming on those signals, and certain factors (importance and cost) 
                        <SU>200</SU>
                        <FTREF/>
                         that contribute to the key allocation (which Bortz Media sometimes calls a “budget” question) that will be required in the fourth and final survey question. 
                        <PRTPAGE P="54241"/>
                        Bortz Rep. at 27, 30. In Question 2, the interviewer identified the particular distant signals (including call letters) for a specific respondent's cable system (Question 2a). Bortz Media obtained the distant signals for each system by reviewing each system's SOA at for the year in question that was filed at the Copyright Office.
                        <SU>201</SU>
                        <FTREF/>
                         The interviewer then asked the respondent to rank up to seven
                        <SU>202</SU>
                        <FTREF/>
                         non-network programming categories on those distant signals in order of how important it was for the system to offer each category.
                        <SU>203</SU>
                        <FTREF/>
                          
                        <E T="03">Id.</E>
                         at 24-27; 4/3/2023; Tr. 2861-64 (Trautman). Indeed, for Questions 2, 3 and 4, the number of programming categories provided to each respondent depended on whether the distant signals listed on the respondent's SOA included public television, Canadian, or live professional and college team sports programming, with the corresponding categories excluded when the respondent CSO did not carry the relevant programming on a distant basis. Bortz Rep. at 26 n.36.
                    </P>
                    <FTNT>
                        <P>
                            <SU>200</SU>
                             The Bortz Report notes that in the 2010-13 Determination, the Judges stated that the reference to expense in Question 3 “muddled the concepts of cost and value” and that “[t]his may have injected some confusion into the respondent's estimation of relative value.” Bortz Rep. at 27 n.38 (quoting 2010-13 Determination at 3590); 4/3/2023 Tr. 2895 (Trautman); 4/5/2023 Tr. 3466 (Trautman). Mr. Trautman, on behalf of Bortz Media stated in the report that he respectfully disagrees with this criticism, and did not find any evidence of confusion in the 2010-13 Bortz surveys, or in the 2014-2017 Bortz surveys. In any event, the 2010-13 Determination was not available until October 2018, when the 2014-2016 surveys had already been completed, and the 2017 questionnaires were in the field. Thus, there was no opportunity for Bortz Media to evaluate potential changes to this survey question. 
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             For each of questions 2, 3 and 4, respondents that reported carrying more than eight distant signals were only asked about their eight most widely carried distant signals. This approach was also followed in the 2010-2013 surveys. Bortz Rep. at 25 n.35; 2010-13 Determination at 3587 (“In the Bortz Survey, interviewers asked respondents about a maximum of eight distant signals even if their systems carried more.”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>202</SU>
                             The seven categories, which could be tailored for each respondent, were: (1) Movies; (2) Live, Professional and College Team Sports; (3) Syndicated Shows, Series and Specials; (4) News and Other Station-Produced Programs; (5) PBS and All Other Programming Broadcast by Noncommercial Station(s) ____; (6) Devotional Programs; and (7) All Programming Broadcast by Canadian Station(s) ____. Bortz Rep. at 32 &amp; app. B at 79. These categories were intended by Bortz Media to correspond with the program category definitions adopted by the Judges. 
                            <E T="03">Id.</E>
                             at 26, app. C (“Program Category Definitions”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>203</SU>
                             For example, for 2014, Question 2b of the survey instrument reads: “Now, I'd like to ask you how important it was for your system to offer certain categories of programming that are carried by these stations. When you consider this, please exclude from consideration any national network programming from ABC, CBS and NBC. I've grouped the non-network programming on these broadcast stations into seven categories. I will read these seven categories to you to give you a chance to think about their relative importance (READ EACH CATEGORY BELOW, STARTING WITH THE CATEGORY MARKED BY THE NUMBER “1”). Considering only the non-network programming on these broadcast stations, please rank these seven categories in order of their importance to your system in 2014, with one being the most important category and seven being the least important category. What is your ranking of importance for the 2014 (READ FIRST CATEGORY, AS MARKED BY THE NUMBER “1”) programming on the broadcast stations I listed. (REPEAT FOR ALL SEVEN CATEGORIES, IN ORDER LISTED BELOW. ENTER NUMERICAL RANK ON TABLE BELOW.)” 
                        </P>
                        <P>Bortz Rep. app.B at 79.</P>
                    </FTNT>
                    <P>
                        When asking Question 3, the interviewer asked the respondent to rank the same categories of non-network programming broadcast by the same stations in order of how expensive it would have been to acquire that programming if the system had been required to purchase it directly in the marketplace. 
                        <E T="03">Id.</E>
                         at 26-27, app. B (Ex. 7101 at 80).
                    </P>
                    <P>
                        The final question, again for the ADS questionnaire only, was Question 4, the constant sum question. In this question, the interviewer asked the respondent to value the various types of non-network programming on the distant signals that the respondent's system carried during the relevant year. This required the respondent to allocate a percentage of a finite dollar amount to each of the program categories on the distant signals that the system retransmitted. 
                        <E T="03">Id.</E>
                         at 27-29. For example, Question 4a in the survey instrument that incorporated the year 2014 in the text was, as follows:
                    </P>
                    <EXTRACT>
                        <P>4a. Now, I would like you to estimate the relative value to your cable system of each category of programming actually broadcast by the stations I mentioned during 2014, excluding any national network programming from ABC, CBS and NBC. Just as a reminder, we are only interested in U.S. commercial station(s)______, U.S. non-commercial station(s) ____, and Canadian station(s) ____.</P>
                        <P>
                            I'll read each of the seven programming categories we've been discussing again to give you a chance to think about them; please write the categories down as I am reading them. (READ PROGRAM CATEGORIES IN ORDER, STARTING WITH CATEGORY MARKED BY THE NUMBER “1”.)
                            <SU>204</SU>
                            <FTREF/>
                             Assume your system spent a fixed dollar amount in 2014 to acquire all the non-network programming actually broadcast during 2014 by the stations I listed. What percentage, if any, of the fixed dollar amount would your system have spent for each category of programming? Please write down your estimates, and make sure they add to 100 percent. What percentage, if any, of the fixed dollar amount would your system have spent on (READ PROGRAM CATEGORY MARKED BY THE NUMBER “1”)?
                            <SU>205</SU>
                            <FTREF/>
                             And what percentage, if any, would your system have spent on (READ NEXT PROGRAM CATEGORY)? (COMPLETE LIST IN THIS MANNER.)
                        </P>
                        <FTNT>
                            <P>
                                <SU>204</SU>
                                 To prevent ordering bias, for each questionnaire, the interviewer was provided with a preset, computer-generated random order in which to read the program types, in order to prevent ordering bias. Bortz Rep. at 29.
                            </P>
                        </FTNT>
                        <FTNT>
                            <P>
                                <SU>205</SU>
                                 For Question 4, the categories, among other things, incorporated the survey year, and other slight variations to the categories listed for Questions 2 and 3. The possible seven categories, to be identified by the interviewer, were: (1) Movies broadcast during (survey year) by the U.S. commercial stations I listed; (2) Live professional and college team sports broadcast during (survey year) by the U.S. commercial stations I listed; (3) Syndicated shows, series and specials distributed to more than one television station and broadcast during (survey year) by the U.S. commercial stations I listed; (4) News and public affairs programs produced by or for any of the U.S. commercial stations I listed, for broadcast during (survey year) only by that station; (5) PBS and all other programming broadcast during (survey year) by U.S. noncommercial station(s) ____; (6) Devotional and religious programming broadcast during (survey year) by the U.S. commercial stations I listed; and (7) All programming broadcast during (survey year) by Canadian station(s) ____. Bortz Rep. at 28, app. B (7101 at 81) (2014 survey instrument). These categories were intended to correspond with the program category definitions adopted by the Judges. 
                                <E T="03">Id.</E>
                                 at 28, app. C (“Program Category Definitions”).
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.,</E>
                         app. B (Ex. 7101 at 81).
                    </FP>
                    <P>
                        The survey instrument instructed the interviewer to prompt the respondent if the percentages did not add up to 100 percent. 
                        <E T="03">Id.,</E>
                         app. B (Ex. 7101 at 81). As Question 4b, the interviewer read back the categories and estimates, and then asked whether each respondent wanted to make any changes. Question 4b concludes the survey; and the Question ends the interviewers thanking the respondents were for their time and cooperation. 
                        <E T="03">Id.,</E>
                         app B (Ex. 7101 at 82).
                    </P>
                    <P>
                        The interviews were conducted after the calendar year in question.
                        <SU>206</SU>
                        <FTREF/>
                         Interviews were completed with between approximately 54 and 58 percent of eligible cable systems.
                        <SU>207</SU>
                        <FTREF/>
                         Upon completion of the survey, THA Research returned the completed questionnaires to Bortz Media for proofing and data entry. Bortz Rep. at A-16.
                    </P>
                    <FTNT>
                        <P>
                            <SU>206</SU>
                             For the 2014, the survey period was 8/11/15-4/7/16; for 2015, the survey period was 8/11/16-4/23/17; for 2016, the survey period was 10/06/17-4/26/18; and for 2017, the survey period was 7/01/18-6/26/19. Bortz Rep. at A-16.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>207</SU>
                             For 2014, the response rate was 53.8% (170 surveys completed); for 2015, the response rate was 54.3% (197 surveys completed); for 2016, the response rate was 57.7% (199 surveys completed); and for 2017, the response rate was 54.6% (179 surveys completed). Bortz Rep. at A-16.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">2. Results Reported From the Bortz Surveys</HD>
                    <P>
                        As in prior distribution proceedings, in order to address the issues relevant to this proceeding, the responses provided by the Bortz Surveys, particularly the constant sum rankings obtained through Question 4, must be expressed in terms of percentage allocations of the cable royalty funds to be distributed for the years surveyed, which in this case are 2014 through 2017. The procedures used by Bortz Media to perform obtain such results are in the Bortz Report. 
                        <E T="03">See, e.g.,</E>
                         Bortz Rep. at A-18 through A-26.
                        <SU>208</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>208</SU>
                             Bortz weighted survey results for 2014 based on the royalties paid by responding systems in the first half of 2014, and applied those results to the universe of Form 3 system royalties (consistent with the weighting approach used in all prior Bortz surveys). For the 2015 through 2017 surveys, inasmuch as most systems carrying distant signals had become Minimum Fee Systems, the methodology was changed to weight the results 
                            <PRTPAGE/>
                            based on the Base-plus-3.75 fees attributable to the actual signal carriage of the Form 3 systems, and to apply the results using signal carriage-based fee calculations rather than actual royalties paid. Bortz Rep. at 21-24, A-18.
                        </P>
                    </FTNT>
                    <PRTPAGE P="54242"/>
                    <P>Table I-1. Bortz Survey Relative Value Allocation by Year, 2014-17 from the Bortz Report shows the following compiled results:</P>
                    <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s100,12,12,12,12,12">
                        <TTITLE>Table I—1 Bortz Survey Relative Value Allocation by Year, 2014-17</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Year</CHED>
                            <CHED H="2">
                                2014
                                <LI>(n=170)</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2015
                                <LI>(n=197)</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2016
                                <LI>(n=199)</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2017
                                <LI>(n=179)</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                Average:
                                <LI>2014-17</LI>
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Live Professional and College Team Sports</ENT>
                            <ENT>40.4</ENT>
                            <ENT>28.5</ENT>
                            <ENT>28.5</ENT>
                            <ENT>31.5</ENT>
                            <ENT>32.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">News and Public Affairs Programs</ENT>
                            <ENT>26.0</ENT>
                            <ENT>29.7</ENT>
                            <ENT>30.0</ENT>
                            <ENT>30.6</ENT>
                            <ENT>29.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Syndicated Shows, Series and Specials</ENT>
                            <ENT>10.4</ENT>
                            <ENT>12.7</ENT>
                            <ENT>14.8</ENT>
                            <ENT>14.9</ENT>
                            <ENT>13.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Movies</ENT>
                            <ENT>11.4</ENT>
                            <ENT>13.8</ENT>
                            <ENT>13.1</ENT>
                            <ENT>9.0</ENT>
                            <ENT>11.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">PBS and All Other Programming on Noncommercial Distant Signals</ENT>
                            <ENT>5.9</ENT>
                            <ENT>7.9</ENT>
                            <ENT>6.8</ENT>
                            <ENT>7.8</ENT>
                            <ENT>7.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Devotional and Religious Programming</ENT>
                            <ENT>5.6</ENT>
                            <ENT>6.5</ENT>
                            <ENT>6.0</ENT>
                            <ENT>5.4</ENT>
                            <ENT>5.9</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">All Programming on Canadian Signals</ENT>
                            <ENT>0.3</ENT>
                            <ENT>1.0</ENT>
                            <ENT>0.8</ENT>
                            <ENT>0.6</ENT>
                            <ENT>0.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                        </ROW>
                    </GPOTABLE>
                    <FP>
                        Bortz Rep. at 2; 
                        <E T="03">see</E>
                         CTV PHB at 81 (summary of results for 2014 through 2017, with acronyms of claimant groups substituted for program categories).
                    </FP>
                    <P>
                        Nevertheless, as discussed below, no party unequivocally proposes that the initial results, or allocations, of the 2014 through 2017 Bortz Surveys, reflected in Table I-1 of the Bortz Report, be used directly to allocate shares of the royalty funds that are the subject of this proceeding.
                        <SU>209</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>209</SU>
                             
                            <E T="03">See</E>
                             JSC WDS at 12-13 (“Claim of JSC”); 
                            <E T="03">but see</E>
                             JSC PHB at 82 (“the evidence demonstrates that the adjusted Bortz survey results are the most accurate and reliable basis for allocating the 2014-17 cable royalty funds”), 84.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">3. Issues Raised With Respect to the Bortz Surveys</HD>
                    <HD SOURCE="HD3">a. The Exclusion of PTV-Only and Canadian-Only Systems</HD>
                    <P>
                        As already detailed, Bortz Media chose not to survey Form 3 cable systems that carried no distant signal, or that carried only distant signals representing a single programming category. Thus, as it has for surveys used in connection with prior proceedings, Bortz Media excluded all PTV-only CSOs and Canadian-only CSOs from the 2014 through 2017 surveys received in this proceeding. 
                        <E T="03">See</E>
                         Bortz Rep. at 20; 2010-13 Determination at 3583; 
                        <E T="03">2</E>
                        004-05 Distribution Order at 57067. Bortz Media's stated rationale for this decision is that if PTV-only and Canadian-only CSO were survey respondents, they would not be able to provide comparative value judgments regarding their distant signal programming. 
                        <E T="03">Id.</E>
                         While PTV-only and Canadian-only CSOs may be limited in their ability to respond to provide a response to the Bortz Survey value question as formulated, in prior proceedings, the Judges have found that, while one must not “overstate the impact of this problem,” the exclusion of such cable systems “clearly biases the Bortz estimates downward for PTV and Canadian programming;” and further, it has been observed that “the Bortz survey may well be improved in this regard, either through the reformulation of the questions asked in the survey and/or by revisiting the underlying survey sample plan.” 
                        <E T="03">Id.</E>
                         In any event, the Bortz Media surveys at issue in this proceeding exclude PTV-only and Canadian-only CSO, and even the parties that rely on the Bortz Surveys, cognizant of adjustments made in prior proceedings, offer certain adjustments to the initial results of the Bortz Surveys. 
                        <E T="03">See, e.g.,</E>
                         JSC PHB at 83-84; SDC PHB at 82-85; CTV PHB at 79-84.
                    </P>
                    <P>
                        The adjustments were offered largely with the so-called “McLaughlin Adjustment” in mind, which has a long history in connection with the Bortz Survey. For example, in the 2004 and 2005 proceeding, Linda McLaughlin, an economist, set forth calculations to the Bortz Survey results to make, what the Judges deemed to be, an “appropriate adjustment to the PTV share,” although her efforts did not fully mitigate deficiencies in the Bortz results with respect to others, such Canadian claimants. 2004-05 Distribution Order at 57064, 57070, 57073 (her “efforts to correct for cable systems excluded from the survey because they only carry a distant Canadian signal do somewhat ameliorate the under-representation of Canadian signals in the overall survey results”). In the 2010-13 proceeding, Ms. McLaughlin and another witness, David Blackburn, set forth methodologies for augmented PTV and CCG shares, referred to as the “McLaughlin/Blackburn adjustments,” which assume, for example, that the PTV-only systems would assign a relative value to PTV of 100%.
                        <SU>210</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>210</SU>
                             In her testimony during the 2010-2013 proceeding, Ms. McLaughlin explained the adjustment, as follows: Q. In order to do your augmentation of the Bortz survey, what were your initial assumptions? A. I assumed that the systems that I was adding back in would have to answer the survey in the same way it was asked for the other people, and that is they were only allowed to respond to the category they are carrying and they are supposed to split up their value among the categories they are carrying. So they would have to say 100 percent for PTV, if that's all they carried. And if all they carried was Canadian signal, they'd have to say 100 percent for Canadian. And if they carried both, they'd have to say something between, you know, zero for one and 100 to the other or 100 for one and zero to the other. Q. How about with regard to response rate? Did you make any assumptions about that? A. Oh, when I added them in, I—I followed the same response rate. If you look at the—some of the highlighted numbers, so in the final eligible sample for the year that we're looking at, 2010, in all the strata together, there were 288 cable systems but only 163 of them completed the surveys. So the response rate, 163 over 288, or, you know, maybe that's, you know, 60 percent, say, 50, 60 percent. So I used that same response rate and I did it actually by strata and applied that to the omitted signal. So I didn't assume that all 16 were included. I only assumed, you know, approximately half of the 16 were included.
                        </P>
                        <P>Oral Testimony of L. McLaughlin (2010-2013), Trial Ex. 7017, at 27-29.</P>
                    </FTNT>
                    <PRTPAGE P="54243"/>
                    <FP>
                        2010-13 Determination at 3583-85, 3602. In that proceeding, three surveys were received, the Bortz Survey, the Horowitz Survey (which “did not exclude from its sample systems that distantly carried only PTV and/or Canadian signals”) and the Ringold Survey (which “focused on Canadian signals”).
                        <SU>211</SU>
                        <FTREF/>
                          
                        <E T="03">Id.</E>
                         at 3582, 3591. Despite the availability of McLaughlin/Blackburn adjustments “to augment” the Bortz Survey results, the Judges placed more weight on the Horowitz results, for several reasons but “particularly the acknowledged systematic bias against PTV and CCG programming,” and thus “the Judges accord relatively less weight to the `Augmented' Bortz Survey.' ” 
                        <E T="03">Id.</E>
                         at 3591. The weighting of the Bortz Survey evidence below that of the Horowitz survey did not, however, mean that the Bortz Survey evidence had no weight or played no role in the Judges final allocations. To the contrary, before setting forth the Judges' final Basic Fund allocation, the Judges defined “ranges of reasonable allocations for each program category, and in doing so relied on “[t]he Bortz and Horowitz Surveys, together with the McLaughlin `Augmented Bortz' results and the Crawford and George regressions, taking into account the confidence intervals (when available) surrounding the point estimates . . . .” 
                        <E T="03">Id.</E>
                         at 3610.
                    </FP>
                    <FTNT>
                        <P>
                            <SU>211</SU>
                             Professor Ringold has previously testified, or otherwise given evidence, in proceedings before the CARP, and the CRB. 
                            <E T="03">See</E>
                             CCG PFF 601; 2010-13 Determination at 3585. In this proceeding, Prof. Ringold was called to testify by CCG, and was qualified as an expert in survey research methodology. 4/17/2023 Tr. 4950-51 (Ringold).
                        </P>
                    </FTNT>
                    <P>
                        In this proceeding, only the Bortz Surveys were offered (
                        <E T="03">i.e.,</E>
                         no survey such as Horowitz was offered by any party), and the surveys continue to exclude the PTV-only and Canadian-only distant signal cable systems. Although Bortz Media and Mr. Trautman are highly critical of the McLaughlin Adjustment, nevertheless, Bortz Media includes two approaches for adjusting its initial results, both of which bear some relationship to the McLaughlin Adjustment. Bortz Media's “Adjustment One” 
                        <SU>212</SU>
                        <FTREF/>
                         accepts (while not agreeing with) the McLaughlin assumption of attributing 100 percent of value to the PTV (or Canadian category) when that is the only category the system carries distantly, but does not do so for PTV-only systems in 2015 through 2017 that previously carried WGNA. As to the latter group of systems, Bortz Media instead attempts to predict the average valuation from all systems that carried only PTV and WGNA in 2014. The stated rationale is there is no reason to assume that a CSO changed its valuation of PTV content simply because of the WGNA conversion, and indeed, CSOs surveyed in 2015-2017 did not increase their relative valuation of PTV with regard to systems that carried signals containing both PTV and other claimant categories. As for Bortz-eligible systems that were surveyed, Bortz Media weighted the results based on Base-plus-3.75 fees attributable to the distant signals actually carried by the PTV-only systems.
                        <SU>213</SU>
                        <FTREF/>
                          
                        <E T="03">See id.</E>
                         at 42-43, app. D (“Potential Bortz Adjustments”). Bortz Media obtained the following, applying its Adjustment One:
                    </P>
                    <FTNT>
                        <P>
                            <SU>212</SU>
                             Bortz Media's Adjustment One is referenced in some of the parties' post-hearing filings as Adjustment 1. 
                            <E T="03">See, e.g.,</E>
                             SDC PHB at 85; CTV PFF 434.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>213</SU>
                             In Adjustment One, systems that carried both PTV and Canadian distant signals (but no U.S. commercial distant signals) are weighted in the same manner, but with the fees allocated equally among the PTV and Canadian categories. Bortz Rep. at 43 n.45.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,12,12,12,12,12">
                        <TTITLE>Potential Allocation of Royalties Among Claimant Groups, 2014-17 (Adjustment One)</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Year</CHED>
                            <CHED H="2">
                                2014
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2015
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2016
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2017
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">Average</CHED>
                            <CHED H="2">
                                2014-17
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">JSC</ENT>
                            <ENT>39.1</ENT>
                            <ENT>25.6</ENT>
                            <ENT>24.3</ENT>
                            <ENT>26.0</ENT>
                            <ENT>28.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">CTV</ENT>
                            <ENT>25.2</ENT>
                            <ENT>26.6</ENT>
                            <ENT>25.6</ENT>
                            <ENT>25.3</ENT>
                            <ENT>25.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">PS</ENT>
                            <ENT>21.0</ENT>
                            <ENT>23.7</ENT>
                            <ENT>23.7</ENT>
                            <ENT>19.8</ENT>
                            <ENT>22.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">PTV</ENT>
                            <ENT>8.2</ENT>
                            <ENT>14.0</ENT>
                            <ENT>16.6</ENT>
                            <ENT>19.5</ENT>
                            <ENT>14.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Devotional</ENT>
                            <ENT>5.5</ENT>
                            <ENT>5.8</ENT>
                            <ENT>5.1</ENT>
                            <ENT>4.5</ENT>
                            <ENT>5.2</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Canadian</ENT>
                            <ENT>1.0</ENT>
                            <ENT>4.4</ENT>
                            <ENT>4.8</ENT>
                            <ENT>4.9</ENT>
                            <ENT>3.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                        </ROW>
                    </GPOTABLE>
                    <FP>
                        <E T="03">Id.</E>
                         at 43 (Table IV-1).
                        <SU>214</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>214</SU>
                             The Adjustment One results for 2014 are nearly identical with Mr. Trautman's calculation of the 2014 Bortz results when subjected to the McLaughlin Adjustment. 
                            <E T="03">See</E>
                             JSC Production Materials, Trial Ex. 3049 (discussed in detail later in the main text).
                        </P>
                    </FTNT>
                    <P>
                        Bortz Media's “Adjustment Two” also attributes 100 percent of value to either the PTV or Canadian category when that is the only category the system carries distantly, even for systems that became PTV-only by default as result of the WGNA conversion. However, PTV-only systems that only carried distant PTV signals within those signals' originating DMAs are excluded. The stated rationale is that those systems have not demonstrated any preference for distant PTV programming based on their actual carriage patterns. Again, consistent with the treatment of Bortz-eligible systems that were surveyed, Bortz performed weighting based on the Base-plus-3.75 fees attributable to the distant signals actually carried by the PTV-only systems. 
                        <E T="03">See id.</E>
                         at 43, app. D (“Potential Bortz Adjustments”). Bortz Media obtained the following application, applying its Adjustment Two:
                    </P>
                    <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,12,12,12,12,12">
                        <TTITLE>Potential Allocation of Royalties Among Claimant Groups, 2014-17 (Adjustment Two)</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Year</CHED>
                            <CHED H="2">
                                2014
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2015
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2016
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2017
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">Average</CHED>
                            <CHED H="2">
                                2014-17
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">JSC</ENT>
                            <ENT>39.8</ENT>
                            <ENT>25.2</ENT>
                            <ENT>23.5</ENT>
                            <ENT>24.8</ENT>
                            <ENT>28.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">CTV</ENT>
                            <ENT>25.7</ENT>
                            <ENT>26.2</ENT>
                            <ENT>24.8</ENT>
                            <ENT>24.1</ENT>
                            <ENT>25.2</ENT>
                        </ROW>
                        <ROW>
                            <PRTPAGE P="54244"/>
                            <ENT I="01">PS</ENT>
                            <ENT>21.4</ENT>
                            <ENT>23.3</ENT>
                            <ENT>23.0</ENT>
                            <ENT>18.9</ENT>
                            <ENT>21.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">PTV</ENT>
                            <ENT>6.5</ENT>
                            <ENT>15.3</ENT>
                            <ENT>19.2</ENT>
                            <ENT>23.4</ENT>
                            <ENT>16.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Devotional</ENT>
                            <ENT>5.6</ENT>
                            <ENT>5.7</ENT>
                            <ENT>4.9</ENT>
                            <ENT>4.3</ENT>
                            <ENT>5.1</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Canadian</ENT>
                            <ENT>1.0</ENT>
                            <ENT>4.3</ENT>
                            <ENT>4.6</ENT>
                            <ENT>4.6</ENT>
                            <ENT>3.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                        </ROW>
                    </GPOTABLE>
                    <FP>
                        <E T="03">Id.</E>
                         at 43-44 (Table IV-2).
                    </FP>
                    <P>
                        JSC endorses the adjustments calculated by Bortz Media, rather than the McLaughlin Adjustment.
                        <SU>215</SU>
                        <FTREF/>
                         JSC does so first by raising a number of supposed faults in the McLaughlin Adjustment. It is argued that PTV-only systems were almost all well below the minimum fee, and by 2016 and 2017, an average of over 93% of PTV-only systems could have carried at least one additional PTV signal to all of their subscribers without having to pay more than the minimum fee, and the calculated Base + 3.75 royalty fee attributable to the signals actually carried on PTV-only systems amounted to only 14 percent of the minimum fee royalties ultimately paid by these systems. Yet, JSC observes, the McLaughlin Adjustment would assume that these systems have an extreme preference for distant PTV programming based on their carriage decisions, even though there was almost never an incremental royalty payment associated with those carriage decisions. Furthermore, JSC argues, over 30 percent of the distant signals carried by PTV-only systems in 2014-17 were carried pursuant to the Must Carry rules or the related multicast agreement. The McLaughlin Adjustment nonetheless would assume that these systems valued their distant PTV signals more than any other categories of programming, even though the systems were required to carry the signals, and PTV was prohibited from charging for the content. JSC argues that inasmuch as the price of these signals would be $0 in the hypothetical market, it makes no sense to assign them 100% of the relative value. JSC PHB at 65-67.
                    </P>
                    <FTNT>
                        <P>
                            <SU>215</SU>
                             Mr. Trautman did calculate a McLaughlin Adjustment, which he does not recommend. The table he prepared in that regard is set forth 
                            <E T="03">infra.</E>
                        </P>
                    </FTNT>
                    <P>
                        Additionally, JSC argues that while more than half of the PTV-only systems during 2016-17 had carried both WGNA and PTV prior to the WGNA conversion, back in 2014, systems that carried WGNA and one or more PTV distant signals valued PTV in Bortz surveys at just 8.8%. JSC argues that the McLaughlin Adjustment would assume a sudden and major shift in valuation. 
                        <E T="03">Id.</E>
                         at 67 (quoting 3/30/2023 Tr. 2621 (Majure)).
                        <SU>216</SU>
                        <FTREF/>
                         Finally, with regard to the McLaughlin Adjustment, JSC argues that the majority of PTV-only systems only carried PTV signals within the signals' originating DMA. Yet, because only the PTV signal is deemed distant, the McLaughlin Adjustment would assume that these systems only care about the PTV content in that bundle of programming, thereby improperly inferring a set of preferences based on distinct regulatory treatment rather than the actual behavior of the cable systems. It is argued that there is no reason to assume that these systems value distant PTV programming more highly than any other category of content, much less at a 100% relative valuation. 
                        <E T="03">Id.</E>
                         at 67-68.
                    </P>
                    <FTNT>
                        <P>
                            <SU>216</SU>
                             Dr. Majure was qualified as an expert in economics and industrial organization, including their application to the cable industry. 3/30/2023 Tr. 2551 (Majure).
                        </P>
                    </FTNT>
                    <P>
                        In contrast, JSC argues, the alternatives calculated by Bortz Media, Adjustment One and Adjustment Two, is supported by evidence and economic theory, and yields similar valuations among the program categories. 
                        <E T="03">Id.</E>
                         at 68-69 (citing, 
                        <E T="03">inter alia,</E>
                         JSC PFF 414 (citing Majure)). Indeed, JSC expert witness, Dr. Majure, testified that the Bortz Adjustments “avoid these gross misinterpretations that the McLaughlin adjustment would otherwise be adding into the calculations. I don't know that they completely resolve the fundamental issue of the McLaughlin adjustment, however. There's still no reason to think, for any particular PTV system, they have this very strongly different set of preferences, that the only thing they like is Public Television content.” 3/30/23 Tr. 2624 (Majure).
                    </P>
                    <P>JSC's allocation request is based only on the Bortz survey, specifically Bortz Media's Adjustment One, whose results are reproduced above. JSC states that it prefers Adjustment One because it accounts for the fact that CSOs did not change their valuation of PTV simply because WGNA was no longer available as a distant signal. JSC PHB at 83-84. JSC claims no share of the Syndex royalties. With respect to the 3.75% royalty fund, JSC argues that the Judges should reallocate the shares attributable to PTV proportionally among the other parties, as PTV is not entitled to a share of the 3.75% royalty funds, as follows:</P>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                        <TTITLE>JSC's Proposed Reallocation of Shares of the 3.75% Royalty Funds</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Year</CHED>
                            <CHED H="2">
                                2014
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2015
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2016
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2017
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">JSC</ENT>
                            <ENT>42.6</ENT>
                            <ENT>29.8</ENT>
                            <ENT>29.1</ENT>
                            <ENT>32.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">CTV</ENT>
                            <ENT>27.5</ENT>
                            <ENT>30.9</ENT>
                            <ENT>30.7</ENT>
                            <ENT>31.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">PS</ENT>
                            <ENT>22.9</ENT>
                            <ENT>27.6</ENT>
                            <ENT>28.4</ENT>
                            <ENT>24.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">PTV</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                            <ENT>0.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Devotional</ENT>
                            <ENT>6.0</ENT>
                            <ENT>6.7</ENT>
                            <ENT>6.1</ENT>
                            <ENT>5.6</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Canadian</ENT>
                            <ENT>1.1</ENT>
                            <ENT>5.1</ENT>
                            <ENT>5.8</ENT>
                            <ENT>6.1</ENT>
                        </ROW>
                    </GPOTABLE>
                    <PRTPAGE P="54245"/>
                    <FP>
                        <E T="03">Id.</E>
                         at 83-84.
                    </FP>
                    <P>
                        Similarly, SDC supports reliance on the Bortz Surveys for 2014 through 2017 in this proceeding, and supports the application of Bortz Media's Adjustment One. SDC PHB at 81. SDC argues that the McLaughlin Adjustment has always been economically unsound, and in this proceeding, there is new evidence that militates against an application of a McLaughlin Adjustment that assigns a 100% value to PTV and CCG-only stations. 
                        <E T="03">Id.</E>
                         at 82.
                    </P>
                    <P>
                        SDC argues that unlike past proceedings, the record here shows that a majority of PTV-only systems' distant carriage occurred exclusively within the DMAs in which the PTV signals originate, and were treated as distant only as a result of a regulatory reporting. Indeed, it is argued, PTV signals are the only category of distant content that CSOs can be required to report as “distant” under section 111 when such a signal is actually carried locally to subscribers within the signal's DMA, and all other similarly situated, but commercial, signals would be reported as local signals that are ineligible for section 111 royalties; and accordingly, a CSO's choice to carry a PTV signal within its originating DMA cannot be compared to a CSO's choice to carry other signals and programming, and there is no economic basis to assume that a majority of the PTV-only CSOs had a relatively greater preference for PTV programming than other categories of programming, much less valued at a 100% relative valuation (as past adjustments have considered). 
                        <E T="03">Id.</E>
                         at 83 (citing, 
                        <E T="03">inter alia,</E>
                         Harvey WRT ¶¶ 126-131;
                        <SU>217</SU>
                        <FTREF/>
                         Bortz Rep. at 17-18 (“throughout 2016-17 approximately 77% percent of the aggregate subscribers served by the PTV Only Systems did not receive any distant signals.”); Majure WDT ¶¶ 150-51).
                    </P>
                    <FTNT>
                        <P>
                            <SU>217</SU>
                             Mr. R. Garrison Harvey was called to testify by JSC, and was qualified as an expert in statistics and applied mathematics. 3/28/2023 Tr. 1772, 1777-78 (Harvey).
                        </P>
                    </FTNT>
                    <P>
                        Additionally, SDC argues that adjusting the Bortz survey results to account for PTV-only systems that were excluded from the Bortz sample would inappropriately assign a 100% value to PTV content on the significant number of systems that were compelled to carry PTV programming and reimbursed for such carriage pursuant to the Must Carry rule. 
                        <E T="03">See Id.</E>
                         at 83-84 (citing Bortz Rep. at 46; Majure WDT ¶¶ 144; Harvey CWDT ¶ 119 (“[a]pproximately 36 percent of the time that a PTV Only system distantly retransmitted a primary PTV call sign, it was pursuant to the Must Carry rule”). It is argued that there is no reason to expect that PTV-only systems value PTV content that they were compelled to carry at all, let alone at 100%. 
                        <E T="03">See</E>
                         Majure WDT ¶¶ 144-45. Thus, it is argued, there is also no economic basis to apply a McLaughlin Adjustment to the significant number PTV-only stations carried under the primary channel or multicast subchannel Must Carry rules. 
                        <E T="03">Id.</E>
                         at 84 (citing Tr. 2566 (Asker)).
                        <SU>218</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>218</SU>
                             Professor Asker was called to testify by JSC, and was qualified as an expert in economics, industrial organization, and econometrics. 3/30/2023 Tr. 2390-91 (Asker).
                        </P>
                    </FTNT>
                    <P>
                        Nevertheless, SDC argues, SDC's and JSC's valuation experts have acknowledged that some adjustment to the PTV and CCG shares is appropriate, and the only potential Bortz adjustments presented in this proceeding were set forth by JSC and in the Bortz Report. It is argued that as its evaluation expert John Sanders testified,
                        <SU>219</SU>
                        <FTREF/>
                         Bortz Adjustment One in the Bortz Report is preferable to the historic McLaughlin Adjustment and to Bortz Adjustment Two because Adjustment One is substantially “grounded in the survey data that was collected” and yields reasonable relative value allocations for each of the participating claimant groups. 
                        <E T="03">Id.</E>
                         at 84 (citing, 
                        <E T="03">inter alia,</E>
                         Sanders WRT ¶¶ 43-44).
                    </P>
                    <FTNT>
                        <P>
                            <SU>219</SU>
                             Mr. John Sanders was called to testify by SDC and was qualified as expert in the valuation of media assets, including television programs. 4/6/2013 Tr. 3694 (Sanders).
                        </P>
                    </FTNT>
                    <P>
                        SDC argues that the Judges should conclude that the Bortz survey is the methodology that best reveals relative market value in this proceeding, but that there is no economic basis for applying the conventional McLaughlin Adjustment in this proceeding. Rather, it is argued, the Judges should find that some modest adjustment for PTV and CCG may be appropriate, and the Judges should additionally find that the Bortz survey's point estimates should be adjusted under Bortz Adjustment One. SDC argues that thus the following relative value allocations are appropriate shares for the Devotional claimants with respect to the Basic Fund: 5.5% for 2014; 5.8% for 2015; 5.1% for 2016; 4.5% for 2017; with 5.2% as the average. 
                        <E T="03">Id.</E>
                         at 85 (citing Bortz Rep. at 48, SDC PFF 246). SDC further argues that to arrive at the Devotional allocation for the 3.75% Fund, the Judges should, consistent with their decision in the 2010-13 proceeding, reallocate the PTV share of royalties proportionally among the categories that participate in that fund, and make the following allocation of the 3.75% Fund to the Devotional claimants: 6.0% for 2014; 6.7% for 2015; 6.1% for 2016; 5.6% for 2017; with 6.1% as the average. 
                        <E T="03">Id.</E>
                         at 85; SDC PFF 247 (citing 2010-13 Determination at 3611).
                    </P>
                    <P>
                        CTV argues that the fee-based regression estimates for 2014 that were made by Prof. Marx,
                        <SU>220</SU>
                        <FTREF/>
                         and the Bortz survey results for 2014-2017 provide the most appropriate starting point to determine the relative value of claimant shares in this proceeding. It is argued that the cumulative evidence of record in this proceeding shows that the fee-based regressions overestimate the value of PTV programming, while the Bortz survey underestimates the value of PTV and CCG programming. CTV proposes an adjustment to the Bortz initial results, but not the McLaughlin Adjustment, or Adjustment One or Adjustment Two calculated by Bortz Media. Rather, CTV proposes a share adjustment approach that relies on the estimates from the Marx model and the Bortz Surveys in an attempt to what it terms “the primary challenge of both methodologies,” which is how to obtain a reasonable and more reliable estimate of the value of PTV programming during the 2014-17 period. 
                        <E T="03">See</E>
                         CTV PHB at 79-80.
                    </P>
                    <FTNT>
                        <P>
                            <SU>220</SU>
                             Professor Marx was called by CTV and was qualified as an expert economist and econometrician with experience in statistical methods and measurements. 4/11/2023 Tr. 4109 (Marx).
                        </P>
                    </FTNT>
                    <P>
                        CTV argues that the Bortz Survey's underestimation of PTV and CCG programming due to the purposeful exclusion of PTV-only and CCG-only systems from the survey, affects results in each year, but not the year-to-year trends obtained from the survey. Thus, CTV proposes a share adjustment approach that combines the Marx non-duplicated minute estimates for 2014 with the Bortz results for 2014 to establish a starting point for allocating shares, and then applies the year-to-year net change in each category derived from the Bortz survey results for each year in 2015, 2016 and 2017. CTV argues, in its view, this provides a the only reliable basis to use regression estimates offered in this proceeding to assist in the determination of relative value of the shares. 
                        <E T="03">Id.</E>
                         at 81-82. To establish the starting point for shares in 2014, CTV proposes taking the average of the Marx 2014 Bayesian regression and Bortz survey estimates in 2014 for PS, JSC, CTV and PTV, and the maximum amount under either method in 2014, inexplicably for SDC,
                        <SU>221</SU>
                        <FTREF/>
                         and 
                        <PRTPAGE P="54246"/>
                        also for CCG, as illustrated in the following table. 
                        <E T="03">Id.</E>
                         at 81-82.
                    </P>
                    <FTNT>
                        <P>
                            <SU>221</SU>
                             
                            <E T="03">Cf.</E>
                             Commercial Television Claimants' Post-Hearing Reply Brief in Support of Proposed Royalty 
                            <PRTPAGE/>
                            Allocations at 63-64 (CTV RPHB) (referring to the adjustments proposed by Bortz Media).
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="8" OPTS="L2,p7,7/8,i1" CDEF="s100,10,10,10,10,10,10,10">
                        <TTITLE>CTV's Proposed Starting Point for Shares in 2014</TTITLE>
                        <BOXHD>
                            <CHED H="1">Valuation Method &amp; Steps</CHED>
                            <CHED H="1">
                                PS
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                JSC
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CTV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                PTV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                SDC
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CCG
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Total
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Marx 2014—excluding duplicates</ENT>
                            <ENT>19.7</ENT>
                            <ENT>43.9</ENT>
                            <ENT>15.6</ENT>
                            <ENT>16.4</ENT>
                            <ENT>0.5</ENT>
                            <ENT>3.9</ENT>
                            <ENT>100.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Bortz 2014</ENT>
                            <ENT>21.8</ENT>
                            <ENT>40.4</ENT>
                            <ENT>26.0</ENT>
                            <ENT>5.9</ENT>
                            <ENT>5.6</ENT>
                            <ENT>0.3</ENT>
                            <ENT>100.0</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Step 1: average of Bortz and Marx</ENT>
                            <ENT>20.8</ENT>
                            <ENT>42.1</ENT>
                            <ENT>20.8</ENT>
                            <ENT>11.2</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT/>
                        </ROW>
                        <ROW>
                            <ENT I="01">Step 2: maximum of Bortz and Marx</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT/>
                            <ENT/>
                            <ENT>5.6</ENT>
                            <ENT>3.9</ENT>
                            <ENT/>
                        </ROW>
                        <ROW>
                            <ENT I="01">Step 1 + 2</ENT>
                            <ENT>20.8</ENT>
                            <ENT>42.1</ENT>
                            <ENT>20.8</ENT>
                            <ENT>11.2</ENT>
                            <ENT>5.6</ENT>
                            <ENT>3.9</ENT>
                            <ENT>104.4</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Normalizing 1 + 2 (to add up to 100%)</ENT>
                            <ENT>19.9</ENT>
                            <ENT>40.4</ENT>
                            <ENT>19.9</ENT>
                            <ENT>10.7</ENT>
                            <ENT>5.4</ENT>
                            <ENT>3.8</ENT>
                            <ENT>100.0</ENT>
                        </ROW>
                    </GPOTABLE>
                    <FP>
                        <E T="03">Id.</E>
                         at 81-82. Applying the net change from the Bortz survey results in 2015, 2016, and 2017 to the starting points established for 2014, provides the proposed shares reflected in the following table, which are presented along with the shares awarded in the 10-13 Final Determination for reference.
                    </FP>
                    <GPOTABLE COLS="9" OPTS="L2,p7,7/8,i1" CDEF="s25,10,10,10,10,10,10,11,r100">
                        <TTITLE>CTV's Proposed Shares</TTITLE>
                        <BOXHD>
                            <CHED H="1">Year</CHED>
                            <CHED H="1">
                                PS
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                JSC
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CTV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                PTV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                SDC
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CCG
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Total
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">Source</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">2010</ENT>
                            <ENT>26.5</ENT>
                            <ENT>32.9</ENT>
                            <ENT>16.8</ENT>
                            <ENT>14.8</ENT>
                            <ENT>4.0</ENT>
                            <ENT>5.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>2010-13 Final determination.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2011</ENT>
                            <ENT>23.9</ENT>
                            <ENT>30.2</ENT>
                            <ENT>16.8</ENT>
                            <ENT>18.6</ENT>
                            <ENT>5.5</ENT>
                            <ENT>5.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>2010-13 Final determination.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2012</ENT>
                            <ENT>21.5</ENT>
                            <ENT>33.9</ENT>
                            <ENT>16.2</ENT>
                            <ENT>17.9</ENT>
                            <ENT>5.5</ENT>
                            <ENT>5.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>2010-13 Final determination.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2013</ENT>
                            <ENT>19.3</ENT>
                            <ENT>36.1</ENT>
                            <ENT>15.3</ENT>
                            <ENT>19.5</ENT>
                            <ENT>4.3</ENT>
                            <ENT>5.5</ENT>
                            <ENT>100.0</ENT>
                            <ENT>2010-13 Final determination.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2014</ENT>
                            <ENT>19.9</ENT>
                            <ENT>40.4</ENT>
                            <ENT>19.9</ENT>
                            <ENT>10.7</ENT>
                            <ENT>5.4</ENT>
                            <ENT>3.8</ENT>
                            <ENT>100.0</ENT>
                            <ENT>Combined 2014 Bortz and Marx shares.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2015</ENT>
                            <ENT>24.6</ENT>
                            <ENT>28.5</ENT>
                            <ENT>23.6</ENT>
                            <ENT>12.7</ENT>
                            <ENT>6.3</ENT>
                            <ENT>4.5</ENT>
                            <ENT>100.1</ENT>
                            <ENT>2014 proposed shares + 2015 Bortz net change.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2016</ENT>
                            <ENT>26.0</ENT>
                            <ENT>28.5</ENT>
                            <ENT>23.9</ENT>
                            <ENT>11.6</ENT>
                            <ENT>5.8</ENT>
                            <ENT>4.3</ENT>
                            <ENT>100.0</ENT>
                            <ENT>2015 proposed shares + 2016 Bortz net change.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2017</ENT>
                            <ENT>22.0</ENT>
                            <ENT>31.5</ENT>
                            <ENT>24.5</ENT>
                            <ENT>12.6</ENT>
                            <ENT>5.2</ENT>
                            <ENT>4.1</ENT>
                            <ENT>99.8</ENT>
                            <ENT>2016 proposed shares + 2017 Bortz net change.</ENT>
                        </ROW>
                    </GPOTABLE>
                    <FP>
                        <E T="03">Id.</E>
                         at 82. CTV argues that no individual valuation method or share adjustment approach is perfect, but its proposed share adjustment approach helps address several evidentiary trends established in this proceeding, including: (1) correcting the over-estimation of PTV programming value under the fee-based regressions and aligning PTV shares more closely with the overwhelming evidence in the record that CSOs would not be willing to pay much, if anything, for the right to retransmit distant PTV stations absent the compulsory license; (2) aligning the value of shares during the 4-year period in a manner that reflects the impact of streaming on the value of programming to CSOs, which supports an increase in CTV and JSC programming relative to Program Suppliers and PTV programming; (3) providing a consistent allocation of shares for PS, JSC, CTV, SDC and CCG since 2010 which more reasonably and realistically reflects how CSOs would assess relative value over time; and (4) provides a reliable and reasonable basis for adjusting shares during the 2015-2017 time period when the estimates from the fee-based regressions are meaningless and uninformative and should not be given any weight in determining shares in this case. 
                        <E T="03">Id.</E>
                         at 83.
                    </FP>
                    <P>
                        PTV argues that the Bortz Surveys for 2014 through 2017 should be rejected in their entirety due to numerous deficiencies in the way that that they were conducted, including their overwhelming bias against Public Television. Nevertheless, PTV acknowledges that the Judges and their predecessors have accepted the Bortz survey results but only after applying the conventional McLaughlin Adjustment to account for the bias against Public Television, and even then, only as a relative value floor for Public Television's allocation award. PTV PHB at 81-82 (citing PTV PCL ¶ 41; PTV PFF ¶ 204 (citing 
                        <E T="03">Distribution of 1998 and 1999 Cable Royalty Funds,</E>
                         Dkt. No. 2001-8 CARP CD 98-99, Determination at 24; 
                        <E T="03">Report of the Copyright Arbitration Royalty Panel,</E>
                         Dkt. No. 94-3-CARP-CD-90-92, at 123-24; 
                        <E T="03">1998 Cable Royalty Distribution Proceeding,</E>
                         Dkt. No. CRT-91-2-89CD, 57 FR 15286, 15299-300 (Apr. 27, 1992); 
                        <E T="03">1983 Cable Royalty Distribution Proceeding,</E>
                         Dkt. No. CRT-84-1 83CD, 51 FR 12792, 12811 (Apr. 15, 1986); 
                        <E T="03">2</E>
                        004-05 Distribution Order at 57070-71 n.20; 2010-13 Determination at 3610; 4/4/2023 Tr. 3139-41 (Trautman)).
                    </P>
                    <P>
                        PTV argues that at the hearing, Mr. Trautman conceded that he calculated a McLaughlin Adjustment for this proceeding two years before filing his written direct testimony, which showed Public Television's annual shares for 2014-17 as 8.4%, 43.6%, 48.4%, and 48.2%, respectively, with average shares of 37.1%. PTV argues that, although Mr. Trautman then embarked on a multi-year quest “to conjure up” additional adjustments that would reduce Public Television's shares, neither of Mr. Trautman's alternative proposed adjustments has any reliable basis. Indeed, it is argued, the Bortz Survey results, and Mr. Trautman's two proposed adjustments, give Public Television a lower share of royalties than the Judges awarded in 2013, despite significant changed circumstances such as the elimination of WGN as a distant signal and the substantial changes in the quantity and quality of compensable JSC and Public Television programming—all of which are realities that would warrant substantially increasing Public Television's relative share from 2013 levels. PTV PHB at 42 (citing, 
                        <E T="03">inter alia,</E>
                         4/4/2023 Tr. 3142-43 (Trautman) (concerning table in Trial Ex. 3049)).
                        <PRTPAGE P="54247"/>
                    </P>
                    <P>
                        PTV argues that if the Judges were to use the Bortz survey to guide allocations in this proceeding, which PTV believes would be inappropriate, given their unreliability, several adjustments, at a minimum, would be needed to correct for clear methodological biases and flaws. It is argued that the adjustments offered by JSC (Bortz Media's Adjustment One and Adjustment Two), which result in shares for Public Television that are less than Public Television's 2013 share, are not credible. PTV argues that only the conventional McLaughlin Adjustment adopted in prior proceedings yields shares that approximate relative valuations for Public Television in 2014-17. 
                        <E T="03">Id. at 82.</E>
                         Mr. Trautman testified during direct and cross-examination that he calculated the conventional McLaughlin Adjustment to the 2014 through 2017 Bortz surveys. A table prepared by him, and upon which PTV relies is, as follows:
                    </P>
                    <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,12,12,12,12,12">
                        <TTITLE>Weighted Bortz Survey Results by Year, 2014-17 (After Conventional McLaughlin Adjustment)</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Year</CHED>
                            <CHED H="2">
                                2014
                                <LI>(n=171)</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2015
                                <LI>(n=199)</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2016
                                <LI>(n=199)</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="2">
                                2017
                                <LI>(n=179)</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Average:
                                <LI>2014-17</LI>
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">PBS</ENT>
                            <ENT>8.4</ENT>
                            <ENT>43.6</ENT>
                            <ENT>48.4</ENT>
                            <ENT>48.2</ENT>
                            <ENT>37.1</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Sports</ENT>
                            <ENT>39.0</ENT>
                            <ENT>12.7</ENT>
                            <ENT>12.2</ENT>
                            <ENT>14.8</ENT>
                            <ENT>19.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">News</ENT>
                            <ENT>25.2</ENT>
                            <ENT>19.2</ENT>
                            <ENT>15.3</ENT>
                            <ENT>17.2</ENT>
                            <ENT>19.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Syndicated</ENT>
                            <ENT>10.0</ENT>
                            <ENT>9.3</ENT>
                            <ENT>9.8</ENT>
                            <ENT>9.8</ENT>
                            <ENT>9.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Movies</ENT>
                            <ENT>11.0</ENT>
                            <ENT>9.1</ENT>
                            <ENT>8.0</ENT>
                            <ENT>5.0</ENT>
                            <ENT>8.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Devotional</ENT>
                            <ENT>5.4</ENT>
                            <ENT>4.4</ENT>
                            <ENT>5.0</ENT>
                            <ENT>3.9</ENT>
                            <ENT>4.7</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Canadian</ENT>
                            <ENT>1.0</ENT>
                            <ENT>1.8</ENT>
                            <ENT>1.3</ENT>
                            <ENT>1.2</ENT>
                            <ENT>1.3</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                            <ENT>100.0</ENT>
                        </ROW>
                    </GPOTABLE>
                    <FP>PTV PHB at 82; PTV PFF 208; Trial Ex. 3049 (from calculations prepared by Mr. Trautman); 4/4/2023 Tr. 2881-82, 3142-43 (Trautman).</FP>
                    <P>
                        PS argues that there are fundamental issues with the Bortz Survey that cannot be remedied by after-the-fact adjustments, such that putting ex-post fixes on the Bortz Survey is like putting a Band-Aid on a bad wound. Indeed, the requests for royalty allocation shares made by Program Suppliers are based on Dr. Tyler's regression model,
                        <SU>222</SU>
                        <FTREF/>
                         and do not reference the Bortz Surveys. PS PHB at 80-82 (citing PS PFF ¶ 502 (3/27/2023 Tr. 1490-91 
                        <SU>223</SU>
                        <FTREF/>
                         (Boyle))); 
                        <E T="03">see</E>
                         PS PRFF ¶¶ 59-62.
                    </P>
                    <FTNT>
                        <P>
                            <SU>222</SU>
                             Dr. Tyler was called by PS, and was qualified as an expert in the fields of economics, data analysis, and econometrics. 4/19/2023 Tr. 5423, 5428 (Tyler).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>223</SU>
                             Professor Boyle was called by PTV and was qualified as an expert in the field of survey research and design. 3/27/2023 Tr. 1400, 1410-11 (Boyle).
                        </P>
                    </FTNT>
                    <P>CCG argues that it is time for the Judges to abandon reliance on the Bortz Survey, and does not propose any adjustment to the Bortz initial results. CCG PHB at 66-71, 77. In its reply briefing, CCG again argues that the Bortz results should not be used for any party, and further argues that Bortz results have never been used, and should never be used, for the CCG, with or without these adjustments. CCG argues that the proposed adjustments do not correct the Bortz Survey's fundamental failure to measure relative market value, and do not remedy their utter inapplicability to the CCG. Reply Post-Hearing Brief of The Canadian Claimants Group at 56 (CCG RPHB). Indeed, CCG specifically criticizes the adjustment to Bortz offered by CTV, which is based on Prof. Marx's regression analysis, arguing, “CTV offered no evidence that would support that conclusion that even though the relative quantity of their programming declined by 60% their relative unit price went up by 370%. The CTV hybrid model represents the worst of both worlds, an incomplete regression model that relies on data from the wrong period combined with the faulty Bortz Survey results.” CCG RPHB at 56-57.</P>
                    <P>With respect to the issue of which, if any, adjustment should be made to the Bortz initial results for 2014-2017, it is remarkable that no party had its expert calculate the McLaughlin Adjustment for those results, at least not for presentation at the hearing. While no party argues that royalty fund allocations in this proceeding should be made strictly according to the Bortz initial results subject to the McLaughlin Adjustment, all parties knew that the Judges applied the McLaughlin Adjustment to the Bortz Survey initial results in the 2004 and 2005 proceeding, as well as in the more recent 2010-13 proceeding. Moreover, several parties knew that they would raise the McLaughlin Adjustment at the hearing and in their posthearing filings. As summarized above, some parties specifically criticized the McLaughlin Adjustment and some, despite their criticisms or the criticisms of others, argued for application of the McLaughlin Adjustment in the alternative, or for a calculation that is based upon or otherwise relates to the McLaughlin Adjustment. To see the figures obtained when the McLaughlin Adjustment is applied to the Bortz Survey initial results at issue in this proceeding, the Judges are referred to a chart taken from a spreadsheet prepared by Mr. Trautman, originally for Bortz Media's internal use (Trial Ex. 3049, duplicated above). Fortunately, no party has challenged the figures contained therein as accurately reflecting application of the McLaughlin Adjustment to the Bortz Survey initial results; and as previously noted, the figures on the chart resemble those presented in connection with Bortz Media's Adjustment One to the extent that one would expect similar figures.</P>
                    <P>
                        The application of the McLaughlin Adjustment to the initial Bortz results for the years now at issue, 2014 through 2017, is relevant, and the adjusted results (or “augmented” results, as they were termed in the 2010-13 proceeding) should be given varied weight, depending on whether one is considering the adjusted results for 2014, or for 2015 through 2017. With respect to 2014, the Bortz Survey for that year covers the year immediately following the last year at issue in the 2010-13 proceeding. For the 2014 survey, Bortz Media used a similar sampling method, and asked similar questions. While other factors, such as the Horowitz survey results and regression evidence, weighed more heavily in the Judges' decision, the 2013 Bortz results with the McLaughlin 
                        <PRTPAGE P="54248"/>
                        Adjustment were taken into consideration by the Judges, even when making their final allocations. 
                        <E T="03">See</E>
                         2010-13 Determination at 3591, 3610-11. Thus, the 2014 adjusted results may be used for comparison with earlier results, and would be expected to provide useful insight into relative marketplace value of distant broadcast signal programming retransmitted by cable systems during that year.
                    </P>
                    <P>
                        Nevertheless, when weighing all the evidence presented in this proceeding, including regression evidence, a concern is presented by the fact that the McLaughlin Adjustment assigns value to PTV content on cable systems that were compelled to carry PTV programming and reimbursed for such carriage pursuant to the Must Carry rule; and further, the value it assigns to PTV, even in such circumstances, is 100 percent. As discussed above, the evidence shows that more than 30 percent of PTV-only systems were subject to the Must Carry rule. 
                        <E T="03">See, e.g.,</E>
                         Majure WDT ¶¶ 144; Harvey CWDT ¶ 119 (“[a]pproximately 36 percent of the time that a PTV Only system distantly retransmitted a primary PTV call sign, it was pursuant to the Must Carry rule”)). That certain PTV signals are subject to the Must Carry rule is not a new circumstance, and neither is the fact that the McLaughlin Adjustment brings PTV-only systems into the Bortz results with an assigned value of 100% for PTV. Inasmuch as PTV-only systems are still not surveyed by Bortz Media, and there is no empirical evidence to show how PTV-only systems value PTV distant signals, there is no cause now to discard the McLaughlin Adjustment due to the Must Carry rule, especially for the 2014 results which pertain to circumstances similar to 2013. The McLaughlin Adjustment has always been presented as a 100-percent or nothing approach, and the Judges can take that characteristic of the adjustment into consideration. To the extent that one would specifically exclude Must Carry signals, such as in a regression analysis, the fact that the McLaughlin Adjustment is applied to Must Carry signals diminishes the value of such adjusted Bortz results when making a comparison to such other evidence that devalues Must Carry signals.
                    </P>
                    <P>It has also been shown that PTV signals comprise the only category of content that CSOs can be required to report as “distant” under section 111 when such signals are actually carried to subscribers within the signals' DMA, and further that a majority of the PTV-only systems reported such distant signals during the years at issue. As discussed above, it has been argued that similarly situated commercial signals would be reported as local, and thus would be ineligible for section 111 royalties. Bortz Rep. at 17-18 (“throughout 2016-17 approximately 77% percent of the aggregate subscribers served by the PTV Only Systems did not receive any distant signals.”); Majure WDT ¶¶ 150-51. Yet, the designation as “distant” is rooted in statutory definitions and requirements, and thus it is not established that such signals have no place in the hypothetical marketplace considered in this proceeding.</P>
                    <P>Furthermore, with respect to distant signals carried within their DMAs, again certain parties argue that there is no basis to assume that a majority of the PTV-only CSOs had a relatively greater preference for PTV programming over other categories of programming, much less at 100% of relative value. Yet, it has always been the nature of the McLaughlin Adjustment to augment the Bortz results with PTV-only signals, and to impute a 100-percent valuation. Accordingly, the McLaughlin Adjustment is recognized as an adjustment that helps to remedy a bias in the Bortz methodology but may do so on an imprecise basis.</P>
                    <P>
                        For 2015 through 2017, the Bortz results, when subjected to the McLaughlin Adjustment, show a dramatic increase in the PTV results, 
                        <E T="03">i.e.,</E>
                         an increase to 8.4% in 2014 to 43.6% in 2015, then to 48.4% in 2016, and by 2017, the results are 48.2%. A significant change is also seen for JSC, whose result is 39% in 2014 but only 12.7% for 2015, declining to 12.2% in 2016, with the JSC result at declining to only 14.8%. 
                        <E T="03">See</E>
                         Trial Ex. 3049. The unadjusted, initial Bortz results show increases for PTV, and decreases for JSC, but they are not nearly as precipitous between 2014 and 2015, and not nearly as steep overall. 
                        <E T="03">See</E>
                         Bortz Rep. at 2. Considering the relative value question that the Bortz Surveys set out to have answered, and the adjusted Bortz results, it is hard to see why within only about one year many CSOs went from ascribing relatively small value to PTV to considering it the most valuable. 
                        <E T="03">See</E>
                         3/30/2023 Tr. 2621 (Majure) (“just coincidentally at the point where WGNA converted, the system suddenly went from having a small value for the Public Television content to that being the only thing they like.”). Thus, an issue is raised as to whether the Bortz Surveys, particularly after application of the McLaughlin Adjustment, are best suited for the years 2015 through 2017.
                    </P>
                    <P>
                        With the loss of WGNA as a distant signal, many CSOs that had retransmitted only PTV and WGNA as distant signals became PTV-only systems, which meant that they were no longer eligible for participation in the Bortz Survey. They also became subject to the McLaughlin Adjustment; and according to the adjustment, the value assigned to PTV was, as always, 100 percent.
                        <SU>224</SU>
                        <FTREF/>
                         It was also during this time that the universe of Bortz-eligible CSOs declined.
                        <SU>225</SU>
                        <FTREF/>
                         That change in the number of eligible CSOs during 2015-2017 was so great that, as already discussed, Bortz Media went from the use of a sampling technique in 2014, which was similar to that employed for many preceding years, to a new and different technique in 2015 and thereafter, which Bortz Media and Mr. Trautman described as an attempt as a census.
                    </P>
                    <FTNT>
                        <P>
                            <SU>224</SU>
                             The number of PTV-only systems grew substantially in 2015-2017. In the second accounting period of 2014, there were 44 PTV-only systems, but that number increased to 173 in the second half of 2017. This increase occurred in large part because systems that previously carried both PTV and WGNA became PTV-only systems when WGNA converted to a cable network at the end of 2014. Indeed, between 50 and 55 percent of the PTV-only systems in 2016-2017 had carried WGNA in 2014. Bortz Rep. at 10-11; Harvey CWDT tbl.32.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>225</SU>
                             This decline in Form 3 CSOs carrying distant signals was largely the result of systems that had previously carried only WGNA electing not to carry any distant signals. Out of the 275 systems that carried WGNA as their lone distant signal in 2014, only 15 (5.5%) of these systems carried a non-WGNA distant signal from 2015-2017. Bortz Rep. at 8.
                        </P>
                    </FTNT>
                    <P>Although the bias caused by exclusion of PTV-only systems from the Bortz Survey became more profound in 2015-2017, as many systems that carried only PTV and WGNA as distant signals became PTV-only systems after the WGNA conversion, as illustrated above, there is little evidence to indicate that the application of the McLaughlin Adjustment rectifies the situation. Indeed, no party, not even PTV, argues that the Bortz Survey with the McLaughlin Adjustment is the best methodology of record for arriving at an allocation for 2015-2017.</P>
                    <P>Adjustment One, proposed by Bortz Media and Mr. Trautman, and supported by JSC and SDC, is offered as a response to the situation in which CSOs once carrying only PTV and WGNA as distant signals suddenly became PTV-only systems. Adjustment One also addresses Canadian-only systems, although it is opposed by CCG; and it has not been shown that Adjustment One calculations would be useful on allocation CCG's share of the subject royalty funds.</P>
                    <P>
                        As described more fully above, Adjustment One uses the McLaughlin assumption of attributing 100 percent of value to the PTV (or Canadian category) 
                        <PRTPAGE P="54249"/>
                        when that is the only category the system carries distantly, but does not do so for PTV-only systems in 2015 through 2017 that previously carried WGNA. As to those systems, Adjustment One attempts to predict the average valuation from all systems that carried only PTV and WGNA in 2014 because it is not assumed that a CSO changed its valuation of PTV content simply because of the WGNA conversion. Furthermore, systems that carried both PTV and Canadian distant signals (but no U.S. commercial distant signals) are weighted in the same manner, but with the fees allocated equally among the PTV and Canadian categories. 
                        <E T="03">See</E>
                         Bortz Rep. at 42-43.
                    </P>
                    <P>
                        The results seen from the application of Adjustment One tend to confirm the fact that the conversion of WGNA had a profound effect on the way that the McLaughlin Adjustment affected the Bortz results for 2015-2017. The application of Adjustment One prevents the steep swings seen in the McLaughlin-adjusted results. Yet, as pointed out by PTV, it does so at a cost. Adjustment One keeps the new PTV-only CSOs from bringing 100-percent PTV value into the calculation because they may have once valued another signal that no longer exists. It treats the class of new PTV-only CSOs differently from other PTV-only CSOs, even though they clearly have not replaced WGNA with other distant signals. Moreover, due to the fact that Adjustment One calculates shares for 2015 through 2017 based on the average valuation from all systems that carried only PTV and WGNA in 2014, the application of Adjustment One, for the purpose of allocating royalties, would in effect attribute a portion of section 111 royalties according to the former existence of WGNA, even though WGNA no longer existed as a distant signal in 2015-2017. Consequently, while Adjustment One is worth considering in the context of gauging the impact of the WGNA conversion on the Bortz results, it does not provide figures that can be used to calculate the allocation of shares of the subject royalty funds.
                        <SU>226</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>226</SU>
                             Additionally, Bortz Media's Adjustment Two addresses the question of whether PTV signals transmitted within their DMA should be treated differently. It also attempts to address the exclusion of Canadian-only systems. As already described in the main text, Adjustment Two accepts (while not agreeing with) the McLaughlin assumption of attributing 100 percent of value to either the PTV or Canadian category when that is the only category the system carries distantly, even for systems that became PTV-only by default as result of the WGNA conversion. However, PTV-only systems that only carried distant PTV signals within those signals' originating DMAs are excluded. Bortz Rep. at 43. Adjustment Two, therefore, does not accept the definition of a distant signal imposed by statute, and may also create a gap in compensation for copyrighted programming within a DMA. Furthermore, no party presents its requested allocation based on implementation of Adjustment Two, or made an adequate record concerning this potential adjustment.
                        </P>
                    </FTNT>
                    <P>
                        CTV's proposed adjustment is not a proposed adjustment to the survey evidence available in this proceeding, 
                        <E T="03">i.e.,</E>
                         the Bortz Survey for 2014 through 2017. Rather CTV proposes that data connected to the survey for 2014 (without adjustment for the exclusion of PTV-only CSOs) be used to expand the application of regression evidence from its expert, Dr. Marx. As detailed above, CTV proposes a share allocation approach that combines the Marx non-duplicated minute estimates for 2014 with the Bortz results for 2014 to establish a starting point for allocating shares, and then applies the year-to-year net change in each category derived from the Bortz survey results for each year in 2015, 2016 and 2017. There is a dearth of expert testimony concerning CTV's proposal. CTV's proposal is supported by no other party. CTV's proposal hinges on acceptance of Dr. Marx's fee-based regression estimates for 2014, which as discussed above has not been accorded the greatest weight.
                    </P>
                    <P>Accordingly, the McLaughlin Adjustment, provided one understands its aforementioned limitations, is most helpful among the proposed adjustments in understanding the Bortz results. The following table shows the McLaughlin Adjustment allocations when organized according to the claimant groups in this proceeding.</P>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                        <TTITLE>McLaughlin-Adjusted Royalty Allocations</TTITLE>
                        <BOXHD>
                            <CHED H="1">Basic Fund</CHED>
                            <CHED H="1">
                                2014
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                2015
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                2016
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                2017
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Canadian Claimants</ENT>
                            <ENT>1.0</ENT>
                            <ENT>1.8</ENT>
                            <ENT>1.3</ENT>
                            <ENT>1.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Commercial TV</ENT>
                            <ENT>25.2</ENT>
                            <ENT>19.2</ENT>
                            <ENT>15.3</ENT>
                            <ENT>17.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Devotional Programs</ENT>
                            <ENT>5.4</ENT>
                            <ENT>4.4</ENT>
                            <ENT>5.0</ENT>
                            <ENT>3.9</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Program Suppliers</ENT>
                            <ENT>21.0</ENT>
                            <ENT>18.4</ENT>
                            <ENT>17.8</ENT>
                            <ENT>14.8</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Public TV</ENT>
                            <ENT>8.4</ENT>
                            <ENT>43.6</ENT>
                            <ENT>48.4</ENT>
                            <ENT>48.2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">JSC</ENT>
                            <ENT>39.0</ENT>
                            <ENT>12.7</ENT>
                            <ENT>12.2</ENT>
                            <ENT>14.8</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD3">b. The Constant Sum Methodology</HD>
                    <P>
                        In the 2010-13 proceeding, some criticisms of Bortz and other survey evidence went to the way constant sum questions were worded or executed, but some criticisms went to use of the methodology 
                        <E T="03">per se.</E>
                         Dr. Mathiowetz provided an opinion in support of the particular methodology used in the Bortz Surveys received in that proceeding. 
                        <E T="03">See</E>
                         2010-13 Determination at 3587. Ultimately, the Judges found certain regression analyses to be more persuasive than the survey results. Yet, far from rejecting the survey results, the Judges concluded, after considering all of the evidence presented in that proceeding, “
                        <E T="03">the constant sum survey methodology,</E>
                         with adjustments, provides relevant information relating to the relative value for each of the six categories remaining at issue.” 
                        <E T="03">Id.</E>
                         at 3591 (emphasis added).
                    </P>
                    <P>
                        Many criticisms have been leveled against the Bortz Surveys now at issue. Yet, even among parties that do not support use of the Bortz Survey in this proceeding, for the most part there has been an acknowledgement that constant sum surveys, if properly designed and executed, might yield useful data, even if the Bortz Surveys presented in this proceeding fall short.
                        <SU>227</SU>
                        <FTREF/>
                         In this proceeding, Dr. Mathiowetz testified that a constant sum methodology was used as early as the 1980s in royalty allocation proceedings before the CRB predecessors. Her testimony in this proceeding is that a constant sum question offers a perfect solution to the relevant research question. Mathiowetz CWDT at 4-6; 4/10/2023 Tr. 3849-54 (Mathiowetz). The Judges must allocate 100% of the royalty funds at issue across several different categories, and an increased allocation for one category will necessarily require a decrease elsewhere so as to allocate 100 percent. Consequently, survey evidence that 
                        <PRTPAGE P="54250"/>
                        employs constant sum methodology, such as the Bortz Survey, could again provide relevant evidence.
                    </P>
                    <FTNT>
                        <P>
                            <SU>227</SU>
                             
                            <E T="03">See, e.g.,</E>
                             CCG PHB at 50-51; CCG RPFF at 40-41, 47-48.
                        </P>
                    </FTNT>
                    <P>
                        PTV has a one-paragraph subsection in its main brief devoted to an argument, which it claims is unrebutted, that the key constant sum question in the Bortz Surveys (Question 4) is incapable of producing valid and reliable results because it is not “incentive compatible.” It is argued that PTV's expert witness Dr. Boyle is one of the foremost experts on stated preference surveys, of which Bortz's constant-sum question is an example, and further that his written and oral testimony is that the literature has developed on stated preference surveys, and it is now settled that stated preference surveys must be “incentive compatible.” His opinion is that the Bortz Survey constant sum question fails multiple requirements for incentive compatibility. PTV PHB at 68 (citing PTV PFF ¶¶ 355-57 (essentially tracking PTV's brief, or vice versa)); 
                        <E T="03">see</E>
                         Written Rebuttal Testimony of Kevin J. Boyle, Trial Ex. 7306, at 15, 32-36, 42-43 (Boyle WRT).
                    </P>
                    <P>
                        A review of the parties' briefs and proposed findings of fact shows that, contrary to PTV's claim, PTV's incentive compatibility argument was not in any sense unrebutted.
                        <SU>228</SU>
                        <FTREF/>
                         JSC addressed the issue of incentive compatibility at least as much as PTV did in its briefs.
                        <SU>229</SU>
                        <FTREF/>
                          
                        <E T="03">See</E>
                         JSC PHB 45-46; JSC RPFF 40; JSC PFF ¶¶ 247, 248-51; JSC PRFF ¶ 67. Furthermore, during the hearing, PTV conducted a substantive direct examination concerning incentive compatibility; and then JSC conducted a vigorous cross-examination of Prof. Boyle on his opinion regarding incentive compatibility. Prof. Boyle also answered questions from the bench on this topic.
                        <SU>230</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>228</SU>
                             A review of the parties' filings shows that incentive compatibility was addressed primarily, if not entirely, only by PTV and JSC.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>229</SU>
                             PTV's reply brief and reply proposed findings provided more substance to its argument than PTV provided in its initial briefing. 
                            <E T="03">See</E>
                             PTV RPHB at 39-40, 44-45; PTV PRFF ¶¶ 252-63.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>230</SU>
                             
                            <E T="03">See</E>
                             3/27/2023 Tr. 1419-21, 1453-54, 1492-512 (Boyle).
                        </P>
                    </FTNT>
                    <P>
                        There is some discussion in PTV's reply as to whether, in response to Prof. Boyle's opinion about incentive compatibility, JSC was wrong to set out to show that constant sum surveys are reasonable or widely used. 
                        <E T="03">See</E>
                         Public Television's Post-Hearing Reply Brief at 45 (PTV RPHB). Yet, Prof. Boyle's written testimony linked the reliability of constant sum methodology to incentive incompatibility, at least for purposes of PTV's case. Furthermore, the presentation of his incentive compatibility opinion appears as an alternative to evidence concerning the validity and reliability of constant sum questions. In particular, under the heading “Validity and Reliability of Constant-Sum Questions,” Prof. Boyle testified in writing, “There is limited peer-reviewed research on the validity and reliability of constant sum questions. In the absence of evidence on the credibility of constant-sum questions for eliciting preferences to support decision making, I turn to the well-known concept in economics and political science of incentive compatibility (Groves and Ledyard, 1987; Ledyard, 1989) to consider the validity of the Bortz survey constant-sum question.” Boyle WRT at 32-33 (footnote omitted, which shows Prof. Boyle's reliance on a Google Scholar search, with his search terms, to show limited peer-reviewed research). Far from leaving that statement unrebutted, at the hearing, JSC questioned Dr. Mathiowetz, and she responded, as follows:
                    </P>
                    <EXTRACT>
                        <P>Q. * * * Professor Mathiowetz, did you see the assertion by Dr. Boyle that there is a “absence of evidence on the credibility of constant sum questions for eliciting preferences to support decision-making”?</P>
                        <P>A. I did see that by Dr. Boyle. And I disagree with that assertion. First of all, we still see constant sum being used and appearing in the peer-reviewed journal literature. Whether it is being used as an end in and of itself for a substantive topic or sometimes you see the constant sum question being used as a benchmark to compare other relative value methodologies.</P>
                        <P>Second, in light of Dr. Boyle's comment, I thought it would be useful to go and look at recent marketing research text, because constant sum is often taught in MBA programs dealing with marketing research. And I found textbooks published as recently as 2017, I think was the most recent one, I found, that are still teaching constant sum methodology.</P>
                    </EXTRACT>
                    <FP>4/10/2023 Tr. 3852-53 (Mathiowetz). Accordingly, in view of that testimony, the use of constant sum evidence in prior proceedings, and other record evidence concerning constant sum methodology, the Judges do not adopt an opinion that there is an absence of evidence on the credibility of constant sum questions, or in the absence of such evidence one must turn to incentive compatibility (notwithstanding the importance that incentive compatibility may otherwise have).</FP>
                    <P>
                        PTV's reply brief, and the proposed reply findings cited therein, provide a summary of Dr. Boyle's testimony on incentive compatibility to the effect “that (1) a stated-preference question must be incentive compatible for it to produce valid and reliable results; (2) there are four requirements for a stated-preference question to be incentive compatible; and (3) Bortz's constant-sum question is fatally flawed because it fails multiple requirements for incentive compatibility.” Yet, the requirements for a stated-preference question are not explained in detail. 
                        <E T="03">See</E>
                         PTV RPHB at 44 (citing PTV PHB at 68; PTV RPFF ¶¶ 254-63). Turning to Prof. Boyle's hearing testimony, he explained, as follows:
                    </P>
                    <EXTRACT>
                        <P>A. So the constant sum, as I said before, is one example of stated preference surveys. And the literature for that has been developing for a long time.</P>
                        <P>And as it has developed in a variety of different areas of economics, in terms of stated preference questions, it's developed standards that a question needs to be incentive-compatible. And that started, really, evolving in the early 1990s and codified, really, in the 2000s.</P>
                        <P>But there are kind of four basic axioms of it; that it needs to be consequential, it needs to be truthful, it needs to be a binary choice, and payment needs to be coursed.</P>
                        <P>And so if you fail one of them, then you're in problems for incentive compatibility. If you fail more than one, you're even more in trouble in terms of incentive compatibility. And, you know, I have—three of them are listed here on the slide, but probably the two most important ones are the truthful and binary because they apply directly to the way the constant sum question is framed.</P>
                    </EXTRACT>
                    <FP>
                        3/27/2023 Tr. 1419-20 (Boyle); 
                        <E T="03">cf.</E>
                         Boyle WRT at 34 (quoting Carson and Groves, 
                        <E T="03">Incentive and Informational Properties of Preference Questions,</E>
                         37 Environmental and Resource Econ., 181-210 (2007), and a different formulation of the axioms).
                    </FP>
                    <P>Prof. Boyle also testified as to why, in his opinion, the Bortz Survey, particularly Question 4, is not incentive compatible, as follows:</P>
                    <EXTRACT>
                        <P>Q. And why isn't the constant sum question incentive-compatible?</P>
                        <P>A. It's not incentive-compatible because it's not a binary question and a single application. And so when I was talking about what we did with the Deepwater Horizon, that was a specific dollar amount for a specific valuation that you answered yes or no.</P>
                        <P>There's no incentive for somebody to answer wrong on that. You have got to answer yes or no. And if you answer wrong, you get an undesirable outcome for yourself. With the Bortz Survey, when you have the different categories that you can allocate percentages to, there's a potential there for somebody to misallocate across categories when you have what's called an open-ended response that you can fill in.</P>
                        <P>You know, in the Bortz Survey, there was an enumerator, so they were giving the information to the enumerator to fill in.</P>
                        <P>
                            But, you know, I think one of the examples I used in my report was that if someone had a devotional affinity, they could explicitly or 
                            <PRTPAGE P="54251"/>
                            implicitly allocate more to devotional or less to others. If they are an atheist, it could be the opposite one.
                        </P>
                        <P>So there's an opportunity, by how you allocate the percentages, that you could either explicitly, implicitly, or accidentally misconstrue what the true value is that is estimated from the questions.</P>
                    </EXTRACT>
                    <FP>3/27/2023 Tr. 1420-21 (Boyle).</FP>
                    <P>PTV's argument concerning incentive compatibility is not persuasive. As pointed out by JSC, Prof. Boyle held up as a positive example an incentive compatible public resource survey in which respondents may in fact have had a financial interest in the outcome of the survey. JSC PFF ¶ 249; 3/27/2023 Tr. 1406-07, 1420 (Boyle) (“And if you answer wrong, you get an undesirable outcome for yourself”). Additionally, whether a Bortz survey respondent's personal beliefs, such as religious beliefs (or the absence thereof), might cause a respondent to “misconstrue” true value in the Bortz Surveys remains highly speculative.</P>
                    <P>
                        Moreover, with respect to the Bortz Surveys, Dr. Mathiowetz explained that Prof. Boyle's argument is wrong because “[c]able system operators are paying [the] royalty fee regardless of how they allocate” value to program categories in the surveys. 
                        <E T="03">See</E>
                         4/10/2023 Tr. 3854 (Mathiowetz). Indeed, it was not shown that Prof. Boyle had any knowledge of whether or how respondents' answers to Bortz Survey questions might actually affect respondents or their CSOs, and what respondents' perceptions might be on the subject. Further, JSC's suspicion that Prof. Boyle lacked knowledge in this area was confirmed on cross-examination, when Prof. Boyle could not provide clear answers to simple questions on this topic. He was, for example, specifically asked, “whether you have an understanding as to whether cable system operators have a financial interest in the outcome of these proceedings,” and he testified, “I am not testifying as an expert on cable systems. I'm testifying as an expert on survey design. And that's how I am answering you.” Furthermore, when forming his opinions, Prof. Boyle did not consult with anyone who had worked at a cable system. 3/27/2023 Tr. 1502-05, 1513-15 (Boyle).
                    </P>
                    <HD SOURCE="HD3">c. Value Measurement</HD>
                    <P>
                        On behalf of Program Suppliers, Dr. Stec,
                        <SU>231</SU>
                        <FTREF/>
                         testified that at best the Bortz Survey results represent an estimate of the cable system operators' relative willingness to pay for the different program categories they were asked to consider, but willingness to pay is not the same as a market price or market value.
                        <SU>232</SU>
                        <FTREF/>
                         Furthermore, it is his opinion that the Bortz Survey does not account for the supply side of the transactions, which was noted as early as the CARP 1990-1992 cable royalty proceeding. He opined that although Mr. Trautman indicates that the survey respondents are familiar with the rates charged for programming, as CSOs they do not purchase the individual programming categories as identified in the survey and instead purchase entire broadcast signals that include multiple categories of programming. He opined that survey respondents are unfamiliar with the actual prices charged in the marketplace for the specific programming categories when they are retransmitted on distant signals. Written Rebuttal Testimony of Jeffrey Stec, Trial Ex. 7608, at 21-22 (Stec WRT); 4/19/2023 Tr. 5655 (Stec); PS Brief at 67-71; PS PFF ¶¶ 513-29.
                    </P>
                    <FTNT>
                        <P>
                            <SU>231</SU>
                             Dr. Stec was called to testify by PS, and was qualified as an expert witness in economics and survey research. 4/19/2023 Tr. 5641 (Stec).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>232</SU>
                             Dr. Stec, citing to an article on willingness to pay at the point of purchase, opines “research studies show that, when controlling for question formats, the hypothetical bias in consumer-intent type measures, like willingness-to-pay, can be substantial with the hypothetical willingness to pay exceeding the real willingness to pay. Even in the absence of any other flaws, by not accounting for this hypothetical bias, the Bortz Survey likely measured willingness to pay, in the form of budget percentages, inaccurately.” Stec WRT at 26 (footnote omitted); PS PHB at 70-71; PS PFF ¶¶ 527, 529. The relevancy of this consumer-intent, point of purchase opinion to the Bortz Survey remains unclear, especially in view of a dearth of testimony on the subject.
                        </P>
                    </FTNT>
                    <P>Measurement of sheer willingness to pay may not be identical with a determination of market value. Yet, as discussed throughout this determination, including with respect to regression evidence presented by another Program Supplier expert witness, Dr. Tyler, evidence concerning CSOs' willingness to pay is an important indicator when examining the hypothetical market examined by the Judges in this and prior proceedings.</P>
                    <P>
                        Furthermore, as pointed out by JSC, Dr. Stec expressed some of the same negative opinions about the Bortz Survey in the 2010-13 proceedings, and although considered by the Judges, the opinions did not prevent the Bortz Survey results from being used by the Judges in making their allocations. 
                        <E T="03">See</E>
                         JSC PHB at 46; JSC PFF ¶ 253. Indeed, the Judges recognized that the CARP had determined that in the relevant hypothetical market, the supply of programming would be fixed and value would be determined only by the CSOs' demand as reflected in their willingness to pay. Additionally, in the 2010-13 proceeding, the Judges “agree[d] with the pronouncement in prior determinations that the royalties that would be paid in the hypothetical market would essentially be a function only of the CSOs' demand and the copyright owners' costs, and their supply curves (if any) would not be important determinants of the market-based royalty.” 
                        <E T="03">See</E>
                         2010-13 Determination at 3583, 3555 n.18 (citing, as an example, 1998-99 Librarian Order at 3606, 3608).
                        <SU>233</SU>
                        <FTREF/>
                         In any event, the wording of Question 4 of each Bortz Survey for a particular year does not seek a response about actual prices charged in the marketplace, referenced by Dr. Stec. Rather, it seeks a CSO response about percentages of a fixed dollar amount the system “would have spent” and specific categories of programming that the system carried as distant signals in the subject year.
                    </P>
                    <FTNT>
                        <P>
                            <SU>233</SU>
                             As Dr. Majure testified, Question 4 is essentially a budget-setting exercise, and as such it is his opinion that importance and expected cost are relevant to the value of distant signal programming, as they are to forming a budget. 3/30/2023 Tr. 2616 (Majure).
                        </P>
                    </FTNT>
                    <P>
                        The parties have made further arguments to the effect that Bortz Survey, and its results, are unable to shed light on market value relevant to this proceeding. For example, Program Suppliers argue that the Bortz results are not credible because they are inconsistent with market changes, noting that with the conversion of WGNA to a cable system, the share of compensable minutes for JSC and CTV content significantly declined; and further, while in 2014, over 90% of the sports programming was JSC content, by 2015 that share dropped to approximately 65%, with the balance of 35% being Program Suppliers or CTV content, yet changes to programming shares observed in the marketplace are not reflected in the Bortz Survey results. It is argued, among other things, that despite the 94% decline in JSC content, the Bortz Survey suggests that JSC's volume fell by only 22% and remained the most valuable category in 2017. 
                        <E T="03">See</E>
                         PS PHB at 77. Similarly, CCG argues that according to the Bortz Survey results, JSC content retains a constant relative value, and is ranked the most expensive and most valuable according to Bortz Survey results, but that is unrealistic after 2014 when WGNA converted to a cable station. Such consistency, it is argued, does not comport with reality, inasmuch as WGNA carried 94.2% of compensable distant JSC programming minutes in 2014, and with WGNA's conversion, compensable distant programming minutes of JSC content dropped precipitously. CCG argues that the year-to-year consistency in average JSC relative values from Question 4 despite 
                        <PRTPAGE P="54252"/>
                        a loss of over more than 90% of retransmitted content after 2014 can only be explained through heuristics, question order bias, and the possible knowledge of the survey's purpose. 
                        <E T="03">See</E>
                         CCG PHB at 60.
                    </P>
                    <P>
                        JSC argues that while CCG and Program Suppliers take the position that the Bortz Survey responses are not sensitive enough (by some unspecified degree) to the change in volume of subscriber-weighted minutes resulting from the WGNA conversion, the Bortz results show a strength of the Bortz survey that the Judges' predecessors have highlighted. JSC points out that in the 1998-1999 proceeding, following the conversion of WTBS from a superstation to a cable network, the Bortz survey results showed only a modest decrease in JSC's relative value allocation, despite a similar drop in volume as the one at issue in this proceeding. Indeed, JSC argues, it is wrong to expect that changes in value will track with changes in the volume of programming, as might be the case in other industries where value is driven by per-unit sales. Further, it is argued, it is entirely reasonable that, as the Bortz Surveys show, CSOs continue to value highly the other JSC programming they carry after a superstation conversion, and perhaps value it even more. JSC points to the CARP's assessment that the “Bortz respondents take account of changes in volume, viewing, and all other material factors;” and argues that as a result, the Bortz surveys, unlike other methodologies, would not lead the factfinders astray by confusing volume with value. Rather, it is argued, as the CARP found in its determination, affirmed by the Circuit Court, the surveys would “best inform [the CARP] as to whether any changes in sheer programming volume, viewing minutes, subscriber instances, or any other volume metric, truly translate into changes in value.” Joint Sports Claimants' Post-Hearing Reply Brief at 54-55 (JSC RPHB); JSC PFF at 167 ¶¶ 17, 18 (quoting 1998-99 CARP Rep. at 30-31 and 
                        <E T="03">Program Suppliers</E>
                         v. 
                        <E T="03">Libr. of Cong.,</E>
                         409 F.3d 395, 401-02 (D.C. Cir. 2005)).
                    </P>
                    <P>JSC correctly argues that value, particularly as ascertained for the purpose of royalty allocation, is not merely reflective of compensable minutes or of the volume of programming. Furthermore, as recognized by the CARP, when determining the value of programming, CSOs, such as Bortz respondents, have the ability to take account of changes in volume, viewing, and all other material factors when assigning value. Therefore, to some extent, the Bortz results may show that the CSOs contacted for the Bortz Surveys, as argued by JSC, always valued JSC programming highly, and taking many factors into consideration may have continued to do so, or may have done so to an even greater extent, after the loss of WGNA as a distant signal. Thus, to retain usefulness in allocations proceedings, the Bortz Survey results need not track precisely the availability of WGNA. Furthermore, as JSC suggests, it is unclear exactly how closely the Bortz results would have to track such a market change for its detractors to be satisfied.</P>
                    <P>Nevertheless, the magnitude of the changes caused by the conversion of WGNA is so great that one could expect some appreciable reflection of that event in the Bortz results, particularly if there had not been significant changes in the Bortz methodology as changes in the market occurred. Indeed, the Bortz results do show diminished percentages for JSC after 2014. Yet, as already detailed, it was at the time of the conversion that, citing various factors, Bortz Media made a radical change in its methodology such that it abandoned its prior sampling methodology in favor of an attempt to contact all CSOs it deemed eligible to participate in a Bortz Survey, while still excluding CSOs that carried only PTV or Canadian programming as distant signals. Bortz Media also calculated alternative adjustments to be used when interpreting the Bortz initial results after the WGNA conversion to replace the McLaughlin Adjustment used previously by the Judges. Thus, it is not simply a question of whether the Bortz Surveys were sensitive to changes that occurred from 2014 through 2017. There should be a realization that after 2014, one is looking at Bortz results that in certain respects are based on a different methodology, and that different adjustments have been proposed. Consequently, one must exercise caution when comparing results from 2014 (or before) with results for 2015-2017.</P>
                    <P>
                        As explained by Dr. Stec, for 2014, Bortz Media sought to interview a random sample of Bortz-eligible CSOs, but for 2015 through 2017 Bortz Media attempted something like a census while failing to interview anything near all eligible CSOs. In fact, about 46% of eligible CSOs did not participate in those surveys. Dr. Stec testified that participation or non-participation in the surveys was “self-selected,” which maybe an accurate appellation; but in any case, the sampling that Bortz Media obtained was not a random sample. Thus, in Dr. Stec's opinion, one cannot ignore whatever differences might exist between respondents and non-respondents and, relying on the statistical properties of randomness, impute the results obtained from the respondents to the non-respondents, and thus for the entire target population. To do so, he opines, could introduce bias or inaccuracies into the results. 
                        <E T="03">See</E>
                         4/19/2023 Tr. 5671-74 (Stec); CCG PFF ¶ 354.
                        <SU>234</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>234</SU>
                             Even after the WGNA conversion in 2014, small numbers of cable systems continued to report carriage of the signal. The reasons for doing so may be varied on the part of the cable systems, but in any event remain unclear. 
                            <E T="03">See</E>
                             Trautman WRT at 2-3; Bortz Rep. at 7 n.6. As discussed, 
                            <E T="03">supra</E>
                             note 27, there may have been some residual WGNA carriage as WGNA transitioned from a broadcast channel to a cable station.
                        </P>
                    </FTNT>
                    <P>Somewhat similarly, PTV argues there is no dispute that the massive number of Public Television and/or Canadian-Only Systems excluded from the 2014 through 2017 Bortz surveys would have responded differently than the CSOs Bortz actually surveyed, and further, Bortz's exclusion also creates a clear non-response bias in the years that Bortz attempted to conduct the surveys as a “census.” It is argued that Bortz defined its target population, in part, based on the amount of the section 111 royalties they represent, but by 2017, the scope of Bortz's exclusion of PTV- and/or Canadian-only systems exceeded the scope of CSOs that were actually surveyed as part of the attempted census, including in terms of the numbers of systems (37% of systems were excluded while 34% of systems were surveyed), the section 111 royalties they paid (45% of royalties were paid by excluded systems while 28% of royalties were paid by surveyed systems), and the number of subscribers they represented (41% of subscribers were subscribed to excluded systems while 30% of subscribers were subscribed to surveyed systems). PTV PHB at 40 (citing PTV PFF ¶¶ 199-200 (relying in part on Boyle WRT at 38-39)).</P>
                    <P>
                        JSC argues that the Bortz opponents fail to rebut Dr. Mathiowetz's finding that there was no evidence of non-response bias impacting the Bortz estimates in any year. It is argued that, as Dr. Mathiowetz explained, the “risk and type of non-response bias” is the same under either the sampling or the “census” approach, with no assumed statistical difference or indeterminacy in one compared to the other. JSC argues that there is an established method to test for non-response bias, which Dr. Mathiowetz applied, and found no bias. JSC RPHB at 48; JSC PFF 381. Indeed, during the hearing, Dr. Mathiowetz 
                        <PRTPAGE P="54253"/>
                        provided a succinct explanation of her assessment, as follows:
                    </P>
                    <EXTRACT>
                        <P>Q. * * * Just in the interest of time, if you could give us at a high level what you did to assess whether there was a problem of non-response bias here and what you concluded?</P>
                        <P>A. So as we have already established, right, there are respondents and there are non-respondents. And you worry about non-response bias to the extent that those who don't respond differ from those who do respond to the survey.</P>
                        <P>In order to make that assessment, you have to take two steps. First of all, you have to take and look at characteristics or variables that you have for both respondents and non-respondents.</P>
                        <P>So we have a lot of information about these cable systems. We know their total royalty payments. We know the region of the country. We know the distant signal equivalents. We know the programming mix being offered by those cable systems.</P>
                        <P>So the first step is to say: Are there any of these characteristics related to non-response? And as Dr. Boyle asserts, there is—we see that there is a relationship between size of royalty and non-response.</P>
                        <P>But you have to take the second step and you have to say: Now, among the respondents, is the characteristic that I saw related to non-response related to valuations? And when you look at that, total royalty payments is not related to average program valuations.</P>
                        <P>So while we see a difference in non-response rates, there is no indication of non-response bias in any of the years of the Bortz Survey.</P>
                    </EXTRACT>
                    <FP>
                        4/10/2023 Tr. 3906-08 (Mathiowetz). Dr. Mathiowetz's opinion expressed at the hearing is supported by her written testimony.
                        <SU>235</SU>
                        <FTREF/>
                          
                        <E T="03">See</E>
                         Mathiowetz CWDT at 18-19.
                    </FP>
                    <FTNT>
                        <P>
                            <SU>235</SU>
                             In his written rebuttal to Dr. Mathiowetz's written direct testimony, Prof. Boyle questions Dr. Mathiowetz's use of Census regions when reviewing cable system responses, opining that her investigation might have been appropriate if one were doing a survey of the population but not for a survey to provide input to cable royalty revenue allocations. Boyle WRT at 43-44.
                        </P>
                    </FTNT>
                    <P>Dr. Mathiowetz's analysis does not answer the theoretical question of whether or not the samples obtained through the Bortz's census-type approach in 2015 through 2017 can be treated the same way as random samples. Nevertheless, with respect to the target population of the Bortz Surveys, Dr. Mathiowetz's analysis provides actual evidence of the absence of non-response bias in the Bortz Surveys for 2014 through 2017, which the Judges take into consideration when determining the extent to which the Bortz results indicate value.</P>
                    <P>
                        Yet, Dr. Mathiowetz's analysis does not speak to a different bias, which is the bias in the design of the Bortz Survey caused by the complete exclusion of PTV-only and Canadian-only CSOs. The hypothetical allocation by those CSO's under Question 4 would presumably have to have been 100% for the only distant signal that they carried. 
                        <E T="03">See</E>
                         3/23/2023 Simonson Tr. 1228;
                        <SU>236</SU>
                        <FTREF/>
                         4/4/2023 Tr. 3131-34 (Trautman). The changes in the Bortz results that occur when PTV-only or Canadian-only CSO are taken into account, especially after the conversion of WGNA, are significant and have already been discussed.
                    </P>
                    <FTNT>
                        <P>
                            <SU>236</SU>
                             Dr. Simonson was called by PTV, and qualified as an expert in an expert in the fields of survey methodology, marketing, and managerial decision-making. 3/23/2023 Tr. 1170-71 (Simonson).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">d. The Identification and Qualification Process of Survey Respondents</HD>
                    <P>
                        Questions have been raised concerning the identification and qualification of the respondents that Bortz Media contacted for participation in its surveys. An inaccuracy found among the criticisms of the Bortz surveys is that the executives identified as initial contacts for the interviewers (whose identities and phone numbers were obtained primarily through the Factbook) were the targets, or target populations of the surveys, or the targets for the interviewers.
                        <SU>237</SU>
                        <FTREF/>
                         Yet, the target for the interviewers, and for the surveys, was always the person most responsible for programming carriage decisions. While the initial contacts may in fact serve as the survey respondents, in most cases, the interviewer was referred to a subsequent contact within the CSO. Notwithstanding some arguments to the contrary, the method of making an initial contact, and then pursuing a referral when needed, is not a new method for the 2014-2017 surveys. 
                        <E T="03">See</E>
                         2010-2013 Trautman Oral Testimony, Trial Ex. 7043, at 103-05. Furthermore, despite suggestions to the contrary, Mr. Trautman's hearing testimony on this topic is consistent with the Bortz Report, and with the interviewer instructions of the survey instrument.
                        <SU>238</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>237</SU>
                             
                            <E T="03">See, e.g.,</E>
                             PS PHB at 63 (“Since Mr. Trautman only reached between 5.9% and 9.0% of his intended target population, there should have been a process for qualifying respondents who were not the intended targets.”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>238</SU>
                             The survey instrument instructs interviewers, when introducing themselves, to ask to speak with the listed respondent, and if unavailable to confirm he/she is the person most responsible for programming carriage decisions for the system and to arrange for a call back; and if not, then to ask to speak with the person most responsible for programming carriage decisions for the system. In addition, Question 1 on the survey instrument is: “Are you the person most responsible for programming carriage decisions made by your system during [year] or not?” If the response is negative, the interviewer is instructed by the survey instrument to ask to speak with the person most responsible for the system's programming carriage decisions for the subject year, and then to repeat the introduction and Question 1. 
                            <E T="03">See</E>
                             Bortz Rep. app. B; 4/5/2023 Tr. 3220-21 (Trautman).
                        </P>
                    </FTNT>
                    <P>
                        The Bortz Survey has also been criticized as failing to reach the person most responsible for programming carriage decisions because decision-making authority within the systems might be at the national or corporate level, or because the survey respondents worked in the marketing or video product departments. While one cannot say with certainty that in all cases the Bortz interviewers reached the right respondents, the evidence shows that during the time period in question, individuals with the knowledge of why specific distant signals were carried often worked at the local or regional level, and furthermore could work in departments with titles such as marketing or video rather than programming. 
                        <E T="03">See</E>
                         4/3/2023 Tr. 2769-73 (Singer);
                        <SU>239</SU>
                        <FTREF/>
                         4/10/2023 Tr. 4054-55, 4060-61 (Witmer);
                        <SU>240</SU>
                        <FTREF/>
                         3/28/2023 Tr. 1714-16 (Costantini); 
                        <SU>241</SU>
                        <FTREF/>
                         4/17/2023 Tr. 5066-67 (Ringold).
                    </P>
                    <FTNT>
                        <P>
                            <SU>239</SU>
                             Mr. Singer was called by JSC, and qualified as an expert in the operation of cable systems and cable networks, including the valuation of television programming in the cable industry. 4/3/2023 Tr. 2738, 2745 (Singer).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>240</SU>
                             Ms. Witmer was called by JSC, and qualified as an expert in the operation of cable systems, including the valuation of cable and broadcast television programming. 4/10/2023 Tr. 4035 (Witmer).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>241</SU>
                             Ms. Costantini was called by PTV, and qualified as an expert in the cable television industry and valuation of television programming. 3/27/2023 Tr. 1583, 1588 (Costantini).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">e. Whether There Was Interviewer Error, Interviewer Bias, or a Lack of Training</HD>
                    <P>
                        Opponents of the Bortz Survey argue that they have found “error” by the interviewers in as many as 90% of the survey responses, although none seems to involve recording the survey responses. The alleged error, it is argued, occurred in recording information such as the recording of “partial names” or “multiple positions” for the same respondent. There are even criticisms based on respondents' LinkedIn profiles (which assumes, without record evidence, that LinkedIn accounts would be accurate, and up-to-date for the survey periods in question). 
                        <E T="03">See, e.g.,</E>
                         PS PHB at 64-65; PTV PHB at 52-53; CCG PHB at 54; Tr. 1278-79 (Simonson). Yet, as explained by Mr. Trautman, respondents in these telephone surveys often hesitate to provide detailed information about themselves such as full names, or happen to provide abbreviated titles.
                        <FTREF/>
                        <SU>242</SU>
                          
                        <PRTPAGE P="54254"/>
                        4/4/2023 Tr. 2992, 3004-05 (Trautman). Furthermore, it is not uncommon for regional personnel to oversee activities at individual systems, depending on the size and individual system characteristics and responsibilities. Nor is it uncommon to find individuals who are responsible for more than one function within a company. 
                        <E T="03">See</E>
                         3/27/2023 Tr. 1622 (Costantini).
                    </P>
                    <FTNT>
                        <P>
                            <SU>242</SU>
                             There is an email in which Mr. Trautman asks his contractor running the interview process to make sure interviewers do not record titles short-
                            <PRTPAGE/>
                            hand form. While Mr. Trautman was doing the due diligence of quality control, there is no proof of actual error. 
                            <E T="03">See</E>
                             4/10/2023 Tr. 3967-68 (Mathiowetz).
                        </P>
                    </FTNT>
                    <P>
                        Bortz opponents argue that Ms. Grossman's long experience working on the Bortz surveys, and the large number of interviews she conducted, could have resulted in bias in the surveys she performed. That criticism is somewhat speculative. Furthermore, Dr. Mathiowetz tested for that question, and found no such bias. Specifically, it was found that on average, responses to the surveys Ms. Grossman performed did not differ from those of obtained from other interviewers. 4/10/2023 Tr. 3893-94 (Mathiowetz). On the other hand, despite the long history Bortz Media has with Ms. Grossman, there are criticisms about a supposed lack of training materials, although the record shows that it is standard to use the survey instrument, or the questionnaire, as the training material when there is a small team of interviewers as in the case of the Bortz Surveys.
                        <SU>243</SU>
                        <FTREF/>
                         4/10/2023 Tr. 3895-96 (Mathiowetz). Moreover, Bortz Media conferred with Ms. Grossman and her team with respect to the 2014-2017 interviews before starting each survey. 4/3/2023 Tr. 2841 (Trautman); 4/4/2023 Tr. 3006 (Trautman). Subsequently, Bortz Media monitored approximately 20 percent of the interviews “to ensure accurate interviewing techniques and to observe any issues related to the respondent's comprehension or ability to respond to the constant sum valuation question.” Bortz Rep. at A-15.
                    </P>
                    <FTNT>
                        <P>
                            <SU>243</SU>
                             Bortz only used a separate, one-page training document for these surveys in the late 1980s to early 1990s, when it worked with a large contractor whose interviewers were not as clearly experienced in executive interviewing. 4/4/2023 Tr. 3168-69 (Trautman).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">f. Whether the Bortz Survey Questions Are Overly Complex or Caused Confusion or Recall Bias</HD>
                    <P>
                        When examining the actual Bortz Survey constant sum question, industry experts explained that cable system executives are more than capable of understanding the categories of content separate and apart from particular linear channels, that they know these types of programming as part of their day-to-day job. The survey respondents also have experience running businesses and expenses. Thus, the constant sum question is the type of question one would ask them. 
                        <E T="03">See</E>
                         4/10/2023 Tr. 4052-55 (Witmer); 4/3/2023 Tr. 2769 (Singer).
                    </P>
                    <P>
                        With respect to the terms used during the Bortz Survey interviews, there is argument and testimony that in some cases the terms used to describe the program categories are undefined or vague. 
                        <E T="03">See, e.g.,</E>
                         PS PHB at 72. The terms used to describe the program categories are by necessity generalizations. Yet, there is no showing of widespread confusion among survey respondents. On the contrary, there is evidence that the categories are generally understood, in particular a term such as “live professional and college team sports.” 
                        <E T="03">See</E>
                         2010-2013 Hartman Oral Testimony, Trial Ex. 7056, at 73-77; 3/28/2023 Tr. 1722-23 (Costantini).
                    </P>
                    <P>
                        With respect to the general complexity of the Bortz Survey, and especially Question 4, Dr. Mathiowetz, who has studied and conducted establishment surveys, testified that the Bortz constant sum question was similar in complexity to other establishment survey questions, and underscored that the executives contacted for the survey have a sophisticated level of knowledge about the concepts in the survey. 4/10/2023 Tr. 3854-55 (Mathiowetz). Indeed, Dr. Ringold has conducted surveys of CSO employees, and has asked respondents a constant sum question that required respondents to allocate 100 points among seven different claimant categories. 
                        <E T="03">See</E>
                         4/17/2023 Tr. 5014-16 (Ringold).
                    </P>
                    <P>
                        Furthermore, one well-known indication of respondents who were overwhelmed or confused could be what is termed “satisficing,” in which a respondent may take a cognitive short cut to stay in the role of a respondent albeit at a minimum.
                        <SU>244</SU>
                        <FTREF/>
                          
                        <E T="03">See</E>
                         4/10/2023 Tr. 3855-56 (Mathiowetz). Yet, Dr. Mathiowetz found no pattern of respondent confusion or satisficing behavior in the Bortz survey data. There was, for example, a case cited by PTV of a Bortz respondent who gave the same rankings and value allocations for two different systems. Dr. Mathiowetz testified, however, “[w]hat you want to see when you're looking for evidence that there are problems with the question is that you see that pattern [of satisficing] overall across most respondents,” not just “one or two.” 4/10/2023 Tr. 4015-26 (Mathiowetz).
                        <SU>245</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>244</SU>
                             With respect to satisficing, during the hearing, Dr. Mathiowetz quoted from the Encyclopedia of Survey Research Methods, as follows: “Satisficing has been posited to at least partly explain several response effects, including acquiescence effects, non-response order effects, no opinion option effects, and non-differentiation in answering batteries of rating scales.” 4/10/2023 Tr. 3856 (Mathiowetz).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>245</SU>
                             Even before the production of more detailed information, as originally produced, the redacted Bortz data contained anonymized respondent identifications showing every time the same individual responded on behalf of multiple systems in a given survey year. 4/10/2023 Tr. 2922-24 (Mathiowetz). It appears, therefore, that early in this proceeding any party could have used such information to track potential satisficing.
                        </P>
                    </FTNT>
                    <P>
                        A question has been raised as to whether the timing of the Bortz surveys led to recall error or bias. Mr. Trautman testified that as a matter of best survey practices, in general it is better to perform the Bortz Survey closer to the end of the survey year, rather than farther from it. As discussed above, the Bortz Surveys did not begin until several months after the end of the preceding calendar year. Nonetheless, Mr. Trautman did not conclude that there was recall bias in this the surveys now at issue. 4/4/2023 Trautman Tr. 3012, 3029-34. Yet, as Dr. Simonson observed, “the Bortz Survey mistakenly asked a few respondents about programming categories that they did not actually carry.” 
                        <SU>246</SU>
                        <FTREF/>
                         3/23/2023 Simonson Tr. 1223. In all such cases, the respondents should have realized that their systems had not carried distant signal programming in those categories, and allocated zero value to such programming. Yet, Dr. Simonson testified, for 2017, for example, over 11 percent of respondents allocated values of up to 50 percent to categories they did not carry. 
                        <E T="03">Id.</E>
                         Dr. Mathiowetz was candid about the fact that there are some errors in the Bortz Survey. She testified, “I think there are cases in any data collection effort where there is misinformation, respondent error, respondent recall. That's the nature of the beast when you go and interview humans. And the best you can do is understand how that can impact the data.” It was her opinion, which appears reasonable, that incorrect answers in those cases, 
                        <E T="03">i.e.,</E>
                         answers other than zero for a programming category that was not carried, could be the result of recall error. She explained that “a respondent is under the impression that the interviewer is giving them—most respondents work under the impression that the information being conveyed by an interviewer is accurate. And so we may have cases of recall error as opposed to just not 
                        <PRTPAGE P="54255"/>
                        understanding.” 4/10/2023 Mathiowetz Tr. 4030-31.
                    </P>
                    <FTNT>
                        <P>
                            <SU>246</SU>
                             Such occurrences are indeed few in number, but not to be ignored. Specifically, for 2014 through 2017, 90 respondents overall, four in 2014, 33 in 2015, 24 in 2016, and 29 in 2017, provided relative value allocation to compensable programming that they did not carry. 
                            <E T="03">See</E>
                             PS PFF 541 (citing Stec WRT at 41).
                        </P>
                    </FTNT>
                    <P>
                        Despite a relationship between importance and cost, already discussed, there is a concern that because “warm-up” Question 3 asks about cost, it might have influenced responses to Question 4, which asks about value. 
                        <E T="03">See, e.g.,</E>
                         2010-13 Determination at 3590 (“This may have injected some confusion into the respondent's estimation of relative value.”); 3/27/2023 Boyle Tr. 1422 (“But if I was doing it, I probably would not have had Question 3 before Question 4, if it was something that was important. I would have had Question 3 after Question 4, after the primary source of information that I was looking to get.”).
                        <SU>247</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>247</SU>
                             Dr. Conrad was called by CCG, and qualified as an expert in survey methodology with specialization in questionnaire design and data collection. 4/13/2023 Tr. 4796-97, 4806 (Conrad). He expressed concern over Question 3, and its order in the survey. 
                            <E T="03">See</E>
                             Written Rebuttal Testimony of Frederick Conrad, Ph.D., Trial Ex. 7405, at 4 (“The cost question (Q3) was intended as a warm-up but the information respondents used to answer it was almost certainly salient and particularly accessible in their working (short-term) memory when they answered the value question (Q4) immediately afterward, allowing the cost information to dominate the valuation process; if the order of these two questions had been reversed, 
                            <E T="03">i.e.,</E>
                             if Q4 had been asked before Q3, cost information would less likely be the central consideration in the valuation process. This pattern, 
                            <E T="03">if observed,</E>
                             would be what survey researchers call a question order effect—considered a type of measurement error”) (emphasis added).
                        </P>
                    </FTNT>
                    <P>
                        In this proceeding, there is no strong evidence offered either way to show whether Question 3 unduly influenced responses to Question 4. The best evidence was, however, found in the opinion of Dr. Mathiowetz who testified, “when you look at the relationship between importance and relative value, you see a stronger relationship in the [Bortz] data between importance and relative value than you do between expense and relative value.” When asked whether Question 3 biases response to Question 4, she answered, that “My analysis suggests that it is not biasing, that there is a very logical relationship, but it is one that also includes understanding how respondents answered the importance question.” 4/10/2023 Tr. 3878 (Mathiowetz); 
                        <E T="03">see</E>
                         Mathiowetz CWDT at 11 (“One means by which questionnaire designers can signal the distinction among related concepts is by employing different question forms, thereby presenting the respondent with a different task. In the case of the Bortz surveys, the warm-up questions require the respondent to rank order among the program categories, from 1 to 
                        <E T="03">k,</E>
                         whereas the key question of interest related to relative valuations is a constant sum task”).
                    </P>
                    <HD SOURCE="HD3">g. Whether Pre-Testing and Post-Testing Verification Procedures Were Needed</HD>
                    <P>
                        PTV and CCG criticize the Bortz survey for not performing “qualitative pre-testing” or “post-survey verifications.” For example, CCG argues that pretesting is a best practice even for longitudinal surveys that are fielded with the same instrument over a long period of time, according to the American Association for Public Opinion Research (AAPOR),
                        <SU>248</SU>
                        <FTREF/>
                         so that changes or adjustments can be made to the questions asked. CCG PHB at 51-52. PTV argues in favor of pre-testing, and also that Bortz failed to conduct any post-survey verification to confirm validity and reliability, such as test/retest reliability or recontacting respondents to confirm “that they actually exist, the survey actually happened, or that the respondents were qualified, and to learn how the respondent understood and answered.” PTV PHB at 58.
                    </P>
                    <FTNT>
                        <P>
                            <SU>248</SU>
                             The AAPOR is a leading organization on survey research standards, and its past presidents include JSC's expert witness Dr. Mathiowetz. In 2015, she was awarded the AAPOR Award for Exceptional Distinguished Achievement. 
                            <E T="03">See</E>
                             Mathiowetz CWDT at 1-2; 4/10/2023 Tr. 3943-44 (Mathiowetz).
                        </P>
                    </FTNT>
                    <P>JSC argues that it is inaccurate to suggest that pre-testing is the only way to assess whether the surveys produce valid and reliable results. JSC argues that there are many ways to test for, for example, internal consistency in responses, evidence of satisficing, and bias; and Dr. Mathiowetz tested for all of those things, even if other experts did not do so. JSC RPHB at 52.</P>
                    <P>While neither JSC nor Dr. Mathiowetz disputes the value of pre-testing in general, Dr. Mathiowetz testified that pretesting of the 2014-2017 Bortz surveys was not necessary because the survey has been fielded for many years and has been established in prior proceedings as a valid approach to looking at relative market value. She explained that the need for pre-testing is different than if one were undertaking brand new questionnaire development. Furthermore, Dr. Mathiowetz testified that there is also a significant downside to pre-testing a survey such as the Bortz Survey because there is a small population, and Bortz Media goes back to them in the next year. Also, any cases used for pre-testing usually would not be used in the main study. Tr. 3863-64, 3958-60 (Mathiowetz).</P>
                    <P>With respect to post-survey verification, Dr. Mathiowetz explained that due to the small population, and recurring nature of the survey, “you don't want to burn bridges” by recontacting CSOs that Bortz Media knows it will want to survey again, just to verify their prior identification of the respondent. Indeed, Dr. Mathiowetz had never seen such a verification process for an establishment survey in the literature, nor had she done it herself. 4/10/2023 Tr. 3897-98 (Mathiowetz). Similarly, Mr. Trautman's reason for not contacting survey respondents after each survey is a concern about “placing an additional burden on respondents or potential respondents,” who are “busy executives,” and the resulting “risk of not being able to continue to interview respondents in the future.” 4/4/2023 Tr. 3106-07 (Trautman).</P>
                    <HD SOURCE="HD3">h. Whether Bortz Media Used Undisclosed Quotas, Financial Incentives, and Pressure To Produce “Extraordinary” Results That Biased the Data</HD>
                    <P>
                        PTV argues in one paragraph of its brief that JSC has trumpeted high response rates achieved for the Bortz surveys, but never disclosed any response rate quotas it imposed, as revealed in compelled discovery showing that Bortz imposed substantial quotas on Ms. Grossman and her team, and pressured them to produce “extraordinary” results; 
                        <SU>249</SU>
                        <FTREF/>
                         and despite persistent and increasing difficulty, specifically pressured them to “keep the response rate as high as possible because it has been a big selling point for the Bortz survey in these proceedings . . . based on past emphasis by the Judges.” It is further argued that Mr. Trautman admitted, and documents confirmed, that Ms. Grossman and her team had a financial interest in meeting these quotas in order to keep the surveys going, and did “everything possible to reach those numbers that [Mr. Trautman] needed,” including placing many calls, pleading, calling neighboring systems, disregarding institutional policies against participating in surveys, and staying in the field for a longer time. 
                        <E T="03">See</E>
                         PTV PHB at 50 (citing PTV PFF ¶¶ 266-73).
                    </P>
                    <FTNT>
                        <P>
                            <SU>249</SU>
                             Dr. Simonson testified that he never heard the term “establishment survey” before testifying, and had never heard of a business or organization survey obtaining a response rate of 50% without offering compensation (and did know of any compensation for respondents in connection with the Bortz Surveys). 3/23/2023 Tr. 1248-51 (Simonson).
                        </P>
                    </FTNT>
                    <P>
                        JSC argues that Bortz Media appropriately sought to obtain high response rates, and to do so through its contractor, and at higher expense, spent more time in the field and made more 
                        <PRTPAGE P="54256"/>
                        efforts to reach respondents than one might otherwise do. It is argued that no expert testified to the existence of “quotas” or resulting bias in the Bortz results. It is argued that to the contrary, Dr. Mathiowetz testified that there is “absolutely not” anything problematic about telling a survey organization to work hard to obtain good response rates, even if that requires interviewers to make more frequent calls or leads to cost overruns. Furthermore, it is argued, Mr. Trautman testified unequivocally that interviewers were never paid for completing an individual interview or completing a specific number of interviews. JSC RPHB at 4, 55.
                    </P>
                    <P>
                        JSC argues that PTV is simply misreading the AAPOR disclosure standard, which it never submitted into evidence and never showed to any of the numerous testifying survey expert, including former AAPOR President, Dr. Mathiowetz. Furthermore, JSC argues that the AAPOR standards require disclosure of quotas used as part of the “methods of sampling” for the survey, sometimes referred to as “quota sampling.” Quota sampling is used to “achieve a pre-specified distribution on some set of variables” (such as gender or Census region) within a survey sample, and there is no suggestion that Bortz used quota sampling or anything like it, and thus nothing that Bortz improperly failed to disclose. 
                        <E T="03">See id.</E>
                         at 55-56.
                    </P>
                    <P>
                        Indeed, there was a lack of development of any accusation that Bortz Media, or any party associated with the Bortz Surveys at issue used undisclosed sampling quotas, let alone to obtain extraordinary results. Furthermore, it has not been established that interviewers or anyone else associated with Bortz Media or its contractors received undisclosed financial incentives to obtain results,
                        <SU>250</SU>
                        <FTREF/>
                         or the Bortz Media or anyone else associated with the Bortz Surveys engaged in “quota sampling,” as it has been explained in the meager record on the topic.
                    </P>
                    <FTNT>
                        <P>
                            <SU>250</SU>
                             PTV's Proposed Finding of Fact 270 contains the statement: “Ms. Grossman and her team were 
                            <E T="03">financially incentivized</E>
                             to meet Mr. Trautman's quotas because their compensation was a product of keeping the study going, and the time and effort needed to do so. Ms. Grossman and her team required, 
                            <E T="03">inter alia,</E>
                             more money, resources, longer time in the field.” PTV PFF at 96 (footnotes omitted) (emphasis added). An examination of the evidence cited in supporting footnotes (
                            <E T="03">i.e.,</E>
                             4/4/2023 Tr. 3195-202 (Trautman)) confirms that the financial incentives involved were, as indicated in PTV's proposed finding, only in the nature of compensation for the time, effort and resources needed to keep the study going and to exceed expectations.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">C. The Testimony of Professor Papper</HD>
                    <P>
                        CTV argues that the testimony its expert witness Prof. Papper, referenced above, is based on empirical analysis and his decades-long expert assessment of trends in the local television news industry generally and their impact on the relative value of CTV programming during the 2014-2017 period. In particular, Prof. Papper opines that there has been a steady rise in the production and airing of local news.
                        <SU>251</SU>
                        <FTREF/>
                         Thus, CTV argues that it is entitled to an increased share of royalties. 
                        <E T="03">See</E>
                         CTV PHB at 4-6. In its reply, CTV argues that despite criticisms of RTDNA surveys, Program Suppliers provide no evidence, empirical or otherwise, to rebut or refute what Prof. Papper consistently presents throughout his testimony, which is that that local television stations across the country, including those that were distantly retransmitted, were producing and airing increasingly more local news programming over the course of 2014-2017.
                        <SU>252</SU>
                        <FTREF/>
                         Further, CTV argues that as Prof. Marx testified, CSOs' inability to offer as much CTV content in 2015-2017 was divorced from any actual choice made by the CSOs, and was due to the reduction of available CTV programming as a result of the WGNA conversion. CTV Reply at 52-53.
                    </P>
                    <FTNT>
                        <P>
                            <SU>251</SU>
                             CTV, based on the written testimony of Prof. Papper, argues that there has been a steady increase on the amount of news broadcasts by station, including an increase in the amount of local news from 5.3 hours in 2014 to 5.7 hours in 2017; and the amount of local news also went up on the weekend, from an average of 2 hours per Saturday in 2014 to 2.1 hours in 2017, while the amount of local news on Sunday rose from 1.9 hours in 2014 to 2.1 hours in 2017. Further, it is argued, the number of stations running local news rose from 1026 in 2014 to 1062 in 2017, and as television stations continued to increase their local news budgets during the four-year period, they added more local newscasts to their lineups in the 4 p.m. to 7 p.m. time slots, and the 5 a.m. to 7 a.m. time slots. 
                            <E T="03">See</E>
                             CTV PHB at 5; CTV PFF ¶¶ 10-11.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>252</SU>
                             CTV argues that in support of the value of their own content, Program Suppliers continue to rely on reports that are like those they find objectionable from Prof. Papper, and the articles Prof. Papper writes that in part rely on the RTDNA Survey. Specifically, CTV argues that Program Suppliers relies on the content of the 
                            <E T="03">Nielsen Year in Sports Media Report, U.S. 2017.</E>
                             It is argued that this Nielsen Report, which includes and relies on a variety of sports media data, studies and survey results, is no different from Prof. Papper's articles and opinions that are informed, in part, by results from the RTDNA Survey. CTV RPHB at 53 n.267 (citing PS PHB at 13).
                        </P>
                    </FTNT>
                    <P>
                        Program Suppliers argue that the RTDNA Surveys should be given no weight for several reasons, including the fact that Prof. Papper failed to provide the information necessary to evaluate his target population, sample design, the data he collected (and did not collect) from the RTDNA Surveys, the quality of that data, or the accuracy of the data collection and recording of that data. Moreover, Program Suppliers argue that Mr. Papper's hearing testimony revealed that the reliability issues are more severe, pervasive, and disqualifying than originally thought. Indeed, it is argued, the RTDNA Surveys are not surveys at all, but are instead part of what CTV terms a “fact-gathering exercise,” presumably because Prof. Papper admitted that he is not a survey expert and lacks the expertise necessary to sponsor the RTDNA Surveys as evidence in this proceeding. CTV PHB 4. In addition, Program Suppliers argue that while CTV takes the position, based solely on Mr. Papper's RTDNA Survey, that there was an increase in the amount of CTV programming appearing on distant signals, this summary conclusion is directly contrary to the quantitative study conducted by the other CTV experts, Dr. Bennett 
                        <SU>253</SU>
                        <FTREF/>
                         and Dr. Marx, which shows the dramatic decline in CTV distant carriage over time. Program Suppliers' Post Hearing Reply Brief at 22 (PS RPHB).
                    </P>
                    <FTNT>
                        <P>
                            <SU>253</SU>
                             Dr. Bennett was called by CTV, and qualified as an expert in statistical methods and measurement. 4/12/2023 Tr. 4497, 4504-05 (Bennett).
                        </P>
                    </FTNT>
                    <P>The RTDNA Surveys were not offered or received as survey evidence, but rather as information, along with articles, that Prof. Papper relied upon in forming his expert opinions. As such, the RTDNA Surveys were not scrutinized as, for example, the Bortz Surveys were scrutinized in this proceeding. Based on the totality of Prof. Papper's opinions and the sources upon which he relies, including his involvement in the broadcast journalism industry, it is found that there was a trend toward increased production and airing of local news during the 2014-2017 time period, although the extent of that trend is difficult to gauge from Prof. Papper's testimony. Furthermore, that trend does not in and of itself translate to a greater allocation of section 111 royalties for CTV, and the opinions of Dr. Bennett, Dr. Marx and others who testified on the subject of CTV programming are addressed elsewhere.</P>
                    <P>
                        For the foregoing reasons, the Judges accord evidentiary weight to the Bortz Survey, with the McLaughlin Adjustment—relatively equivalent with the weight given to the regression analysis as discussed 
                        <E T="03">supra.</E>
                         A reconciliation of these two useful (albeit imperfect) approaches, augmented by the testimony of industry witnesses, is set forth below.
                        <PRTPAGE P="54257"/>
                    </P>
                    <HD SOURCE="HD1">XVIII. Conclusion And Award</HD>
                    <P>Regression evidence was presented through Drs. Johnson, Tyler, George and Marx, with the Johnson, Tyler and George regression models generating proposed royalty fund shares for each of the claimant groups in each of the years 2014 through 2017. Furthermore, survey evidence was presented only in the form of the Bortz Survey, which was conducted for each of the years at issue, along with adjustments that could be made to the initial results to account for certain factors (most notably the exclusion of CSOs from the surveys because they carried only PTV or only Canadian programming as distant signals). In addition, the Judges received evidence from industry experts who testified from their unique perspectives about the regressions and annual surveys presented at the hearing, as well as the valuation of programming relative to several of the claimant groups.</P>
                    <P>
                        For the reasons detailed in this determination, the Judges have found that no form of evidence, be it a regression, the Bortz Survey or the testimony of industry experts, provided data that translates directly into the allocation of royalty fund shares needed for this determination.
                        <SU>254</SU>
                        <FTREF/>
                         The results of all regression models in evidence have been considered, but the Judges find that the Tyler Model is the most appropriate regression model in this record, and have accorded it the most weight. The Bortz Surveys provide relevant illustrations of the values placed on distant signal programming during the relevant time period. For 2014-2017, the Bortz Surveys had limitations that other Judges and tribunals have long recognized. In some cases, a more comprehensive assessment of values can be made by applying adjustments proposed by various parties, especially the McLaughlin Adjustment, which has been used at least since the 2004 and 2005 proceeding. The Judges have also taken into consideration the fact that Bortz Survey methodology, like the regression models, faced challenges over the period following 2014, especially due to the conversion of WGNA.
                    </P>
                    <FTNT>
                        <P>
                            <SU>254</SU>
                             To the extent that any criticism of, or deficiency in, the record evidence was not discussed, it is because said criticism or deficiency does not change the outcome of this determination.
                        </P>
                    </FTNT>
                    <P>In view of the totality of the evidence presented in this proceeding, the Judges find that a synthesis of regression and survey results is necessary to arrive at the required allocations. In particular, with respect to JSC, the Judges weighted heavily evidence from the Bortz Surveys. While the record shows that minute volume is not as applicable to sports programming (which is more dependent, for example, on games carried), JSC's allocation must be limited by the fact that significantly less sports was transmitted after the WGNA conversion. Yet, with respect to PTV, the regression evidence was accorded greater weight for 2014, and dispositive weight for 2015-2017. As already described, the regression evidence accounted for the reduction of shares due to the Must Carry signals, as well as increases due to the implicit willingness to pay as shown by cable systems that continued to carry PTV even when WGNA was no longer available as a distant signal. By contrast, the Bortz Surveys did not examine such circumstances, and there is no rationale for augmenting the survey results with the McLaughlin Adjustment for all the PTV-only systems that came into existence after 2014.</P>
                    <P>For CTV, the Bortz Surveys weighed heavily in making the allocation, which is not inconsistent with evidence presented by industry experts Mr. Vaughn and Prof. Papper, as well as the industry analysis provided by Dr. Marx. Relatively speaking, the value of CTV should have increased since 2013, with the rise of streaming and over the top programming, more than one sees when simply looking at the regression results. Much of the CTV programming was not available on streaming, and would increase its relative value in what was technically distant signal programming because it was retransmitted to a contiguous area.</P>
                    <P>With respect to the allocation for the Program Suppliers, the Bortz Survey evidence weighed more heavily than the regression evidence. Expert testimony showed that streaming services could substitute for retransmitted signals. This factor was not reflected in the regression evidence, but the Bortz Survey respondents, as cable industry executives, would have understood the factors affecting the value of Program Suppliers programming in much the same way as the testifying industry experts.</P>
                    <P>There is ample evidence in the record that SDC provides niche programming whose value is not so much determined by minutes, and might not show up well in regressions. Yet, the niche value of SDC has been reflected well in the Bortz Surveys received in this proceeding, and previously, and is reflected in relatively consistent numbers. Inasmuch as the allocations for SDC, by any parties' estimation, resulted in low numbers, one sees share allocations with relatively steep jumps or declines between years, but when compared to the overall allocations to be made, the variations are not great in absolute terms.</P>
                    <P>With respect to CCG, in general, the regressions examined the value of Canadian programming in detail, and were relied upon in making allocations. Yet, even the regression evidence was weighed carefully because although CCG had strength as a niche offering, it also overwhelmed some regressions, including the above-minimum-fee programming model. The Bortz Surveys were considered, but accorded no weight when arriving at the Basic Fund allocations because much Canadian programming is not taken into consideration, and the Bortz results were clearly off the mark.</P>
                    <P>Accordingly, the allocations are, as follows:</P>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                        <TTITLE>Table 2—Basic Fund Royalty Allocations</TTITLE>
                        <BOXHD>
                            <CHED H="1">Basic Fund</CHED>
                            <CHED H="1">2014</CHED>
                            <CHED H="1">2015</CHED>
                            <CHED H="1">2016</CHED>
                            <CHED H="1">2017</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">CCG</ENT>
                            <ENT>6.19</ENT>
                            <ENT>14.59</ENT>
                            <ENT>14.60</ENT>
                            <ENT>15.77</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">CTV</ENT>
                            <ENT>20.55</ENT>
                            <ENT>19.78</ENT>
                            <ENT>17.36</ENT>
                            <ENT>17.50</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">JSC</ENT>
                            <ENT>36.13</ENT>
                            <ENT>11.42</ENT>
                            <ENT>10.72</ENT>
                            <ENT>12.36</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Program Suppliers</ENT>
                            <ENT>21.21</ENT>
                            <ENT>28.29</ENT>
                            <ENT>25.53</ENT>
                            <ENT>23.29</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">PTV</ENT>
                            <ENT>11.07</ENT>
                            <ENT>19.18</ENT>
                            <ENT>24.78</ENT>
                            <ENT>25.25</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">SDC</ENT>
                            <ENT>4.85</ENT>
                            <ENT>6.74</ENT>
                            <ENT>7.01</ENT>
                            <ENT>5.83</ENT>
                        </ROW>
                    </GPOTABLE>
                    <PRTPAGE P="54258"/>
                    <P>With respect to the 3.75% fund, it is recognized that PTV is a nonparticipant. To arrive at the allocations for the 3.75% fund set forth in Table 1, the Judges have reallocated the PTV shares proportionally among the claimant categories that participated in that fund.</P>
                    <P>
                        The Register of Copyrights may review the Judges' Final Determination for legal error in resolving a material issue of substantive copyright law. The Librarian shall cause the Judges' Final Determination, and any correction thereto by the Register, to be published in the 
                        <E T="04">Federal Register</E>
                         no later than the conclusion of the 60-day review period.
                    </P>
                    <EXTRACT>
                        <P>Dated: April 17, 2024</P>
                        <FP>David R. Strickler,</FP>
                        <FP>
                            <E T="03">Copyright Royalty Judge.</E>
                        </FP>
                        <FP>Steve Ruwe,</FP>
                        <FP>
                            <E T="03">Copyright Royalty Judge.</E>
                        </FP>
                        <FP>David P. Shaw,</FP>
                        <FP>
                            <E T="03">Chief Copyright Royalty Judge.</E>
                        </FP>
                    </EXTRACT>
                    <P>The Register of Copyrights closed her review of this Determination on June 13, 2024, with no finding of legal error.</P>
                    <EXTRACT>
                        <P>Dated: June 13, 2024.</P>
                        <FP>David P. Shaw,</FP>
                        <FP>
                            <E T="03">Chief Copyright Royalty Judge.</E>
                        </FP>
                        <P>Approved by:</P>
                        <FP>Carla B. Hayden,</FP>
                        <FP>
                            <E T="03">Librarian of Congress.</E>
                        </FP>
                    </EXTRACT>
                    <HD SOURCE="HD1">ADDENDUM A</HD>
                    <HD SOURCE="HD1">Before the Copyright Royalty Judges</HD>
                    <HD SOURCE="HD1">The Library of Congress</HD>
                    <FP SOURCE="FP-1">
                        <E T="03">In re</E>
                         Distribution of Cable Royalty Funds
                    </FP>
                    <FP SOURCE="FP-1">Docket No. 16-CRB-0009 CD (2014-17)</FP>
                    <HD SOURCE="HD1">Public</HD>
                    <HD SOURCE="HD1">Order 46 Granting in Part and Denying in Part PTV's Motion for Rehearing and Denying JSC's Motion for Rehearing</HD>
                    <HD SOURCE="HD1">I. Procedural Background and Legal Standard</HD>
                    <HD SOURCE="HD2">a. Procedural Background</HD>
                    <P>On September 6, 2023, the Copyright Royalty Judges (“Judges”) issued their Initial Determination of Royalty Allocation (“Initial Determination” or “ID”) in the captioned proceeding (eCRB no. 28762).</P>
                    <P>On September 21, 2023, the Public Television Claimants (“PTV”) and the Joint Sports Claimants (“JSC”) filed motions for rehearing (eCRB nos. 30637 and 30638, respectively).</P>
                    <P>On September 25, 2023, the Judges issued Order 43, permitting written responses to the motions for rehearing by October 5, 2023.</P>
                    <P>On October 5, 2023, the Canadian Claimants Group (“CCG”), Program Suppliers (“PS” or “Program Suppliers”) and Settling Devotional Claimants (“SDC”) filed a Joint Response in Opposition to the Motions for Rehearing (eCRB no. 32670) (“Joint Response”).</P>
                    <P>On October 5, 2023, JSC and the Commercial Television Claimants (“CTV”) filed responses in opposition to PTV's Motion for Rehearing (eCRB nos. 32671 and 40001, respectively).</P>
                    <P>On October 5, 2023, PTV filed a Response in Opposition to JSC's Motion for Rehearing (eCRB no. 32673).</P>
                    <P>On October 10, 2023, the Judges issued Order 44, granting movants leave to file replies by October 19, 2023.</P>
                    <P>On October 19, 2023, JSC filed a reply in support of its motion for rehearing (eCRB no. 33842) and PTV filed a reply in support of its motion for rehearing (eCRB no. 33843).</P>
                    <HD SOURCE="HD2">b. Legal Standard</HD>
                    <P>
                        Pursuant to the Copyright Act, the Judges may grant a motion for rehearing in exceptional cases. 17 U.S.C. 803(c)(2). Applying this statutory “exceptional case” requirement, the Judges' regulations state that the movant must show that an aspect of the determination is “erroneous.” 
                        <E T="03">i.e.,</E>
                         “without evidentiary support in the record or contrary to legal requirements.” 37 CFR 353.1-.2.
                    </P>
                    <P>
                        In applying these statutory and regulatory standards, the Judges grant rehearing only “when (1) there has been an intervening change in controlling law; (2) new evidence is available; or (3) there is a need to correct a clear error or prevent manifest injustice.” 
                        <E T="03">See</E>
                         Order Granting in Part and Denying in Part Motions for Rehearing at 2 n.3, 
                        <E T="03">Determination of Royalty Rates and Terms for Making and Distributing Phonorecords (Phonorecords III),</E>
                         Docket No. 16-CRB-0003-PR (2018-2022) (Oct. 29, 2018) (citing Order Denying Motion for Reh'g at 1, 
                        <E T="03">Determination of Rates and Terms for Preexisting Subscription Services and Satellite Digital Audio Radio Services (SDARS I),</E>
                         Docket No. 2006-1 CRB DSTRA (Jan. 8, 2008) (applying federal district court standard under Fed. R. Civ. P. 59(e))). 
                        <E T="03">See also</E>
                         Order Granting in Part and Denying in Part Sirius XM's Motion for Rehearing and Denying Music Choice's Motion for Rehearing at 1-2, 
                        <E T="03">Determination of Royalty Rates and Terms for Transmission of Sound Recordings by Satellite Radio and “Preexisting” Subscription Services (SDARS III),</E>
                         Docket No. 16-CRB-0001 SR/PSSR (2018-2022) (Apr. 18, 2018) (“
                        <E T="03">SDARS III</E>
                         Order”) (same). Moreover, in the 
                        <E T="03">SDARS III</E>
                         Order, the Judges made clear what would not be sufficient to warrant rehearing: “A rehearing motion does not provide a vehicle `to re-litigate old matters, or to raise arguments or present evidence that could have been raised prior to the entry of judgment.' ” 
                        <SU>255</SU>
                        <FTREF/>
                          
                        <E T="03">Id.</E>
                         at 2 (quoting 
                        <E T="03">Exxon Shipping Co.</E>
                         v. 
                        <E T="03">Baker,</E>
                         554 U.S. 471, 485 n.5 (2008) (quoting C. Wright &amp; A. Miller, 
                        <E T="03">Federal Practice and Procedure</E>
                         § 2810.1 (2d ed. 1995))).
                        <SU>256</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>255</SU>
                             An attempt to re-litigate old matters, or to raise arguments or present evidence that could have been raised prior to the entry of judgment, is colloquially referred to as an improper attempt at “a second bite at the apple.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>256</SU>
                             In determining whether to grant motions for rehearing, the Judges have also previously relied on 
                            <E T="03">Fresh Kist Produce, LLC</E>
                             v. 
                            <E T="03">Choi Corp.,</E>
                             251 F. Supp. 2d 138, 140 (D.D.C. 2003), which involved a Rule 59(e) motion in a case relating to economic rights. 
                            <E T="03">See, e.g., SDARS III</E>
                             Order at 2, 7. In view of the facts in 
                            <E T="03">Fresh Kist,</E>
                             the district court held that “[a]lthough the court disapproves of parties raising arguments that they could have advanced earlier, the court recognizes that the interests of justice and fairness support reviewing the plaintiff's motion.” 
                            <E T="03">Fresh Kist,</E>
                             251 F. Supp. 2d at 141. Accordingly, the Judges recognize a tension between the proscription against using a rehearing motion to obtain a “second bite at the apple” and the need to prevent an unfairness that constitutes a “manifest injustice,” which can be addressed on a case-by-case basis.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">II. JSC'S Motion For Rehearing</HD>
                    <P>Pursuant to 17 U.S.C. 803(c)(2) and 37 CFR 353.1, JSC requests rehearing, arguing that the Judges' allocations must conform to the record evidence and the law by: “(1) correcting the Initial Determination's reliance on an outdated and unreliable version of the `McLaughlin adjustment' calculation; (2) adjusting JSC's 2014 share to align with the record evidence and the reasoning of the Initial Determination; and (3) eliminating reliance on a regression model for the 2015-17 time period that no witness endorsed and is at odds with the record evidence.” JSC Motion at 1.</P>
                    <HD SOURCE="HD2">a. JSC's Motion Is Deficient Because It Does Not State a Standard Under Which It Can Seek Rehearing</HD>
                    <P>
                        The JSC Motion fails to explicitly set forth a governing rehearing standard for the Judges to apply that would support the substantive arguments on which JSC seeks rehearing. As the Judges noted 
                        <E T="03">supra,</E>
                         a party may seek rehearing if (1) it demonstrates the existence of an “exceptional” case under the applicable statutory section, which, (2) by regulation, means that a party must show that the aspects of the determination identified by the movant were “erroneous,” pursuant to (3) specific grounds, such as, 
                        <E T="03">e.g.,</E>
                         “clear error” or “manifest injustice.” 
                        <SU>257</SU>
                        <FTREF/>
                         JSC 
                        <PRTPAGE P="54259"/>
                        does not express and apply these specific standards, let alone maintain that its arguments meet these standards.
                    </P>
                    <FTNT>
                        <P>
                            <SU>257</SU>
                             As also noted 
                            <E T="03">supra,</E>
                             a “negative” requirement for a proper rehearing motion is that the motion cannot simply attempt to relitigate matters that were addressed at the hearing (the so-called “no second bite at the apple” requirement) or to raise issues that the movant could have presented at the hearing but did not.
                        </P>
                    </FTNT>
                    <P>
                        The Judges should not have to 
                        <E T="03">guess</E>
                         at the standard on which a movant relies for seeking rehearing. Accordingly, the standardless nature of the JSC Motion renders it deficient on this basis alone.
                        <SU>258</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>258</SU>
                             JSC does cite 17 U.S.C. 803(c)(2) and 37 CFR 353.1, which provide parties with the right to seek rehearing, but those mere citations are not enough. The Motion must attempt to tie the movants' substantive arguments regarding the challenged aspects of the determination to specific rehearing standards. 
                        </P>
                        <P>
                            The Judges also note that JSC does attempt to tie its arguments to actual standards 
                            <E T="03">in its Reply.</E>
                             However, the Judges are highly reluctant to permit new arguments to be made for the first time in a Reply, because such delinquent assertions sandbag the adverse parties, who had already filed their permitted Responses and are unable to address the delinquent arguments in the Reply.
                        </P>
                        <P>
                            In any event, the Judges' discussion 
                            <E T="03">infra</E>
                             rejecting JSC's arguments makes it clear that, even had JSC made a timely attempt to identify allegedly applicable specified standards for rehearing and attempted to connect its factual arguments to those standards, the JSC Motion would nonetheless be denied (in part). (In this regard, the Judges note that, in its Reply, JSC cites the Judges' order in the 2010-13 allocation proceeding which noted the rehearing standard in 37 CFR 353.2, requiring a movant to state why it believes the determination is “without evidentiary support in the record or contrary to legal requirements.” JSC Reply at 2. JSC makes no allegation of legal error and, as discussed 
                            <E T="03">infra,</E>
                             there is abundant evidentiary support for the factual findings with which JSC takes issue.)
                        </P>
                    </FTNT>
                    <P>
                        Further, the Judges note that JSC sets forth an incorrect standard for consideration of requests for rehearing, by repeating three times that the Judges' adjustments were “arbitrary”. Motion at 8-10. However, that standard is an 
                        <E T="03">appellate standard,</E>
                         not a standard for rehearing. 
                        <E T="03">See, e.g., Hammond</E>
                         v. 
                        <E T="03">Reynolds Metals Co. Pension Plan for Hourly Emps.,</E>
                         2006 WL 8436765, at *2 (N.D. Ala. May 25, 2006) (holding that the “arbitrary and capricious” appellate standard of review is inapplicable to the court's “stringent standard” for consideration of a Rule 59(e) motion and “the judicial interest in finality of decisions . . . .”); 
                        <E T="03">Perrin</E>
                         v. 
                        <E T="03">Hartford Life Ins. Co.,</E>
                         2008 WL 11472191, at *2 (E.D. Ky. Mar. 24, 2008) (“the court finds that the defendant cannot attain arbitrary and capricious review of its decision. The court concludes that the defendant has failed to demonstrate appropriate grounds for relief under Rule 59(e)).
                        <SU>259</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>259</SU>
                             The paucity of cases in which a party even attempted to rely on the 
                            <E T="03">appellate</E>
                             issue of whether a decision was “arbitrary and capricious” is indicative of the inapplicability of that issue in the context of a Rule 59(e) type of motion. 
                            <E T="03">But see Arias</E>
                             v. 
                            <E T="03">DynCorp,</E>
                             752 F.3d 1011, 1016 (D.C. Cir. 2014) (“We have squarely held that a party must preserve an issue for appeal even if the only opportunity was a post-judgment motion.”); 
                            <E T="03">see also Jones</E>
                             v. 
                            <E T="03">Horne,</E>
                             634 F.3d 588, 603 (D.C. Cir. 2011) (same). The Judges perceive JSC's “arbitrary and capricious” arguments as potentially prophylactic measures intended to preserve this issue on appeal, rather than a proper basis for rehearing pursuant to statute, regulation, and the Judges' prior rulings regarding rehearing, which are expressly patterned on Fed. R. Civ. P. 59(e).
                        </P>
                        <P>
                            Further, JSC relies on a case which does not involve a Rule 59(e) motion, but rather addresses the standard by which the D.C. Circuit reviews a district court's entry of summary judgment. 
                            <E T="03">See N. Cent. Airlines, Inc.</E>
                             v. 
                            <E T="03">Cont'l Oil Co.,</E>
                             574 F.2d 582, 587 n.14 (D.C. Cir. 1978) (cited in Reply at 2). But in the same breath, JSC acknowledges the 
                            <E T="03">narrower</E>
                             Rule 59(e) standard. Reply at 2 (citing 
                            <E T="03">School for Arts in Learning Public Charter School</E>
                             v. 
                            <E T="03">Barrie,</E>
                             810 F. Supp. 2d 52, 55 (D.D.C. 2011) for the narrow standard, as “routinely” held by courts (and CRB Judges), that 
                            <E T="03">Rule</E>
                             59(e) motions are not vehicles for (1) rearguing facts and theories upon which a court has already ruled or (2) for raising new issues that could have been raised previously, and that such motions are disfavored and granted only upon a showing of “extraordinary circumstances”). Additionally, JSC relies on another case, 
                            <E T="03">Dyson</E>
                             v. 
                            <E T="03">Winfield,</E>
                             129 F. Supp. 2d 22 (D.D.C. 2001), in which the district court found an error regarding a question of law, rendering that decision inapposite. But again, the broader defect is that JSC afforded Respondents no opportunity to address the JSC Reply's application of these prior decisions.
                        </P>
                        <P>Accordingly, the Judges understand JSC's Reply as setting forth the same standards that the courts in the D.C. Circuit routinely apply to Rule 59(e) motions and, as stated in the prior footnote, consider the JSC Motion on that basis.</P>
                    </FTNT>
                    <P>
                        Despite the 
                        <E T="03">legal</E>
                         deficiency of JSC's “arbitrariness” argument as a basis for rehearing, in the interest of completeness, the Judges explain 
                        <E T="03">infra</E>
                         why JSC's substantive assertion that the adjustments were arbitrary is 
                        <E T="03">factually</E>
                         deficient.
                    </P>
                    <HD SOURCE="HD2">b. Whether the Judges' Initial Determination Relies on an Incorrect Version of the McLaughlin Adjustment</HD>
                    <P>
                        As JSC states in its pending motion, in the Initial Determination, the Judges relied in part on the Bortz Survey with the McLaughlin Adjustment, as the adjustment is found in Exhibit 3049. JSC Motion at 1-2 (citing ID at 177-78, 181, 197-98). JSC argues, however, that Exhibit 3049 is an “inaccurate version of the McLaughlin adjustment,” and reliance upon Exhibit 3049 reflects two separate errors. 
                        <E T="03">Id.</E>
                         at 1.
                    </P>
                    <P>
                        According to JSC, the first error is that Exhibit 3049 was an early, preliminary calculation of the “conventional McLaughlin adjustment,” as proposed in prior proceedings, that was subsequently updated in Exhibit 3105, and “[t]hus, as between Exhibit 3049 and 3105, Exhibit 3105 is the more accurate calculation of the McLaughlin adjustment.” 
                        <E T="03">Id.</E>
                         at 1-2. The second error, according to JSC, is that “Exhibit 3049, as well as Exhibit 3105, rely on royalty-based weighting that is economically inappropriate after the conversion of WGNA and the enormous increase in minimum fee systems.” 
                        <E T="03">Id.</E>
                         at 2. JSC argues that
                    </P>
                    <EXTRACT>
                        <P>Bortz subsequently implemented a revised weighting system (referred to as “base plus 3.75”) that takes account of the proliferation of minimum fee systems in 2015-17 by weighting based on what the CSO would have paid according to the system's distant signal usage absent the minimum fee. Use of royalty-based weighting for 2015-17 conflicts with the Judges' findings regarding minimum fee systems.</P>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         JSC further argues, “[i]f the Judges are relying on Bortz with the McLaughlin adjustment, they should use the version set forth in Exhibits 4001-4003, which applies base plus 3.75 weighting.” 
                        <E T="03">Id.</E>
                         Each of these two alleged errors (
                        <E T="03">i.e.,</E>
                         (1) using Exhibit 3049 rather than Exhibit 3105, and (2) not using a “base plus 3.75” adjustment supposedly set for in Exhibits 4001-4003) are further detailed separately in JSC's motion, and are addressed separately, as follows.
                    </FP>
                    <HD SOURCE="HD3">i. Whether Exhibit 3049 Is Outdated, and Should Not Be Used To Determine Shares</HD>
                    <HD SOURCE="HD3">1. Summary of the Parties' Arguments</HD>
                    <HD SOURCE="HD3">a. The JSC Motion</HD>
                    <P>In addition to the JSC arguments recounted above, specifically with respect to the use of Exhibit 3049, JSC argues:</P>
                    <EXTRACT>
                        <P>
                            Mr. Trautman prepared Exhibit 3049 in July 2020, roughly two years before he submitted testimony in this proceeding. 
                            <E T="03">See</E>
                             Tr. at 3142:22-3143:8, 3145:2-3146:11 (Trautman); Ex. 7100 (Trautman Corrected WDT). As Mr. Trautman testified, it takes an extensive period of time—well beyond when the surveys are fielded—for Bortz to obtain and evaluate the voluminous programming data presented in this proceeding. 
                            <E T="03">See</E>
                             Tr. at 2886:21-2887:9 (Trautman). That programming data is used in the Bortz results to project allocations to non-respondents according to programming carriage patterns. 
                            <E T="03">See</E>
                             Ex. 7101 (Corrected Bortz Report), at 29 (“Bortz projected non-respondent values based on signal carriage characteristics,” including “the carriage (or lack thereof) of JSC programming”). Thus, while the survey 
                            <E T="03">responses</E>
                             are not changed over time, the 
                            <E T="03">weighted results</E>
                             of the survey can be expected to become more accurate over time, as Bortz evaluates more comprehensive programming information.
                        </P>
                        <P>
                            Mr. Trautman performed, and JSC produced, “UPDATED” calculations of the weighted Bortz Survey results and “conventional McLaughlin adjustment” dated “1-21-21” which are different in small but significant respects from the July 2020 calculations. These “UPDATED” calculations are in the record at Exhibit 3105 and a copy is attached as Exhibit 1 hereto. 
                            <E T="03">See</E>
                             Tr. at 3099:12-21 (admitting Exhibit 3105).
                        </P>
                        <P>
                            There is no reasoned basis or record support for relying on the outdated, incorrect version of the “conventional McLaughlin adjustment” calculation in Exhibit 3049 given that an updated version is in the record 
                            <PRTPAGE P="54260"/>
                            at Exhibit 3105 and was cited to the Judges. Indeed, the proposed findings of fact of Public Television Claimants (“PTV”) cite to Exhibit 3105 (not Exhibit 3049) in presenting the “Proposed Shares” of PTV and JSC “Determined by Various Analyses of Relative Marketplace Value in 2014-17.” PTV Corrected PFF ¶ 12, Table 3 &amp; ¶ 43, Table 5. At a minimum, if the Judges are to rely on Mr. Trautman's calculation of the “conventional McLaughlin adjustment,” they should rely on the “UPDATED” calculation in Exhibit 3105.
                        </P>
                        <P>
                            The existing record supports the use of Exhibit 3105 rather than Exhibit 3049. However, if the Judges believe that additional information on this issue would be helpful, JSC respectfully requests that rehearing be granted to present additional evidence. Throughout the course of this proceeding, “[n]o party argue[d] that royalty fund allocations . . . should be made strictly according to the Bortz initial results subject to the McLaughlin adjustment,” and “no party had its expert calculate the McLaughlin adjustment . . . for presentation at the hearing.” Initial Determination at 178. As a result—while JSC vigorously argued that the McLaughlin adjustment should not be used in the abstract, 
                            <E T="03">see, e.g.,</E>
                             JSC Post-Hearing Br. at 65-68—JSC has not had an opportunity to present evidence on which specific version of that calculation is most accurate and reliable.
                        </P>
                    </EXTRACT>
                    <FP>JSC Motion at 2-4.</FP>
                    <HD SOURCE="HD3">b. The CCG, PS, and SDC Joint Response</HD>
                    <P>In their joint response, CCG, the Program Suppliers, and SDC oppose JSC's motion with respect to the McLaughlin Adjustment, arguing that merely because Exhibit 3049 was an “early” calculation that Mr. Trautman subsequently “updated” with a recalculation “does not by itself render the original version outdated or incorrect.” Joint Response at 4-5. Furthermore, they argue,</P>
                    <EXTRACT>
                        <P>JSC has only itself to blame for failing to explain away the earlier results or to advocate more forcefully for reliance on the later results, particularly considering that Mr. Trautman was specifically asked about Exhibit 3049 and his preparation of `other documents regarding potential adjustments and weights that would alter those shares' on cross-examination.</P>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         at 5 (citing 4/4/2023 Tr. 3142-3145 (Trautman)). Indeed, they argue that, contrary to JSC's assertion, nothing precluded JSC from “present[ing] evidence on which specific version of that calculation is most accurate and reliable.” 
                        <E T="03">Id.</E>
                         at 5 (quoting JSC Motion at 3-4). They argue, “[a]s the 
                        <E T="03">Initial Determination</E>
                         observes, `all parties knew that the Judges applied the McLaughlin [A]djustment to the Bortz Survey initial results in the 2004 and 2005 proceeding, as well as in the more recent 2010-2013 proceeding.' ” 
                        <E T="03">Id.</E>
                         (quoting ID at 178). According to CCG, the Program Suppliers, and SDC, “JSC was on notice and cannot use rehearing as a vehicle to present arguments or evidence that it could have raised prior to issuance of the 
                        <E T="03">Initial Determination. Exxon Shipping Co.,</E>
                         554 U.S. at 485 n.5.” 
                        <E T="03">Id.</E>
                    </FP>
                    <HD SOURCE="HD3">c. The PTV Response</HD>
                    <P>PTV argues that JSC and the other parties devoted considerable time and pages during the hearing and in post-hearing briefing to the question of the appropriate weighting for the Bortz Survey responses, and the Judges, having evaluated those arguments, reached a conclusion based on the evidence and the arguments. PTV argues that JSC's motion for rehearing “merely attempts to relitigate these issues, and now inappropriately advocates for yet another of its panoply of preferred weighting methodologies (another version of a `base plus 3.75' weighting scheme), among dozens of options that JSC's experts mined to identify shares that increased JSC's allocation.” PTV Response at 3 (citing Ex. 3039). PTV argues that JSC, apparently aware that its attempt to advance yet another weighting methodology does not meet the standard for rehearing,</P>
                    <EXTRACT>
                        <FP>argues alternatively (indeed, primarily) in favor of a more modest adjustment—that the Judges should use Exhibit 3105 rather than Exhibit 3049 as the most accurate calculation of the conventional McLaughlin-adjusted Bortz Survey results. While the differences between these two exhibits appear relatively small, the record lacks evidence supporting JSC's argument, and JSC had more than ample opportunity to introduce evidence during the hearing on this point but chose not to do so.</FP>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         Accordingly, PTV argues, rehearing is inappropriate under the well-established requirements for a motion for rehearing. 
                        <E T="03">Id.</E>
                    </FP>
                    <P>
                        Specifically with respect to Exhibit 3015, PTV argues that “[k]nowing that its broad arguments for re-weighting pursuant to a new methodology exceed what has typically been allowed on rehearing, JSC's more modest lead argument is that the Judges should rely on a purportedly `updated' calculation of the conventional McLaughlin [A]djustment. JSC's argument should be rejected because JSC failed to argue the point . . . .” 
                        <E T="03">Id.</E>
                         at 3. It is further asserted that
                    </P>
                    <EXTRACT>
                        <P>JSC failed to . . . introduce evidence supporting its argument prior to its motion for rehearing, despite ample opportunity to respond to Public Television's questioning at the hearing and arguments in its post-hearing briefing. JSC's request does not meet the rehearing standard because it seeks “to raise arguments or present evidence that could have been raised prior to the entry of judgment.”</P>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         at 3-4 (citing Order Denying Program Suppliers' Motion for Rehearing and Correcting 2012-13 Allocations for Certain Parties, Docket No. 14-CRB-0010-CD, at 1 (Dec. 13, 2018) (“2018 Rehearing Order”)). Indeed, PTV argues that during the hearing, Mr. Trautman was questioned extensively about Exhibit 3049, and Exhibit 3049 was the basis for Public Television's request, in the alternative, that the Judges use the McLaughlin-adjusted Bortz Survey results as the “royalty floor.” 
                        <E T="03">See id.</E>
                         at 4 (citing PTV PFFCL ¶ 208 &amp; n.327; PTV Post-Hearing Br. at 42-43 (citing PTV PFFCL ¶ 208 (depicting Ex. 3049))). PTV argues, “Despite these arguments, JSC chose not to introduce evidence regarding the relative accuracy of Exhibits 3105 and 3049, and chose not to challenge the figures in Exhibit 3049 until its rehearing motion.” 
                        <E T="03">See id.</E>
                         PTV observes,
                    </FP>
                    <EXTRACT>
                        <FP>[a]ccordingly, in the Initial Determination, the Judges noted that they were “referred to a chart taken from a spreadsheet prepared by Mr. Trautman, originally for Bortz Media's internal use (Ex. 3049 . . .),” and correctly observed that, “[f]ortunately, no party has challenged the figures contained therein as accurately reflecting application of the McLaughlin adjustment to the Bortz Survey initial results.” Initial Determination at 178. </FP>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         at 4.
                    </FP>
                    <P>
                        PTV argues that JSC belatedly asserts that Exhibit 3049 is an “outdated, incorrect version of the `conventional McLaughlin adjustment'” and that Exhibit 3105 is “an updated version.” 
                        <E T="03">Id.</E>
                         (quoting JSC Motion at 3). Yet, PTV argues, “There is no support in the record for this assertion. Nor is there support (or even any citation) for JSC's assertion that `the weighted results of the survey can be expected to become more accurate over time.' ” 
                        <E T="03">Id.</E>
                         Rather, it is argued, “there was substantial evidence that over time, Mr. Trautman attempted to develop a number of creative weighting schemes with the purpose of seeking to increase JSC's share, not to achieve more `accurate' results.” 
                        <E T="03">Id.</E>
                         at 4-5.
                    </P>
                    <P>
                        Finally, PTV argues that JSC is incorrect to argue that JSC lacked the opportunity to present evidence on which specific version of the conventional McLaughlin Adjustment is most accurate and reliable. 
                        <E T="03">Id.</E>
                         at 5. PTV argues that JSC “had ample opportunity to present evidence and argument on this issue, including during the extensive examination of Mr. Trautman regarding Exhibit 3049, or in response to Public Television's post-hearing submissions.” 
                        <E T="03">Id.</E>
                         It is argued that while JSC asserts that PTV cited to Exhibit 
                        <PRTPAGE P="54261"/>
                        3105 (not Exhibit 3049), such citation “was only in two illustrative comparison tables collecting various calculations by various witnesses, in order to show that all allocation methodologies showed an increase in Public Television's share, and a decline in JSC's shares.” 
                        <E T="03">Id.</E>
                         (citing PTV PFFCL ¶¶ 12, 13 &amp; tbls. 3, 5; PTV Post-Hearing Br. at 41-42). PTV argues that it “proposed that Exhibit 3049 could be used in the alternative as a `royalty floor.' 
                        <E T="03">See</E>
                         PTV PFFCL ¶ 208 &amp; n.327; PTV Post-Hearing Br. at 42-43. Public Television did not advocate for the adoption of Exhibit 3105 as a basis for share allocation.” 
                        <E T="03">Id.</E>
                         (footnote omitted).
                        <SU>260</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>260</SU>
                             In the footnote, PTV argues, “That said, the differences between Exhibit 3049 and Exhibit 3105 appear relatively small, although the record evidence does not explain the basis for those differences.” PTV Response at 5 n.1.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">d. The JSC Reply</HD>
                    <P>
                        In its reply, JSC reiterates that one reason Exhibit 3049 is incorrect is because it is an early, preliminary calculation that was updated in Exhibit 3105. JSC Reply at 5-6 (citing JSC Motion at 1-4). JSC argues that “[n]o party disputes that Exhibit 3105 is a more recent, `UPDATED' version of the calculation in Exhibit 3049”, or that “over time, Bortz incorporates more comprehensive programming information into its calculations.” 
                        <E T="03">Id.</E>
                         at 5. JSC argues the “Responding Parties' speculative attempts to justify reliance on Exhibit 3049 instead of Exhibit 3105 are contrary to the record.” 
                        <E T="03">Id.</E>
                         JSC argues that while the
                    </P>
                    <EXTRACT>
                        <FP>Joint Respondents posit that a “later” calculation “does not by itself render the original version outdated or incorrect” . . . Exhibit 3105 is not simply a “later” calculation; the record supports the conclusion that Exhibit 3105 is more accurate because it incorporates more comprehensive programming data to project allocations to non-respondents.</FP>
                    </EXTRACT>
                    <P>
                        <E T="03">Id.</E>
                         (citing, 
                        <E T="03">inter alia,</E>
                         JSC Motion at 2-3). JSC further argues that while PTV speculates that Mr. Trautman may have applied some creative weighting scheme with the purpose of seeking to increase JSC's share in Exhibit 3105, there is no evidence of that. 
                        <E T="03">Id.</E>
                         (citing PTV Resp. at 4-5). Rather, JSC argues, “Exhibit 3105 was created for Bortz's internal use, not to present a proposed share allocation in these proceedings.” 
                        <E T="03">Id.</E>
                         (citing 4/3/2023 Tr. 2881-2882 (Trautman)).
                    </P>
                    <HD SOURCE="HD3">2. Discussion</HD>
                    <P>
                        As addressed in the Initial Determination, the parties knew going into the hearing that the McLaughlin Adjustment, having been applied to Bortz surveys in the 2004 and 2005 allocation proceeding, and in the 2010-2013 allocation proceeding, would be relevant to the issues addressed during the allocation hearing for 2014-2017. 
                        <E T="03">See</E>
                         ID at 178. Indeed, during its opening argument, JSC expressed its disagreement with use of the McLaughlin Adjustment to allocate shares, particularly with respect to 2015 through 2017. 
                        <E T="03">See</E>
                         3/20/23 Tr. 69. JSC also knew that it had produced calculations found in Exhibits 3049 and 3105,
                        <SU>261</SU>
                        <FTREF/>
                         which showed that Mr. Trautman, JSC's witness from Bortz Media who sponsored the Bortz 2014-2017 surveys, had calculated the McLaughlin Adjustment for the 2014-2017 time period. 
                        <E T="03">See, e.g.,</E>
                         JSC Motion at 2-3; ID at 161. During Mr. Trautman's direct examination at the hearing, JSC asked Mr. Trautman questions about the McLaughlin Adjustment, including questions concerning the fact that he had performed the McLaughlin Adjustment, as follows:
                    </P>
                    <FTNT>
                        <P>
                            <SU>261</SU>
                             Exhibits 3049 and 3105 were received into evidence with no objection and no argument. 
                            <E T="03">See</E>
                             4/4/23 Tr. 3099.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>Q. * * * In the course of doing your work for 2014 to `17, did you ever run the McLaughlin adjustment?</P>
                        <P>A. Early on, I did, yes.</P>
                        <P>Q. Why did you do that?</P>
                        <P>A. Well, I was aware that some form of the McLaughlin adjustment had been applied in past proceedings, including in 2010 to `13, and so I was interested to see what the outcome would be if that were applied for 2014 to 2017.</P>
                        <P>Q. And if someone were to say: Well, the fact that Mr. Trautman ran the McLaughlin adjustment shows that it was his view that McLaughlin adjustment was appropriate, what would your response be?</P>
                        <P>A. That that's not the case at all. I was simply performing a calculation in order to see what the outcome would be. </P>
                    </EXTRACT>
                    <FP>4/3/2023 Tr. 2881-2882 (Trautman). Thus, Mr. Trautman testified that “[e]arly on” he performed “a calculation.”</FP>
                    <P>Subsequently, during the cross-examination of Mr. Trautman, PTV raised the fact that he calculated the McLaughlin Adjustment, as follows:</P>
                    <EXTRACT>
                        <P>Q. * * * Mr. Trautman, you did attempt to calculate the McLaughlin adjustment for the 2014 to `17 Bortz Survey results before you filed your written direct testimony in this proceeding, correct?</P>
                        <P>A. Yes. Early on in my review of 2014 to `17, I did prepare spreadsheets that calculated what the outcome of the McLaughlin adjustment would be or could be.</P>
                        <P>Q. So let's take a look at Exhibit 3049, which was produced as JSC 00081249. Mr. Trautman, you recognize Exhibit 3049 as one of your documents, correct?</P>
                        <P>A. Yes.</P>
                        <P>Q. And I'll represent to you that the last modified date on this document, as it was produced to us, is July 27th, 2020, nearly two years before written direct testimony was due in this case. Is that consistent with your recollection?</P>
                        <P>A. It is, yes.</P>
                        <P>Q. And there are two tables in Exhibit 3049, correct?</P>
                        <P>A. Correct.</P>
                        <P>Q. And the bottom table is titled “Weighted Bortz Survey Results By Year, 2014-`17 (After Conventional McLaughlin Adjustment).” Correct?</P>
                        <P>A. Correct.</P>
                        <P>Q. And the bottom—and in this table, PBS is identified in the first column at the top—well, in the first row at the top of the table, row 25, correct?</P>
                        <P>A. Correct.</P>
                        <P>Q. And there are columns labeled, from left to right, 2014, 2015, 2016, 2017, and average 2014 to `17, correct?</P>
                        <P>A. Correct.</P>
                        <P>Q. And in this table, you calculated PBS's share as 8.4 percent in 2014, 43.6 percent in 2015, 48.4 percent in 2016, and 48.2 percent in 2017, with a 37.1 percent average from 2014 to 2017, correct?</P>
                        <P>A. That's correct.</P>
                        <P>Q. And then let's go down to the next row the Sports share. The Sports share is listed as 39 percent in 2014, 12.7 percent in 2015, 12.2 percent in 2016 and 14.8 percent in 2017, with an average 2014-to-`17 share of 19.7 percent; is that correct?</P>
                        <P>A. Yes, it is.</P>
                        <P>Q. Now, after Bortz prepared this document that we just looked at—and we can take that down. And let me, I guess, rephrase that. I mean, I don't know whether you used the term “Bortz” or you interchangeably. I'm happy—do you have a preference in that, Mr. Trautman?</P>
                        <P>A. I really don't.</P>
                        <P>Q. Okay. Well, after you prepared the document we just looked at, you prepared other documents regarding potential adjustments and weights that would alter those shares, correct?</P>
                        <P>A. I recall that I did, yes. I don't recall a specific sequence or, you know, exactly which took place when in the sequence, but I did look at other ways of examining the issue. </P>
                    </EXTRACT>
                    <FP>4/4/2023 Tr. 3142-3145 (Trautman).</FP>
                    <P>As seen from the preceding transcript portion, the witness's attention, and the attention of the Judges, was directed exclusively to Exhibit 3049. On redirect, JSC did not conduct any examination to show that there was any error in Exhibit 3049 as a calculation of the McLaughlin Adjustment, or that it had been in any way updated or superseded, for example, by Exhibit 3015 or the calculations contained therein. In neither JSC's pending motion nor its reply is there any such citation to the hearing record.</P>
                    <P>
                        Given the hearing testimony concerning Exhibit 3049 and the McLaughlin Adjustment, it was not 
                        <PRTPAGE P="54262"/>
                        surprising that PTV relied on pertinent portions of Exhibit 3049 in its Proposed Finding of Fact (PTV PFF ¶ 208), The Judges expressly relied on this proposed factual finding in the Initial Determination. 
                        <E T="03">See</E>
                         ID at 177 (citing PTV PFF ¶ 208); 
                        <E T="03">see also</E>
                         PTV Post-Hearing Br. at 82. In its pending motion and reply, JSC has cited to no initial or reply filing in which it pointed out any particular error in Exhibit 3049.
                        <SU>262</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>262</SU>
                             In the Initial Determination, the Judges stated, “To see the figures obtained when the McLaughlin adjustment is applied to the Bortz Survey initial results at issue in this proceeding, the Judges are referred to a chart taken from a spreadsheet prepared by Mr. Trautman, originally for Bortz Media's internal use (Ex. 3049, duplicated above). Fortunately, no party has challenged the figures contained therein as accurately reflecting application of the McLaughlin adjustment to the Bortz Survey initial results . . . .” ID at 178.
                        </P>
                    </FTNT>
                    <P>Not even in the pending motion and reply has JSC shown that any data point contained in Exhibit 3049 is erroneous. Although Exhibit 3015 is labeled “UPDATED” and the data were calculated after the tables in Exhibit 3049, it cannot be presumed that Exhibit 3049 contains error.</P>
                    <P>The closest JSC has come to explaining why Exhibit 3105 should be considered “updated” appears only in its pending motion, in which JSC argues,</P>
                    <EXTRACT>
                        <FP>
                            it takes an extensive period of time—well beyond when the surveys are fielded—for Bortz to obtain and evaluate the voluminous programming data presented in this proceeding. 
                            <E T="03">See</E>
                             Tr. at 2886:21-2887:9 (Trautman). That programming data is used in the Bortz results to project allocations to non-respondents according to programming carriage patterns. 
                            <E T="03">See</E>
                             Ex. 7101 (Corrected Bortz Report) at 29 (“Bortz projected non-respondent values based on signal carriage characteristics,” including “the carriage (or lack thereof) of JSC programming”). Thus, while the survey responses are not changed over time, the weighted results of the survey can be expected to become more accurate over time, as Bortz evaluates more comprehensive programming information. 
                        </FP>
                    </EXTRACT>
                    <FP>JSC Motion at 2-3.</FP>
                    <P>
                        Consequently, only now after the hearing, JSC argues that Exhibit 3105 can be considered “updated” because when the tables in Exhibit 3105 were calculated, Bortz Media projected allocations for non-respondents differently than it had at the time that the tables in Exhibit 3049 were calculated. JSC refers to such differences as “small but significant.” 
                        <E T="03">Id.</E>
                         at 3. Yet, inasmuch as JSC's citation to a documentary exhibit is general in nature and does not reference Exhibit 3105 and the calculation contained herein, and further JSC did not examine Mr. Trautman about his McLaughlin Adjustment calculations at the hearing (even after the relevant cross-examination by PTV), there is no way to determine whether JSC's belated characterization of Exhibit 3105 is accurate, and that the data contained therein is accurate.
                    </P>
                    <P>
                        In its pending motion, JSC argues, “the proposed findings of fact of Public Television Claimants (`PTV') cite to Exhibit 3105 (not Exhibit 3049) in presenting the `Proposed Shares' of PTV and JSC `Determined by Various Analyses of Relative Marketplace Value in 2014-17.' PTV Corrected PFF ¶ 12, Table 3 &amp; ¶ 43, Table 5.” JSC Motion at 3; 
                        <E T="03">see</E>
                         JSC Reply at 8. That argument does not portray the full picture. PTV cited expressly to Exhibit 3105 in its Proposed Finding of Fact ¶ 12, in a string cite showing support for a table it created to illustrate proposed share allocations resulting from seven proposed methodologies. 
                        <E T="03">See</E>
                         PTV PFF ¶ 12; 
                        <E T="03">see also</E>
                         PTV PFF ¶ 43 (table with citation to Ex. 3105). Yet, as already discussed, PTV cited, and reproduced a table from, Exhibit 3049 in its Proposed Finding of Fact. 
                        <E T="03">See</E>
                         PTV PFF ¶ 208. Furthermore, PTV cited to Exhibit 3049 (rather than Exhibit 3105) in a table found in the PTV initial post-hearing brief, and again cited to Exhibit 3049 (via PTV PFF ¶ 208) when making its substantive argument concerning a “relative value floor” for PTV. 
                        <E T="03">See</E>
                         PTV Post-Hearing Br. at 15, 42-43. None of the citations made by PTV in its post-hearing brief and proposed findings clarify or contextualize the content of Exhibit 3105, or, more importantly, diminish the weight the Judges were able to accord to Exhibit 3049.
                        <SU>263</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>263</SU>
                             The Judges also remain concerned by the fact that Mr. Trautman twice stated in his testimony in this proceeding that he initially generated a version of the original McLaughlin Adjustment “to see what the outcome would be.” 4/3/2023 Tr. 2881-2882 (Trautman). But an expert generating his prior preferred approach in order “to see what the outcome would be” (here, what the allocations would be) undermines his role as an objective expert, who should first identify the elements of his or her methodology and then disclose—for better or worse—the results of that action. Here, Mr. Trautman acknowledged that he ran his prior McLaughlin Adjustment “to see what the outcome would be” and then abandoned it in favor of making other adjustments (increasing the JSC share), which, as PTV stated, indicates that “Mr. Trautman . . . embarked on a multi-year quest `to conjure up' additional adjustments.” Initial Determination at 176. Indeed, Mr. Trautman's sequential modeling of the McLaughlin Adjustment resembles the revisionary work of other experts, which the Judges criticized as evidencing improper “searches” for an allocation model that would increase the allocations of the parties by whom they were engaged. 
                            <E T="03">See</E>
                             Initial Determination at 39 &amp; n.45 (“Also troubling was the fact that, over a prolonged period, successive testing by [the expert] was highly correlated with a steady rise in PTV's allocation shares” . . . “[T]he Judges are concerned with whether the evidence suggests that experts may have engaged in any inappropriate or questionable acts in the course of attempting to maximize the return to the party on whose behalf they give testimony.”).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">ii. Whether Use of the McLaughlin Adjustment Requires Base Plus 3.75 Weighting Rather Than Royalty-Based Weighting</HD>
                    <HD SOURCE="HD3">1. Summary of the Parties' Arguments</HD>
                    <HD SOURCE="HD3">a. The JSC Motion</HD>
                    <P>In addition to the JSC arguments recounted above, specifically with respect to the use of base plus 3.75 weighting, JSC argues:</P>
                    <EXTRACT>
                        <P>There is a second, independent issue concerning the Judges' application of the McLaughlin adjustment. Both Exhibit 3049 (the outdated version) and Exhibit 3105 (the updated version) use royalty-based weighting. However, after creating these exhibits, Mr. Trautman determined that royalty-based weighting is not appropriate for 2015-17 due to the overwhelming number of minimum fees systems. Mr. Trautman subsequently ran the Bortz results with the McLaughlin adjustment using the revised base plus 3.75 weighting, as set forth at Exhibits 4001-4003. If the Judges are relying on the Bortz Survey with the McLaughlin adjustment, they should use this version that applies base plus 3.75 weighting rather than royalty-based weighting.</P>
                        <P>
                            As Mr. Trautman and Dr. Majure testified, use of royalty-based weighting improperly skews the survey calculations by giving inordinate weight to minimum fee systems that typically did not even use their full minimum fee budget. 
                            <E T="03">See</E>
                             JSC PFOF ¶ 302. The Judges similarly concluded that decisions by minimum fee systems during the 2015-17 period are not probative of relative market value. 
                            <E T="03">See</E>
                             Initial Determination at 129 &amp; n.155 (“[T]hese [minimum-fee-paying] CSO decisions do not provide the Judges with any useful information regarding the relative value of the retransmittal of the various programming categories . . . .”).
                        </P>
                        <P>
                            The Initial Determination explains that in “2015-2017, the overwhelming percentage of CSOs pay only the minimum fee, and the vast majority of section 111 royalties are generated by those minimum-fee-paying CSOs.” 
                            <E T="03">Id.</E>
                             at 134. The Initial Determination likewise discusses how both the regression and survey methodologies changed (or should have changed) to account for the “dramatic increase in the number of minimum-fee only” systems in these years. 
                            <E T="03">See, e.g., id.</E>
                             at 21-22, 167 n.206. As relevant here, the Bortz Survey methodology “changed to weight the results based on the Base-plus-3.75 fees attributable to the actual signal carriage of the Form 3 systems, and to apply the results using signal carriage-based fee calculations rather than actual royalties paid.” 
                            <E T="03">Id.</E>
                             at 167 n.206. This change in the weighting was necessary to avoid “ `introduc[ing] a distortion, by giving excessive weight to systems with large Minimum Fee payments even when they have chosen to carry very little distant signal programming.' ” JSC Post-Hearing Br. at 56 
                            <PRTPAGE P="54263"/>
                            (quoting testimony of Dr. Majure). No party disputed the propriety of Bortz's new weighting approach, nor is it questioned in the Initial Determination.
                        </P>
                        <P>
                            Bortz developed its revised base plus 3.75 weighting approach over time, after recognizing that there were many more CSOs paying the minimum fee in 2015-17. 
                            <E T="03">See</E>
                             Tr. at 3149:11-3151:11 (Trautman). The first calculation in the record using an early version of the revised weighting approach (initially only applied to PTV-only systems) was performed in June 2021. 
                            <E T="03">See</E>
                             Ex. 3048; Tr. at 3147:19-3149:5 (Trautman). The “conventional McLaughlin adjustment” calculations in Exhibits 3105 and 3049 predate that change, 
                            <E T="03">see supra</E>
                             at pp. 2-3, instead applying the historical, royalty-based weighting that undisputedly distorts the results, making them unreliable for 2015-17.
                        </P>
                        <P>
                            The record contains more recent calculations of the McLaughlin adjustment for the years 2015-17 applying the corrected, base plus 3.75 weighting. These calculations are part of the Bortz Survey data that JSC produced in connection with Mr. Trautman's written direct testimony. 
                            <E T="03">See</E>
                             Ex. 4001, “2015 Data File” at Rows 588-590, Columns W-AD (showing “Adjusted Royalties” after “PTV/Canadian Adjustment” for 2015); Ex. 4002, “2016 Data File” at Rows 573-575, Columns W-AD (same for 2016); Ex. 4003, “2017 Data File” at Rows 571-573, Columns W-AD (same for 2017); 
                            <E T="03">see also</E>
                             Tr. at 4792:7-4793:20 (Carbert) (identifying and admitting Exhibits 4000-4003). These calculations are the most accurate and reliable version of the McLaughlin adjustment in the record, on which the Judges should rely to the extent they give weight to the adjustment. A table setting forth the relevant results from Exhibits 4001-4003 is attached as Exhibit 2 hereto.
                        </P>
                        <P>
                            If the Judges conclude that identifying the correctly weighted McLaughlin adjustment calculation requires further information, JSC respectfully requests that the Judges grant rehearing to present additional evidence on the issue. In the post-hearing briefing, JSC raised the problem of royalty-based weighting in the “conventional McLaughlin adjustment” calculation in response to PTV's citation to Exhibits 3049 and 3105. 
                            <E T="03">See</E>
                             JSC Post-Hearing Reply Br. at 62 (“[B]lindly applying the McLaughlin adjustment as it was proposed in prior proceedings, PTV argues that it should be attributed . . . 100% of all of those royalties, massively inflating its share . . . . PTV overlooks that almost all PTV Only CSOs were paying the Minimum Fee in 2015-17, so their substantial royalty payments have nothing to do with their distant signal usage.”). However, because PTV first embraced this calculation in its post-trial briefing, without having previously offered any witness who endorsed it, JSC did not have an opportunity to directly address the reliability of the calculation through its own witnesses.
                        </P>
                    </EXTRACT>
                    <FP>
                        JSC Motion at 4-6 (footnote omitted).
                        <E T="51">264</E>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>264</SU>
                             JSC argues, “With proper weighting, the Bortz Survey results with the McLaughlin adjustment estimate shares for PTV that are within 4 percentage points of the Judges' final award to PTV in each year 2015-17.” JSC Motion at 6 n.1.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">b. The CCG, PS, and SDC Joint Response</HD>
                    <P>
                        As discussed above, CCG, Program Suppliers, and SDC argue that “coming up with a different calculation or weighting system later does not by itself render the original version outdated or incorrect.” Joint Response at 4-5. Furthermore, they argue, JSC was on notice that the McLaughlin Adjustment was relevant to the hearing, “and cannot use rehearing as a vehicle to present arguments or evidence that it could have raised prior to issuance of the 
                        <E T="03">Initial Determination.” Id.</E>
                    </P>
                    <HD SOURCE="HD3">c. The PTV Response</HD>
                    <P>PTV argues:</P>
                    <EXTRACT>
                        <P>
                            In a transparent overreach that is plainly improper on a motion for rehearing, JSC now argues for yet another alternative weighting methodology for the Bortz Survey that purportedly uses a “base plus 3.75” weighting scheme. JSC never presented this calculation on its own as a potential allocation methodology during the proceeding. The two Bortz adjustments that JSC actually did choose to advocate in the hearing were fully vetted in written testimony, at the hearing, and in post-hearing submissions, and the Judges ultimately rejected them. JSC had every opportunity to also present this calculation of the McLaughlin adjustment with “base plus 3.75” weighting, and chose not to do so. JSC's request accordingly must be denied. 
                            <E T="03">See</E>
                             2018 Rehearing Order at 7.
                        </P>
                    </EXTRACT>
                    <FP>PTV Resp. at 5-6.</FP>
                    <P>PTV argues that while JSC acknowledges that Mr. Trautman originally focused on the conventional McLaughlin-adjusted Bortz Survey results, he</P>
                    <EXTRACT>
                        <FP>argues that he later preferred alternative weighting methods, including various versions of a “base plus 3.75 weighting” for which JSC now belatedly advocates. JSC Motion for Reh'g at 4. In fact, Mr. Trautman testified that, after initially calculating the conventional McLaughlin adjustment, he spent years testing multiple adjustments and weights, including those that specifically singled out Public Television, to reduce Public Television's shares from those that result from the conventional McLaughlin Adjustment.</FP>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         at 6 (citing PTV PFF ¶ 209; Tr. 3142-3154 (Trautman); Exs. 3048, 3049) (footnote omitted).
                        <SU>265</SU>
                        <FTREF/>
                         PTV argues that, “[c]ontrary to JSC's suggestion, there is no reason to believe that Mr. Trautman's weighting innovations became more reliable over time, as they appear to have been focused instead on achieving his results-oriented purpose of reducing Public Television's shares as generated by the conventional McLaughlin adjustment.” 
                        <E T="03">Id.</E>
                         (citing PTV PFF ¶¶ 208-13).
                    </FP>
                    <FTNT>
                        <P>
                            <SU>265</SU>
                             In the omitted footnote, PTV's response directs the reader to representative portions of the hearing transcript. 
                            <E T="03">See</E>
                             PTV Response at 6 n.2 (“Tr. 3150:15-20 (Q. `[T]he analysis there would have applied the McLaughlin adjustment but then would have weighted systems that carried only Public Television distant signals differently from all the other systems? Is that Right?' A. `My recollection is that's correct.'); Tr. 3153:4-14 (Q. `So you then considered other adjustments that could be combined with the new weighting approach, correct?' A. `Broadly, I think that's correct.' Q. `Those included assigning various values of less than 100 percent to Public Television for systems that carried only Public Television distant signals, right?' A. `Well, certainly my two adjustments do employ that approach based on the particular characteristics of some of the PTV-only systems.')”).
                        </P>
                    </FTNT>
                    <P>Moreover, PTV argues,</P>
                    <EXTRACT>
                        <FP>[t]he “base plus 3.75” weighting is inconsistent with the weighting principles that undergirded the McLaughlin-adjusted Bortz Survey in prior proceedings. The Bortz Surveys ask respondents to value only the signals that their CSOs actually distantly carried, and instruct that the sum of the values must equal 100%. As a result, the conventional McLaughlin Adjustment reflects the only possible response when a CSO distantly carried only Public Television signals: 100% to Public Television.</FP>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         at 6-7. Further, specifically with regard to the weighting of the McLaughlin-adjusted Bortz Survey results, it is argued,
                    </FP>
                    <EXTRACT>
                        <P>Mr. Trautman testified unequivocally in the 2010-13 proceeding that weighting by total royalties was the correct approach—even as to PTV-only systems, which by definition were almost always “minimum-fee systems.” When asked, “But in your view . . . , the McLaughlin-Blackburn augmentation of the Bortz survey assures that an appropriate weight is applied to the PTV-only systems; correct[?],” Mr. Trautman said, “Yes, it considers the systems in the context of royalties, the total royalties that they pay.”</P>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         at 7 (citing Ex. 7043 at 551 (2010-13 Trautman Oral Testimony)). Accordingly, PTV observes,
                    </FP>
                    <EXTRACT>
                        <FP>
                            the Initial Determination rejected JSC's proposed adjustment that would have assigned less than 100% of the value to Public Television. Initial Determination at 180; 
                            <E T="03">see also id.</E>
                             at 178-79 (“Inasmuch as PTV-only systems are still not surveyed by Bortz Media, and there is no empirical evidence to show how PTV-only systems value PTV distant signals, there is no cause now to discard the McLaughlin adjustment . . . . The McLaughlin adjustment has always been presented as a 100-percent or nothing approach, and the Judges can take that characteristic into consideration.”).
                        </FP>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         at 7.
                    </FP>
                    <HD SOURCE="HD3">d. The JSC Reply</HD>
                    <P>
                        In its reply, JSC argues against using Exhibit 3049 or Exhibit 3105 “because they use incorrect, royalty-based weighting.” JSC Reply at 6. JSC further argues that its “witnesses explained at the hearing that royalty-based weighting 
                        <PRTPAGE P="54264"/>
                        would improperly skew the survey calculations in the 2015-17 period due to the overwhelming number of minimum fee systems.” 
                        <E T="03">Id.</E>
                         (citing JSC Motion at 4). JSC also seeks to analogize to the Judges' analysis of the regression evidence, arguing that,
                    </P>
                    <EXTRACT>
                        <FP>
                            in the context of the regression analyses, the Judges similarly recognized that the increase in minimum fee systems during the 2015-17 period required methodological changes. Initial Determination at 21-22. Accordingly, Bortz revised its methodology to use base plus 3.75 weighting. JSC Mot. at 4. Calculations of the McLaughlin adjustment for the years 2015-17 applying the corrected, base plus 3.75 weighting are in the record at Exhibits 4001-4003. 
                            <E T="03">Id.</E>
                             at 5-6.
                        </FP>
                    </EXTRACT>
                    <FP>Id.</FP>
                    <P>JSC argues, </P>
                    <EXTRACT>
                        <P>None of the Responding Parties opposed Bortz's change to base plus 3.75 weighting during the proceeding (indeed, SDC and PTV affirmatively bolstered it), and none of them can explain why the reliance on royalty-based weighting in Exhibit 3049 is anything but clear error. The Joint Respondents do not address the issue at all.</P>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         (footnote omitted).
                    </FP>
                    <P>JSC argues that PTV, </P>
                    <EXTRACT>
                        <FP>
                            lacking any evidence from 
                            <E T="03">the 2014-17 proceeding,</E>
                             attempts to rely on testimony from the 
                            <E T="03">2010-13 proceeding</E>
                             supporting royalty-based weighting. 
                            <E T="03">See</E>
                             PTV Resp. at 6-7. But the difference between this proceeding and the last one is critical: royalty-based weighting became a problem in 2015-17 when, as the Judges found, there was a `dramatic increase in the number of minimum-fee only' systems. Initial Determination at 21. Testimony that royalty-based weighting was appropriate in 2010-13 does not support its use in the changed landscape of 2015-17.
                        </FP>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         at 6-7.
                    </FP>
                    <P>In addition, JSC argues in its reply that it was diligent, and </P>
                    <EXTRACT>
                        <FP>
                            promptly objected to PTV's belated embrace of the McLaughlin adjustment with royalty-based weighting when it first arose in post-hearing briefing. 
                            <E T="03">See</E>
                             JSC Post-Hearing Reply Br. at 62. Nothing in the rehearing standard, or common sense, justifies requiring a party to spend its limited hearing time and briefing space clarifying the most accurate version of each un-endorsed calculation that comes up, particularly where, as here, the alternative calculations presented for even a single base regression numbered in the hundreds.
                        </FP>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         at 7.
                    </FP>
                    <P>
                        JSC argues, with respect to the cross-examination of Mr. Trautman, that “pointing a witness to his own alternative calculation is a common form of criticizing a methodology, not an affirmative endorsement of the alternative,” and with respect to PTV's citations, JSC argues, 
                        <E T="03">inter alia,</E>
                         “JSC had no reason to argue for the use of Exhibit 3105 over Exhibit 3049 because PTV's average share does not meaningfully differ between the two exhibits (only the shares of the other parties do).” 
                        <E T="03">Id.</E>
                         at 7-8.
                    </P>
                    <P>JSC argues,</P>
                    <EXTRACT>
                        <P>The implausible degree of foresight that the Joint Respondents and PTV would demand of any party seeking rehearing is well beyond anything necessary to deter parties from “re-litigat[ing] old matters” or raising new arguments out of time. PTV Response at 2 &amp; Joint Response at 2. Rather, denying rehearing on this record would incentivize parties to disguise their intent to rely on a specific calculation as long as possible, so as to immunize that calculation from the full adversarial vetting process.</P>
                    </EXTRACT>
                    <FP>
                        <E T="03">Id.</E>
                         at 8-9.
                    </FP>
                    <HD SOURCE="HD3">2. Discussion</HD>
                    <P>
                        As an initial matter, the proposed adjustment contained in JSC's Motion Exhibit 2 (derived from Exs. 4001-4003) would, as indicated in the pending motion, apply only to the Bortz survey results for 2015 through 2017. Thus, the adoption of JSC's Motion Exhibit 2 would leave unanswered any questions pertaining to the McLaughlin Adjustment for 2014. In any event, the underlying problem that gives rise to the McLaughlin Adjustment, and all other adjustments advanced by the parties, is in the way that the Bortz surveys exclude certain PTV and Canadian signals. While the problem should not be overstated, the Bortz surveys contain downward biases with respect to relevant PTV and Canadian programming. 
                        <E T="03">See</E>
                         ID at 168. The McLaughlin Adjustment has been recognized as an adjustment, or augmentation, that helps to remedy bias in the Bortz methodology but may do so on an imprecise basis. 
                        <E T="03">Id.</E>
                         at 168, 179. There is no indication that any adjustment exists that compensates completely for weakness in the design of the Bortz surveys.
                    </P>
                    <P>With respect to JSC's newly advanced adjustment, there is no indication in JSC's pending motion and reply that the adjustment derived from Exhibits 4001-4003 was the subject of hearing testimony. Indeed, the available details surrounding the calculations made therein, and condensed in JSC's Motion Exhibit 2, remain scant. JSC argues, “because PTV first embraced this [McLaughlin] calculation in its post-trial briefing, without having previously offered any witness who endorsed it, JSC did not have an opportunity to directly address the reliability of the calculation through its own witnesses.” JSC Motion at 6. Yet, this argument is unavailing for several reasons. As discussed above, all parties knew that the McLaughlin Adjustment would be at issue in the hearing. JSC even addressed the McLaughlin Adjustment in its opening argument, and later during the direct examination of its witness Mr. Trautman. As JSC expected, PTV cross-examined Mr. Trautman on the McLaughlin Adjustment, yet without corresponding redirect by JSC.</P>
                    <P>
                        Moreover, JSC did not need to wait, nor did it wait, to find out what PTV would say in its post-hearing filings in order to set forth JSC arguments and evidence concerning adjustments to the Bortz survey results, including its own proposed adjustments. Indeed, during the hearing, JSC presented evidence with respect to its proposed “Adjustment One” and “Adjustment Two,” which were discussed at length in the Initial Determination.
                        <SU>266</SU>
                        <FTREF/>
                          
                        <E T="03">See, e.g.,</E>
                         ID at 170-180. One feature of the adjustments proposed by JSC was that Bortz Media weighted the results based on base-plus-3.75 fees attributable to the distant signals actually carried by the PTV-only systems. 
                        <E T="03">See id.</E>
                         at 170, 171. Aside from the substantive deficiencies in this alternative adjustment, it is not appropriate for JSC to use the rehearing process to advance this argument, when it could have (and should have) been articulated during the hearing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>266</SU>
                             In view of the hearing that JSC has already received, PTV argues that “the Judges should deny JSC's motion for rehearing, to the extent that the prospective rehearing would rehash which weighting methodology should be applied to the Bortz Surveys . . . .” PTV Response at 10.
                        </P>
                    </FTNT>
                    <P>
                        In addition, JSC's motion fails to adequately address the fact that in the Initial Determination, the Judges already recognized strengths and weaknesses of the Bortz surveys, particularly after application of the conventional McLaughlin Adjustment. 
                        <E T="03">See, e.g., id.</E>
                         at 178 (“The application of the McLaughlin adjustment to the initial Bortz results for the years now at issue, 2014 through 2017, is relevant, and the adjusted results . . . should be given varied weight, depending on whether one is considering the adjusted results for 2014, or for 2015 through 2017.”); 
                        <E T="03">id.</E>
                         at 179 (“To the extent that one would specifically exclude Must Carry signals, such as in a regression analysis, the fact that the McLaughlin adjustment is applied to Must Carry signals diminishes the value of such adjusted Bortz results when making a comparison to such other evidence that devalues Must Carry signals.”); 
                        <E T="03">id.</E>
                         at 180 (“no party, not even PTV, argues that the Bortz Survey with the McLaughlin adjustment is the best methodology of record for arriving at an allocation for 2015-2017”). Having reviewed all adjustments proposed by the parties during the hearing, the 
                        <PRTPAGE P="54265"/>
                        Judges determined, “the McLaughlin adjustment, provided one understands its aforementioned limitations, is most helpful among the proposed adjustments in understanding the Bortz results.” 
                        <E T="03">Id.</E>
                         at 181. Consequently, in allocating shares, the Judges made judicious use of the Bortz surveys (with the McLaughlin Adjustment), in some instances according the Bortz survey evidence no weight at all. 
                        <E T="03">Id.</E>
                         at 197-98.
                    </P>
                    <HD SOURCE="HD3">
                        iii. Conclusion Concerning the McLaughlin Adjustment and the Request for Rehearing 
                        <E T="01">
                            <SU>267</SU>
                        </E>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>267</SU>
                             JSC's argument, noted 
                            <E T="03">supra,</E>
                             seeking to justify rehearing by analogy to the Judges' analysis of the impact of the Minimum Fee CSOs on the regression methodology, is discussed separately, 
                            <E T="03">infra.</E>
                        </P>
                    </FTNT>
                    <P>
                        For the reasons detailed above, the Judges find that it has not been shown that an exceptional case exists, and that an aspect of the Initial Determination is erroneous due to its reliance on Exhibit 3049 and data contained therein. The movant for rehearing, JSC, has not demonstrated that aspects of the determination relating to the McLaughlin Adjustment and Exhibit 3049 are without evidentiary support in the record or are contrary to legal requirements. In that regard, it has not been shown that there is a need to correct a clear error or to prevent manifest injustice with respect to the Initial Determination's cautious use of the Bortz surveys with the McLaughlin Adjustment. Rather, a review of the parties' filings and relevant portions of the hearing record shows that evidence concerning Exhibit 3049 went unrebutted during the hearing, and there is no reason to disturb the hearing record or the findings of the Initial Determination in favor of another exhibit or exhibits (and other calculations contained therein) as to which there is less evidentiary support, whether that be Exhibit 3015 or JSC's newly advanced adjustment as summarized in JSC's Motion Exhibit 2. Furthermore, other approaches to adjustment or augmentation of the Bortz Survey results were presented by JSC during the hearing. It has not been shown that it is necessary or appropriate to rehear any portion of the case with respect to yet another proposed adjustment. As the Judges noted 
                        <E T="03">supra,</E>
                         the rehearing process cannot be utilized to obtain a “second bite at the apple,” 
                        <E T="03">i.e.,</E>
                         to re-litigate old matters or to raise arguments or present evidence that could have been raised prior to the entry of judgment.
                    </P>
                    <P>Consequently, JSC's motion for rehearing with respect to reliance on the McLaughlin Adjustment is denied.</P>
                    <HD SOURCE="HD3">c. Whether JSC's Share for 2014 Is Inconsistent With the Record Evidence and the Reasoning of the Initial Determination</HD>
                    <HD SOURCE="HD3">i. Introduction</HD>
                    <P>
                        As explained above, it is clear that in the Initial Determination the Judges appropriately and sufficiently considered—and rejected—JSC's proffered alternative adjustments to the Bortz Survey. JSC's request for rehearing as to this issue is properly dismissed, as indicated 
                        <E T="03">supra,</E>
                         as an attempt to relitigate the issue, 
                        <E T="03">i.e.,</E>
                         a violation of the “second bite at the-apple” proscription.
                    </P>
                    <P>
                        However, JSC also argues something else—that rehearing is required because, according to JSC, the Judges erred in the Initial Determination by applying the Minimum Fee issue differently to the survey methodology than they did to the regression methodology.
                        <SU>268</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>268</SU>
                             This specific argument cannot be rejected under the “second bite at the apple” proscription because JSC's claim of inconsistency is based on a comparison of two aspects of the Initial Determination. However, as explained 
                            <E T="03">infra,</E>
                             this argument fails to support JSC's request for rehearing for other reasons.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">ii. The Parties' Positions</HD>
                    <HD SOURCE="HD3">1. The JSC Motion</HD>
                    <P>To put JSC's “inconsistency” argument in context, it is helpful to begin by taking note of the basic argument in JSC's Motion regarding the alleged effect of Minimum Fee royalty payments on the Bortz Survey results. In this regard, JSC maintains the following:</P>
                    <EXTRACT>
                        <P>
                            [R]oyalty-based weighting is not appropriate for 2015-17 due to the overwhelming number of minimum fees systems. . . . [U]se of royalty-based weighting improperly skews the survey calculations by giving inordinate weight to minimum fee systems that typically did not even use their full minimum fee budget. . . . As relevant here, the Bortz Survey methodology changed to weight the results based on the Base-plus-3.75 fees attributable to the actual 
                            <SU>269</SU>
                            <FTREF/>
                             signal carriage of the Form 3 systems, and to apply the results using signal carriage-based fee calculations rather than actual royalties paid.
                        </P>
                        <FTNT>
                            <P>
                                <SU>269</SU>
                                 JSC's use of the word “actual” here is misleading, in the manner previously described by the Judges. 
                                <E T="03">See</E>
                                 Initial Determination at 69 n.79 (“The word “actual” in this context is rather Orwellian. For the 2015-2017 period, a substantial majority of the CSOs in which the subscriber groups are situated “actually” paid the minimum fee. A Base Fee was “actually” calculated, as required by the regulations, but 
                                <E T="03">not “actually” paid,</E>
                                 because the Minimum Fee bound. . . . [M]isleading semantic use of the adjective “actual” does not assist the Judges in deciding whether any or all of the Base Fee calculations have objective evidentiary weight. . . .”).
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>. . .</FP>
                    <EXTRACT>
                        <P>This change in the weighting was necessary to avoid “ `introduc[ing] a distortion, by giving excessive weight to systems with large Minimum Fee payments. . . .' ”</P>
                    </EXTRACT>
                    <FP>JSC Motion at 4-5 (citations omitted).</FP>
                    <P>
                        But, as noted 
                        <E T="03">supra,</E>
                         the JSC Motion also maintains something more than an error occurred in the Judges' adopting of this weighting. JSC asserts as well that the Judges acted inconsistently, because their “[ ]use of royalty-based weighting for 2015-17 conflicts with the Judges' findings regarding minimum fee systems.” JSC Motion at 2.
                        <SU>270</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>270</SU>
                             The Judges discuss 
                            <E T="03">infra</E>
                             at footnote 28 JSC's problematic use of the word “weighting” to characterize its application of the Bortz Survey allocations. For clarity, the Judges defer that discussion until 
                            <E T="03">after</E>
                             they have explained the error in JSC's argument that the Judges should have treated the Bortz Survey results and the regression analyses in the same manner vis-à-vis the Minimum Fee royalties.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">
                        2. The PTV Response 
                        <E T="01">
                            <SU>271</SU>
                        </E>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>271</SU>
                             The Joint Respondents did not address this issue and, as noted 
                            <E T="03">supra,</E>
                             CTV did not file a response to the JSC Motion.
                        </P>
                    </FTNT>
                    <P>
                        Relating to this issue, PTV responded that it is 
                        <E T="03">JSC</E>
                         that is inconsistent as to this issue:
                    </P>
                    <EXTRACT>
                        <P>[T]he “base plus 3.75” weighting is inconsistent with the weighting principles that undergirded the McLaughlin-adjusted Bortz Survey in prior proceedings. . . . Specifically . . . Mr. Trautman testified unequivocally in the 2010-13 proceeding that weighting by total royalties was the correct approach—even as to PTV-only systems, which by definition were almost always “minimum-fee systems.” When asked, “But in your view . . ., the McLaughlin-Blackburn augmentation of the Bortz survey assures that an appropriate weight is applied to the PTV-only systems; correct[?],” Mr. Trautman said, “Yes, it considers the systems in the context of royalties, the total royalties that they pay.” Ex. 7043 at 551:9-15 (2010-13 Trautman Oral Testimony).</P>
                    </EXTRACT>
                    <FP>PTV Response at 6-7.</FP>
                    <HD SOURCE="HD3">
                        3. The JSC Reply 
                        <E T="01">
                            <SU>272</SU>
                        </E>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>272</SU>
                             As noted 
                            <E T="03">supra,</E>
                             JSC described the Judges' finding as to this (and all other) rehearing issues as “clear error” for the first time in the JSC Reply.
                        </P>
                    </FTNT>
                    <P>In Reply, JSC explained why the PTV Response fails to rebut JSC's argument as to this issue. Specifically with regard to the issue of inconsistency vis-à-vis the treatment of the Minimum Fee in the regression analyses, JSC argued:</P>
                    <EXTRACT>
                        <P>
                            1. The evidentiary weight the Judges gave to Minimum Fee royalty payments 
                            <E T="03">in the Bortz Survey model</E>
                             was 
                            <E T="03">inconsistent</E>
                             with the lesser evidentiary weight the Judges gave to Minimum Fee royalty payments 
                            <E T="03">in the regression models.</E>
                        </P>
                        <P>
                            2. The Judges found that—
                            <E T="03">with regard to the regression models</E>
                            —Minimum Fee royalty payments, standing alone, for the most part did not provide useful information regarding the “relative value” of the retransmitted 
                            <PRTPAGE P="54266"/>
                            programming, therefore requiring “
                            <E T="03">methodological changes” to the regression approach.</E>
                        </P>
                        <P>3. Bortz revised its methodology used in prior allocation proceedings, substituting instead its new “base plus 3.75 weighting,” to account for Minimum Fee royalty payments as applied to the Bortz Survey model.</P>
                        <P>4. The adverse parties fail to rebut the argument that the Judges wrongly employed a royalty-based weighting approach which gives undue weight to Minimum Fee royalty payments during the 2015-17 period. Specifically, all the responding parties except PTV ignored the issue. And, as for PTV, it cites no evidence from the present proceeding, and instead relies on testimony from the 2010-13 proceeding supporting royalty-based weighting—ignoring the JSC's assertion that royalty-based weighting only became a problem in 2015-17, with the significant increase in the number of Minimum Fee-only CSOs.</P>
                    </EXTRACT>
                    <FP>JSC Reply at 1-2, 6-7.</FP>
                    <HD SOURCE="HD3">iii. The Judges' Analysis</HD>
                    <HD SOURCE="HD3">JSC Wrongly Maintains That the Judges Erred by Inconsistently Applying the Bortz Survey Results to the Royalties Actually Paid Inclusive of Minimum Fee Payments, While Declining To Similarly Rely on Minimum Fee Payments When Considering the Regression Results</HD>
                    <P>
                        The Judges categorically reject JSC's argument that they acted inconsistently, and thus committed “clear error,” by giving less evidentiary weight to Minimum Fee royalty payments in the regression models compared to the weight they gave to Minimum Fee royalties in the Bortz Survey model. Indeed, as explained 
                        <E T="03">infra,</E>
                         by comparing JSC's rehearing argument with the hearing testimony of its economic experts' and its post-hearing filings, it is clear that 
                        <E T="03">it is the JSC analysis (incorrectly advanced in support of its motion for rehearing) that is inconsistent.</E>
                        <SU>273</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>273</SU>
                             To be clear, the Judges' analysis and findings as to this issue do not rely on PTV's argument, noted 
                            <E T="03">supra,</E>
                             that the testimony of the Bortz Survey witness, Mr. Trautman, in the prior 2010-13 proceeding, precluded or diminished JSC's ability to assert its “inconsistency” argument.
                        </P>
                    </FTNT>
                    <P>
                        Specifically, JSC argues on rehearing that the Judges clearly erred because their “use of royalty-based weighting improperly skews the 
                        <E T="03">survey calculations</E>
                         by giving inordinate weight to minimum fee systems” which, JSC maintains, is inconsistent with the Judges' conclusion that in the 
                        <E T="03">regression models</E>
                         “decisions by minimum fee systems during the 2015-17 period are not probative of relative market value.” JSC Motion at 4 (citing Initial Determination at 129 n.155, 134). Moreover, in this regard JSC 
                        <E T="03">claims</E>
                         that “[t]he Initial Determination likewise discusses how 
                        <E T="03">both</E>
                         the regression and survey methodologies changed (
                        <E T="03">or should have changed</E>
                        ) to account for the `dramatic increase in the number of minimum-fee only' systems in these years.” JSC Motion at 4-5 (emphasis added) (citing Initial Determination at 21-22, 167 n.206).
                    </P>
                    <P>
                        Before proceeding to discuss the substance of this argument, the Judges take note that JSC has misleadingly utilized the Initial Determination in the quote above from the JSC Motion. In the Initial Determination, the Judges explained how they apply the Minimum Fee problem 
                        <E T="03">only in the context of a regression model. See</E>
                         Initial Determination at 21-22, 129 n.155, 134. By contrast, when referring to the Bortz Survey, the Judges simply recited how 
                        <E T="03">Bortz, not the Judges,</E>
                         sought to insinuate the Minimum Fee issue into the survey approach. 
                        <E T="03">See</E>
                         Initial Determination at 167 n.206. In this regard, the Judges note that the emphasized parenthetical quote from the JSC Motion in the paragraph immediately above wrongly intimates that the Initial Determination expressly discusses how “
                        <E T="03">both the regression and survey methodologies</E>
                         . . . should have changed” to address the Minimum Fee issue. JSC Motion at 4-5 (emphasis added). The Judges in fact made no such finding in the Initial Determination regarding how the Bortz Survey methodology should have changed.
                    </P>
                    <P>
                        Accordingly, the overt inconsistency that JSC suggests is set forth in the Initial Determination simply does not exist (and as explained 
                        <E T="03">infra,</E>
                         for good reason). With the foregoing misconstrual of the Initial Determination corrected, the Judges proceed 
                        <E T="03">infra</E>
                         to explain the s
                        <E T="03">ubstantive</E>
                         error and inconsistency in JSC's argument that the Judges' erred in their consideration of the effect of the Minimum Fee on the regression approach compared to its non- effect on the Bortz Survey approach.
                    </P>
                    <P>
                        To make clear the fundamental error in JSC's argument, it is instructive to begin with certain first principles. The statutory scheme supplants marketplace pricing of distantly retransmitted local programming by CSOs. Thus, the parties proffer economic models that they claim to be sufficient to represent relative marketplace value.
                        <SU>274</SU>
                        <FTREF/>
                         Here, and as in prior proceedings, the Judges were presented with two starkly different types of models—the regression model and the survey model.
                        <SU>275</SU>
                        <FTREF/>
                         In the difference between how these two models approach the concept of relative marketplace lies the explanation why the Minimum Fee issue is a concern in the regression context, but not in the survey context.
                        <SU>276</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>274</SU>
                             The models may be supported by the testimony of industry witnesses and industry documents. Parties who eschew formal modeling may elect to rely solely on industry-based evidence and testimony (as did CTV through the “directional analysis” undertaken by its expert witness, Dr. Leslie Marx, for the 2015-17 period. 
                            <E T="03">See</E>
                             Marx ACWDT ¶ 83).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>275</SU>
                             The existence of competing models in economic litigation is hardly uncommon. As the Judges have previously explained: “Benchmarks, Shapley and Nash models, surveys and experiments are all models, in that a model is a representation of something beyond itself being used as a representative of that something, and in prompting questions of resemblance between the model . . . and their target systems.” Initial Ruling after Remand at 87 n.125, 
                            <E T="03">in</E>
                             Final Determination after Remand at App. A, 
                            <E T="03">Phonorecords III</E>
                             (June 22, 2023).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>276</SU>
                             As the Judges noted in the Initial Determination, the D.C. Circuit has approvingly noted that there is no reason to require that assumptions or findings applicable to one type of economic model addressing an issue necessarily apply to a different type of economic model attempting to address the same issue. 
                            <E T="03">See</E>
                             Initial Determination at 48 (citing 
                            <E T="03">NRBNLMC</E>
                             v. 
                            <E T="03">CRB,</E>
                             77 F.4th 949, 971 (D.C. Cir. 2023) (affirming the Judges' finding in their 
                            <E T="03">Web V</E>
                             Determination declining to apply the “opportunity cost” value in one economic model (a Shapley Value model) to an economic model (a benchmarking model) with different assumptions)). Of course, the assumptions in each economic model must be 
                            <E T="03">internally</E>
                             consistent. 
                            <E T="03">See</E>
                             J. Schlefer, 
                            <E T="03">The Assumptions Economists Make</E>
                             at 29 (2012) (an economic model “provides a check on thinking: it restricts us to at least 
                            <E T="03">consistent</E>
                             economic worlds . . . .”) (emphasis added).
                        </P>
                    </FTNT>
                    <P>
                        Broadly stated, the regression approach seeks to identify value from the expressions of the willingness-to-pay of CSOs, by analyzing their actual decisions (
                        <E T="03">i.e.,</E>
                         their “revealed preferences”) as to which local stations, and thus which program categories on those stations, they decide to retransmit. 
                        <E T="03">See, e.g.,</E>
                         Initial Determination at 78 (“the regressions identify market-based behavior among CSOs, in the form of revealed preferences for different program categories, and such behavior is relevant evidence useful for estimating relative marketplace value.”). The “value” element of this willingness-to-pay (the CSO's “revealed preference”) is the royalty-based value of a minute of retransmittal of programming within the program categories. However, the presence (indeed, the prevalence) of Minimum Fee-only CSOs complicates this form of value analysis because such CSOs did not incur any royalty cost associated with their specific choices. Accordingly, the Judges needed to take into account this Minimum Fee factor in order to reasonably apply the regression approach. ID at 21 (“The Judges find that the dramatic increase in the number of minimum fee-only CSOs . . . renders regression analyses that include those 
                        <PRTPAGE P="54267"/>
                        CSOs less reliable and thus can be accorded only very limited economic evidentiary weight.”).
                    </P>
                    <P>
                        By contrast, a constant-sum survey, such as the Bortz Survey, does not seek to estimate relative value by examining 
                        <E T="03">actual</E>
                         decision-making, in a regression or otherwise. Rather, the Bortz Survey seeks to estimate relative value by examining 
                        <E T="03">hypothetical</E>
                         decision-making by presumably informed CSO employees, who are asked to allocate a fixed but unspecified monetary budget by percentages across identified program categories, totaling 100%. 
                        <E T="03">See</E>
                         JSC PFF ¶ 296 (and record citations therein). But 
                        <E T="03">at no point in the survey</E>
                         are the respondents asked to consider whether the relative values are affected by the CSO's 
                        <E T="03">payment</E>
                         of the Minimum Fee for any programming.
                        <SU>277</SU>
                        <FTREF/>
                         Rather, the Bortz Survey is an attitudinal survey, asking respondents to state the relative 
                        <E T="03">values they would hypothetically assign</E>
                         to some program categories (but not to PTV-only and CCG-only categories as discussed elsewhere in this order and in the Initial Determination), whereas the regressions seek to reveal relative value based on how much CSOs 
                        <E T="03">in fact paid</E>
                         in royalties to retransmit programs within all the program categories.
                    </P>
                    <FTNT>
                        <P>
                            <SU>277</SU>
                             Also, there is no record evidence that survey respondents took into account—or even knew—whether their CSO employer had paid the Minimum Fee or the Base Fee for such programming.
                        </P>
                    </FTNT>
                    <P>
                        Indeed, the JSC's own expert economic witnesses dismissed the very idea that any royalty-based valuation could be probative, characterizing 
                        <E T="03">all</E>
                         statutory royalty amounts as “uninformative” and as mere “artifacts” of the statutory system. Dr. Asker, on behalf of JSC, testified in this regard:
                    </P>
                    <EXTRACT>
                        <P>[F]ollowing the WGNA conversion, the experts' price proxies, which are based on base rate (plus 3.75%) royalty fees and therefore ignore the minimum fee, were uninformative measures of the incremental cost cable system operators paid for distant signal content. . . . As a result, these price proxies became biased. . . .</P>
                    </EXTRACT>
                    <FP>. . .</FP>
                    <EXTRACT>
                        <P>
                            [V]ariation introduced 
                            <E T="03">solely</E>
                             due to this feature of the base rate (plus 3.75%) 
                            <E T="03">royalty fee calculation</E>
                             is an artifact of the computation of the fee. . . .”
                        </P>
                    </EXTRACT>
                    <FP>Asker WRT ¶¶ 58, 98 (emphasis added).</FP>
                    <P>
                        In like manner, another JSC economic expert witness, Dr. Majure, testified that all the regression models merely reflect “the statutory relationship [between DSEs, revenues, and royalties owed] parrot[ing] back the relative values of distant signals set by Congress.” Majure WRT ¶ 8.
                        <SU>278</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>278</SU>
                             Dr. Majure offered the same opinion with regard to the 3.75% Fund as he did regarding the Basic Fund, testifying that “the 3.75 royalty fee . . . after 2014 . . . explains only the Congressionally-mandated framework . . . .” Majure WRT ¶ 80.
                        </P>
                    </FTNT>
                    <P>
                        Importantly for the issue at hand, 
                        <E T="03">Dr. Majure explicitly opined that the Bortz Survey did not have share this defect:</E>
                    </P>
                    <EXTRACT>
                        <P>
                            By contrast with the regression models . . ., the Bortz [S]urvey method does not have the same problem of a 
                            <E T="03">disconnect</E>
                             between the data and the conceptual model that is 
                            <E T="03">necessary to interpret the data</E>
                             within a regression. . . . [T]he survey does not rely on the notion that a minute of each type of content has a specific incremental value. The Bortz survey only requires that respondents have 
                            <E T="03">some experience</E>
                             with different types of content available on distant signals, so that they will have formed 
                            <E T="03">preferences</E>
                             for these types of content. . . . The Bortz survey thus connects 
                            <E T="03">directly</E>
                             to 
                            <E T="03">actual</E>
                             market value.
                        </P>
                    </EXTRACT>
                    <FP>Majure WRT ¶¶ 59, 61 (emphasis added).</FP>
                    <P>The economic import of this point was emphasized in further testimony by Dr. Majure, explaining this distinction between the regression model and the survey model:</P>
                    <EXTRACT>
                        <P>
                            [T]he 
                            <E T="03">scarcity of valid observations</E>
                             for the 
                            <E T="03">regression</E>
                             method due to the increase, post-WGNA conversion, in CSOs carrying fewer signals than they could without exceeding the minimum royalty fee . . . results in a 
                            <E T="03">significant gap</E>
                             between a CSO's distant carriage decisions and how much that system paid in royalties. This creates an issue 
                            <E T="03">peculiar</E>
                             to the regression method [which] depends on statistical 
                            <E T="03">inferences</E>
                             that are more powerful and reliable when applied to more independent observations that are derived from the same underlying model of economic choices. Unlike the 
                            <E T="03">regression,</E>
                             which 
                            <E T="03">depends critically on the relationship</E>
                             between these measures to identify the relative values of content, the survey does not . . . because the 
                            <E T="03">survey</E>
                             does 
                            <E T="03">not</E>
                             rely on the 
                            <E T="03">incremental cost</E>
                             of the content to identify value. Whether a survey respondent carried enough distant signals to be above or below the minimum royalty, their response can address 
                            <E T="03">equally well</E>
                             how that CSO would apportion a fixed sum between the content types that it did carry.
                        </P>
                        <P>
                            A 
                            <E T="03">survey</E>
                             can reveal CSO preferences 
                            <E T="03">reliably</E>
                             because the survey does not rely upon inference but instead 
                            <E T="03">directly poses the relative value question</E>
                             to the buyers in the hypothetical market.
                        </P>
                        <FP>* * *</FP>
                        <P>
                            In summary, the 
                            <E T="03">survey</E>
                             method has the advantage of 
                            <E T="03">not</E>
                             suffering from any of the problems that make the regression method 
                            <E T="03">unreliable</E>
                             in the wake of WGNA's conversion.
                        </P>
                    </EXTRACT>
                    <FP>Majure WDT ¶¶ 129-130, 133 (emphases added).</FP>
                    <P>
                        This expert testimony distinguishing the regression and survey approaches was foundational to JSC's economic theory of the case. 
                        <E T="03">See</E>
                         JSC PFF ¶ 236 (quoting Majure WDT ¶ 130 to distinguish the survey model from the regression model because the former model “reveal[s] CSO preferences reliably because the survey does not rely upon inference but instead directly poses the relative value question to the buyers in the hypothetical market.”); JSC Post-Hearing Brief at 3 (“
                        <E T="03">Unlike the Bortz Survey,</E>
                         the fee-based 
                        <E T="03">regressions</E>
                         are entirely 
                        <E T="03">incapable</E>
                         of estimating relative value in the post-WGNA world predominated by minimum fee systems.”) (emphasis added).
                    </P>
                    <P>Likewise, in its Post-Hearing Reply Brief (responding to Program Suppliers argument), JSC expounded upon this fundamental difference between the regression approach and the survey approach to the Minimum Fee issue:</P>
                    <EXTRACT>
                        <P>
                            Program Suppliers mistakenly conflate the manner in which the Bortz Surveys and the fee-based regressions treat Minimum Fee CSOs, arguing that “like the regressions offered in this case, the Bortz Survey considers the stated preferences of survey respondents whose systems pay only the Minimum Fee—in this way, the Bortz Survey considers Minimum Fee systems the same way as the regressions do.” Program Suppliers 
                            <E T="03">misunderstand</E>
                             a fundamental difference between the Bortz Surveys and the regressions.
                        </P>
                        <P>
                            The fee-based regressions 
                            <E T="03">attempt</E>
                             to estimate relative marketplace value by 
                            <E T="03">associating</E>
                             minutes of programming with calculated royalty fees. For Minimum Fee CSOs, this presents an insurmountable issue, because Minimum Fee CSOs do 
                            <E T="03">not</E>
                             pay their calculated royalty fees but instead face an incremental royalty 
                            <E T="03">cost of $0</E>
                             for the distant signals they 
                            <E T="03">choose</E>
                             to retransmit. In contrast, the Bortz Surveys do not rely upon a nominal royalty fee 
                            <E T="03">calculation</E>
                             to draw 
                            <E T="03">inferences</E>
                             about CSO preferences. Instead, the Bortz Surveys avoid the problem . . . by 
                            <E T="03">directly asking</E>
                             knowledgeable CSO executives to 
                            <E T="03">assign</E>
                             relative values to the distant signal programming they carry.
                        </P>
                    </EXTRACT>
                    <FP>JSC Post-Hearing Reply Brief at 26 (footnotes omitted) (emphases added).</FP>
                    <P>
                        And yet, having repeatedly claimed that the Bortz Survey avoided the alleged analytical vice of associating the statutory nature of the royalties with relative marketplace value, JSC nonetheless now seeks to 
                        <E T="03">convert</E>
                         that vice into virtue, by seeking to justify its use of a different 
                        <E T="03">survey-weighting</E>
                         approach because of the 
                        <E T="03">problem</E>
                         of the Minimum Fee. Not only is that argument self-contradictory, as explained 
                        <E T="03">supra,</E>
                         it is also lacking in substantive merit regarding the analysis of economic models, as discussed 
                        <E T="03">infra.</E>
                        <SU>279</SU>
                        <FTREF/>
                         In more general economic terms, the regression approach and the survey approach each considers relative 
                        <PRTPAGE P="54268"/>
                        marketplace value from different modeling perspectives. The Bortz Survey approach does not seek to define value 
                        <E T="03">a priori</E>
                        —rather it surveys industry employees who, in response to Question 4 of the Bortz Survey, 
                        <E T="03">assign their</E>
                         relative value to the several program categories identified by the Bortz interviewer. That is, the respondent may, for example, be focused on demand-side concepts regarding subscriber growth or retention, or supply-side issues such as the hypothetical cost of acquiring the signals necessary to obtain the retransmitted programming, or both. But the 
                        <E T="03">reasons</E>
                         why survey respondents assign particular values are neither sought nor known by Bortz. In particular, the Bortz Survey respondents are not asked to address any potential impact on value arising from the statutory nature of the royalties actually paid, whether via the Minimum Fee, the Base Fee, the 3.75% fee, or otherwise.
                    </P>
                    <FTNT>
                        <P>
                            <SU>279</SU>
                             PTV also argues that JSC's experts “mined” this and other “weighting scheme[s]” to “increase[] JSC's allocation.” PTV Response at 3. In rejecting this rehearing argument, the Judges need not and do not inquire into the motives of JSC's experts.
                        </P>
                    </FTNT>
                    <P>Thus, for the Judges to make any adjustments to the Bortz Survey results based on how the respondents may or may not have incorporated concepts relating to the statutory royalty framework would be untenable, because the underlying economic reasons lurking in the minds of the respondents are not in the record.</P>
                    <P>
                        Moreover, the thought processes of the survey respondents are irrelevant to what constitutes the probative value according to JSC and the Bortz Survey. That is, it is the status of the survey respondents as knowledgeable industry participants that makes the Bortz Survey responses probative and allows the Judges to give it an appropriate evidentiary weight. In this regard, the survey approach shares a characteristic of the benchmarking approach used by the Judges in their ratemaking cases, in which the underlying economic considerations of market participants are deemed to have been “baked-in” to the decisions of licensors and licensees, and their subjective reasons for establishing value are not relevant. 
                        <E T="03">See</E>
                         Web IV Determination, 86 FR 26316, 26326 (May 2, 2016) (“The Judges hold in this determination, as they have held consistently in the past, that the use of benchmarks “bakes-in” the contracting parties' expectations . . . .”), 
                        <E T="03">aff'd SoundExchange, Inc.</E>
                         v. 
                        <E T="03">Copyright Royalty Bd.,</E>
                         904 F.3d 41 (2018). So understood, any 
                        <E T="03">connection</E>
                         between the Bortz Survey results and the statutory fees is both 
                        <E T="03">unknowable and irrelevant.</E>
                    </P>
                    <P>
                        By contrast, as noted 
                        <E T="03">supra,</E>
                         the regression approach is based on an 
                        <E T="03">a priori assumption</E>
                         as to what constitutes value in this proceeding, positing that a CSO's relative valuation of the various program categories can be derived from their actual decision-making, 
                        <E T="03">i.e.,</E>
                         their revealed preferences, based upon the royalties associated with a minute of programming in each category. Thus, for the regression approach, the Judges found (rejecting the arguments of the regression proponents) that the existence of the Minimum Fee royalties was a matter to be addressed, because the evidentiary strength of this 
                        <E T="03">a priori</E>
                         assumption is compromised by the presence of the royalties paid by Minimum Fee-only CSOs, which are not associated with the cost of any programming (absent particular circumstances necessitating adjustments (such as discussed in the Initial Determination regarding PTV and CCG programming)).
                    </P>
                    <HD SOURCE="HD3">iv. Conclusion</HD>
                    <P>
                        Simply put, whereas the 
                        <E T="03">value</E>
                         proposition in the regression model lies in the actual retransmission decisions by CSOs, the 
                        <E T="03">value</E>
                         proposition in the Bortz Survey approach lies in the responses to the survey instrument. Properly understood, the evidentiary weight of the Bortz Survey approach, compared to the regression modeling, lies in the fact that the survey model circumvents what JSC and its expert witnesses characterize as the economic irrelevancy of the Minimum Fee and other elements of the statutory royalty formula set forth in 17 U.S.C. 111. That is, rather than rely on what they claim to be economic “artifacts,” JSC and Bortz rely instead on the survey responses of CSO representatives as a 
                        <E T="03">practical</E>
                         way to value and allocate royalties that are paid according to statutory fiat rather than by revealed preference. However, by attempting to inject concerns regarding the Minimum Fee that apply to regression analyses—through its misconceived plea for consistency—JSC actually reveals its inconsistent understanding of its own survey model,
                        <SU>280</SU>
                        <FTREF/>
                         converting it into a tool that, so to speak, is neither fish nor fowl. The Judges appropriately declined to make this analytical error.
                    </P>
                    <FTNT>
                        <P>
                            <SU>280</SU>
                             As noted 
                            <E T="03">supra,</E>
                             an economic model's assumptions need to be internally consistent. 
                            <E T="03">See</E>
                             Schlefer, 
                            <E T="03">supra.</E>
                        </P>
                    </FTNT>
                    <P>
                        For the foregoing reasons, the Judges find that there is no inconsistency between the Judges' decision to address the Minimum Fee issue in connection with the regression model, but not with regard to the Bortz Survey model. Indeed, as explained 
                        <E T="03">supra,</E>
                         the inconsistency revealed by JSC's rehearing argument lies in JSC's own willingness to abandon its experts' testimonies regarding the fundamental economic modeling differences between the regression and survey approaches, and to pollute the survey approach with irrelevant aspects of the statutory fee.
                        <SU>281</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>281</SU>
                             One might question why the Judges criticize JSC for making an inconsistent argument, when the Judges used Dr. Tyler's above-Minimum Fee data but found two instances in which it was necessary and appropriate to utilize his full set of calculated Base Fee royalty data. But the Judges did not engage in an inconsistent analysis. Rather, there were unique 
                            <E T="03">fact-based</E>
                             reasons, as described in this Order and in the Initial Determination, which made the above-Minimum Fee data an incomplete measure of regression-based value, to an extent, for PTV and CCG. The needed adjustments that followed did not demonstrate inconsistency, but rather a careful parsing of the record evidence. By contrast, JSC's position is inconsistent at the 
                            <E T="03">conceptual</E>
                             level—it first argues (as explained 
                            <E T="03">supra</E>
                            ) that the statutory royalty fee structure does 
                            <E T="03">not</E>
                             provide evidence of value and that the survey method is the appropriate valuation tool—only to then alter course and adjust the royalty shares by relying on that 
                            <E T="03">very</E>
                             statutory fee structure it 
                            <E T="03">discredits</E>
                             as a value metric. 
                        </P>
                        <P>
                            Alternately stated, it would be contrary to the evidence for the Judges to ignore the divergent marketplace impact of the WGNA conversion on Minimum Fee royalty payments. In this regard, the Judges are mindful of the aphorism that a “
                            <E T="03">foolish</E>
                             consistency is the hobgoblin of little minds.” 
                            <E T="03">See generally</E>
                             R.W. Emerson, Self-Reliance and Other Essays 24 (Dover unabridged ed. 1993) (emphasis added).
                        </P>
                        <P>Further, even if JSC's approach somehow could be construed, like the Judges' approach, as not internally inconsistent, it was hardly error, let alone “clear error,” for the Judges to exercise their fact-finding duty and their discretion by adopting the approach they found reflects the record evidence and the relative marketplace value standard—and reject one (JSC's approach) they found to be logically questionable and insufficiently probative of marketplace value. (That is, even if the general “logic” of JSC's argument were correct, the Judges were under no duty to adopt it.)</P>
                    </FTNT>
                    <P>
                        Accordingly, the Judges' decisions in these regards do not constitute error—let alone “clear error,” or otherwise serve as a basis for granting rehearing.
                        <SU>282</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>282</SU>
                             As stated in footnote 16, 
                            <E T="03">supra,</E>
                             the Judges' foregoing analysis indicates why JSC's use of the word “weighting” can be misleading in the context of its shift away from its former weighting method. One common meaning of “weighting” is an “allowance or adjustment made in order to . . . compensate for a distorting factor.” 
                            <E T="03">https://en.bab.la/dictionary/english/weighting.</E>
                             (For example, weighting is often used to correct for perceived inaccuracies in “unweighted” values—as when an election survey has failed to poll a representative sample of voters from a political party or other sub-set of the population of voters.) Here, JSC/Bortz are not changing the weighting of the survey results to correct for a factor that, 
                            <E T="03">in their own experts' opinions,</E>
                             is not only non-distorting, but wholly irrelevant (as discussed in detail, 
                            <E T="03">supra</E>
                            ). That is, JSC and its expert economic witnesses acknowledge that the Bortz Survey methodology, unlike the regression modeling, is 
                            <E T="03">not</E>
                             distorted by the nature of the statutory formula for royalty fees.
                        </P>
                    </FTNT>
                    <PRTPAGE P="54269"/>
                    <HD SOURCE="HD3">d. Whether the Judges Adopted a Version of the Tyler Model That No Witness Endorsed for the 2015-2017 Time Period, and Whether It Is at Odds With the Record Evidence</HD>
                    <HD SOURCE="HD3">i. The Parties' Filings</HD>
                    <HD SOURCE="HD3">1. The JSC Motion</HD>
                    <P>In its Motion for Rehearing regarding the Judges' adoption of the Tyler Model and the adjustments thereto, JSC argues the following points:</P>
                    <EXTRACT>
                        <P>1. The Initial Determination adopts a version of the Tyler Model that no witness endorsed for the 2015-17 time period. JSC Motion at 8-9.</P>
                        <P>2. The other experts opined that the Tyler Model merely “parroted” the statutory formula. JSC Motion at 9.</P>
                        <P>3. The Initial Determination makes “arbitrary” adjustments to the Judges' adopted Tyler Model contrary to record evidence. JSC Motion at 9-10.</P>
                        <P>4. The Initial Determination allocates shares to PTV and CCG that are beyond “reasonable limits” because for PTV they are greater than the unadjusted levels, and, for CCG, they are greater than levels from prior years. JSC Motion at 10.</P>
                        <P>5. The Initial Determination fails to credit allegedly unrebutted testimony of industry fact witnesses inconsistent with the allocations made by the Judges to PTV and CCG. JSC Motion at 10.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">
                        2. The Adverse Parties' Responses 
                        <E T="01">
                            <SU>283</SU>
                        </E>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>283</SU>
                             CTV did not file a response to the JSC Motion for Rehearing or otherwise oppose it in any other filing.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">a. The Joint Response</HD>
                    <P>In their Joint Response, CCG, Program Suppliers, and SDC respond as follows:</P>
                    <EXTRACT>
                        <P>1. JSC does not satisfy any standard for rehearing because it is merely raising points as to which it did not meet its burden of persuasion. Joint Response at 3-4.</P>
                        <P>2. JSC's attempt to litigate issues already considered or which it failed to consider constitutes an improper attempt to obtain the so-called “second bite at the apple” that the Judges' reject as a proper basis for rehearing. Joint Response at 4.</P>
                        <P>
                            3. The Judges adoption of and adjustment to a version of the Tyler Model based on record evidence is consistent with the D.C. Circuit's prior ruling that the Judges are “not strictly limited to choosing from among proposals set forth by the parties,” but, like agencies in general, “have authority to modify proposals set forth by the parties, or to suggest models of their own.” Joint Response at 4 n.2; 
                            <E T="03">see also id.</E>
                             at 6.
                        </P>
                        <P>
                            4. JSC fails to note that the higher shares for PTV and CCG were consistent with the regression evidence on which the Judges relied, and, by contrast, JSC asks the Judges instead to rely 
                            <E T="03">fully</E>
                             on the Bortz Survey evidence, an argument which the Judges expressly considered and rejected. Joint Response at 6.
                        </P>
                    </EXTRACT>
                    <HD SOURCE="HD3">The PTV Response</HD>
                    <P>In its Response, PTV argues as follows:</P>
                    <EXTRACT>
                        <P>
                            1. JSC 
                            <E T="03">correctly</E>
                             asserts that the record contains no evidence to support the Judges' reliance on the Tyler above-Minimum Fee Model.
                        </P>
                        <P>
                            2. The record contains “minimal” yet “disputed” evidence—
                            <E T="03">i.e.,</E>
                             the “conventional McLaughlin-adjusted Survey” and the Tyler Model inclusive of Minimum Fee-paying CSOs—to support a higher PTV share than determined by the Judges.
                        </P>
                        <P>3. JSC incorrectly maintains that there is no record evidence to support what JSC characterizes as the “large shares” awarded to PTV in the Initial Determination for the 2015-17 period.</P>
                    </EXTRACT>
                    <FP>PTV Response at 1-2, 9-10.</FP>
                    <P>JSC's Reply contains the following points:</P>
                    <EXTRACT>
                        <P>1. JSC identifies the “clear error” standard as its specific standard for seeking rehearing. JSC Reply at 2.</P>
                        <P>2. JSC's arguments in its Motion regarding alleged methodological errors cannot be construed as a mere “rehashing” of arguments previously considered at the hearing and in the Initial Determination (a/k/a seeking a “second bite at the apple”) because the above-Minimum Fee version of the Tyler Model was not “endorsed” by any witness. JSC Reply at 2, 9.</P>
                        <P>3. JSC minimizes the importance of its own motion argument that cited industry executive testimony supporting their request for rehearing. Rather, JSC states in their Reply that this is not the “heart” of their argument, but rather only reveals that the differences between the regression results and the cited industry witness testimonies “are so at odds” as to indicate problems with the regression evidence on which the Judges relied. JSC Reply at 9.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">ii. The Judges' Analysis and Conclusion</HD>
                    <HD SOURCE="HD3">1. The Judges' Adoption of a Version of the Tyler Model in the Record Does Not Warrant Rehearing</HD>
                    <HD SOURCE="HD3">a. The Judges Did Not Err by Adopting the Above-Minimum Fee Tyler Model, Let Alone Commit “Clear Error”</HD>
                    <P>
                        JSC maintains that the Judges wrongly adopted the above-Minimum Fee analysis undertaken by Program Supplier's expert economic witness, Dr. Tyler. As recounted in detail below, the Judges explained in the Initial Determination why regression modeling for 2015-17 that relied 
                        <E T="03">only</E>
                         on above-Minimum Fee CSOs was 
                        <E T="03">more</E>
                         useful and why, 
                        <E T="03">by contrast,</E>
                         modeling that relied on the Base Fees calculated by the subscriber groups of CSOs who actually paid only the Minimum Fee was of limited usefulness (as when used to adjust for economic value from the regressions uncaptured by the above-Minimum Fee modeling). 
                        <E T="03">See</E>
                         Initial Determination at 21 (“The Judges find that the dramatic increase in the number of minimum fee-only CSOs . . . renders regression analyses that include those CSOs less reliable and thus can be accorded only very limited economic evidentiary weight [and] the Judges accord significantly more evidentiary weight to regression modeling that focuses only on the CSOs that actually revealed their preferences by willingly paying above the minimum fee, 
                        <E T="03">i.e.,</E>
                         at the base fee level.”); 
                        <E T="03">id.</E>
                         at 142-144 (noting particular regression adjustments 
                        <SU>284</SU>
                        <FTREF/>
                         to economic value necessitated by the evidence).
                    </P>
                    <FTNT>
                        <P>
                            <SU>284</SU>
                             These are the three adjustments (Adjustments A through C) in the Initial Determination.
                        </P>
                    </FTNT>
                    <P>
                        The Judges further recognized that, despite the evidentiary usefulness of the royalties paid by the above-Minimum Fee cohort in this proceeding, that group generated a smaller portion of the CSO market than in the prior (2010-13) allocation proceeding. Accordingly, the Judges did not accord this regression approach primary weight vis-à-vis the results of the Bortz Survey, as they had in that prior proceeding. 
                        <E T="03">See</E>
                         Initial Determination at 147 (“[T]he Judges are not giving any 
                        <E T="03">primacy</E>
                         to the regression evidence in this proceeding, given how the changes in the retransmission sector after the WGNA conversion have affected the available data.”); 
                        <E T="03">id.</E>
                         at 197 (“[T]he Judges accord evidentiary weight to the Bortz Survey, with the McLaughlin Adjustment—relatively equivalent with the weight given to the regression analysis . . . . [T]he Judges find that a synthesis of regression and survey results is necessary to arrive at the required allocations.”).
                    </P>
                    <P>
                        Turning to a more granular review, the record is 
                        <E T="03">replete</E>
                         with evidence, argument, and judicial colloquy regarding the use of above-Minimum Fee evidence as a building block for the ascertainment of relative value. 
                        <E T="03">See</E>
                         Initial Determination at 12-13. There, the Judges relied on the testimony of Dr. Tyler, who expressly found “merit” in a “version of the model that includes only CSOs paying above the minimum fee [which] presents with the “
                        <E T="03">highest degree of confidence”</E>
                         the CSO tradeoffs between different stations and categories of minutes.” 
                        <E T="03">Id.</E>
                         at 12-13 (quoting Tyler ACWDT ¶ 155) (emphasis added). As a general matter, when the Judges have decided to rely, as here, on the specific opinion testimony of an expert whom they have credited and who himself has the “highest degree of confidence” in that specific opinion, under no standard could the Judges' ruling in that regard be subject to rehearing.
                        <PRTPAGE P="54270"/>
                    </P>
                    <P>
                        Moreover, further support exists in the record for the Judges' adoption of this above-Minimum Fee modeling. 
                        <E T="03">See id.</E>
                         at 15 (“for these CSOs which CTV accurately describes as `above-capacity' . . . paying above the minimum fee, the base fee royalties reported by their subscriber groups are their actual royalty payments, revealing the CSO's perceived value of the distantly retransmitted stations and their constituent programs.” (citing Bennett WRT ¶ 15 (a CTV 
                        <E T="03">economic</E>
                         expert)); CTV PFF ¶ 158 (For above capacity CSOs, “the reported [Subscriber Group] royalties reflected the amount of royalties actually paid . . . [by CSOs] [that] decided to incur an increased marginal royalty cost[,] . . . revealing the CSO's perceived value of the distantly retransmitted stations.”).
                    </P>
                    <P>Additionally, the Judges were persuaded by the following supportive argument of the SDC (no fan of the regression approach, to say the least) regarding the Tyler Model as applied to above-Minimum Fee-paying CSOs:</P>
                    <EXTRACT>
                        <P>
                            Dr. Tyler, whose rate-based methodology is the most explicitly based on a “minimum willingness to pay” theory . . . offers a sensitivity test [the above-Minimum Fee modeling] of this issue. Tyler [ACWDT] ¶ 156. . . . Dr. Tyler's sensitivity test might provide some 
                            <E T="03">rough guidance</E>
                             as to the potential direction and magnitude of bias introduced by the presence of minimum fees. SDC PFF ¶ 156. 
                            <E T="03">See also</E>
                             4/19/23 Tr. 5473 (SDC's counsel's statement to Dr. Tyler on cross-examination) (“I do want to point out to your credit that your first sensitivity test tries to address this issue.”). This argument is generally consistent with Dr. Tyler's response to SDC counsel on this point, agreeing that it was important to be “cognizant” of this minimum fee issue and that it be “considered and addressed” because there is “reasonable disagreement about how to handle the issue.” 
                            <E T="03">Id.</E>
                             at 5473-74. . . . [T]he Judges find . . . . the 
                            <E T="03">variant of the Tyler Model</E>
                             in Figure 6.3 of the Tyler ACWDT offers the Judges' “
                            <E T="03">rough guidance</E>
                            ” in the allocation of shares.
                        </P>
                    </EXTRACT>
                    <FP>Initial Determination at 21-22 (quoting SDC and its counsel) (emphasis added).</FP>
                    <P>
                        Additionally, the Judges carefully considered this issue at the hearing, questioning witnesses from the bench. 
                        <E T="03">See</E>
                         4/13/23 Tr. 4719 (Bennett) (CTV economic expert responding to Judge Strickler that “the idea that you're relating carriage with the cost or willingness to pay for that carriage, I think, is an entirely reasonable modeling approach where the data exists to link the carriage to . . . those payments. And that is 
                        <E T="03">certainly</E>
                         true where you have 
                        <E T="03">above-minimum-fee-paying systems</E>
                         for which the incremental cost is apparent . . .”) (emphasis added); 4/18/23 Tr. 5125 (George) (CCG expert Dr. Lisa George responding to Judge Ruwe that “the royalty payments are not exact measures of incremental cost. They are 
                        <E T="03">more so</E>
                         when we're 
                        <E T="03">above minimum fees.</E>
                        ”) (emphasis added); 
                        <E T="03">see also</E>
                         4/19 Tr. 5503 (Tyler) (agreeing on cross-examination that “CSOs paying 
                        <E T="03">above the minimum fee</E>
                         [is]where you have 
                        <E T="03">economic decision-making</E>
                         because the costs that they're paying for each of those distant signals are actual binding costs . . . .”).
                    </P>
                    <P>The Judges further noted at length multiple perspectives in which an above-Minimum Fee cohort of CSOs can be viewed:</P>
                    <EXTRACT>
                        <P>
                            This cohort of CSOs can properly be viewed as essentially the only CSOs who provide revealed preference information as to the variation in relative values among the program categories (in contrast with CSOs who did not retransmit any distant local stations or those with “excess capacity”), which in that sense is a cohort 
                            <E T="03">unto itself,</E>
                             rather than a sub-sample. On the other hand, this cohort can also reasonably be viewed as but a 
                            <E T="03">small sample</E>
                             of all the CSOs, which 
                            <E T="03">reduces</E>
                             the evidentiary weight of their preferences. Both perspectives on the revealed preferences of these above-minimum fee paying CSOs are properly considered in weighting the various strands of useful evidence in order to allocate royalty shares in this proceeding.
                        </P>
                        <FP>. . .</FP>
                        <P>[I]t is misleading, to say the least, to categorize the base-fee-paying CSOs as merely a small cohort of the larger population of CSOs, when they are differentiated by the key marker for section 111 purposes: whether they assign a relative value to the retransmittals and thus relative values to the retransmitted programs. The Judges find it more accurate and appropriate to consider the base-fee-paying CSOs essentially as a separate cohort of CSOs whose decision-making is pertinent to a regression analysis in this statutory context.</P>
                        <FP>. . .</FP>
                        <P>Colloquially, the issue may be characterized as whether the Judges should let the perfect be the enemy of the good. Here, the “perfect” fact pattern would be where all or most of the data is generated by CSOs paying above the Minimum Fee. That is not the factual context here. But there is “good” evidence from the CSOs who did retransmit enough programming to trigger the base fees of their subscriber groups, and that the Judges do not ignore that data.</P>
                        <P>Accordingly, the Judges will give due weight to the minority of CSOs that, in the 2015-2017 period, paid above the minimum fee and thus revealed their preferences by paying an additional royalty in order to retransmit one or more additional stations.</P>
                    </EXTRACT>
                    <FP>Initial Determination at 100, 130-131 (emphasis added).</FP>
                    <P>The Judges made it clear that they found important economic evidence in the above-Minimum Fee version of the Tyler Model:</P>
                    <EXTRACT>
                        <P>
                            [F]or those CSOs transmitting above 1.0 DSE, they have economic decisions to make regarding the mix of programming they will transmit via their signal decisions. Given the economics and reality of this retransmission market, as described above, only 
                            <E T="03">then</E>
                             will the relative value of program categories be of 
                            <E T="03">material</E>
                             economic importance. It is at this stage that the Tyler Model generates information as to relative value, through the Tyler model's coefficients.
                        </P>
                    </EXTRACT>
                    <FP>Initial Determination at 136.</FP>
                    <P>Relying on this abundant record, the Judges held as follows:</P>
                    <EXTRACT>
                        <P>[T]he Judges rely on the Tyler Model, as Dr. Tyler applied his model to the CSOs paying above the minimum fee. . . . [A]bove-minimum fee paying CSOs['] channel selections/programming preferences are . . . probative and useful, even if less so than in the 2010-2013 Determination because of the reduction in the number of such CSOs and in the percentage of royalties they represent.”</P>
                    </EXTRACT>
                    <FP>Initial Determination at 21, 66.</FP>
                    <P>
                        But, as indicated 
                        <E T="03">supra,</E>
                         the Judges did not ignore the fact that the above-Minimum Fee CSO cohort was substantially smaller than identified in the 2010-13 Determination. Specifically, the Judges stated:
                    </P>
                    <EXTRACT>
                        <P>
                            [H]ere the Judges are considering the regression evidence and the Bortz Survey evidence as essentially equally weighted and useful (but not flawless) evidence . . . . [T]he reconciliation will be different than in the 2010-13 proceeding, because the Judges are not giving any 
                            <E T="03">primacy</E>
                             to the regression evidence in this proceeding, given how the changes in the retransmission sector after the WGNA conversion have affected the available data.
                        </P>
                    </EXTRACT>
                    <FP>Initial Determination at 147.</FP>
                    <P>
                        To be sure, in its Motion, JSC disagrees with the Judges' adoption of the above-Minimum Fee modeling undertaken by Dr. Tyler. But JSC made its disagreements known at the 
                        <E T="03">hearing</E>
                         stage of this proceeding, and supported those disagreements with expert testimony. 
                        <E T="03">See</E>
                         Initial Determination at 19-20.
                    </P>
                    <P>
                        In particular, one criticism, as described by the Judges, was levied by one of JSC's expert economic witnesses, Dr. Asker, who maintained that it was improper to “use . . . the base fee as a price proxy 
                        <E T="03">even for CSOs paying above the minimum fee.” Id.</E>
                         at 19.
                        <SU>285</SU>
                        <FTREF/>
                         The Judges declined to adopt Dr. Asker's analysis because: (1) it amounted to 
                        <PRTPAGE P="54271"/>
                        mere “blackboard economics,” 
                        <SU>286</SU>
                        <FTREF/>
                         in that there was “no evidence” that any CSO actually engages in the “tunnel-vision sort of hyperrationality” described by Dr. Asker; and (2) it was at odds with the testimony of a cable industry expert witness, Sue Ann Hamilton, who stated, in testimony credited by the Judges, that “CSOs do not devote much attention to issues regarding distant retransmittals.” 
                        <E T="03">Id.</E>
                         at 22 &amp; n.29.
                    </P>
                    <FTNT>
                        <P>
                            <SU>285</SU>
                             More specifically, Dr. Asker opined that a rational CSO would calculate the actual “price” of an above-Minimum Fee retransmission of a local station as the difference between: “(1) the total fees that would bind, which may have been the minimum fee, without retransmitting that local station, and (2) the total base fees that would bind (the minimum fee having been exceeded) if that local station was distantly retransmitted.” Initial Determination at 20.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>286</SU>
                             
                            <E T="03">See id.</E>
                             at 22 n.29 for the Judges' application of the economic criticism of unrealistic “blackboard economics.”
                        </P>
                    </FTNT>
                    <P>
                        As a second criticism regarding this issue, JSC also relied—at the 
                        <E T="03">hearing</E>
                         stage of the proceeding—on what its statistical expert, Mr. Harvey opined was the lack of “statistical significance” in Dr. Tyler's above-Minimum Fee modeling. 
                        <E T="03">See</E>
                         JSC RPFF ¶¶ 29-30; Harvey WRT ¶¶ 45-46 &amp; tbl.10 
                        <SU>287</SU>
                        <FTREF/>
                         (More specifically, JSC and Mr. Harvey maintained that Dr. Tyler's above-Minimum Fee modeling “failed to obtain statistically significant results for JSC minutes in 2015, 2016 and 2017 . . . .”); 
                        <E T="03">see also</E>
                         JSC Post-Hearing Brief at 27; Harvey WRT ¶¶ 45-46.
                    </P>
                    <FTNT>
                        <P>
                            <SU>287</SU>
                             JSC premises its argument on the fact that far fewer CSOs paid royalties at above-Minimum Fee levels in the years 2015-17 than in the pre-WGNA conversion period of 2010-2014 (which straddles this and the prior allocation proceeding). 
                            <E T="03">See</E>
                             Initial Determination at 18-20. As explained in the Initial Determination, and recounted elsewhere in this Order, the Judges did not dispute this point, and therefore accorded Dr. Tyler's above-Minimum Fee results less evidentiary weight than when more CSOs paid above-Minimum Fee royalties, but they declined to adopt JSC's argument that the Judges therefore should give zero weight to the evidence of CSO decision-making by CSOs that did pay above-Minimum Fee royalties. 
                            <E T="03">Id.</E>
                             at 131 (“there is `good' evidence from the CSOs who did retransmit enough programming to trigger the base fees of their subscriber groups, and the Judges do not ignore that data. 
                        </P>
                        <P>Accordingly, the Judges will give due weight to the minority of CSOs that, in the 2015-2017 period, paid above the Minimum Fee and thus revealed their preferences by paying an additional royalty in order to retransmit one or more additional stations.”).</P>
                    </FTNT>
                    <P>
                        In the Initial Determination, the Judges explained in detail why they disagreed, finding that the above-Minimum Fee Tyler Model was statistically sufficient to carry the level of evidentiary weight the Judges accorded to that model. 
                        <E T="03">See</E>
                         Initial Determination at 144-148. Accordingly, although JSC may disagree with the Judges' reasoning as to this issue (even though JSC does not in fact address the Judges' reasoning in their Motion seeking rehearing), their disagreement does not remotely suggest that 
                        <E T="03">rehearing</E>
                         is warranted as to this issue.
                    </P>
                    <P>In their present Motion seeking rehearing, JSC makes a further criticism of the Judges' reliance on the above-Minimum Fee Tyler Model. Specifically, JSC relies on Dr. Tyler's recommendation at the hearing that the Judges rely on his preferred model in which he applies all the Base Fees calculated by the Subscriber Groups within CSOs, including those for whom the Minimum Fee would bind. But JSC's present post-hearing reliance on Dr. Tyler's preference is seriously misleading.</P>
                    <P>
                        Although Dr. Tyler preferred one of his models over another, his preference does not dictate which of his analyses the Judges may credit. Here, the Judges declined to defer to his preference because regression models that included the royalty payments of CSOs paying only the Minimum Fee were less useful in reflecting economic decision-making (an argument advanced by JSC and other parties). Instead, the Judges relied heavily on the Tyler Model based on only above-Minimum Fee paying CSOs, for the reasons explained 
                        <E T="03">supra,</E>
                         as supported by abundant aspects of the record evidence. Initial Determination at 21 (“The Judges find that the dramatic increase in the number of minimum fee-only CSOs (
                        <E T="03">i.e.,</E>
                         those with no distant retransmittals and those with some distant retransmittals but with `excess capacity') renders regression analyses that include those CSOs less reliable and thus can be accorded only very limited economic evidentiary weight. Moreover, the Judges accord significantly more evidentiary weight to regression modeling that focuses only on the CSOs that actually revealed their preferences by willingly paying above the minimum fee, 
                        <E T="03">i.e.,</E>
                         at the base fee level.”).
                    </P>
                    <P>
                        JSC also overplays its hand. Dr. Tyler did not maintain that his above-Minimum Fee modeling lacked probative value. Quite the contrary, he testified (as noted 
                        <E T="03">supra</E>
                        ) that his above-Minimum Fee modeling showed, with the “
                        <E T="03">highest degree of confidence,</E>
                        ” actual economic tradeoffs made by CSOs, even though he preferred his model inclusive of the Minimum Fee-paying CSOs. Initial Determination at 13 (quoting Tyler ACWDT ¶ 155).
                    </P>
                    <P>Moreover, as a general matter, there is no doubt that the Judges may give greater weight to evidence that the proffering witnesses recommend should have less weight. Indeed, such an expert's disagreement in this regard ultimately is of little value, as it intrudes upon the Judges' exercise of their core judicial function to weigh evidence, and, for present purposes, cannot support a claim for rehearing under any of the available standards.</P>
                    <P>
                        In a related criticism, JSC maintains that the Judges wrongly adopted the above-Minimum Fee Tyler Model because 
                        <E T="03">other</E>
                         experts supported their own models and approaches over the adoption of any version of Dr. Tyler's modeling. Motion at 9.
                        <SU>288</SU>
                        <FTREF/>
                         But again, because one of the Judges' core duties is to weigh competing testimony, including expert testimony, their decision to adopt an opinion proffered by one expert which clashes with opinions of others, is certainly not 
                        <E T="03">ipso facto</E>
                         erroneous.
                    </P>
                    <FTNT>
                        <P>
                            <SU>288</SU>
                             Imagine that—the other experts preferred their own models over another expert's opinion: 
                            <E T="03">Quelle surprise.</E>
                        </P>
                    </FTNT>
                    <P>
                        More broadly, the Judges are not locked into the recommendations of the parties and the experts. This statutory process is not like “final offer” arbitration. As noted by the Joint Respondents, the D.C. Circuit has held that the Judges are “not strictly limited to choosing from among proposals set forth by the parties,” but, like agencies in general, “have authority to modify proposals set forth by the parties, or to suggest models of their own.” Joint Response at 4 n.2; 
                        <E T="03">see also id.</E>
                         at 6; 
                        <E T="03">see also Johnson</E>
                         v. 
                        <E T="03">Copyright Royalty Bd.,</E>
                         969 F.3d 363, 381-82 (D.C. Cir. 2020) (citing 
                        <E T="03">SoundExchange, Inc.</E>
                         v. 
                        <E T="03">Copyright Royalty Bd.,</E>
                         904 F.3d 41, 50-51, 57 (D.C. Cir. 2018); 
                        <E T="03">Association of American Publishers, Inc.</E>
                         v. 
                        <E T="03">Governors of USPS,</E>
                         485 F.2d 768, 773 (D.C. Cir. 1973)).
                    </P>
                    <HD SOURCE="HD3">b. JSC Is Improperly Seeking a “Second Bite at the Apple” by Asking To Submit Additional Evidence Regarding Dr. Tyler's Above-Minimum Fee Model</HD>
                    <P>
                        As discussed 
                        <E T="03">supra,</E>
                         JSC submitted testimony from two expert witnesses, Dr. Asker, an economist, and Mr. Harvey, a statistician, in unsuccessful attempts to undermine Dr. Tyler's above-Minimum Fee modeling. Thus, this issue has already been considered and, as Joint Respondents assert, JSC cannot obtain rehearing to introduce further evidence that JSC “could have submitted at the hearing, but did not,” and as to which JSC “did not meet their burden of persuasion.” Joint Response at 3-4.
                    </P>
                    <P>
                        Alternately stated, the JSC Motion fails to satisfy the “negative” standard for rehearing noted earlier in this order—a demonstration that the movant is not seeking the “second bite at the apple” that the Judges have ruled is insufficient to support a request for rehearing.
                        <PRTPAGE P="54272"/>
                    </P>
                    <HD SOURCE="HD3">2. The Judges' Adjustments to the Version of the Tyler Model They Adopted Do Not Support JSC's Motion for Rehearing</HD>
                    <HD SOURCE="HD3">a. Introduction</HD>
                    <P>
                        JSC also argues that rehearing is warranted because the Judges made two “adjustments” via the Initial Determination that were improper.
                        <SU>289</SU>
                        <FTREF/>
                         JSC's argument is deficient for several reasons. At a high level, JSC simply 
                        <E T="03">ignores</E>
                         the Judges' explanations in the Initial Determination for why the above-Minimum Fee version of the Tyler Model—albeit a highly useful lens for broadly identifying relative value—generated certain results that required the Judges to make relative value adjustments for CCG and PTV programming. It is quite simple, but also simply wrong, for JSC to argue that the Judges erred in their reasoning, 
                        <E T="03">by omitting any reference to the Judges' actual reasoning.</E>
                    </P>
                    <FTNT>
                        <P>
                            <SU>289</SU>
                             JSC's “adjustment” argument comes in two varieties. First, JSC objects to “Adjustment C” 
                            <E T="03">in</E>
                             the Initial Determination which increased PTV shares. Second, JSC objects to the adjustment of the shares allocated 
                            <E T="03">by</E>
                             the Initial Determination to CCG and PTV for 2015-17, in comparison to their share percentages in the prior years of 2010-13 (in the prior allocation proceeding) and 2014 (in this proceeding.) JSC does not object to “Adjustment A” in this proceeding that 
                            <E T="03">lowered</E>
                             CCG's allocation share, or to “Adjustment B” in this proceeding that 
                            <E T="03">lowered</E>
                             PTV's share. Alternately stated, JSC claims error by the Judges in the adjustments that 
                            <E T="03">reduced</E>
                             their royalty allocation, but assert no error in adjustments that 
                            <E T="03">increased</E>
                             JSC's royalty allocation. (JSC's argument pertaining to Adjustment B does identify a computational error in the Initial Determination that the Judges acknowledge and correct 
                            <E T="03">infra.</E>
                            )
                        </P>
                    </FTNT>
                    <P>To highlight the importance of these omissions, the Judges recapitulate the reasoning in the Initial Determination which JSC ignores.</P>
                    <HD SOURCE="HD3">
                        b. The CCG Share Adjustment (Adjustment A) 
                        <SU>290</SU>
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>290</SU>
                             Although JSC does not seek rehearing on Adjustment A regarding CCG, that adjustment is relevant to this discussion because it is part and parcel of the Judges' derivation of the CCG share that JSC claims to be too high relative to prior years. The deficiency in JSC's argument in that regard is best understood by including in the text following this footnote a summary of the reasoning for Adjustment A.
                        </P>
                    </FTNT>
                    <P>First, with regard to the CCG share (Adjustment A) the Judges reasoned as follows in the Initial Determination:</P>
                    <EXTRACT>
                        <P>1. The above-Minimum Fee Tyler Model generates “an anomalous increase” in the share allocated to the CCG claimants.</P>
                        <P>2. This anomaly arose because “CCG programming is unique among the program categories in this proceeding [in that] it is limited in geographic scope to CSOs located within a 150-mile belt below the U.S./Canadian border” (known as the “Canada Zone”).</P>
                        <P>3. Thus, the above-Minimum Fee Tyler Model “reflect[s] the unique value of Canadian programming in the Canada Zone, including the uniquely valuable . . . French language programming, a niche sub-category.”</P>
                        <P>
                            4. Accordingly, in 
                            <E T="03">addition</E>
                             to the demand for the usual complement of distantly retransmitted programming that exists throughout the wider United States, in the Canada Zone there exists this additional demand. Such greater demand means that CSOs would choose to pay more than the Minimum Fee by adding CCG stations, and thus Canadian claimant programming, to their channel lineup.
                        </P>
                        <P>5. Therefore, CSOs in the Canada Zone would very likely be overrepresented in the above-Minimum Fee Tyler Model.</P>
                        <P>6. This phenomenon creates a problem because the Judges are allocating a royalty pool for which, over the period 2015-2017, more than 90% of the funding came from Minimum Fee-only CSOs. Accordingly, although the data from the above-Minimum Fee Tyler Model provides useful economic evidence of CSOs' revealed preferences for other claimant categories, with regard to CCG content and value, this data is distortionary.</P>
                        <P>
                            7. Confirming this anomaly, CCG itself did not propose receiving the high allocations suggested by the above-Minimum Fee Tyler Model (23.2% in 2015; 31.1% in 2016; and 34.6% in 2017). Rather, CCG proposed that it receive 14.8% for 2015, 13.7% for 2016, and 13.6% for 2017.
                            <SU>291</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>291</SU>
                                 It is also noteworthy that CCG has not sought rehearing to challenge this significant downward adjustment in its 2015-17 share of the royalty pool nor to criticize the wider application of the above-Minimum Fee Tyler Model.
                            </P>
                        </FTNT>
                        <P>8. Accordingly, in their 2015-2017 allocations, the Judges utilize the lower CCG shares reported by Dr. Tyler for all CSOs, rather than only the above-Minimum Fee Tyler Model.</P>
                    </EXTRACT>
                    <FP>Initial Determination at 142-143.</FP>
                    <P>
                        As noted 
                        <E T="03">supra,</E>
                         JSC studiously ignores this substantial downward adjustment of CCG's 2015-17 share, which benefited JSC and the other claimants by raising their share allocations, 
                        <E T="03">ceteris paribus.</E>
                         Rather, as noted 
                        <E T="03">supra,</E>
                         JSC focuses on a comparison of the CCG shares for 2015-17 with the CCG shares for 2010 through 2014 and claims error sufficient to warrant rehearing based on the increase in CCG shares in this proceeding. Simply put, JSC does not object to the Judges' adoption of adjustments to its above-Minimum Fee approach, but rather only to those adjustments that reduce its inter-year allocations. That argument, now in proper context, is addressed in the subsection below.
                    </P>
                    <HD SOURCE="HD3">1. JSC Misapprehends the Process for Ascertaining Relative Value in Allocation Proceedings</HD>
                    <P>
                        JSC argues that the sheer increase in the size of the Judges' allocation for PTV and CCG are “arbitrary.” Motion at 8. More particularly, JSC calculates that “after the Judges made multiple adjustments to the results, PTV's share in the adjusted regression increased by 51% in 2015, by 69% in 2016, and by 105% in 2017. JSC Motion at 9. With regard to CCG, JSC makes an inter-period argument, asserting that CCG's shares more than doubled in the 2015-17 period compared to the pre-WGNA conversion years of 2010-13 (in the prior allocation proceeding) and 2014 (in the present proceeding). JSC Motion at 10. As explained 
                        <E T="03">infra,</E>
                         JSC's argument in these regards fundamentally misapprehends the statutory process by which relative values and shares are determined.
                        <SU>292</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>292</SU>
                             In addition to the specific points discussed infra regarding the CCG and PTV adjustments, it is important to remain mindful that the Judges are ascertaining 
                            <E T="03">relative</E>
                             values, not 
                            <E T="03">absolute</E>
                             values. That is, the WGNA conversion significantly scrambled CSOs' retransmission decisions, which the record reflects changed the 
                            <E T="03">relative</E>
                             value of program categories. This does not necessarily indicate that, in an absolute sense, any one program category became more or less valuable.
                        </P>
                    </FTNT>
                    <P>
                        Addressing first the CCG inter-period share increase, the Judges note that they do not begin with some pre-determined allocation of shares and then make certain that they can “back into” that “pre-determination” by conjuring up a comporting analysis. That would not only, to put it colloquially, “place the cart-before-the horse,” but would also be antithetical to the Judges' fact-finding duty. In this regard, as the Judges proceed through their analysis, as here, by applying the probative facts—they do not decide 
                        <E T="03">ex ante</E>
                         that their factual findings cannot exceed (or fall below) some arbitrary level (whether an interim pre-adjusted level or a level from a prior proceeding). Indeed, that too would be an improper exercise by the Judges of their duty to weigh the facts. Alternately stated, when the Judges weight the evidence, they are agnostic as to the share percentages that would ultimately result.
                    </P>
                    <P>
                        Nonetheless, as noted 
                        <E T="03">supra,</E>
                         JSC complains that CCG's shares are higher than the shares CCG received in the 2010-13 Final Allocation Determination and in 2014 in the present proceeding. But JSC cites no authority to suggest that allocations should equal or approximate allocations in prior years or from prior proceedings. Indeed, there is no authority in that regard because in each allocation proceeding the Judges consider the allocation issues 
                        <E T="03">de novo,</E>
                         based on the record developed in that proceeding. To be sure, a party can argue that the underlying facts in the latter proceeding mirror those of the prior proceeding, suggesting it would be correct for the Judges not to deviate from the allocations in the prior 
                        <PRTPAGE P="54273"/>
                        proceeding. And because factual patterns may remain relatively stable across years 
                        <E T="03">within</E>
                         a given proceeding, a party may argue that the annual years at issue should all reflect similar allocations.
                    </P>
                    <P>Of course, the converse is true as well: If the facts reveal substantial differences between the years in different proceedings, or across years within a proceeding, the allocations made by the Judges should reflect those facts. Indeed, the Judges have described their consideration of this issue as a “Changed Circumstances” analysis.</P>
                    <P>In the present case, the Judges addressed this very issue in section XVI of the Initial Determination:</P>
                    <EXTRACT>
                        <HD SOURCE="HD1">XVI. Changed Circumstances</HD>
                        <P>The Judges may vary from prior decisions when there are (1) changed circumstances from a prior proceeding; or (2) evidence on the record before the Judges that requires prior conclusions to be modified regardless of whether there are changed circumstances.</P>
                        <P>In the 2014-2017 period, several widely agreed upon changed circumstances have taken place including 1) WGNA's conversion to a cable network, the reclassification of PTV signals from exempt to non-exempt, and 3) the rise in streaming on alternative platforms. . . . Based on the agreed upon record and Judges' findings here and throughout the determination, the Judges find that significant changed circumstances occurred across the relevant period.</P>
                    </EXTRACT>
                    <FP>Initial Determination at 159-160 (citing the testimonial consensus regarding these changed circumstances.).</FP>
                    <P>
                        Thus, not only was it permissible for the Judges to deviate from allocation shares in prior years and/or proceedings, the facts of the case 
                        <E T="03">required</E>
                         the Judges to adjust the share allocations. Quite clearly, therefore, the Judges did not make any findings that—under any standard—would support rehearing based on changes in the Judges' share adjustments.
                    </P>
                    <P>Second, with regard to the upward adjustment for PTV's relative value (Adjustment C), the Judges reasoned as follows in the Initial Determination:</P>
                    <EXTRACT>
                        <P>1. PTV argued that, when WGNA was a local station retransmitted by CSOs pursuant to section 111, a significant number of PTV's stations were retransmitted by CSOs together with WGNA.</P>
                        <P>2. Thus, prior to the WGNA conversion, a CSO's decision to retransmit PTV and WGNA jointly generated a Base Fee royalty and revealed that CSO's revealed preference and willingness-to-pay.</P>
                        <P>3. PTV further noted that post the WGNA conversion, many of these CSOs continued to retransmit the same PTV station, but this did not trigger the Base Fee because the Minimum Fee applied (with WGNA gone).</P>
                        <P>4. PTV maintained that the pre-WGNA conversion carriage is probative of the fact that the PTV carriage post-WGNA conversion demonstrates economic value.</P>
                    </EXTRACT>
                    <P>
                        The Judges agreed with this analysis, increasing PTV's 2015-17 share of royalties as calculated in Adjustment C.
                        <SU>293</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>293</SU>
                             As explained in the section of this order denying PTV's request for rehearing, to adjust for this increase in PTV's relative value, the Judges found probative the analysis and testimony by a JSC expert statistical witness, Mr. Harvey. His analysis and testimony indicated that 44% of the PTV stations that were identified as being retransmitted by Minimum Fee-paying CSOs after the WGNA conversion had also been transmitted pre-conversion jointly with WGNA and thus generated Base Fee (above-Minimum Fee) royalties. The Judges adopted this testimony via Adjustment C, increasing PTV's share of the royalties.
                        </P>
                    </FTNT>
                    <P>
                        But JSC objects to this Adjustment C on the same general basis that it objects to the CCG increase—it is simply too large an increase. As to this issue, JSC compares the Judges' interim work-in-progress (
                        <E T="03">i.e.,</E>
                         pre-adjustment) PTV shares with the Judges' final post-adjustment analysis. But its argument hinges on the same mistaken assumption made by JSC regarding the CCG share increase across the relevant years—that the Judges are somehow precluded from increasing a party's shares by too great a percentage, regardless of where the Judges' factual findings lead.
                    </P>
                    <HD SOURCE="HD3">3. JSC's Proposal That the Judges Disregard the Regression Evidence on Which They Relied—and Instead “Fully Rely” on JSC's Industry Witnesses by Adopting the Bortz Survey—Is a Blatantly Impermissible Request for a “Second Bite at the Apple”</HD>
                    <P>Further, JSC's proposed alternative to the Judges' approach underscores the paucity of its argument. JSC argues that the Judges should “fully rely” on their version of the Bortz Survey approach, which the Judges rejected in the Initial Determination. JSC Motion at 8.</P>
                    <P>
                        But this argument, like other JSC arguments discussed 
                        <E T="03">supra,</E>
                         constitutes a request for the proverbial “second bite at the apple” that is an insufficient basis for granting rehearing. The Judges agree with the Joint Respondents that because “JSC forcefully advocated for reliance on the Bortz Survey before, during and after the 5-week hearing,” this argument is “`nothing more than a recapitulation of arguments that the Judges fully considered in fashioning their [
                        <E T="03">Initial Determination</E>
                        ] and therefore do[es] not present the type of exceptional case that would warrant a rehearing or reconsideration.'” Joint Response at 6. See also PTV Response at 2. More particularly as explained below, in the Initial Determination, the Judges credited industry witness testimony from JSC witnesses by significantly increasing the JSC shares above the small shares arising from the above-Minimum Fee Tyler Model (and all other regression modeling).
                    </P>
                    <P>
                        To place JSC's present argument—and the Judges' rejection of same—in appropriate context, it is necessary to begin with the Judges' factual finding that, in the 2015-17 period, “[t]he WGNA conversion . . . drastically reduced the number of JSC subscriber-minutes distantly retransmitted.” Initial Determination at 122 n.147. 
                        <E T="03">There was no dispute as to this fact. See generally</E>
                         JSC PFF ¶ 101 (stating, without denying, that “[a]ccording to multiple non-JSC witnesses [citing Dr. Tyler and multiple other expert and fact witnesses], the absolute and relative volume of JSC programming declined significantly following the WGNA conversion when measured in subscriber-weighted minutes.”); 
                        <E T="03">id.</E>
                         at ¶ 111 (citing JSC's own expert witness, Dr. Majure, who did not deny the drastic reduction in the number of JSC subscriber-minutes, but instead argued “that it would be wrong to infer a drop in JSC value from a drop in subscriber-weighted minutes . . . .”). In like manner, JSC relied on the testimony of three industry witnesses who, while not denying the drastic reduction in JSC subscriber-weighted minutes, testified that, from a CSO's perspective, “the value and volume of different categories of programming are not correlated.” JSC PFF ¶ 112. 
                        <E T="03">See also</E>
                         Program Suppliers RPFF ¶ 26 (“JSC's witnesses did not dispute that JSC's relative subscriber-weighted volume share declined by 91 to 92 percent between 2014 and 2015, and [] JSC's relative volume share fell from approximately 7% in 2014 to 0.6% in 2015, and by 2017, it had fallen to 0.4%, representing a 94% decline.”).
                    </P>
                    <P>
                        This background is pertinent to JSC's present argument because the Judges (1) in fact 
                        <E T="03">did</E>
                         credit the testimony by JSC industry witnesses that subscriber-weighted minutes alone were insufficient to determine relative value for JSC programming; and (2) therefore 
                        <E T="03">substantially increased the relative value of JSC shares</E>
                         above the levels generated by the above-Minimum Fee Tyler Model and other regression modeling. However, the Judges declined to ignore the significant impact on relative value of the substantial reduction in the volume of subscriber-weighted JSC minutes distantly retransmitted. See Initial Determination at 122 n.147.
                    </P>
                    <P>The following portions of the Initial Determination make this point in detail:</P>
                    <EXTRACT>
                        <PRTPAGE P="54274"/>
                        <P>Based on the entirety of the record, the Judges are not persuaded by industry expert testimony that the value and volume of programming are not correlated. The industry expert evidence is set against the more well-established sound economic reasoning underlying the regression analyses in this proceeding.</P>
                        <FP>. . .</FP>
                        <P>That is not to say that regressions correlating program category minutes and a measure of royalties is necessarily the only way to determine value. . . . [A]s confirmed by some of the industry testimony, the Judges recognize that . . . JSC programming, bundled together with programming from other claimant categories, can have a value (in terms of retaining or adding subscribers) . . . that is not well-correlated with overall program minutes.</P>
                        <FP>. . .</FP>
                        <P>
                            The Judges find [JSC witnesses] to be particularly credible . . . regarding the unique value of JSC content . . . . Based on the entirety of the record, the Judges are persuaded that evidence of the unique value of . . . JSC content . . . serves 
                            <E T="03">as a limitation on the applicability of certain proposed regression analyses and their proposed allocation results.</E>
                             These [findings] do not negate valid application of regression analyses as a basis for allocation. However, 
                            <E T="03">these factors are taken into account within the Judges' weighting of the allocation methodologies, including application of the Bortz survey</E>
                             . . . .
                        </P>
                    </EXTRACT>
                    <FP>Initial Determination at 151-152 (emphasis added).</FP>
                    <P>Consequently, the Judges set the 2015-17 post-WGNA conversion allocation shares for JSC substantially above the shares proposed by the above-Minimum Fee Tyler Model, as can be seen in the comparison of the two tables below:</P>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="8C,8C,8C">
                        <TTITLE>Shares Awarded to JSC in Initial Determination</TTITLE>
                        <BOXHD>
                            <CHED H="1">2015 </CHED>
                            <CHED H="1">2016 </CHED>
                            <CHED H="1">2017</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">11.44% </ENT>
                            <ENT>10.76% </ENT>
                            <ENT>11.91%</ENT>
                        </ROW>
                    </GPOTABLE>
                    <FP>
                        Initial Determination at 2 tbl.1.
                        <SU>294</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>294</SU>
                             These final totals are changed marginally via the correction of a mathematical error in the Initial Determination, as discussed 
                            <E T="03">infra.</E>
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="8C,8C,8C">
                        <TTITLE>Shares Allocated to JSC by Above-Minimum Fee Tyler Model</TTITLE>
                        <BOXHD>
                            <CHED H="1">2015 </CHED>
                            <CHED H="1">2016 </CHED>
                            <CHED H="1">2017</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">2.1% </ENT>
                            <ENT>1.3% </ENT>
                            <ENT>0.5%</ENT>
                        </ROW>
                    </GPOTABLE>
                    <FP>Initial Determination at 13.</FP>
                    <P>As a comparison of these two tables shows, by departing from the above-Minimum Fee Tyler Model, and giving due weight to the Bortz Survey, as suggested by JSC's industry witnesses, the Judges increased JSC's shares by 445% for 2015, 728% for 2016, and by 2,282% for 2017. To be sure, these higher shares are still well below what the Bortz Survey proposed, and what JSC sought, both at the hearing and again via rehearing. But, as noted above, the JSC share of subscriber-weighted minutes declined by over 90% during this period, which is reflected in the effect of the regression analysis in the above-Minimum Fee Tyler Model, and which the Judges found highly relevant.</P>
                    <P>
                        Thus, JSC's claim of purported error regarding this issue is not premised on any failure by the Judges to ignore its expert witnesses or the Bortz Survey. Rather, JSC's complaint is that the Judges did not give zero weight to the regression model and 100% weight to the Bortz Survey (based on the survey itself and the industry witnesses JSC proffered). Of course, as noted 
                        <E T="03">supra,</E>
                         a party's disagreement as to the Judges' weighing of record evidence, including expert testimony, does not satisfy any grounds for granting a motion for rehearing.
                        <SU>295</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>295</SU>
                             Implicit in JSC's argument is that JSC should not suffer such a loss in royalty revenues compared to past years. But no implied assumptions regarding a JSC loss in royalty revenues arising from these lower shares is warranted by the record. Rather, the record indicates that “JSC sports content has been migrating from broadcast stations to other platforms, including cable networks like TNT, TBS, and ESPN, regional sports networks, and pay-TV platforms.” 
                            <E T="03">See</E>
                             Program Suppliers PFF ¶ 237 (citing witness testimony, including the testimony of JSC expert Allan Singer). Further, the record reflects that such migration “has increased significantly for the past several years, resulting in corresponding decreases of distantly retransmitted JSC programming volume” [indicating that] [t]he significantly low 2014 through 2017 JSC programming volumes are consistent with a continuing migratory pattern. 
                            <E T="03">Id.</E>
                             ¶¶ 239-40.
                        </P>
                        <P>
                            Thus, as the Judges explained in their Initial Determination, there is no reason to assume that the reduction in JSC shares caused JSC to lose revenue realized from the transmission of JSC content formerly on WGNA. That is, there is no record evidence to support an assumption that JSC had irrationally sought out less profitable distribution outlets than distantly retransmitted local stations after the conversion of WGNA to cable station status. 
                            <E T="03">See</E>
                             Initial Determination at 135 n.161 (“[T]he JSC is simply a representative of the major professional sports leagues and the NCAA, and the record does not reflect that they suffered any economic loss because of the reduction of subscriber minutes distantly retransmitted.”)
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">4. JSC's Argument—That Rehearing Is Necessary Because the Tyler Modeling Simply “Parrots” the Statutory Formula—Cannot Be Grounds for Rehearing Because This Argument Was Made at the Hearing, and Because JSC Fails to Note in Its Motion the Judges' Detailed Explanation for Rejecting that Argument</HD>
                    <P>
                        JSC argues that the Tyler modeling (in its several varieties) should have been rejected because it simply “parrots” the statutory formula. JSC Motion at 9. Ironically, this basis for rehearing must be denied because 
                        <E T="03">it</E>
                         “parrots” the argument made by JSC and other parties at the hearing. 
                        <E T="03">See</E>
                         Initial Determination at 74 (“Dr. Majure maintains that the Tyler Model . . . essentially estimates only `the equation given by the statutory formula . . . .' ”); 
                        <E T="03">id.</E>
                         at 75 (noting that CCG's expert economic witness, Dr. Lisa George, likewise criticized the Tyler modeling because it “effectively replicates the regulatory formula . . . .” and noting that PTV's expert, Dr. John Johnson, likewise maintained that the Tyler modeling “essentially replicates the statutory formula . . . .”).
                    </P>
                    <P>
                        However, the Judges comprehensively analyzed and then rejected this argument, in all its iterations. 
                        <E T="03">See id.</E>
                         Section XIB at 131-136. Nonetheless, JSC simply ignores the Judges' detailed explanation why this “statutory formula”/“fee generation” criticism lacks merit.
                    </P>
                    <P>In sum, JSC once again asks for that improper “second bite at the apple” by seeking to reargue an issue. Moreover, JSC does not even claim that the Judges' extended discussion and findings as to this issue were incorrect. Accordingly, this JSC point is insufficient to justify rehearing.</P>
                    <HD SOURCE="HD3">5. Conclusion</HD>
                    <P>
                        Accordingly, JSC's Motion for Rehearing as to these issues is denied.
                        <SU>296</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>296</SU>
                             The Judges also do not credit PTV's invitation for the Judges to “amend[] the Initial Determination to award [PTV] shares for the 2015-2017 royalty years based on or adjusted upward from either the conventional McLaughlin-adjusted Bortz Surveys or Dr. Tyler's primary regression model . . . .” PTV Response at 10. PTV's representation that it would be amenable to this alternative is little more than the statement by a party that it supports an approach that increases its allocation. Obviously, such argument based on naked self-interest does not support a rehearing or amendment of the Initial Determination.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">III. PTV'S Motion for Rehearing</HD>
                    <HD SOURCE="HD2">a. Whether “Adjustment B” in the Judges' Initial Determination Is Premised on Clear Error That Must Be Corrected</HD>
                    <P>
                        The PTV Motion seeks rehearing with regard to the Judges' application of “Adjustment B” in the Initial Determination, which is a downward adjustment of the PTV shares derived from the Tyler Model for above-Minimum Fee CSOs. This adjustment was made by the Judges to reflect the presence of must-carry PTV signals, whose value had not been adequately demonstrated to be included as part of the relative marketplace value generated by regression approaches. However, 
                        <PRTPAGE P="54275"/>
                        PTV maintains that the adjustment is incompatible with the record evidence and amounts to an erroneous double-counting of the Judges' intended adjustment. PTV Motion at 1.
                    </P>
                    <P>PTV alleges that it is clearly erroneous for the Judges to derive its shares from the Tyler above-Minimum Fee Model for the 2015-17 period and also apply a downward adjustment based on Bennett Figure 52. PTV notes that the Tyler above-Minimum Fee Model excludes CSOs that paid the Minimum Fee, whereas Dr. Bennett (Figure 52) carried out the analysis applied by the Judges only based on CSOs that paid the Minimum Fee. PTV Motion at 3.</P>
                    <P>
                        In their Joint Response, CCG, Program Suppliers, and SDC clarify that the Judges explained Adjustment B as weighting Dr. Bennett's Figure 52 analysis in order to avoid the double counting that is alleged in PTV's motion. Joint Response at 7, citing ID at 143 (note to Adjustment B Table). The Joint Response adds that the applied adjustment is likely a conservative one, understating the bias from must-carry PTV signals, because must-carry signals were also retransmitted by 
                        <E T="03">above</E>
                        -Minimum Fee cable systems. Joint Response at 7, citing ID at 45.
                    </P>
                    <P>
                        Similarly, JSC's response to PTV's proposed elimination of Adjustment B notes the Judges' recognition of the need to lower the Tyler Model's estimates for PTV to correct the issue of fee-based regressions falsely associating must-carry signals with additional royalties. JSC Response at 2. JSC challenges PTV's view that excluding Minimum Fee systems from the Tyler Model somehow accounts for must-carry carriage within the Tyler regression. JSC argues that the Judges were correct to conclude that all must-carry signals are being falsely interpreted by the regressions. Furthermore, JSC observes that reliance on the Tyler above-Minimum Fee Model without adopting Adjustment B, would incorporate the false inferences from must-carry signals, because the regression would “see” systems carrying those stations and making royalty payments, but would not “see” indemnification payments made by the PTV stations back to the CSO. 
                        <E T="03">Id.</E>
                    </P>
                    <P>
                        CTV asserts that PTV's motion regarding Adjustment B reflects a fundamental misunderstanding of the evidence. CTV notes that the Tyler Model does not exclude any PTV stations that were retransmitted pursuant to must-carry requirements. CTV Response at 3, citing Ex. 7207 (Bennett WRT) at 63-64 and 4/12/23 Tr. 4608 (Bennett); Ex. 7600 (Tyler ACWDT) at 37, 64. And, for that reason, Dr. Bennett developed a must-carry sensitivity analysis to measure the impact of must-carry signals on share allocations, which is reflected in Figure 52. 
                        <E T="03">Id.</E>
                         CTV also notes that the Judges' weighting methodology effectively decreases the downward adjustment to PTV's share determination based on the ratio of the PTV shares reflected in Dr. Tyler's baseline regression model, Figure 3.2 (including all CSO royalties), and the PTV shares reflected in Dr. Tyler's Figure 6.3 (including only above-Minimum Fee-paying CSO royalties), as explained by the Judges note accompanying Adjustment Table B on page 143 of the Initial Determination. 
                        <E T="03">Id.</E>
                    </P>
                    <P>PTV's Reply reiterates its initial arguments regarding Adjustment B and argues that any weighting contained within the adjustment is also unsupported. PTV asserts that in order for the applied weighting to be appropriate, the proportion of Public Television value derived from must-carry signals estimated by Dr. Bennett must have been the same within the above-Minimum Fee CSOs as within the Minimum Fee-paying CSOs. PTV Reply at 1-2.</P>
                    <P>
                        PTV asserts that Dr. Bennett's analysis only examined the value of must-carry signals carried by Minimum-Fee-paying CSOs. PTV maintains that the values estimated by Dr. Bennett are not proportionally distributed among Minimum Fee and above Minimum Fee CSOs. PTV argues that that such estimates do not reflect carriage among above-Minimum Fee CSOs, and that there is no basis for using the numbers calculated by Dr. Bennett to attempt to estimate that value. 
                        <E T="03">Id.</E>
                         at 3.
                    </P>
                    <P>
                        PTV asserts that the CSOs paying more than the Minimum Fee could have chosen to decline to carry any distant PTV signals. PTV argues that, under the relevant must-carry regulations, for the above-Minimum Fee CSOs, distant retransmission of a must-carry signal necessarily incurs an incremental royalty cost. PTV notes that under those regulations above-Minimum Fee CSOs thus have the right to demand indemnification from the originating station for that incremental royalty burden. If a station refuses indemnification, then the CSO is not obligated to carry the signal under the must-carry rules. Therefore, PTV argues, a CSO's decision to carry the signal without indemnification necessarily demonstrates value of the programs on that signal. PTV adds that the record indicates that no indemnification payments were made. 
                        <E T="03">Id.</E>
                         at 4.
                    </P>
                    <HD SOURCE="HD3">i. The Judges' Analysis and Conclusion Regarding PTV's Adjustment B Rehearing Motion Arguments</HD>
                    <P>
                        The Initial Determination clearly explains the finding that must-carry signals are problematic when fee-based regressions are used to establish relative value, and thus require an adjustment. More particularly, this need for adjustment exists for Dr. Tyler's allocation share calculations pertaining only to the CSOs who paid more than the Minimum Fee. The Tyler Model does not exclude any PTV stations that were retransmitted pursuant to must-carry requirements. PTV proposes to ignore the effect of must-carry signals on the Tyler Model. PTV takes the position that the must-carry issue is addressed because the adopted Tyler Model excluded Minimum Fee systems. But excluding Minimum Fee systems from the Tyler Model does not account for PTV must-carry signals that are carried by 
                        <E T="03">above</E>
                        -Minimum Fee CSOs. Therefore, the Judges' determination on this proceeding record makes clear that the 
                        <E T="03">absence of an adjustment,</E>
                         rather than the adjustment itself, would more likely impose a clear error and manifest injustice.
                    </P>
                    <P>
                        PTV asserts that the Judges cannot apply an adjustment based on Dr. Bennett's analysis because Dr. Bennett examined only the value of must-carry signals carried by Minimum Fee paying CSOs. This argument does not undermine the need for an adjustment. It simply attacks the applied Adjustment B as supposedly having inadequate precision or basis in the record. There is a reason that the record evidence does not provide for greater precision, and that is 
                        <E T="03">the noted evidentiary failure of PTV regarding which stations were subject to the must-carry provisions and which were not. See</E>
                         ID at 47. However, the application of Adjustment B is reasonable, and is clearly based on evidence in the record and the Judges' assessment of the entirety of the record.
                        <SU>297</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>297</SU>
                             Dr. Bennett's adjustments are based upon Mr. Harvey's identification of stations likely carried pursuant to the must-carry provision. See Bennett WRT at 57. Furthermore, as the Judges observed, “Mr. Harvey engaged in a reasonable attempt to estimate this number, which PTV could have set forth in its submissions, but did not.” ID at 47.
                        </P>
                    </FTNT>
                    <P>
                        Further, Adjustment B, which is properly weighted, does not amount to an erroneous double-counting of the intended adjustment. While employing the best evidence available to determine a necessary adjustment, the Judges weighted the Bennett analysis, for 2015-2017, prior to applying it to the Tyler regression allocations. This is a reasonable approach, with sufficient 
                        <PRTPAGE P="54276"/>
                        evidentiary support, consistent with the relevant legal requirements.
                    </P>
                    <P>As explained in the Initial Determination:</P>
                    <EXTRACT>
                        <P>
                            The Must Carry adjustment in Bennett WRT fig. 52 was based on the PTV shares of all CSO royalties, whereas the Judges are applying this adjustment to the shares of CSO royalties attributable to shares generated by CSOs paying above the minimum fee (subject to the prior adjustment for CCG, discussed 
                            <E T="03">supra</E>
                            ). So, for [2014], the percentage point adjustment to the PTV share is the percentage point adjustment in Bennett WRT Fig 52. For 2015-2017, the percentage point adjustment to the PTV share is calculated for each year by: (1) finding the percentage of PTV shares reflected by the PTV shares from Tyler/WRT fig. 6.3 ÷ PTV's shares from Tyler WRT fig. 3.2; (2) multiplying that percentage by the percentage point adjustment in Bennett WRT fig 52; and (3) subtracting that product from the PTV share from the table above.
                        </P>
                    </EXTRACT>
                    <FP>ID at 143 (note to Adjustment B Table).</FP>
                    <P>The weighting described above, for 2015-2017, serves to discount the Bennett downward adjustment by ratios derived from PTV allocations of above-Minimum Fee CSOs divided by the PTV allocations of all CSOs. As the Joint Response notes, these ratios and the resulting downward adjustments are conservative in that they may tend to understate the bias introduced by Dr. Tyler's inclusion of must-carry PTV signals, precisely because they do not exclude must-carry signals retransmitted by above-Minimum Fee systems. At the same time, the approach remains based in record evidence and is a reflection of reasonable and conservative judgments derived from the entirety of the record. The Judges appropriately employed the thusly discounted Bennett adjustments (derived for Minimum Fee-paying systems) when applied to the Tyler model allocations for above-Minimum Fee CSOs.</P>
                    <P>
                        For the reasons explained herein, and based on the entirety of the record, PTV has not shown that an exceptional case exists, or that the Initial Determination is erroneous in relation to Adjustment B. Further, PTV has not demonstrated that aspects of the determination relating to Adjustment B are without evidentiary support in the record or are contrary to legal requirements. In that latter regard, PTV has not shown that, with respect to the Initial Determination's application of Adjustment B, there exists either clear error or manifest injustice that would support granting of PTV's request for rehearing.
                        <SU>298</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>298</SU>
                             PTV's Reply raises concerns regarding indemnification, in relation to value of must-carry signals. The Judges point to section VII.A.5. of the Initial Determination “The Judges' Analysis &amp; Conclusions regarding the `Must-Carry' Issue” and the Judges' undisturbed and valid analysis and conclusions as to why must-carry signals lack objective and measurable value. 
                            <E T="03">See</E>
                             Initial Determination at 47-49.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">b. Whether “Adjustment C” in the Judges' Initial Determination Reflects a Clear Error That Must Be Corrected</HD>
                    <P>
                        The PTV Motion also seeks rehearing with regard to the Judges' application of what the Judges identified as “Adjustment C” in the Initial Determination. By this Adjustment, the Judges 
                        <E T="03">substantially increased</E>
                         the value of certain PTV stations, and thus PTV's share of royalties. However, PTV maintains now that the Judges should have used “Adjustment C” to increase its share even more. PTV Motion at 1-2.
                    </P>
                    <P>
                        By way of background, the Judges found in the Initial Determination that “the dramatic increase in the number of minimum fee-only CSOs (
                        <E T="03">i.e.,</E>
                         those with no distant retransmittals and those with some distant retransmittals but with `excess capacity') renders regression analyses that include those CSOs less reliable and thus can be accorded only very limited economic evidentiary weight.” Initial Determination at 21. In so holding, the Judges rejected PTV's argument (proffered through the testimony of its economic expert, Dr. John Johnson) that the Judges should find predominant “economic significance in the choices of a CSO `to retransmit a distant signal to particular subscriber groups' 
                        <E T="03">despite the fact that the CSO pays the minimum fee</E>
                         . . . .” Initial Determination at 13 (emphasis added) (explicitly 
                        <E T="03">rejecting</E>
                         the argument in PTV PFF ¶ 58 that “[t]he decision of a CSO paying the minimum fee to retransmit a distant signal to particular subscriber groups shows the CSO's preference for distantly retransmitted programming without the effect of the statutory royalty, which is an economic context that more closely resembles the hypothetical marketplace.” (citing, 
                        <E T="03">inter alios,</E>
                         at n.83 therein, Dr. Johnson's hearing testimony)).
                        <SU>299</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>299</SU>
                             The Judges also declined to rely on Dr. Johnson's analysis (including his broad Minimum Fee and above-Minimum Fee arguments) and PTV's case, because of certain decisions regarding methodological approaches and decisions which the Judges found troubling, as discussed 
                            <E T="03">infra.</E>
                        </P>
                    </FTNT>
                    <P>
                        In contrast with the Judges' misgivings as to Dr. Johnson's regression testimony, they agreed with his argument that, 
                        <E T="03">ceteris paribus,</E>
                         the record contained sufficient evidence to increase PTV's allocation. In this regard, the Judges found that—although certain PTV stations were only retransmitted by Minimum Fee-paying CSOs—these CSOs had previously retransmitted PTV stations when such retransmissions had been combined with retransmissions of WGNA, the most retransmitted local station, thereby triggering a CSO royalty obligation 
                        <E T="03">above the Minimum Fee.</E>
                         As Dr. Johnson testified, there was evidence that CSOs' immediately prior retransmissions of PTV stations that triggered an incremental royalty cost revealed an incremental value in those retransmissions and that it was reasonable to conclude that the PTV stations continued to have incremental value when they were uncoupled from WGNA (and thus generated only the Minimum Fee). PTV made this specific argument in its post-hearing PFF and post-hearing brief. 
                        <E T="03">See</E>
                         PTV PFF ¶ 60 (and record citations therein); PTV Post-Hearing Brief at 27-28. The Judges were persuaded that this WGNA-related evidence reflected “ongoing marketplace value,” notwithstanding the general principle that Minimum Fee royalty payments did not otherwise disclose actual economic decision making or reveal the preferences of CSOs. Initial Determination at 143-144.
                    </P>
                    <P>To calculate PTV's upward adjustment based on this point, the Judges identified evidence and testimony proffered by a JSC statistical expert, Mr. R. Garrison Harvey. Mr. Harvey testified as follows: “[T]he number of PTV Only systems increased after the WGNA conversion from 44 at the end of 2014 to 173 by the end of 2017. PTV Only Systems that had carried WGNA and PTV in 2014 account for three-fifths of that increase.” Harvey WDT ¶ 106.</P>
                    <P>The Judges found that that Mr. Harvey demonstrated that 44% of the PTV stations that were identified as retransmitted by Minimum Fee-paying CSOs after the WGNA conversion had been transmitted pre-conversion and generated Base Fee royalties. That is sufficient evidence of ongoing marketplace value. Moreover, Mr. Harvey supported this testimony with reference to specific data, citing to his underlying workpapers, which were not called into question or contradicted at the hearing. Harvey WDT ¶ 106 n.86. Accordingly, the Judges used that factual finding to increase by 44% the PTV share modification, as set forth in the table for Adjustment C. Initial Determination at 144.</P>
                    <P>
                        This adjustment substantially increased PTV's allocation of the royalties. 
                        <E T="03">Compare</E>
                         Adjustment B Table 
                        <E T="03">with</E>
                         Adjustment C Table, Initial Determination at 143-144. The PTV Motion does not challenge the accuracy 
                        <PRTPAGE P="54277"/>
                        or the credibility of this evidence or Mr. Harvey's testimony in this regard.
                    </P>
                    <P>But PTV maintains that other testimony indicates that this increased adjustment was insufficient. In this regard, PTV avers that the Judges erred by limiting their adjustment to evidence concerning the specific combination of Public Television signals with WGNA. That is, PTV claims that testimony it had proffered showed that PTV's upward adjustment should have been 55% rather than 44%. PTV Motion at 5.</P>
                    <P>In support of this argument, PTV points to a single one-paragraph statement in Dr. Johnson's Written Rebuttal Testimony, wherein he claimed, without identifying any underlying workpapers or other evidence:</P>
                    <EXTRACT>
                        <P>
                            There were 1,115 CSO-Public Television distant signal combinations in the 2015-2017 period where the CSO paid a minimum fee during those years. For 609 (or 
                            <E T="03">55 percent</E>
                            ) of these combinations, the same CSO also carried the same Public Television distant signal, at a different point in time, when it paid section 111 royalties greater than the minimum fee. In those instances, the CSOs elected to pay incremental royalties for these signals (because they generated more than one DSE). Put differently, the CSOs' carriage decisions indicate that these Public Television signals did have value.
                        </P>
                    </EXTRACT>
                    <FP>
                        PTV Motion at 6 (quoting Ex. 7303 ¶ 79 (Johnson WRT)) (emphasis added).
                        <SU>300</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>300</SU>
                             In their Motion, PTV also cites to Johnson WRT ¶¶ 76-78 as attribution for this quote. PTV Motion at 6. However, no portion of the quote is contained in those paragraphs, and none of those paragraphs support this rehearing argument. Moreover, paragraph 78 sets forth as an example a PTV station that had been retransmitted by an Arizona CSO together with WGNA and continued to be retransmitted after WGNA was no longer a broadcast station that could be distantly retransmitted. This example supports the Judges' increase in PTV's share for the reason set forth in Adjustment C in the Initial Determination, and in no way supports PTV's rehearing argument for a more lucrative adjustment.
                        </P>
                    </FTNT>
                    <P>
                        PTV also maintains that Mr. Harvey's testimony, quoted above, refers to the number of CSOs (
                        <E T="03">systems</E>
                        ) that continued to retransmit PTV stations after WGNA was unavailable, rather than the number of PTV 
                        <E T="03">stations</E>
                         retransmitted after the WGNA conversion. PTV Motion at 5 n.4.
                    </P>
                    <P>
                        On these bases, PTV invokes two aspects of the standard for rehearing. Specifically, PTV contends that “the Judges' `Adjustment C' reflects a 
                        <E T="03">clear error</E>
                         that must be corrected to prevent 
                        <E T="03">manifest injustice.</E>
                        ” PTV Motion at 5 (emphasis added).
                    </P>
                    <P>In their Joint Response, CCG, Program Suppliers, and SDC assert that PTV's argument regarding this rehearing issue, like the others, fails to satisfy the requisites for granting a rehearing, particularly the assertions of “clear error” and “manifest injustice” levied by PTV with regard to “Adjustment C.” Joint Response at 1-3. More particularly, these parties assert that:</P>
                    <EXTRACT>
                        <P>1. The WGNA conversion was a “supply-side phenomenon” inapplicable to PTV + non-WGNA commercial station combinations.</P>
                        <P>2. Record evidence suggests that CSOs retransmitting PTV stations may have been indemnified by the latter for any royalties paid above the Minimum Fee.</P>
                        <P>
                            3. PTV acknowledges that it presented these very facts and arguments at the hearing (citing PTV Motion at 6), and PTV's failure to persuade the Judges to apply these facts and adopt this argument at the hearing preclude PTV from using the rehearing process to get a “second bite at the apple.” (citing 
                            <E T="03">2010-2013 Rehearing Order</E>
                             at 2.).
                        </P>
                    </EXTRACT>
                    <FP>Joint Response at 4, 7-8.</FP>
                    <P>In its Reply to the Joint Response, PTV argues:</P>
                    <EXTRACT>
                        <P>
                            1. The Joint Response wrongly concludes, without explanation, that the issues relating to, 
                            <E T="03">inter alia,</E>
                             Adjustment C, “could have been `address[ed] . . . during the hearing' ”, despite the fact that “it was impossible to anticipate that the Judges would apply [
                            <E T="03">inter alia</E>
                            ] their Adjustment[ ] C to Dr. Tyler's sensitivity limited to Above Minimum Fee CSOs.” Thus, PTV maintains, the rehearing process constituted the first occasion for it to litigate this issue, and the rehearing motion thus is not an impermissible attempt to “re-litigate” a matter considered at the hearing. PTV Reply at 1-2.
                        </P>
                        <P>2. The Joint Response wrongly maintains that the Judges acted “well within their discretion by limiting Adjustment C to “PTV + WGNA” combinations, because the Judges did not account for their differentiation of “PTV + non-WGNA combinations that also generated a base fee royalty . . . .” PTV Reply at 10-11 (quoting 17 U.S.C. 803(c)(3) (“A determination of the Copyright Royalty Judges shall be supported by the written record and shall set forth the findings of fact relied on by the Copyright Royalty Judges.”). PTV Reply at 10.</P>
                    </EXTRACT>
                    <P>In its separate response, JSC argues that PTV's request for rehearing regarding “Adjustment C” should be denied because:</P>
                    <EXTRACT>
                        <P>
                            1. Any initial royalty obligation for the CSO above the Minimum Fee is subject to offset via indemnification; 
                            <SU>301</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>301</SU>
                                 This argument echoes the argument made in the Joint Response, as noted 
                                <E T="03">supra.</E>
                            </P>
                        </FTNT>
                        <P>2. Adjustment C “fails to account for the must-carry issue,” an issue which uncouples continuing carriage of PTV signals after 2014 from any finding of “CSO's revealed willingness to pay for those signals;”</P>
                        <P>3. More broadly, Adjustment C wrongly relies on data from Minimum Fee-only CSOs; and</P>
                        <P>
                            4. Adjustment C treats similarly situated parties differently because some Minimum Fee-only CSOs in 2017 also carried 
                            <E T="03">commercial</E>
                             signals that “generated base fee royalties” in 2014.
                        </P>
                    </EXTRACT>
                    <FP>JSC Response at 4-7.</FP>
                    <P>In its Reply to the JSC Response, PTV argues:</P>
                    <EXTRACT>
                        <P>1. JSC's criticism of Adjustment C as arbitrary is wrong, because this adjustment is “necessary to mitigate the unreasonably low estimates of [PTV's] shares” as set forth in the Tyler Model's analysis of only “Above Minimum Fee CSOs.” PTV Reply at 6.</P>
                        <P>2. JSC's criticism of Adjustment C for supposedly treating different parties differently is an incorrect criticism because the Judges explained that the “Above Minimum Fee-Only” version of the Tyler Model disproportionately ignored circumstantial evidence demonstrating post-2014 PTV value through the continuation of PTV retransmittals in that period after the retransmittal of a combination of “WGNA + PTV” signals became moot (with the WGNA conversion to a cable system). By contrast, no other program category suffered from a similar loss of share value because of the WGNA conversion. PTV Reply at 9-10.</P>
                    </EXTRACT>
                    <P>In its separate response to the PTV Motion, CTV maintains that there is no basis to find that the Judges' adoption of Adjustment C was incorrect or incomplete—let alone “clearly erroneous” or that it caused PTV “manifest injustice”. CTV Response at 5-6. In support, CTV argues the following points:</P>
                    <EXTRACT>
                        <P>1. PTV wrongly asserts that the Judges committed clear error in the way they applied Adjustment C to the share allocations, because the Judges articulated in the Initial Determination a proper rationale for applying Adjustment C; and</P>
                        <P>2. The Judges were within their authority to adopt Mr. Harvey's record testimony and evidence, rather than Dr. Johnson's record testimony, to calculate Adjustment C, particularly because Adjustment C focused on PTV's specific argument “regarding demonstrated willingness to pay” by CSOs for a PTV signal after the WGNA conversion.</P>
                    </EXTRACT>
                    <FP>CTV Response at 2, 5-6.</FP>
                    <P>In Reply to the CTV Response, PTV maintains:</P>
                    <EXTRACT>
                        <P>1. Instead of offering a substantive argument, CTV incorrectly argues that, as a matter of law, the Judges may adopt whichever percentage (Mr. Harvey's or Dr. Johnson's) they deem “most appropriate”; and</P>
                        <P>2. The Judges do not have such discretion; rather, their findings “may not be arbitrary[,] must be supported by substantial evidence” and shall be the product of a “reasoned decision.”</P>
                    </EXTRACT>
                    <FP>
                        PTV Reply at 10.
                        <PRTPAGE P="54278"/>
                    </FP>
                    <HD SOURCE="HD3">i. The Judges' Analysis and Conclusion Regarding PTV's Adjustment C Rehearing Motion Arguments</HD>
                    <HD SOURCE="HD3">1. Application of the Rehearing Bases on Which PTV Relies for Adjustment C: “Manifest Injustice” and “Clear Error”</HD>
                    <HD SOURCE="HD3">a. PTV Has Not Satisfied the “Manifest Injustice” Standard</HD>
                    <P>
                        As an initial matter, the Judges find that—for several reasons—PTV's basis for a requested rehearing regarding the Adjustment C issue fails to satisfy the “manifest injustice” standard. First, the Judges agree with the Joint Respondents that the concept of “manifest injustice” is “exceptionally narrow,” requiring a showing of not only “clear and certain prejudice” to the movant, but also a harm to the movant that is “fundamentally unfair.” Joint Response at 3 (citing 
                        <E T="03">Leidos, Inc.</E>
                         v. 
                        <E T="03">Hellenic Republic,</E>
                         881 F.3d 213, 217 (D.C. Cir. 2018); 
                        <E T="03">Mohammadi</E>
                         v. 
                        <E T="03">Islamic Republic of Iran,</E>
                         947 F.Supp.2d 48, 78 (D.D.C. 2013). Here, PTV maintains that even though the Judges recognized that their primary regression model (the Tyler Model for above-Minimum Fee CSOs) failed to adequately reflect a revealed preference for PTV signals—and accordingly increased PTV's share substantially—other evidence indicated that the PTV share should have been increased 
                        <E T="03">even more.</E>
                         The Judges detect neither “fundamental unfairness” nor “prejudice” (let alone “clear and certain prejudice”) arising from the fact that PTV's increase was not as great under the evidence relied upon by the Judges (44%, pursuant to Mr. Harvey's calculations) as it would have been had the Judges instead relied on PTV's witness, Dr. Johnson.
                    </P>
                    <P>
                        In applying the above D.C. Circuit test for “manifest injustice,” a district court noted that “a dollar-and-cents comparison” serves to “undercut[ ] the significance of the “manifest injustice standard.” 
                        <E T="03">Fraenkel</E>
                         v. 
                        <E T="03">Islamic Republic of Iran,</E>
                         326 FRD. 341, 345 (D.D.C. 2018), 
                        <E T="03">rev'd on other grounds</E>
                         892 F.3d 348 (D.C. Cir.). (abuse of discretion in applying a statute).
                        <SU>302</SU>
                        <FTREF/>
                         The Judges agree, especially where, as here, the movant is complaining of “manifest injustice” because a substantial upward adjustment in its favor should have been even greater.
                        <SU>303</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>302</SU>
                             The D.C. Circuit reversed because the district court misconstrued a statute by finding that relatives of a person with American citizenship murdered by terrorists should be lower if the murder victim had dual Israeli citizenship and was targeted for death because of his latter citizenship. 
                            <E T="03">Fraenkel,</E>
                             892 F.3d 348 (D.C. Cir. 2018). That holding is clearly not analogous to the present issue of “manifest injustice.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>303</SU>
                             PTV's reliance on the Judges' order on rehearing in 
                            <E T="03">SDARS III</E>
                             is misplaced. There, the Judges found that “it would be manifestly unjust to maintain a royalty rate . . . not based on the . . . calculation that prevailed at the time the record was closed,” and the alternative methodology could change the royalty obligation by $150 million. 
                            <E T="03">SDARS III</E>
                             Order at 7-8. The Judges' reference to the potential royalty dollars at issue, standing alone, was not the dispositive basis for finding potential manifest injustice; rather manifest injustice would be the consequence of the use of a calculation methodology not prevailing according to the extant record. The reference to the $150 million disparity underscored the importance of the manifest injustice of using an improper methodology. By contrast, in the present case, the differing methodologies for calculating PTV's upward adjustment (Mr. Harvey's or Dr. Johnson's) 
                            <E T="03">both are in the record,</E>
                             and they are discussed 
                            <E T="03">infra.</E>
                        </P>
                    </FTNT>
                    <P>
                        With regard to a specific point made by JSC, the Judges reject JSC's argument for eliminating Adjustment C 
                        <E T="03">en toto</E>
                         on the basis that this adjustment is itself erroneous because it purportedly treats similarly situated parties differently. JSC Response at 6-7. Although the Judges address this argument, and the opposition thereto, in the section of this order denying JSC's Motion seeking to eliminate Adjustment C 
                        <E T="03">en toto,</E>
                         the Judges here take specific note of an important concession by JSC in its Response. Although JSC claims that categories of programming other than PTV might have benefitted from the same pre- and post-WGNA conversion analysis of CSO retransmissions, JSC concedes, in a footnote, that, no witness, including its witness, Mr. Harvey, “analyze[d] whether these CSOs were carrying the same non-WGNA signals in 2017 as they were in 2014.” JSC Response at 7 n.2. So, not only did no party other than PTV make the argument that this analysis might favor its particular programming, the evidence cited does not permit an allocation among other program categories based on this argument.
                    </P>
                    <HD SOURCE="HD3">b. PTV Has Not Satisfied the “Clear Error” Standard</HD>
                    <P>
                        Pursuant to the Judges' rules, the statutory “exceptional case” requirement for rehearing—based on an allegedly “erroneous” factual aspect of a determination—is satisfied only if that factual finding is “without evidentiary support in the record.” 17 U.S.C. 803(c)(2); 37 CFR 353.1-.2; 
                        <E T="03">see also</E>
                         Order Denying Motion for Rehearing at 1, 
                        <E T="03">In re Distribution of 2000-03 Cable Royalty Funds,</E>
                         Docket No. 2008-02 CRB CD 2000-2003 (Phase II), (Aug. 7, 2013). Further, pursuant to D.C. Circuit precedent, when the movant's asserted factual predicate for the assertion of “clear error” relies on the uncredited testimony of its expert, a Rule 59(e) motion 
                        <SU>304</SU>
                        <FTREF/>
                         must be denied if the expert's testimony does not provide sufficient “factual . . . reasons for [the expert's] conclusion.” 
                        <E T="03">Martin</E>
                         v. 
                        <E T="03">Omni Hotels Mgmt. Corp.,</E>
                         321 FRD. 35, 40 (D.D.C. 2017) (citing 
                        <E T="03">New York State Ophthalmological Soc.</E>
                         v. 
                        <E T="03">Bowen,</E>
                         854 F.2d 1379, 1391 (D.C. Cir. 1988)), 
                        <E T="03">aff'd,</E>
                         409 F. A'ppx 362 (D.C. Cir. 2011).
                    </P>
                    <FTNT>
                        <P>
                            <SU>304</SU>
                             As noted 
                            <E T="03">supra,</E>
                             the Judges pattern their rehearing analysis pursuant to the standards applicable to motions under Fed. R. Civ. P. 59(e).
                        </P>
                    </FTNT>
                    <P>
                        Moreover, a request for rehearing based on a judge's reliance on a “specific factual determination[ ]” does not satisfy the “clear error” test if (1) the evidence which the motion challenges is “sufficiently reliable to credit” or (2) if the evidence on which the movant relies is inconsistent with “the 
                        <E T="03">entire</E>
                         evidence,” and thus the court is “left with the definite and firm conviction that a mistake has been committed.” 
                        <E T="03">Obaydullah</E>
                         v. 
                        <E T="03">Obama,</E>
                         688 F.3d 784, 792 (D.C. Cir. 2012) (emphasis added).
                    </P>
                    <P>
                        Applying these standards, PTV's motion for rehearing with regard to Adjustment C must be denied. First, the Judges' Adjustment C is based on evidence in the record, 
                        <E T="03">i.e.,</E>
                         the testimony of JSC's statistical expert witness, Mr. Harvey, and the documentation on which he relied. Moreover, this testimony and evidence was not challenged, either at the hearing or on rehearing. On this basis alone PTV's motion for rehearing fails to demonstrate any error, let alone clear error.
                    </P>
                    <P>
                        Second, PTV relies upon the testimony of its own economic expert, Dr. Johnson, which PTV maintains is superior to the testimony of Mr. Harvey on this issue. However, this argument fails the second “clear error” standard cited above, because Dr. Johnson's testimony, on which PTV relies to seek, via rehearing, a 55% Adjustment C increase in its royalty share (instead of the 44% Adjustment C increase provided by the Judges) does not provide sufficient factual reasons for his conclusion. Specifically, Dr. Johnson's opinion regarding the 55% increase sought by PTV is not supported by any record evidence cited by PTV. 
                        <E T="03">See</E>
                         PTV Rehearing Motion at 6; Johnson WRT ¶ 79.
                        <SU>305</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>305</SU>
                             Although PTV also cites to Johnson WRT ¶¶ 76-78, which are irrelevant as to the Adjustment C rehearing issue, the Judges note that those paragraphs likewise do not cite to or provide any documentary support for Dr. Johnson's opinion. (By contrast, Mr. Harvey's testimony, on which the Judges relied, was supported by documentary evidence, in the form of Mr. Harvey's cited workpapers. Harvey WDT ¶ 106 n.86. Moreover, Mr. Harvey's testimony was not subject to challenges that the Judges found sufficient to call into question his testimony, unlike the case with Dr. Johnson's 
                            <PRTPAGE/>
                            testimony, as discussed in the text immediately following this footnote.)
                        </P>
                    </FTNT>
                    <PRTPAGE P="54279"/>
                    <P>Additionally, PTV does not maintain that Mr. Harvey's analysis that led to the Judges' 44% upward adjustment in favor of PTV was erroneous; rather PTV argues that it is Dr. Johnson's opinion which would favor a 55% adjustment which “best comports” with the Initial Determination. PTV Motion at 10. However, the Judges' exercise of their discretion in deciding which of two (or more) alternative factual approaches to follow cannot constitute “clear error” (or any error at all) when the party seeking rehearing itself simply maintains merely that its preference is better. Moreover, for the reasons articulated below, the Judges had good cause to rely on Mr. Harvey's testimony over that of Dr. Johnson.</P>
                    <HD SOURCE="HD3">2. PTV's Claims of “Manifest Injustice” and “Clear Error” Also Fail Because PTV Is Seeking To Relitigate an Issue Raised and Determined in the Initial Determination</HD>
                    <P>
                        As the Judges have noted previously, a motion seeking rehearing based on, 
                        <E T="03">inter alia,</E>
                         assertions of “manifest injustice” or “clear error,” shall be rejected if the movant has “merely restate[d] . . . evidence that was presented during the proceeding.” Order Denying Motions for Rehearing at 2, 
                        <E T="03">In re Digital Performance Right in Sound Recordings and Ephemeral Recordings,</E>
                         Docket No. 2005-1 CRB DTRA (
                        <E T="03">Webcasting II</E>
                        ) (Apr. 16, 2007). It is in such context that the movant seeks rehearing—over an issue that was raised and determined in the Initial Determination. This principle has been aptly described by the Judges, and other tribunals, as an improper attempt to seek “a second bite at the apple”:
                    </P>
                    <EXTRACT>
                        <P>
                            [When] the Judges consider whether there exists . . . a need to correct a clear error or prevent manifest injustice[ ] . . . the Judges must subject the rehearing arguments to a strict standard, in order “to dissuade repetitive arguments on issues that have already been fully considered . . . .” 
                            <E T="03">Order Denying Motions for Reh'g,</E>
                             Docket No. 2005-1 CRB DTRA, at 1-2 (Apr. 16, 2007). Under this strict standard, a rehearing motion does not provide a litigant with a “second bite at the apple,” allowing it “to re-litigate old matters, or to raise arguments or present evidence that could have been raised prior to the entry of judgment.” 
                            <E T="03">Exxon Shipping Co.</E>
                             v. 
                            <E T="03">Baker,</E>
                             554 U.S. 471, 485 n.5 (2008) (quoting C. Wright &amp; A. Miller, 
                            <E T="03">Federal Practice and Procedure</E>
                             § 2810.1 (2d ed. 1995)).
                        </P>
                    </EXTRACT>
                    <FP>
                        Order Denying Program Suppliers' Motion for Rehearing . . . at 1, 
                        <E T="03">Distribution of Cable Royalty Funds,</E>
                         Consolidated Proceeding Docket No. 14-CRB-0010-CD (2010-13) (Dec. 13, 2018).
                    </FP>
                    <P>
                        Here, PTV is seeking the metaphorical “second bite at the apple.” In this regard, it has not escaped the Judges' notice that PTV does not meaningfully attempt to counter the “second bite” problem—but rather simply avoids it. Perhaps that is because the Judges explicitly 
                        <E T="03">did</E>
                         take note in the Initial Determination that Dr. Johnson had made this precise claim. 
                        <E T="03">See</E>
                         Initial Determination at 13-14 (citing and quoting Johnson WRT ¶ 79). Clearly, PTV's rehearing argument regarding Adjustment C is—to say the least—complicated by the fact that the Judges were fully aware of Dr. Johnson's relevant testimony—yet did not adopt that testimony in the Initial Determination.
                        <SU>306</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>306</SU>
                             The Judges recalled Dr. Johnson's testimony in this regard, even though it was not set forth expressly in PTV's Proposed Findings of Fact or Conclusions of Law (or PTV's replies to other parties' post-hearing submissions). In fact, in both of its post-hearing filings regarding proposed factual findings, PTV only expressly referenced this issue in connection with CSOs retransmitting PTV 
                            <E T="03">+ WGNA,</E>
                             and failed to argue for the wider application it now seeks via rehearing. 
                            <E T="03">See</E>
                             PTV PFF ¶¶ 60, 126; PTV RPFF 136 &amp; n.188. That failure on PTV's part alone would have sufficed for the Judges to have disregarded PTV's argument. 
                            <E T="03">See</E>
                             37 CFR 351.14 (“A party waives any objection to a provision in the determination unless the provision conflicts with a proposed finding of fact or conclusion of law filed by the party.”). Although PTV claims that “it was impossible to anticipate that the Judges would apply their Adjustment[ ] . . . C to Dr. Tyler's sensitivity limited to Above Minimum Fee CSOs,” PTV Reply at 1, a crucial theme of Dr. Johnson's testimony was that the Minimum Fee data should have been used 
                            <E T="03">en toto</E>
                             to establish value. Thus, it was incumbent upon PTV to make this point by including it explicitly in its post-hearing submission. 
                        </P>
                        <P>
                            But nonetheless the Judges, 
                            <E T="03">sua sponte,</E>
                             recalled, referenced, and quoted testimony as to this issue, rather than deem PTV's upward adjustment argument to have been waived. However, the Judges did decline to credit Dr. Johnson's testimony (as discussed in the following text), adopting instead the substantial 44% upward adjustment indicated by the testimony of JSC's statistical expert, Mr. Harvey. PTV's argument strikes the Judges as a fine example of 
                            <E T="03">chutzpah,</E>
                             or as Joint Respondents' put it, “looking a gift horse in the mouth,” by characterizing 
                            <E T="03">only</E>
                             a 44% upward adjustment as “manifest injustice” and “clear error.” 
                            <E T="03">See</E>
                             Joint Response at 7. 
                        </P>
                        <P>
                            In this vein, PTV also takes issue (when assuming arguendo the correctness of Mr. Harvey's analysis) with the Judges setting of PTV's Adjustment C share percentage increase by 44%, rather than setting the adjustment at 44.5%. PTV Motion at 5 n.4. The Judges disagree with PTV's argument as to this issue. An agency has the discretion to truncate a value expressed in decimal form. 
                            <E T="03">See North Carolina</E>
                             v. 
                            <E T="03">E.P.A.,</E>
                             531 F.3d 896, 915-916 (D.C. Cir. 2008 (“[W]e cannot say that EPA's decision to truncate rather than round . . . was arbitrary. . . . Without a rule mandating any particular method, EPA is free to round or truncate the numbers it is comparing . . . as long as its choice is reasonable.”). Here, there was no regulation guiding the Judges. Moreover, given the uncertainties generated by PTV's failures, as discussed elsewhere in this order, to proffer sufficiently credible evidence and to meet its evidentiary burdens regarding which PTV signals among the CSO systems were must-carry, multicast or subject to royalty indemnification—truncating the percentage to 44% continues to strike the Judges as a reasonable decision, and certainly not one that generated “manifest injustice” or “clear error,” as those standards are described in this order. (It should be noted that PTV has not argued on rehearing that the Judges should have rounded the percentage increase to 45%, rather than truncate the increase to 44%, nor did PTV argue that the Judges are bound by a mathematical convention to do so.)
                        </P>
                    </FTNT>
                    <P>As made clear in the Initial Determination, the Judges had substantial problems with regard to Dr. Johnson's testimony and analyses, which should have made obvious their unwillingness to credit his testimony on which PTV relies for its objection that the Judges' 44% Adjustment C in favor of PTV is too low. To make this point explicit, the Judges recount their difficulties in connection with Dr. Johnson's hearing testimony, as expressed in the Initial Determination.</P>
                    <P>
                        First, the Judges were troubled by Dr. Johnson's reliance on the modeling of a witness in a prior proceeding because the testimony and modeling of that witness had been called into serious question. Initial Determination at 36.
                        <SU>307</SU>
                        <FTREF/>
                         Second, and relatedly, the Judges were stunned when Dr. Johnson claimed at the hearing that he had “never received” the satellite case documents calling into question the modeling and testimony on which Dr. Johnson had relied, which SDC's counsel had produced (as voluntary discovery) to PTV's counsel (and to all counsel).
                        <SU>308</SU>
                        <FTREF/>
                         Third, and also relatedly, PTV's counsel never volunteered whether it had in fact transmitted that important discovery to Dr. Johnson, or whether PTV's counsel had (intentionally or otherwise) not transmitted that material. Initial Determination at 36 n.39. Thus, the Judges were unable to determine whether the failure to consider and address this important evidence was the fault of Dr. Johnson, PTV's counsel, or 
                        <PRTPAGE P="54280"/>
                        both. For these three related reasons, the Judges gave “diminished weight” to Dr. Johnson's testimony. 
                        <E T="03">Id.</E>
                         at 38.
                    </P>
                    <FTNT>
                        <P>
                            <SU>307</SU>
                             To recount, these materials revealed “compelling” evidence of “potential specification searching and [of] dissembling” by the expert econometric witness on whose testimony the Judges had relied in the 2010-13 cable allocation proceeding (before serious questions were raised in the companion satellite proceeding). Initial Determination at 33. That prior testimony and modeling served as a starting point for Dr. Johnson's econometric work in the present proceeding. 
                            <E T="03">Id.</E>
                             at 27. The Judges thus found in this proceeding that, 
                            <E T="03">inter alios,</E>
                             Dr. Johnson—in order to support his testimony—was “obligated,” yet failed, “to adequately address the impact of Dr. Crawford's workpapers, as well as the assertion that they demonstrated he lied in his testimony in the prior proceeding.”); 
                            <E T="03">Id.</E>
                             at 36.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>308</SU>
                             
                            <E T="03">Id.</E>
                             (“[S]tartlingly, Dr. Johnson testified that he never received the satellite case documents that SDC's counsel produced to PTV's counsel . . . or the [relevant] testimony . . . [from] the satellite proceeding that was designated as evidence [in the present proceeding . . . .”]).
                        </P>
                    </FTNT>
                    <P>
                        Fourth, as explained in the Initial Determination, the Judges were also “troubled” that PTV appeared to have created two different “teams” within Dr. Johnson's firm, Edgeworth Economics (“Edgeworth”), in order to allow Edgeworth to use a so-called “consulting team” which excluded Dr. Johnson, in order for PTV to provide him with deniability about specification searching and to withhold discovery of such dubious activity.
                        <SU>309</SU>
                        <FTREF/>
                         More particularly, the Judges explained that, “when the `consulting team' is created 
                        <E T="03">within[ ] the same firm of economists who are also preparing testimony and actually testifying,</E>
                         there is the risk that work by the `consulting' team will be utilized as a screening device for work that should have been undertaken by the `testifying' team . . . [and] the use of a `consulting' team can allow a party to also cloak from discovery expert work by claiming the protection of the work-product rule.” 
                        <E T="03">Id.</E>
                         In this regard, the Judges took particular note that
                    </P>
                    <FTNT>
                        <P>
                            <SU>309</SU>
                             A bona fide “`consulting team' of experts can be utilized by a party's law firm, to allow for work product confidentiality in connection with the law firm's evaluation of the facts.” Initial Determination at 38.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <FP>an email that was withheld from Dr. Johnson as “consulting” team material contained a link to CDC distant signals with the caveat: “these data files are being shared for consulting purposes only and should not be shared with John”). It is difficult to fathom why raw data regarding distant signals would be withheld from the testifying expert.</FP>
                    </EXTRACT>
                    <FP>Initial Determination at 39 n.43.</FP>
                    <P>Additional detailed facts only further undermined the credibility of PTV and Dr. Johnson:</P>
                    <EXTRACT>
                        <P>Moreover, the soundness of the “wall” between the “consulting” team and the “testifying” team was questionable, given that the “consulting” team was led by Drs. Michael Kheyfets and David Colino, but they also were the senior members of the “testifying” team that reported to Dr. Johnson, along with dual team members Dr. Stephanie Cheng and Esther Yan. . . . . . Additionally, when PTV first produced documents to SDC, it did not also provide a privilege log describing the Edgeworth documents otherwise withheld because of an assertion of a privilege relating to a consulting team. (After SDC'[s] motion to compel, PTV provided a privilege log, but, after [ordered to produce the documents,] PTV produced virtually all of the previously withheld material.)</P>
                    </EXTRACT>
                    <FP>
                        Initial Determination at 39. The Judges thus determined that not only was there evidence that PTV attempted to avoid discovery of its alleged specification searching, but that this attempted concealment “
                        <E T="03">serves to diminish the Judges' reliance on the Johnson Model</E>
                         . . . .” 
                        <E T="03">Id.</E>
                    </FP>
                    <P>
                        Fifth, when evaluating the 
                        <E T="03">substance</E>
                         of the work undertaken by Dr. Johnson, the Judges were further concerned by the absence of “any sufficient basis in the record to explain [the] correlation between sequential regression runs and the growth of PTV's allocation share,” and PTV's failure to present a “sufficient basis to rebut SDC's charge that data changes should not consistently be correlated with the growth of PTV's share allocation, as opposed to a randomized effect on share percentages.” 
                        <E T="03">Id.</E>
                         Thus, the Judges agreed with SDC's economic expert, Dr. Daniel Rubinfeld, finding that Dr. Johnson's work demonstrated “an appearance . . . of practices that ran counter to sound empirical research practice . . . .” Initial Determination at 39-40. For these reasons alone, the Judges decided to “give reduced weight” to the work undertaken by Dr. Johnson on behalf of PTV. Initial Determination at 40.
                    </P>
                    <P>
                        Sixth, the Judges were frustrated by PTV's failure to produce important evidence with regard to another issue. Although PTV claimed royalties for multicast programming and must-carry stations, PTV failed to produce sufficient proof in that regard.
                        <SU>310</SU>
                        <FTREF/>
                         As the Initial Determination explains:
                    </P>
                    <FTNT>
                        <P>
                            <SU>310</SU>
                             “Must Carry” stations were those PTV stations which CSOs were legally obligated to transmit, potentially belying any assertion that the value of such stations was demonstrated by their carriage. 
                            <E T="03">See</E>
                             Initial Determination at 47-49; 
                            <E T="03">see also id.</E>
                             at 40, 42-43.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            [T]here was evidence available to be produced by PTV, namely the PBS-NCTA agreement as well as the number of entities it represents that would provide significant 
                            <E T="03">marketplace evidence</E>
                             . . . . But . . . PTV did not produce either this agreement or the number of entities bound by it as evidence, although its own expert witness testified as to some of the agreement's contents.
                        </P>
                        <P>Thus, the Judges were deprived of full knowledge of the terms of the agreement, the parties' fulsome testimony as to the meaning of its provisions and the number of entities signing on to the agreement. Moreover, PTV opposed the admission of that agreement into evidence. . . . Accordingly, the Judges . . . find that PTV bore, but failed to discharge, the burdens of production and persuasion with regard to the details of the agreement and the extent of its coverage.</P>
                    </EXTRACT>
                    <FP>Initial Determination at 53.</FP>
                    <P>
                        Regarding the “Must Carry” issue, PTV's failure to carry its burdens of production and persuasion are especially instructive, because they are juxtaposed against the testimony of Mr. Harvey, as in the rehearing issue pertaining to Adjustment C. Mr. Harvey identified 15.5% of PTV distant signals as having been retransmitted in compliance with these must-carry rules. Initial Determination at 40. But, as the Judges noted, “PTV takes issue with the entirety of Mr. Harvey's approach to designating `must-carry' stations.” 
                        <E T="03">Id.</E>
                         The Judges rejected PTV's argument, chastising PTV for failing to satisfy its burden of proof to provide affirmative evidence and for instead attempting to cast doubt on Mr. Harvey's otherwise credible testimony and analysis. As the Initial Determination states:
                    </P>
                    <EXTRACT>
                        <P>
                            The Judges agree with JSC and CTV, based on the case law cited by JSC, that PTV, whose clients include the public television stations that are 
                            <E T="03">in fact</E>
                             subject to must-carry requirements, bore the twin burdens of proof—the burden of 
                            <E T="03">producing evidence</E>
                             and the burden of 
                            <E T="03">persuasion</E>
                            —regarding which stations were subject to the must-carry provisions and which were not. Further, because PTV is seeking a determination including must-carry station data in the regression, those burdens are apportioned to PTV as a matter of statute. 
                            <E T="03">See</E>
                             5 U.S.C. 556(d).
                        </P>
                        <P>But rather than produce such evidence or prove its significance, PTV elected to attack Mr. Harvey's attempt to estimate the number of must-carry stations. Those attacks are insufficient. . . . Mr. Harvey engaged in a reasonable attempt to estimate this number, which PTV could have set forth in its submissions, but did not.</P>
                    </EXTRACT>
                    <FP>
                        Initial Determination at 47 (emphases in original).
                        <SU>311</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>311</SU>
                             PTV also questions the use of Mr. Harvey's analysis because it identifies the number of “systems” (
                            <E T="03">i.e.,</E>
                             CSOs) that continued to retransmit a PTV signal after the WGNA conversion, rather than the total number of PTV stations retransmitted by these CSOs. PTV Motion at 5 n.4. The Judges do not agree with this criticism. Recall the problems (discussed 
                            <E T="03">supra</E>
                            ) related to PTV's failure to meet its evidentiary burdens related to “must carry” and multicast signals, as well as to indemnified transmissions. The Judges find it prudent to rely on Mr. Harvey's “system” calculation, which is equivalent to establishing one PTV signal per CSO as retaining in the 2015-2017 post-WGNA era its pre-2014 value, as evidenced by its above-Minimum Fee carriage in that year. Utilizing PTV's per station approach would require the Judges to 
                            <E T="03">assume</E>
                             that the retransmission of all PTV stations in 2015-2017 were generating royalties, regardless of whether they were “must carry” or multicast signals, or whether they were subject to indemnification of any royalties due. As noted 
                            <E T="03">supra,</E>
                             the Judges declined to adopt PTV's arguments regarding the number or percent of “must carry” stations (for which no net royalty obligation exists), because of PTV's failure to meet its evidentiary burdens in those regards (a point unaddressed in the PTV Motion). As the D.C. Circuit has noted, the daunting factual nature of the statutory task of allocating royalties necessitates a measure of “rough justice,” which the Judges find to be well-administered as to this issue by making allocation decisions dependent in part on whether a party had met its evidentiary burden. 
                            <E T="03">See</E>
                             Initial Determination at 9 (and citations therein).
                        </P>
                    </FTNT>
                    <P>
                        Seventh, and finally, as noted at the outset of this discussion of PTV's rehearing request vis-à-vis Adjustment C, Dr. Johnson's rebuttal testimony on 
                        <PRTPAGE P="54281"/>
                        which PTV relies does not include a reference to documentation on which he relied to support that testimony. The Judges are hesitant (to say the least) to grant rehearing based upon an expert's testimony when the party relying on that testimony fails to cite to any underlying documentation of factual analysis or support for that opinion. Moreover, when the Judges consider the absence of such documentation in the cumulative context of the assorted problems with PTV's failures to meet its evidentiary burdens and Dr. Johnson's lack of knowledge of critical facts and evidence (as cataloged 
                        <E T="03">supra</E>
                        ), their reluctance to grant the “exceptional” section 803 relief of rehearing is reinforced.
                    </P>
                    <P>
                        The foregoing analysis makes it clear that the Judges had—and continue to have—serious questions regarding the credibility, reliability, and sufficiency of the evidence and testimony put forth by PTV and Dr. Johnson. 
                        <E T="03">Each</E>
                         of the Judges' findings and conclusions in these multiple areas is sufficient grounds for the Judges' election to rely on the testimony and evidence provided by JSC's expert statistician, Mr. Harvey, rather than PTV's Dr. Johnson, regarding the basis for, and size of, Adjustment C. Moreover, when the foregoing seven points calling into question the testimony of Dr. Johnson and PTV's position are considered 
                        <E T="03">as a whole,</E>
                         the Judges' decision to rely on Mr. Harvey's testimony instead of that of Dr. Johnson, most certainly did not constitute an error, let alone clear error that could serve as a basis for rehearing.
                    </P>
                    <P>
                        For these reasons, the Judges agree with the Joint Respondents that the Judges acted within their discretion in making Adjustment C as set forth in the Initial Determination.
                        <SU>312</SU>
                         
                        <SU>313</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>312</SU>
                             PTV appears to implicitly argue that the “second bite at the apple” argument is not applicable because it did not know that the Judges would apply Dr. Johnson's opinion in favor of applying the Minimum Fee royalty data as an adjustment (Adjustment C). PTV Motion at 1 (arguing it was “impossible to anticipate that the Judges would apply their Adjustment[ ] C to Dr. Tyler's sensitivity limited to Above Minimum Fee CSOs.”). This argument is meritless. PTV argued emphatically for the Judges to utilize Minimum Fee royalty data to establish program values and allocation shares in this proceeding. The Judges 
                            <E T="03">did</E>
                             use Minimum Fee evidence in making Adjustment C in PTV's 
                            <E T="03">favor</E>
                            —just not the Minimum Fee evidence that PTV prefers, nor as extensively as PTV had sought. As noted 
                            <E T="03">supra,</E>
                             the D.C. Circuit has held, the Judges are “not . . . strictly limited to choosing from among the proposals set forth by the parties” and, like all agencies, “have the authority to modify proposals set forth by the parties, or to suggest models of their own.” 
                            <E T="03">Johnson</E>
                             v. 
                            <E T="03">Copyright Royalty Bd.,</E>
                             969 F.3d 363, 381-82 (D.C. Cir. 2020). 
                            <E T="03">See also SoundExchange, Inc.</E>
                             v. 
                            <E T="03">Copyright Royalty Bd.,</E>
                             904 F.3d 41, 50-51, 57 (D.C. Cir. 2018) (upholding the Judges' decision to modify a party's proposed rates in light of the Judges' application of the relevant statute); 
                            <E T="03">Ass'n of American Publishers, Inc.</E>
                             v. 
                            <E T="03">Governors of USPS,</E>
                             485 F.2d 768, 773 (D.C. Cir. 1973) (when a rate-setting agency partially disregards two experts in connection with “suggested adjustments . . . [the] rate-making body may fashion its own adjustments within reasonable limits.”).
                        </P>
                        <P>
                            <SU>313</SU>
                             The Joint Respondents' argument that the PTV Motion as it relates to Adjustment C should be denied because the analysis of WGNA + PTV transmissions is a “supply-side” scenario and thus differentiated from PTV pairing with other signals is moot in light of this order.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">IV. Correction of Typographical and Arithmetic Errors</HD>
                    <P>
                        The PTV Motion noted errors in the Adjustment B Table for 2014, observing that “typographical errors result in total 2014 shares that do not equal 100%.” PTV Motion at 4 n.2. PTV argued that, in order to correct the 2014 shares, “Program Suppliers' share should be changed from 28.8% to 26.8%, JSC's share should be changed from 37.5% to 37.48%, and CTV's share should be changed from 11.39% to 11.38%.” 
                        <E T="03">Id.</E>
                        <SU>314</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>314</SU>
                             When computing the allocation shares in the adjustment tables, the Judges necessarily rounded figures. When such rounding was applied it was done consistently across parties and years. Due to rounding, the sum of allocation shares may not equal exactly 100% for a given year.
                        </P>
                    </FTNT>
                    <P>The Judges have reviewed the Adjustment B calculations questioned by PTV and agree that they are erroneous as a consequence of a typographical error. PTV's proposed correct shares adjust for this error. The Judges grant the motion for rehearing regarding the identified typographical errors, finding that there is a need to correct a clear error or prevent manifest injustice. Having found the Motions for rehearing and related filings a sufficient rehearing record from the participants, the Judges correct the typographical errors for 2014.</P>
                    <P>
                        Further, the Judges correct mathematical errors, not only in 2014 but in all years, that affected the shares reported in the Adjustment B Table. PTV, JSC, and CTV note that PTV's share of 19.09% reported in the Adjustment B table for 2017 is in error.
                        <SU>315</SU>
                        <FTREF/>
                         PTV Motion at 4 n.3; JSC Motion at 9 n.4; CTV Response to PTV Motion at 6. The Judges grant the motion for rehearing regarding these arithmetic errors, finding that there is a need to correct a clear error or prevent manifest injustice. Having found the Motions for rehearing and related filings a sufficient rehearing record from the participants, the Judges correct the arithmetic errors.
                        <SU>316</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>315</SU>
                             PTV and CTV describe the error as an arithmetic error.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>316</SU>
                             The first arithmetic error corrected was in the calculation of the proportional increase to other claimants' shares relating to the reduction in the PTV share due to the presence of “must-carry” stations. The second arithmetic error corrected was in the calculation of the PTV share for 2017 to account for this “must-carry” issue.
                        </P>
                    </FTNT>
                    <P>
                        All of these corrections are applied in Adjustment B Table below: 
                        <SU>317</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>317</SU>
                             To the extent that corrections set forth in this Order might be construed to reach beyond those identified in the Motions for rehearing or the rehearing authority in 17 U.S.C. 803(c)(2), the Judges also make such corrections under their authority to correct technical or clerical errors in 17 U.S.C. 803(c)(4). For this reason, the Judges set forth the analysis herein also as a written addendum to the Initial Determination, which is distributed to the participants of the proceeding via this Order and will be published as part of the Final Determination, pursuant to 17 U.S.C. 803(c)(4).
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="7" OPTS="L2,i1" CDEF="s25,12,12,12,12,12,12">
                        <TTITLE>Adjustment B Table</TTITLE>
                        <BOXHD>
                            <CHED H="1">Year</CHED>
                            <CHED H="1">
                                Program
                                <LI>suppliers</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                JSC
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CTV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                PTV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                SDC
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CCG
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">2014</ENT>
                            <ENT>26.80</ENT>
                            <ENT>37.48</ENT>
                            <ENT>11.38</ENT>
                            <ENT>13.36</ENT>
                            <ENT>4.33</ENT>
                            <ENT>6.55</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2015</ENT>
                            <ENT>47.67</ENT>
                            <ENT>2.44</ENT>
                            <ENT>13.14</ENT>
                            <ENT>11.78</ENT>
                            <ENT>11.28</ENT>
                            <ENT>13.70</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2016</ENT>
                            <ENT>40.75</ENT>
                            <ENT>1.69</ENT>
                            <ENT>17.32</ENT>
                            <ENT>15.32</ENT>
                            <ENT>10.81</ENT>
                            <ENT>14.12</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2017</ENT>
                            <ENT>44.07</ENT>
                            <ENT>0.67</ENT>
                            <ENT>13.23</ENT>
                            <ENT>15.96</ENT>
                            <ENT>10.41</ENT>
                            <ENT>15.66</ENT>
                        </ROW>
                        <TNOTE>
                            The Must Carry adjustment in Bennett WRT fig. 52 was based on the PTV shares of all CSO royalties, whereas the Judges are applying this adjustment to the shares of CSO royalties attributable to shares generated by CSOs paying above the Minimum Fee (subject to the prior adjustment for CCG, discussed 
                            <E T="03">supra</E>
                            ). So, for 2014, the percentage point adjustment to the PTV share is the percentage point adjustment in Bennett WRT Fig 52. For 2015-2017, the percentage point adjustment to the PTV share is calculated for each year by: (1) finding the percentage of PTV shares reflected by the PTV shares from Tyler/WRT fig. 6.3 ÷ PTV's shares from Tyler WRT fig. 3.2; (2) multiplying that percentage by the percentage point adjustment in Bennett WRT fig 52; and (3) subtracting that product from the PTV share from the table above.
                            <PRTPAGE P="54282"/>
                        </TNOTE>
                        <TNOTE>The shares of the other claimants are adjusted upward by: (1) calculating the percentage each category represents of all the categories' shares except PTV; (2) multiplying each percentage by the Bennett Must Carry adjustment (reduced as set forth above); and (3) adding that product to the shares of each claimant category.</TNOTE>
                    </GPOTABLE>
                    <P>The Judges recalculate the Adjustment C Table to reflect the corrections to the Adjustment B Table:</P>
                    <GPOTABLE COLS="7" OPTS="L2,i1" CDEF="s25,12,12,12,12,12,12">
                        <TTITLE>Adjustment C Table</TTITLE>
                        <BOXHD>
                            <CHED H="1">Year</CHED>
                            <CHED H="1">
                                Program
                                <LI>suppliers</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                JSC
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CTV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                PTV
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                SDC
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                CCG
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">2015</ENT>
                            <ENT>44.87</ENT>
                            <ENT>2.30</ENT>
                            <ENT>12.37</ENT>
                            <ENT>16.96</ENT>
                            <ENT>10.62</ENT>
                            <ENT>12.90</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2016</ENT>
                            <ENT>37.51</ENT>
                            <ENT>1.56</ENT>
                            <ENT>15.94</ENT>
                            <ENT>22.06</ENT>
                            <ENT>9.95</ENT>
                            <ENT>13.00</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">2017</ENT>
                            <ENT>40.39</ENT>
                            <ENT>0.61</ENT>
                            <ENT>12.12</ENT>
                            <ENT>22.98</ENT>
                            <ENT>9.54</ENT>
                            <ENT>14.35</ENT>
                        </ROW>
                        <TNOTE>The Judges recalculated the shares of the other five claimant categories by: (1) calculating the percentage each category represents of all the categories' shares except PTV; (2) multiplying each percentage by the increase in the PTV share generated by adjusting to reflect WTP of CSOs that maintained PTV carriage after WGNA conversion; and (3) subtracting that product from the shares of each claimant category.</TNOTE>
                    </GPOTABLE>
                    <P>As discussed in the Initial Determination, the Judges allocated shares of the Basic Fund to each party based on their review and weighting of the record evidence. ID at 197-198. The corrected Basic Fund and 3.75% Fund allocations incorporate the corrections discussed above.</P>
                    <P>
                        For each year, the aggregate sum of the share allocations did not sum to 100% for the Basic Fund. In 2014, the allocations summed to marginally greater than 100 percent and, in 2015-2017, marginally less than 100 percent. The Judges therefore adjusted the allocated shares proportionally to achieve an aggregate allocation of 100%; in 2014 shares this process required a modest downward adjustment and, in 2015-2017, this process required a modest upward adjustment in shares. The resulting corrected Basic Fund and 3.75% Fund 
                        <SU>318</SU>
                        <FTREF/>
                         allocations are as follows:
                    </P>
                    <FTNT>
                        <P>
                            <SU>318</SU>
                             For years 2015 and 2017, the calculated allocation shares did not equal 100%. In the case of 2015, the total calculated shares were just below 100%. To achieve the full 100%, the Judges reviewed the results and provided an increase to the claimant whose share was the closest to being rounded up at the second decimal place. In 2017, the total calculated shares were just above 100% and the Judges did not round up the claimant whose share was the closest to not being rounded up at the second decimal place to achieve a 100% allocation.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                        <TTITLE>Basic Fund Royalty Allocations</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">
                                2014
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                2015
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                2016
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                2017
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">CCG</ENT>
                            <ENT>6.19</ENT>
                            <ENT>14.59</ENT>
                            <ENT>14.60</ENT>
                            <ENT>15.77</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">CTV</ENT>
                            <ENT>20.55</ENT>
                            <ENT>19.78</ENT>
                            <ENT>17.36</ENT>
                            <ENT>17.50</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">JSC</ENT>
                            <ENT>36.13</ENT>
                            <ENT>11.42</ENT>
                            <ENT>10.72</ENT>
                            <ENT>12.36</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Program Suppliers</ENT>
                            <ENT>21.21</ENT>
                            <ENT>28.29</ENT>
                            <ENT>25.53</ENT>
                            <ENT>23.29</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">PTV</ENT>
                            <ENT>11.07</ENT>
                            <ENT>19.18</ENT>
                            <ENT>24.78</ENT>
                            <ENT>25.25</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">SDC</ENT>
                            <ENT>4.85</ENT>
                            <ENT>6.74</ENT>
                            <ENT>7.01</ENT>
                            <ENT>5.83</ENT>
                        </ROW>
                    </GPOTABLE>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                        <TTITLE>3.75% Fund Royalty Allocations</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">
                                2014
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                2015
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                2016
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                2017
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">CCG</ENT>
                            <ENT>6.96</ENT>
                            <ENT>18.05</ENT>
                            <ENT>19.41</ENT>
                            <ENT>21.10</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">CTV</ENT>
                            <ENT>23.11</ENT>
                            <ENT>24.48</ENT>
                            <ENT>23.08</ENT>
                            <ENT>23.41</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">JSC</ENT>
                            <ENT>40.63</ENT>
                            <ENT>14.13</ENT>
                            <ENT>14.25</ENT>
                            <ENT>16.53</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Program Suppliers</ENT>
                            <ENT>23.85</ENT>
                            <ENT>35.00</ENT>
                            <ENT>33.94</ENT>
                            <ENT>31.16</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">SDC</ENT>
                            <ENT>5.45</ENT>
                            <ENT>8.34</ENT>
                            <ENT>9.32</ENT>
                            <ENT>7.80</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD1">V. Ruling and Order</HD>
                    <P>
                        For the foregoing reasons, PTV's motion for rehearing is 
                        <E T="03">granted in part</E>
                         and 
                        <E T="03">denied in part</E>
                         and JSC's motion for rehearing is 
                        <E T="03">denied</E>
                        .
                    </P>
                    <P>
                        The affected parties shall file a joint proposed redacted public version of this Order for public viewing within 
                        <E T="03">ten days</E>
                        .
                    </P>
                    <P>
                        <E T="03">So ordered.</E>
                    </P>
                    <SIG>
                        <DATED>Dated: March 21, 2024.</DATED>
                        <NAME>David P. Shaw,</NAME>
                        <TITLE>Chief Copyright Royalty Judge.</TITLE>
                    </SIG>
                </SUPLINF>
                <FRDOC>[FR Doc. 2024-13597 Filed 6-27-24; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 1410-72-P</BILCOD>
            </NOTICE>
        </NOTICES>
    </NEWPART>
    <VOL>89</VOL>
    <NO>125</NO>
    <DATE>Friday, June 28, 2024</DATE>
    <UNITNAME>Rules and Regulations</UNITNAME>
    <NEWPART>
        <PTITLE>
            <PRTPAGE P="54283"/>
            <PARTNO>Part III</PARTNO>
            <AGENCY TYPE="P"> Department of the Treasury</AGENCY>
            <SUBAGY> Internal Revenue Service</SUBAGY>
            <HRULE/>
            <CFR>26 CFR Part 1</CFR>
            <TITLE>Statutory Disallowance of Deductions for Certain Qualified Conservation Contributions Made by Partnerships and S Corporations; Final Rule</TITLE>
        </PTITLE>
        <RULES>
            <RULE>
                <PREAMB>
                    <PRTPAGE P="54284"/>
                    <AGENCY TYPE="S">DEPARTMENT OF THE TREASURY</AGENCY>
                    <SUBAGY>Internal Revenue Service</SUBAGY>
                    <CFR>26 CFR Part 1</CFR>
                    <DEPDOC>[TD 9999]</DEPDOC>
                    <RIN>RIN 1545-BQ90</RIN>
                    <SUBJECT>Statutory Disallowance of Deductions for Certain Qualified Conservation Contributions Made by Partnerships and S Corporations</SUBJECT>
                    <AGY>
                        <HD SOURCE="HED">AGENCY:</HD>
                        <P>Internal Revenue Service (IRS), Treasury.</P>
                    </AGY>
                    <ACT>
                        <HD SOURCE="HED">ACTION:</HD>
                        <P>Final regulations.</P>
                    </ACT>
                    <SUM>
                        <HD SOURCE="HED">SUMMARY:</HD>
                        <P>This document contains final regulations concerning the statutory disallowance rule enacted by the SECURE 2.0 Act of 2022 to disallow a Federal income tax deduction for a qualified conservation contribution made by a partnership or an S corporation after December 29, 2022, if the amount of the contribution exceeds 2.5 times the sum of each partner's or S corporation shareholder's relevant basis. These final regulations provide guidance regarding this statutory disallowance rule, including definitions, appropriate methods to calculate the relevant basis of a partner or an S corporation shareholder, the three statutory exceptions to the statutory disallowance rule, and related reporting requirements. In addition, these final regulations provide reporting requirements for partners and S corporation shareholders that receive a distributive share or pro rata share of any noncash charitable contribution made by a partnership or S corporation, regardless of whether the contribution is a qualified conservation contribution (and regardless of whether the contribution is of real property or other noncash property). These final regulations affect partnerships and S corporations that claim qualified conservation contributions, and partners and S corporation shareholders that receive a distributive share or pro rata share, as applicable, of a noncash charitable contribution.</P>
                    </SUM>
                    <EFFDATE>
                        <HD SOURCE="HED">DATES:</HD>
                        <P/>
                        <P>
                            <E T="03">Effective date:</E>
                             These regulations are effective on June 28, 2024.
                        </P>
                        <P>
                            <E T="03">Applicability date:</E>
                             For dates of applicability, 
                            <E T="03">see</E>
                             §§ 1.170A-14(o)(1), 1.170A-16(g)(2), 1.706-3(e), and 1.706-4(e)(2)(xiii) and (e)(3)(ii).
                        </P>
                    </EFFDATE>
                    <FURINF>
                        <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                        <P>Concerning the final regulations under §§ 1.170A-14, 1.706-3, and 1.706-4, contact John Hanebuth or Benjamin Weaver at (202) 317-6850 (not a toll-free number); concerning the final regulations under § 1.170A-16 and issues regarding section 170 other than section 170(h)(7), contact Elizabeth Boone at (202) 317-5100 or Hannah Kim at (202) 317-7003 (not toll-free numbers).</P>
                    </FURINF>
                </PREAMB>
                <SUPLINF>
                    <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                    <P/>
                    <HD SOURCE="HD1">Background</HD>
                    <P>This document contains final regulations amending the Income Tax Regulations (26 CFR part 1) under sections 170 and 706 of the Internal Revenue Code (Code) to implement the provisions of section 605(a) and (b) of the SECURE 2.0 Act of 2022 (SECURE 2.0 Act), enacted as Division T of the Consolidated Appropriations Act, 2023, Public Law 117-328, 136 Stat. 4459, 5393 (December 29, 2022), which apply to contributions of property made after December 29, 2022.</P>
                    <HD SOURCE="HD2">I. Overview of Qualified Conservation Contributions</HD>
                    <P>Section 170(a) provides, subject to certain limitations and requirements, a deduction for any charitable contribution, as defined in section 170(c), of cash or other property the payment of which is made within the taxable year. Section 170(f) disallows charitable contribution deductions in certain cases and provides special rules. Section 170(f)(3)(A) provides that, in the case of a contribution (not made by a transfer in trust) of an interest in property that consists of less than the taxpayer's entire interest in such property, a deduction will be allowed only to the extent that the value of the interest contributed would be allowable as a deduction under section 170 if such interest had been transferred in trust. Section 170(f)(3)(B)(iii) provides that section 170(f)(3)(A) does not apply to a qualified conservation contribution.</P>
                    <HD SOURCE="HD2">II. Enactment of Section 170(f)(19) and (h)(7)</HD>
                    <P>Section 170(h)(7) was added to the Code by section 605(a)(1) of the SECURE 2.0 Act. Section 170(h)(7)(A) states that a contribution by a partnership (whether directly or as a distributive share of a contribution of another partnership) is not treated as a qualified conservation contribution for purposes of section 170 if the amount of such contribution exceeds 2.5 times the sum of each partner's relevant basis in such partnership (Disallowance Rule). Thus, a contribution of a qualified real property interest to a qualified organization exclusively for conservation purposes is not a qualified conservation contribution if the Disallowance Rule applies.</P>
                    <P>Section 170(h)(7)(B)(i) provides that, for purposes of section 170(h)(7), the term “relevant basis” means, with respect to any partner, the portion of such partner's modified basis in the partnership that is allocable (under rules similar to the rules of section 755 of the Code) to the portion of the real property with respect to which the contribution described in section 170(h)(7)(A) is made. Section 170(h)(7)(B)(ii) provides that, for purposes of section 170(h)(7), the term “modified basis” means, with respect to any partner, such partner's adjusted basis in the partnership as determined: (1) immediately before the contribution described in section 170(h)(7)(A), (2) without regard to section 752 of the Code, and (3) by the partnership after taking into account these first two adjustments and such other adjustments as the Secretary of the Treasury or her delegate (Secretary) may provide.</P>
                    <P>Section 170(h)(7)(F) provides that the rules of section 170(h)(7) “apply to S corporations and other pass-through entities in the same manner as such rules apply to partnerships,” except as the Secretary otherwise provides.</P>
                    <P>Section 170(h)(7)(C) provides an exception to the Disallowance Rule for contributions that satisfy a three-year holding period. Section 170(h)(7)(D) provides an exception to the Disallowance Rule for contributions from family pass-through entities. Section 170(h)(7)(E) provides an exception to the Disallowance Rule for qualified conservation contributions the conservation purpose of which is the preservation of a certified historic structure.</P>
                    <P>Section 170(h)(7)(G) provides a specific grant of regulatory authority to the Secretary to issue regulations or other guidance as the Secretary determines are necessary or appropriate to carry out the purposes of the Disallowance Rule, including reporting requirements and rules to prevent the avoidance of the Disallowance Rule.</P>
                    <P>
                        Section 605(b) of the SECURE 2.0 Act added section 170(f)(19) to the Code, which provides that, in the case of a partnership or S corporation claiming a qualified conservation contribution for the preservation of a building that is a certified historic structure (as defined in section 170(h)(4)(C)) in an amount that exceeds 2.5 times the sum of each partner's or S corporation shareholder's relevant basis (as defined in section 170(h)(7)), no deduction under section 170 is allowed unless, as provided in section 170(f)(19)(A)(i) and (ii), the partnership or S corporation includes on its return for the taxable year a statement that such contribution was 
                        <PRTPAGE P="54285"/>
                        made and any other information as the Secretary may require. A contribution to preserve a certified historic structure is one of the three exceptions to the Disallowance Rule.
                    </P>
                    <P>Section 605(c) of the SECURE 2.0 Act provides that the amendments made by section 605 of the SECURE 2.0 Act apply to contributions made after December 29, 2022, and that no inference is intended as to the appropriate treatment of contributions made in taxable years ending on or before that date, or as to any contribution for which a deduction is not disallowed by reason of section 170(h)(7).</P>
                    <HD SOURCE="HD2">III. The Proposed Regulations</HD>
                    <P>
                        On November 20, 2023, the Department of the Treasury (Treasury Department) and the IRS published a notice of proposed rulemaking (REG-112916-23) (the proposed regulations) in the 
                        <E T="04">Federal Register</E>
                         (88 FR 80910) to provide guidance under section 170(f)(19) and (h)(7). The proposed regulations would make changes to existing § 1.170A-14, including modifying paragraph (a) to reference the Disallowance Rule and adding new paragraphs (j) through (n) to § 1.170A-14 to provide guidance on the application of the Disallowance Rule (and its exceptions) to partnerships and S corporations. In addition, the proposed regulations would make changes to the reporting requirements in § 1.170A-16. Finally, the proposed regulations would make changes to §§ 1.706-3 and 1.706-4 to facilitate the operation of the Disallowance Rule in the case of a qualified conservation contribution made by a partnership. The provisions of the proposed regulations are explained in greater detail in the preamble to the proposed regulations.
                    </P>
                    <P>
                        Pursuant to section 7805(b)(2) of the Code, regulations issued under section 170(f)(19) and (h)(7) within 18 months of the December 29, 2022, date of enactment of section 605 of the SECURE 2.0 Act are permitted to apply to periods ending before the dates provided under section 7805(b)(1) (generally, the dates of the issuance of proposed or final regulations or a notice describing the regulations). Accordingly, the proposed regulations under §§ 1.170A-14(j) through (n), 1.706-3, and 1.706-4 were proposed to apply to contributions made after December 29, 2022. To align the reporting requirements under § 1.170A-16 with the publication of the revised Form 8283, 
                        <E T="03">Noncash Charitable Contributions,</E>
                         and its instructions, the proposed regulations under § 1.170A-16 were proposed to apply to contributions made in taxable years ending on or after November 20, 2023 (the date the proposed regulations were published in the 
                        <E T="04">Federal Register</E>
                        ).
                    </P>
                    <HD SOURCE="HD1">Summary of Comments and Explanation of Revisions</HD>
                    <P>
                        This Summary of Comments and Explanation of Revisions summarizes the proposed regulations and all the substantive comments submitted in response to the proposed regulations. The Treasury Department and the IRS received eight written comments in response to the proposed regulations. The comments are available for public inspection at 
                        <E T="03">https://www.regulations.gov</E>
                         or upon request. There were no requests to speak at the scheduled public hearing. Consequently, the public hearing was cancelled (89 FR 39). After full consideration of the comments received, these final regulations adopt the proposed regulations with modifications as described in this Summary of Comments and Explanation of Revisions.
                    </P>
                    <P>The comments can be grouped into the following categories: (1) definitions, (2) the computation of relevant basis, (3) requests for guidance under the partnership allocation rules, (4) the exceptions to the Disallowance Rule, (5) reporting requirements, and (6) other comments. Each category is discussed in turn in the remainder of this Summary of Comments and Explanation of Revisions.</P>
                    <HD SOURCE="HD2">I. Definitions</HD>
                    <P>Proposed § 1.170A-14(j)(3) contained definitions of terms, including “allocated portion,” “amount of qualified conservation contribution,” “contributing partnership,” “contributing S corporation,” “direct interest,” “directly,” “disallowed qualified conservation contribution,” “indirect interest,” “indirectly,” “ultimate member,” “upper-tier partnership,” and “upper-tier S corporation.” Commenters generally provided no comments on these definitions, except with respect to the definition of the amount of qualified conservation contribution. Thus, the final regulations adopt the definitions as proposed, except with respect to the definition of the amount of qualified conservation contribution.</P>
                    <P>Proposed § 1.170A-14(j)(3)(ii) defined “amount of qualified conservation contribution” as the amount claimed as a qualified conservation contribution on the return of the contributing partnership or contributing S corporation for the taxable year in which the contribution is made. No comments addressed the first sentence of proposed § 1.170A-14(j)(3)(ii), so the final regulations adopt that sentence as proposed.</P>
                    <P>Proposed § 1.170A-14(j)(3)(ii) further provided, “[i]f the contributing partnership or contributing S corporation files an amended return or administrative adjustment request under section 6227 of the Code claiming a different amount with respect to the qualified conservation contribution, the rules of [§ 1.170A-14] must be re-applied with respect to such different amount to determine the application of section 170(h)(7) and [§ 1.170A-14.]” One commenter stated that this sentence would seem to inappropriately allow partnerships or S corporations to file administrative adjustment requests or amended returns after they had been notified of an IRS examination. The commenter recommended that the regulations be changed to refer only to an amended return or administrative adjustment request that is a “qualified amended return” for purposes of the substantial underpayment rules.</P>
                    <P>The Treasury Department and the IRS understand the commenter's reference to “qualified amended return” to be a reference to § 1.6664-2(c)(3). Under § 1.6664-2(c)(3), a qualified amended return is an amended return or a timely request for an administrative adjustment under section 6227, filed after the due date of the return for the taxable year and before the earliest of several dates, including the date the taxpayer is first contacted by the IRS concerning any examination with respect to the return. Under section 6227(a), a partnership may file an administrative adjustment request for the amount of a partnership-related item for any partnership taxable year. However, under section 6227(c), a partnership may not file an administrative adjustment request after a notice of an administrative proceeding with respect to the taxable year is mailed under section 6231 of the Code.</P>
                    <P>
                        The Treasury Department and the IRS did not intend the proposed regulations to allow for the filing of an amended return or administrative adjustment request in situations in which the partnership or S corporation would not otherwise be allowed to file an amended return or administrative adjustment request. Moreover, the Treasury Department and the IRS agree that the re-application provision in § 1.170A-14(j)(3)(ii) should not be understood to allow a partnership or S corporation to avoid the Disallowance Rule by filing an amended return or administrative adjustment request claiming a lower amount with respect to a qualified conservation contribution after being contacted by the IRS concerning an 
                        <PRTPAGE P="54286"/>
                        examination regarding the return. For example, under an inappropriate interpretation of the language in the proposed regulations, a contributing S corporation could violate the Disallowance Rule by claiming an amount of a qualified conservation contribution on its original return that exceeds 2.5 times the sum of the relevant bases. Then, after its return has been selected for examination by the IRS, the contributing S corporation could attempt to file an amended return on which it reduces the amount of its claimed qualified conservation contribution to an amount not exceeding 2.5 times the sum of the relevant bases. The contributing S corporation could then argue that the re-application provision in § 1.170A-14(j)(3)(ii) allows the Disallowance Rule to be re-tested, and that, therefore, its qualified conservation contribution is not disallowed, but instead is allowed to the extent of the amount claimed on the amended return. In order to balance the need for a mechanism to timely fix errors made in good-faith with the risk of circumvention of the Disallowance Rule, these final regulations limit the re-application provision by providing that, if the contributing partnership or contributing S corporation files an amended return or timely administrative adjustment request under section 6227 of the Code claiming a lower amount with respect to the qualified conservation contribution, the rules of § 1.170A-14 will be re-applied with respect to such lower amount to determine the application of section 170(h)(7) and § 1.170A-14 if and only if the amended return or timely administrative adjustment request is filed before the contributing partnership or contributing S corporation is put on notice of an IRS examination relating to the qualified conservation contribution. The final regulations provide that a contributing partnership or contributing S corporation is considered to be on notice after the earlier of: (1) the date the contributing partnership or contributing S corporation is first contacted by the IRS in connection with any examination of a return that relates to the qualified conservation contribution, or (2) the date any person is first contacted by the IRS concerning an examination of that person under section 6700 (relating to the penalty for promoting abusive tax shelters) for an activity that relates to the qualified conservation contribution. These regulations do not incorporate the full definition of qualified amended returns within the meaning of § 1.6664-2(c)(3) as requested by the commenter, because a definition tailored to the context of this regulation is sufficient to prevent abusive circumventions of the Disallowance Rule without being overbroad and preventing a contributing partnership or contributing S corporation from being able to use the re-application provision in non-abusive situations.
                    </P>
                    <P>In addition, the Treasury Department and the IRS remain concerned about situations in which a contributing partnership or contributing S corporation files an amended return or administrative adjustment request that claims a higher amount with respect to a qualified conservation contribution. In that situation, the Treasury Department and the IRS have concluded that the rules of § 1.170A-14 should be re-applied with respect to such higher amount to determine the application of section 170(h)(7) and § 1.170A-14 regardless of whether the amended return or administrative adjustment request constitutes a qualified amended return. This rule is necessary to ensure that the Disallowance Rule is not avoided simply by filing an original return claiming an amount with respect to a qualified conservation contribution that does not exceed 2.5 times the sum of the relevant bases, followed by an amended return or administrative adjustment request claiming an amount with respect to the qualified conservation contribution that does exceed 2.5 times the sum of the relevant bases. Accordingly, these final regulations modify the second sentence of § 1.170A-14(j)(3)(ii) to clarify that, if the contributing partnership or contributing S corporation files an amended return or administrative adjustment request under section 6227 of the Code claiming a higher amount with respect to the qualified conservation contribution, the rules of § 1.170A-14 must be re-applied with respect to such higher amount to determine the application of section 170(h)(7) and § 1.170A-14; for example, if a contributing S corporation's original return claims a qualified conservation contribution that does not exceed 2.5 times the sum of the relevant bases, and the S corporation subsequently files an amended return claiming a higher amount with respect to the qualified conservation contribution that does exceed 2.5 times the sum of the relevant bases, then the entire amount of the qualified conservation contribution is a disallowed qualified conservation contribution (unless one of the exceptions in § 1.170A-14(n) applies).</P>
                    <HD SOURCE="HD2">II. Computation of Relevant Basis</HD>
                    <P>As noted earlier, section 170(h)(7)(B)(i) provides that, for purposes of section 170(h)(7), the term “relevant basis” means, with respect to any partner, the portion of such partner's modified basis in the partnership that is allocable (under rules similar to the rules of section 755 of the Code) to the portion of the real property with respect to which the contribution described in section 170(h)(7)(A) is made. Proposed § 1.170A-14(l) provided guidance on the determination of modified basis. Proposed § 1.170A-14(m) provided guidance on the allocation of modified basis, which results in the determination of relevant basis.</P>
                    <P>The Treasury Department and the IRS received several comments on the computation of modified basis and relevant basis, which can be divided into the following two topics: (1) the determination of modified basis, and (2) the allocation of modified basis to determine relevant basis.</P>
                    <HD SOURCE="HD3">A. Determination of Modified Basis</HD>
                    <P>As noted earlier, section 170(h)(7)(B)(ii) provides that, for purposes of section 170(h)(7), the term “modified basis” means, with respect to any partner, such partner's adjusted basis in the partnership as determined: (1) immediately before the contribution described in section 170(h)(7)(A), (2) without regard to section 752, and (3) by the partnership after taking into account those adjustments and such other adjustments as the Secretary may provide. Section 170(h)(7)(F) provides that the rules of section 170(h)(7) “apply to S corporations and other pass-through entities in the same manner as such rules apply to partnerships” except as the Secretary may otherwise provide. This section of the preamble discusses: (1) the proposed regulations, comments, and final regulations for the determination of a partner's modified basis, and (2) the proposed regulations, comments, and final regulations for the determination of an S corporation shareholder's modified basis.</P>
                    <HD SOURCE="HD3">1. Determination of a Partner's Modified Basis</HD>
                    <HD SOURCE="HD3">a. Proposed Rules for the Determination of a Partner's Modified Basis</HD>
                    <P>
                        Proposed § 1.170A-14(l)(2)(i) defined the term “modified basis” to mean, with respect to any ultimate member that is a direct partner in either a contributing partnership or an upper-tier partnership, such ultimate member's adjusted basis in its interest in the partnership in which the ultimate 
                        <PRTPAGE P="54287"/>
                        member holds a direct interest as of the beginning of the first day of the partnership's taxable year in which the qualified conservation contribution is made, with adjustments as determined under proposed § 1.170A-14(l)(2)(ii) through (v). However, if the ultimate member was not a partner as of the beginning of the first day of the partnership's taxable year in which the qualified conservation contribution is made, then the term “modified basis” means such ultimate member's adjusted basis in its interest in the partnership immediately after the transaction that resulted in the ultimate member becoming a partner, with adjustments as determined under proposed § 1.170A-14(l)(2)(ii) through (v).
                    </P>
                    <P>The proposed regulations provided that the following four adjustments must be made in the order in which they are listed. First, proposed § 1.170A-14(l)(2)(ii) required an increase for any contributions made by the ultimate member to the partnership during the portion of the year commencing with the beginning of the taxable year of the partnership and ending immediately prior to the time of day at which the qualified conservation contribution is made as provided in section 722 of the Code.</P>
                    <P>Second, proposed § 1.170A-14(l)(2)(iii) required an adjustment, as provided in section 705 of the Code, by the ultimate member's hypothetical distributive share of partnership items attributable to the portion of the year commencing with the beginning of the taxable year of the partnership and ending immediately prior to the time of day at which the qualified conservation contribution is made. In making this determination, the partnership would be required to apply the rules of § 1.706-4 and apply a hypothetical interim closing method to allocate the partnership's items attributable to the portion of the year commencing with the beginning of the taxable year of the partnership and ending immediately prior to the time of day at which the qualified conservation contribution is made. The proposed regulations provided that the partnership cannot apply any convention in § 1.706-4(c) to the hypothetical determination of the partners' distributive shares, but rather must perform the calculation as though the determination occurred immediately prior to the time of day at which the qualified conservation contribution is made. The proposed regulations clarified that this hypothetical determination of the partners' distributive shares is only for purposes of calculating modified basis. Proposed § 1.170A-14(l)(2)(iii) did not require the partnership to use the interim closing method with respect to the determination of its partners' actual distributive shares of partnership items of income, gain, loss, deduction, and credit for the taxable year in which the qualified conservation contribution is made or otherwise.</P>
                    <P>Third, proposed § 1.170A-14(l)(2)(iv) required a reduction (but not below zero) for any distributions made by the partnership to the ultimate member during the portion of the year commencing with the beginning of the taxable year of the partnership and ending immediately prior to the time of day at which the qualified conservation contribution is made as provided in section 733 of the Code.</P>
                    <P>Fourth, proposed § 1.170A-14(l)(2)(v) required a reduction for the full amount of the ultimate member's share of § 1.752-1 liabilities of any partnership (including a lower-tier partnership). The remaining amount would be such ultimate member's modified basis.</P>
                    <P>The proposed regulations contained two examples illustrating these rules.</P>
                    <HD SOURCE="HD3">b. Comments Concerning a Partner's Modified Basis</HD>
                    <P>The comments on the determination of modified basis can be grouped into the following three categories: (1) inclusion of section 752 liabilities in modified basis, (2) determining modified basis immediately prior to the qualified conservation contribution, and (3) the complexity of the computations.</P>
                    <HD SOURCE="HD3">i. Inclusion of Section 752 Liabilities in Modified Basis</HD>
                    <P>Section 170(h)(7)(B)(ii)(II) provides that modified basis is determined without regard to section 752. Section 752(a) provides that any increase in a partner's share of the liabilities of a partnership, or any increase in a partner's individual liabilities by reason of the assumption by such partner of partnership liabilities, is considered as a contribution of money by such partner to the partnership. Section 752(b) provides that any decrease in a partner's share of the liabilities of a partnership, or any decrease in a partner's individual liabilities by reason of the assumption by the partnership of such individual liabilities, is considered as a distribution of money to the partner by the partnership. Existing § 1.752-1 provides guidance under section 752, including a definition of liabilities. Generally, under the rules of subchapter K of chapter 1 of the Code (subchapter K), if a partnership borrows money, the aggregate bases of its partners' interests in the partnership will increase by the amount of the borrowing. Consistent with section 170(h)(7)(B)(ii)(II), proposed § 1.170A-14(l)(2)(v) required subtracting the full amount of the partner's share of § 1.752-1 liabilities of any partnership (including a lower-tier partnership) for purposes of calculating modified basis.</P>
                    <P>One commenter expressed concern that the relevant basis calculation ignores section 752 liabilities generally. The commenter offered an example of a partnership with $200,000 in cash that borrows an additional $800,000 and purchases a building for $1,000,000. The commenter stated that the proposed regulations would ignore the $800,000 as a section 752 liability and that any conservation contribution for historic preservation of the building would be capped at $500,000.</P>
                    <P>Section 170(h)(7)(B)(ii)(II) provides that a partner's modified basis (and thus, relevant basis) is determined without regard to section 752. The approach in the proposed regulations appropriately effectuates this statutory directive. Thus, in the commenter's example, although the partnership's $800,000 liability will increase the partners' aggregate bases in their partnership interests by $800,000, none of that $800,000 will be reflected in any partner's modified basis or relevant basis.</P>
                    <P>
                        The commenter's assumption that the Disallowance Rule would cap the amount of the partnership's qualified conservation contribution at $500,000 misunderstands the rule. Several other considerations must be taken into account to determine the extent of any allowable qualified conservation contribution. First, the Disallowance Rule is not a cap—as explained in the preamble to the proposed regulations and as provided in proposed § 1.170A-14(j)(1), if the amount of a qualified conservation contribution claimed by a partnership or an S corporation exceeds 2.5 times the sum of the relevant bases, no deduction is allowed at all for the contribution unless one of the three statutory exceptions applies. Second, application of the Disallowance Rule is not based on the difference between the amount of the contribution and the partnership's basis in the donated property; it is based on whether the contribution exceeds 2.5 times the sum of the ultimate members' relevant bases. The facts presented in the commenter's example are insufficient to determine whether 2.5 times the sum of the relevant bases is $500,000.
                        <SU>1</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             Moreover, the commenter's example seems to involve a qualified conservation contribution the conservation purpose of which is the preservation 
                            <PRTPAGE/>
                            of a historic structure. If so, the Disallowance Rule would not apply under section 170(h)(7)(E) and proposed § 1.170A-14(n)(4), provided that, if the amount of the contribution exceeds 2.5 times the sum of the relevant bases, the partnership or S corporation complies with the reporting requirements of section 170(f)(19) and proposed § 1.170A-16(f)(6).
                        </P>
                    </FTNT>
                    <PRTPAGE P="54288"/>
                    <P>The same commenter also expressed concerns that the proposed regulations appear to treat the ultimate member's share of liabilities under § 1.752-1(b) as “flowing only in one direction” because the proposed regulations provided that modified basis must be reduced by the full amount of the ultimate member's share of § 1.752-1 liabilities of any partnership. The commenter stated that this language ignores that a partner's share of liabilities may increase the partner's basis.</P>
                    <P>It is true that a partner's share of the partnership's liabilities increases the partner's basis in its interest in the partnership. However, this basis is not included for purposes of the Disallowance Rule pursuant to section 170(h)(7)(B)(ii)(II), which requires modified basis to be determined without regard to a partner's share of the partnership's liabilities. Thus, these regulations finalize § 1.170A-14(l)(2)(v) without change.</P>
                    <HD SOURCE="HD3">ii. Determining Modified Basis Immediately Prior to the Qualified Conservation Contribution</HD>
                    <P>One commenter stated that the proposed regulations appear to time the calculation of modified basis as of the time of the qualified conservation contribution. The commenter stated that this “artificial cutoff” ignores any basis allocable to the ultimate members following the contribution, such as from capital contributions or increases in the ultimate members' share of section 752 liabilities.</P>
                    <P>The Treasury Department and the IRS confirm that the rules in the proposed regulations require the calculation of modified basis (and thus, relevant basis) as of the time of the qualified conservation contribution. As explained earlier, the proposed regulations were intended to effectuate section 170(h)(7)(B)(ii)(I), which provides that modified basis is the partner's adjusted basis in the partnership as determined “immediately before” the qualified conservation contribution. The Treasury Department and the IRS do not agree with the commenter's suggestion that modified basis include amounts that were reflected in the ultimate member's adjusted basis in its interest in the partnership only after the contribution because inclusion of such amounts would contradict the statute. Thus, the proposed regulations are adopted without change as to this issue.</P>
                    <P>
                        As a clarification to the statutory rule that modified basis is determined immediately before a qualified conservation contribution is made, the final regulations add a new step to the list of steps in proposed § 1.170A-14(l)(2). As described in the preamble to the proposed regulations, the proposed regulations were designed to facilitate the computation of a partner's “adjusted basis” in its partnership interest immediately prior to the qualified conservation contribution. As also described in the preamble to the proposed regulations, adjusted basis is typically computed as of the beginning or end of a taxable year, and generally, not as of the time of a particular event, such as the making of a qualified conservation contribution. Accordingly, the approach in the proposed regulations started with a calculation of adjusted basis that partners are familiar with computing, and then made adjustments designed to arrive at an amount that reflects the partner's adjusted basis immediately before the qualified conservation contribution. The proposed regulations did not, however, take into account acquisitions of additional partnership interests or partial dispositions of partnership interests that occurred after the beginning of the taxable year and prior to the qualified conservation contribution. In those situations, an additional step is necessary to effectuate the rule in section 170(h)(7)(B)(ii) that modified basis is adjusted basis immediately before the qualified conservation contribution without regard to section 752. The new step, in § 1.170A-14(l)(2)(iii), provides that if, between the beginning of the partnership's taxable year and the time of day at which the qualified conservation contribution is made, the ultimate member acquired additional interests in the partnership, modified basis must be increased by the ultimate member's initial basis in those additional interests. Similarly, § 1.170A-14(l)(2)(iii) provides that if, between the beginning of the partnership's taxable year and the time of day at which the qualified conservation contribution is made, the ultimate member partially disposed of its interest in the partnership, modified basis must be decreased by the ultimate member's basis in the interests disposed of. The final regulations add § 1.170A-14(l)(4)(iv) (
                        <E T="03">Example 4)</E>
                         to illustrate this step.
                    </P>
                    <HD SOURCE="HD3">iii. Complexity of the Determination of Modified Basis</HD>
                    <P>
                        Multiple commenters stated that the proposed regulations' calculations, including the calculation of modified basis, were too complex.
                        <SU>2</SU>
                        <FTREF/>
                         One commenter stated that the proposed regulations are well drafted and that the mechanical rules work, but that the computations are too complex. Another commenter stated that the calculations were complex and would be difficult for taxpayers, land trusts, and even the IRS to administer. Another commenter stated that the proposed rules are unnecessarily complex and will likely discourage many partnerships from making conservation contributions even if, after performing the calculations, the contribution would not be disallowed by the Disallowance Rule. Finally, another commenter found the regulations to be a “complex labyrinth” in which one misstep leads to the disallowance of the charitable deduction and imposition of the gross overvaluation penalty under section 6662(h) and also places a significant burden on the IRS and the Independent Office of Appeals. This commenter suggested that, under Executive Order 12866, 58 FR 190 (October 4, 1993), and Internal Revenue Manual provision 32.1.4.1.1(1)(a), the Treasury Department and the IRS are required to draft regulations to minimize litigation, but that the proposed regulations likely will increase litigation as the regulations are overly complex and burdensome for the average taxpayer.
                    </P>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             It is unclear from the comments whether some commenters were objecting to the complexity of the determination of modified basis, the determination of relevant basis (once modified basis is determined), or both. Comments addressing the complexity of determining relative basis once modified basis is determined are discussed in Parts II.B.1.a, II.B.2, II.B.3.a, and II.B.4.a of this Summary of Comments and Explanation of Revisions.
                        </P>
                    </FTNT>
                    <P>As an alternative to the complexity in the proposed regulations, one commenter suggested that the IRS develop simplified safe harbor calculations. Another commenter suggested applying pure aggregate rules to the contributing partnership and any upper-tier partnerships to determine modified basis and relevant basis and adding an anti-abuse rule that the transaction does not work if a principal purpose is to avoid the limitations of section 170(h)(7). This commenter noted, however, that this suggestion was less precise and subject to potential abuse, but stated that it is a rule that even small practitioners could apply.</P>
                    <P>
                        These suggested approaches are not specific or accurate enough to comply with the statutory directive of section 
                        <PRTPAGE P="54289"/>
                        170(h)(7). Section 170(h)(7)(B)(ii)(I) through (III) provides that modified basis is the partner's adjusted basis in the partnership immediately before the qualified conservation contribution, without regard to section 752. Partners generally do not track their bases in their partnership interests on a daily basis. Instead, such determinations are typically made at year end. Thus, a partnership generally will not know each partner's basis in its partnership interest as of a particular point during the year, such as the moment at which the partnership makes a qualified conservation contribution. A partnership required by section 170(h)(7)(B)(ii)(III) to compute modified basis would generally have to start with each partner's adjusted basis in its partnership interest as of the beginning of the year 
                        <SU>3</SU>
                        <FTREF/>
                         and make certain adjustments for items or events occurring in the portion of the year ending with the qualified conservation contribution that affect basis. These are the very steps that were prescribed by the proposed regulations. Each of the steps from the proposed regulations is necessary to carry out the statutory directive that a partner's modified basis is the partner's adjusted basis in its partnership interest immediately before the time of the qualified conservation contribution, as computed by the partnership, and without regard to section 752 liabilities. Instead of simply repeating the statutory mandate, the proposed regulations provided a clear, administrable, step-by-step approach for taxpayers to reach the result required by the statute. To assist with performing the computations required by this step-by-step approach, the proposed regulations included several illustrative examples. Accordingly, proposed § 1.170A-14(l)(2) is finalized with the changes described in this Part II.A.1 of this Summary of Comments and Explanation of Revisions.
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             In the case of a partner who was not a partner at the beginning of the year, but acquired an interest sometime later, the partnership would generally have to start with the partner's adjusted basis in its partnership interest as of the time of the acquisition of that interest. This is the process that these regulations provide.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">2. Determination of an S Corporation Shareholder's Modified Basis</HD>
                    <HD SOURCE="HD3">a. Proposed Rules for the Determination of an S Corporation Shareholder's Modified Basis</HD>
                    <P>Proposed § 1.170A-14(l)(3)(i) provided that the term “modified basis” means, with respect to any ultimate member that is a shareholder in an S corporation, such ultimate member's adjusted basis in its shares in the S corporation as of the end of the S corporation's taxable year in which the qualified conservation contribution is made with adjustments as determined under proposed § 1.170A-14(l)(3)(ii) and (iii). However, if the ultimate member was not a shareholder at the end of the S corporation's taxable year in which the qualified conservation contribution is made, then the term “modified basis” was defined to mean such ultimate member's adjusted basis in its shares in the S corporation immediately prior to the transaction that terminated its interest in the S corporation, with adjustments as determined under proposed § 1.170A-14(l)(3)(ii) and (iii). Consistent with the exclusion of section 752 liabilities under section 170(h)(7)(B)(ii)(II), proposed § 1.170A-14(l)(3)(i) clarified that modified basis does not include the ultimate member's adjusted basis in any indebtedness of the S corporation to the ultimate member.</P>
                    <P>Because the calculation of modified basis for an S corporation begins at the end of the year, proposed § 1.170A-14(l)(3)(ii) required the computation of modified basis to be increased by the amount of any decrease to the adjusted basis as a result of the qualified conservation contribution. Thus, the ultimate member's modified basis with respect to a qualified conservation contribution would not reflect any reduction for the ultimate member's pro rata share of the S corporation's basis in the conservation easement or other property contributed in the qualified conservation contribution.</P>
                    <P>Proposed § 1.170A-14(l)(3)(iii) provided that the amount determined under § 1.170A-14(l)(3)(ii) must be multiplied by the number of days during the S corporation's taxable year in which the ultimate member was a shareholder and divided by the total number of days during the S corporation's taxable year. The resulting amount would be such ultimate member's modified basis.</P>
                    <P>The proposed regulations contained an example illustrating these rules.</P>
                    <HD SOURCE="HD3">b. Comments Concerning Modified Basis for S Corporation Shareholders</HD>
                    <P>Commenters did not provide specific comments concerning the rules for S corporation shareholders; however, as described in Part II.A.1.b of this Summary of Comments and Explanation of Revisions, certain commenters discussed complexity concerns with respect to modified basis without specifically identifying partnerships, so those comments may also apply to S corporations. The Treasury Department and the IRS have determined that the rules for determining modified basis for S corporation shareholders are not unduly complex. In particular, any of the information required to determine modified basis should be readily known by a contributing S corporation and its ultimate members. The regulations provide clear, administrable rules that are illustrated with computational examples. This clarity will help decrease disputes about the computation of modified basis. Accordingly, these final regulations do not make changes to the rules for the determination of modified basis in response to the commenters' concerns about complexity and proposed § 1.170A-14(l)(3) is finalized without change.</P>
                    <HD SOURCE="HD2">B. Allocation of Modified Basis To Determine Relevant Basis</HD>
                    <P>Proposed § 1.170A-14(m) provided rules for determining relevant basis, which is the portion of modified basis that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made. In general, the proposed regulations provided that relevant basis is modified basis multiplied by a fraction, the numerator of which is the ultimate member's portion of the basis in the real property with respect to which the qualified conservation contribution is made, and the denominator of which is the ultimate member's portion of the basis in all properties held by the partnership or S corporation. For example, if an ultimate member's share of the basis in the real property is half of the ultimate member's share of the basis in the other properties of the partnership or S corporation, the ultimate member's relevant basis would be half of the ultimate member's modified basis. The proposed regulations contained rules for these computations, including rules for the computation of relevant basis in tiered entities. The proposed regulations also contained additional details and several examples of the computation of relevant basis.</P>
                    <P>
                        The proposed regulations provided separate rules for the determination of relevant basis for ultimate members who are: (1) partners in contributing partnerships, (2) shareholders in contributing S corporations, (3) partners in upper-tier partnerships, and (4) shareholders in upper-tier S corporations. The following portion of this Summary of Comments and Explanation of Revisions will discuss each set of rules in turn.
                        <PRTPAGE P="54290"/>
                    </P>
                    <HD SOURCE="HD3">1. Determination of Relevant Basis for Partners in Contributing Partnerships</HD>
                    <P>Proposed § 1.170A-14(m)(2)(i) through (iii) provided that the relevant basis of an ultimate member holding a direct interest in a contributing partnership is equal to the ultimate member's modified basis as determined under proposed § 1.170A-14(l)(2) multiplied by a fraction: (1) the numerator of which is the ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made as determined under proposed § 1.170A-14(m)(2)(ii); and (2) the denominator of which is the ultimate member's portion of the adjusted basis in all the contributing partnership's properties as determined under proposed § 1.170A-14(m)(2)(iii).</P>
                    <P>For purposes of this computation, proposed § 1.170A-14(m)(2)(ii) provided that an ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made equals the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made (determined as of the time of day of the contribution) multiplied by a fraction: (1) the numerator of which is the ultimate member's distributive share of the qualified conservation contribution; and (2) the denominator of which is the total amount of the contributing partnership's qualified conservation contribution.</P>
                    <P>Proposed § 1.170A-14(m)(2)(iii) provided that an ultimate member's portion of the adjusted basis in all the contributing partnership's properties is equal to the sum of: (1) the ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made as determined under proposed § 1.170A-14(m)(2)(ii), and (2) the ultimate member's portion of the adjusted basis in all the contributing partnership's properties other than the portion of the real property with respect to which the qualified conservation contribution is made. To determine an ultimate member's share of the adjusted basis in all the contributing partnership's properties, the proposed regulations provided that a contributing partnership must apportion among each of its partners in accordance with their interests in the partnership under section 704(b) of the Code the partnership's adjusted basis in each of its properties (except the portion of the real property with respect to which the qualified conservation contribution is made), using the adjusted bases immediately before the qualified conservation contribution, without duplication or omission of any property, and by treating the adjusted basis in each property as not less than zero.</P>
                    <P>Proposed § 1.170A-14(m)(2)(iv) provided the following formula incorporating these rules:</P>
                    <FP SOURCE="FP-2">R = M × (T ÷ (D + T))</FP>
                    <EXTRACT>
                        <FP SOURCE="FP-2">Where:</FP>
                        <FP SOURCE="FP-2">R = Relevant basis.</FP>
                        <FP SOURCE="FP-2">M = Modified basis as determined under proposed § 1.170A-14(l).</FP>
                        <FP SOURCE="FP-2">D = Ultimate member's portion of the adjusted basis in all the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made), determined by apportioning among the partners of the contributing partnership in accordance with their interests in the partnership under section 704(b) its adjusted basis in each of its properties (other than the portion of the real property with respect to which the qualified conservation contribution is made), using the adjusted bases immediately before the qualified conservation contribution, without duplication or omission of any property, and by treating the adjusted basis in each property as not less than zero.</FP>
                        <FP SOURCE="FP-2">T = Ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made, determined according to the following formula: A × (B ÷ C).</FP>
                        <FP SOURCE="FP-2">A = Contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                        <FP SOURCE="FP-2">B = Ultimate member's distributive share of the qualified conservation contribution.</FP>
                        <FP SOURCE="FP-2">C = Total amount of the contributing partnership's qualified conservation contribution.</FP>
                    </EXTRACT>
                    <P>The comments received on the allocation of modified basis can be grouped into the following two categories: (a) complexity, and (b) the effect of section 704(c) property. Each category is discussed in turn.</P>
                    <HD SOURCE="HD3">a. Complexity of the Proposed Rules for the Allocation of Modified Basis</HD>
                    <P>As noted in Part II.A.1.b.iii. of this Summary of Comments and Explanation of Revisions, multiple commenters stated that the calculations in the proposed regulations were too complex. One commenter stated that the Treasury Department and the IRS should reconsider the computational proposals and develop “simplified safe harbor calculations” to give taxpayers the assurance that they have done the math correctly and will not unintentionally incur additional tax and significant penalties. As mentioned previously, one commenter who objected to the complexity of the calculations proposed an alternative method of applying pure aggregate rules to the contributing partnership and any upper-tier partnerships to determine modified basis and relevant basis. The commenter described this alternative as “simple” and suggested adding an anti-abuse rule if a principal purpose is to avoid the limitations of section 170(h)(7), but also acknowledged that this approach was “[l]ess precise and subject to potential abuse.” Other commenters, while stating that the proposed regulations were complex, did not express any alternative suggestions.</P>
                    <P>
                        The rules in the proposed regulations for the allocation of modified basis to determine relevant basis are not inappropriately complex in light of the statute which they administer. Section 170(h)(7)(B)(i) directs that modified basis be allocated to the portion of the real property with respect to which the qualified conservation contribution is made under rules similar to the rules of section 755. As mentioned in the preamble to the proposed regulations, the section 755 regulations involve several different methods for allocating basis adjustments among the partnership's properties, including allocating in proportion to the partner's share of the adjusted bases in the partnership's properties. 
                        <E T="03">See</E>
                         § 1.755-1(b)(5)(iii)(B). The section 755 regulations contain mathematical examples illustrating these rules, formulas, and computations and also additional rules and exceptions.
                    </P>
                    <P>
                        As explained in the preamble to the proposed regulations, the Treasury Department and the IRS considered simply cross-referencing the rules under section 755. However, allocations under section 755 are sometimes made in a way to reduce or eliminate built-in gain or built-in loss in partnership property. The relevant basis rule of section 170(h)(7)(B)(i) is designed to determine the portion of a partner's modified basis that is allocable to the portion of the real property with respect to which the contribution is made, which is a broader and, generally, different concept than determining the partner's share of built-in gain or built-in loss in that property. Thus, applying an approach based solely on the existing section 755 regulations would not be consistent with the purpose of the Disallowance Rule. Moreover, these regulations for the allocation of modified basis are similar 
                        <PRTPAGE P="54291"/>
                        to, and not more complex than, the rules of section 755.
                    </P>
                    <P>Section 170(h)(7) is computational in nature. Although the statute is relatively short and does not list any formulas, complying with section 170(h)(7)(B)(i) necessarily involves computations involving every asset owned by the partnership or S corporation and any lower-tier partnerships. The proposed regulations acknowledged this complexity and, if possible, sought to simplify the requirements and provide clear guidance. Thus, the proposed regulations are not more complex than the statutory language already requires.</P>
                    <P>
                        Furthermore, partnerships and S corporations making qualified conservation contributions are required by existing rules to track each partner's and shareholder's share of the entity's basis in the contributed property. 
                        <E T="03">See</E>
                         sections 704(d)(3), 705(a)(2), 1366(d)(4), and 1367(a)(2) of the Code; Rev. Rul. 96-11, 1996-1 C.B. 140; Rev. Rul. 2008-16, 2008-1 C.B. 585. Additionally, in certain circumstances the rules under section 755 require a partnership to calculate a partner's share of the partnership's basis in its properties. Thus, the approach taken by the proposed regulations is consistent with existing rules and principles.
                    </P>
                    <P>The Treasury Department and the IRS have considered the commenter's recommendation of determining relevant basis based on a “pure aggregate” approach, subject to an anti-abuse rule or some type of safe harbor. The Treasury Department and the IRS agree with the commenter's assessment that such an approach would be less clear and more subject to abuse. As explained in the preamble to the proposed regulations, Congress enacted the Disallowance Rule because of abusive syndicated conservation easement transactions. It would not be appropriate to deviate from the computational requirements of the statute. Congress intended that partnerships and S corporations that make qualified conservation contributions perform several calculations to substantiate that the contribution is not disallowed by the Disallowance Rule. Allowing for shortcuts to such calculations that lead to less accurate results would be inconsistent with Congress's purpose in enacting the Disallowance Rule. Moreover, the computational step-by-step approach in the proposed regulations will minimize litigation by providing clear, administrable guidance. A shorter, more conceptually-based rule such as “safe harbor” calculations or “pure aggregate treatment” would be less clear and would lead to additional disputes over the proper computation of relevant basis.</P>
                    <P>In sum, the Treasury Department and the IRS have determined that the approach in the proposed regulations is similar to the rules of section 755, consistent with the rule of section 170(h)(7)(B)(i), and consistent with the purposes of the Disallowance Rule. Accordingly, the Treasury Department and the IRS do not adopt the approaches suggested by commenters.</P>
                    <HD SOURCE="HD3">b. Effect of Section 704(c) on the Allocation of Modified Basis</HD>
                    <P>As noted earlier, the proposed regulations allocate modified basis by reference, in part, to the partners' interests in the partnership, which is a concept under section 704(b). Specifically, under proposed § 1.170A-14(m)(2)(iii)(B), to determine a partner's portion of the adjusted basis in all the contributing partnership's properties, the contributing partnership would apportion among its partners in accordance with their interests in the partnership under section 704(b) its adjusted basis in each of its properties (except the portion of the real property with respect to which the qualified conservation contribution is made), using the adjusted bases immediately before the qualified conservation contribution, without duplication or omission of any property, and by treating the adjusted basis in each property as not less than zero.</P>
                    <P>The proposed regulations did not explicitly address the impact of section 704(c) amounts. One commenter stated that, to promote transparency, the final regulations should discuss what impact, if any, section 704(c) may have with respect to conservation easement transactions in the context of section 170(h)(7).</P>
                    <P>In part, section 704(c) provides rules for partnership allocations with respect to property that has built-in gain (that is, fair market value in excess of adjusted basis) or built-in loss (that is, adjusted basis in excess of fair market value) at the time the property is contributed by a partner to the partnership (section 704(c) property). Section 704(c)(1)(A) provides that, under regulations prescribed by the Secretary, income, gain, loss, and deduction with respect to property contributed to the partnership by a partner is shared among the partners so as to take account of the variation between the basis of the property to the partnership and its fair market value at the time of contribution. If a partner contributes property with built-in gain or built-in loss to a partnership, and the partnership subsequently sells the property and recognizes that gain or loss, the regulations under section 704(c)(1)(A) generally require the partnership to allocate that gain or loss to the contributing partner.</P>
                    <P>The Treasury Department and the IRS agree that it may be unclear how the presence of section 704(c) property affects the partnership's apportionment of its basis in its properties among its partners for purposes of the computation of relevant basis, and that the final regulations should provide additional guidance on how section 704(c) property affects the computation of relevant basis. Thus, § 1.170A-14(m)(2)(iii)(B) as finalized in this Treasury Decision provides that to determine a partner's portion of the adjusted basis in all of a contributing partnership's properties, the contributing partnership must apportion among its partners its adjusted basis in each of its properties (except the portion of the real property with respect to which the qualified conservation contribution is made), using the adjusted basis immediately before the qualified conservation contribution, without duplication or omission of any property, and by treating the adjusted basis in each property as not less than zero. Consistent with the proposed regulations, these final regulations provide that this apportionment must be done under principles similar to the determination of the partners' interests in the partnership under section 704(b), but add a cross reference to § 1.704-1(b)(3)(ii), which provides factors to consider in determining a partner's interest in a partnership. These factors include: the partners' relative contributions to the partnership, the interests of the partners in economic profits and losses (if different than that in taxable income or loss), the interests of the partners in cash flow and other non-liquidating distributions, and the rights of the partners to distributions of capital upon liquidation. In addition, § 1.170A-14(m)(2)(iii)(B) as finalized provides that the apportionment must reflect section 704(c) principles. For example, if a partnership property has built-in loss (the adjusted basis of the property exceeds its fair market value), and section 704(c) would require that built-in loss to be allocated to a certain partner if that property were sold, all of the basis in the property that exceeds the property's fair market value must be apportioned to the partner to whom the loss would be allocated if the property was sold.</P>
                    <P>
                        The final regulations contain two examples illustrating the effect of section 704(c) property upon the computation of relevant basis. In the 
                        <PRTPAGE P="54292"/>
                        first example (§ 1.170A-14(m)(7)(iv) (
                        <E T="03">Example 4</E>
                        )), one partner contributes property with built-in gain to the partnership. The partnership later makes a qualified conservation contribution with respect to other property. The example shows how the partnership's basis in the built-in gain property is apportioned among the partners for the purposes of determining relevant basis.
                    </P>
                    <P>
                        The second example (§ 1.170A-14(m)(7)(v) 
                        <E T="03">(Example 5)</E>
                        ) involves the same facts, except that the property contributed to the partnership has built-in loss instead of built-in gain. The example shows how the basis in the built-in-loss property is apportioned among the partners for the purposes of determining relevant basis.
                    </P>
                    <P>The change to § 1.170A-14(m)(2)(iii)(B) is also reflected in the formulaic version of the rule in § 1.170A-14(m)(2)(iv) in these final regulations. Specifically, item D is modified to read:</P>
                    <EXTRACT>
                        <FP SOURCE="FP-2">D = Ultimate member's portion of the adjusted basis in all the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made) as determined under § 1.170A-14(m)(2)(iii)(B).</FP>
                    </EXTRACT>
                    <HD SOURCE="HD3">2. Determination of Relevant Basis for Ultimate Members That Are Shareholders in a Contributing S Corporation</HD>
                    <P>Proposed § 1.170A-14(m)(3)(i) provided that relevant basis for an ultimate member holding a direct interest in a contributing S corporation would equal the ultimate member's modified basis multiplied by a fraction: (1) the numerator of which is the ultimate member's pro rata portion of the contributing S corporation's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made; and (2) the denominator of which is the ultimate member's pro rata portion of the adjusted basis in all the contributing S corporation's properties (including the portion of the real property with respect to which the qualified conservation contribution is made). Proposed § 1.170A-14(m)(3)(ii) provided the following formulaic version of this rule:</P>
                    <FP SOURCE="FP-2">R = M × (E ÷ F)</FP>
                    <EXTRACT>
                        <FP SOURCE="FP-2">Where:</FP>
                        <FP SOURCE="FP-2">R = Relevant basis.</FP>
                        <FP SOURCE="FP-2">M = Modified basis as determined under § 1.170A-14(l).</FP>
                        <FP SOURCE="FP-2">E = Ultimate member's pro rata portion of the contributing S corporation's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                        <FP SOURCE="FP-2">F = Ultimate member's pro rata portion of the adjusted basis in all the contributing S corporation's properties (including the portion of the real property with respect to which the qualified conservation contribution is made).</FP>
                    </EXTRACT>
                    <P>Commenters did not raise issues specifically concerning the formula for S corporations but did express concerns regarding the complexity of proposed § 1.170A-14(m) in general. In the view of the Treasury Department and the IRS, this formula accurately accounts for modified basis as a portion of the real property by simply taking the pro rata allocation of adjusted basis in the contributed property over the pro rata allocation of adjusted basis in all the S corporation's properties and is not more complex than necessary to carry out the purposes of the Disallowance Rule.</P>
                    <P>The Treasury Department and the IRS considered several alternatives to this rule. One method would be to require a determination of a portion of relevant basis for every day during the S corporation's taxable year, because S corporations generally allocate the contribution on a pro rata basis among the shareholders on each day of the taxable year. These final regulations do not take that approach because such an approach, although technically accurate and consistent with the purposes of the Disallowance Rule, would be too burdensome for taxpayers and difficult for the IRS to administer.</P>
                    <P>Accordingly, these final regulations finalize proposed § 1.170A-14(m)(3) without change.</P>
                    <HD SOURCE="HD3">3. Determination of Relevant Basis for Partners in Upper-Tier Partnerships</HD>
                    <P>Proposed § 1.170A-14(m)(4) provided rules for determining the relevant basis of an ultimate member holding a direct interest in an upper-tier partnership. Proposed § 1.170A-14(m)(4)(i) provided that each such ultimate member's modified basis must be traced through all upper-tier partnerships to the contributing partnership, and the contributing partnership must determine the relevant basis. This would involve a multi-step process under which, beginning with the upper-tier partnership in which the ultimate member holds a direct interest, each upper-tier partnership would be required to perform calculations, and then finally the contributing partnership would be required to use those calculations to compute the ultimate member's relevant basis.</P>
                    <P>Proposed § 1.170A-14(m)(4)(ii)(A) provided that the upper-tier partnership must determine the portion of each ultimate member's modified basis that is allocable to the upper-tier partnership's interest in the partnership in which it holds a direct interest (in a situation involving only two tiers of partnerships, that will be the contributing partnership). This determination must be done in accordance with the principles of proposed § 1.170A-14(m)(2) and the formula provided in proposed § 1.170A-14(m)(4)(ii)(B). In other words, the formula provided in proposed § 1.170A-14(m)(4)(ii)(B) is similar to the formula provided in proposed § 1.170A-14(m)(2)(iv), except that, instead of determining the portion of modified basis that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made, the formula in proposed § 1.170A-14(m)(4)(ii)(B) determines the portion of modified basis that is allocable to the upper-tier partnership's interest in the next lower-tier partnership. As explained in proposed § 1.170A-14(m)(4)(iii), the contributing partnership will then use the amount determined under the formula in proposed § 1.170A-14(m)(4)(ii)(B) to compute the portion of modified basis that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made.</P>
                    <P>Proposed § 1.170A-14(m)(4)(ii)(B) provided the following formula:</P>
                    <FP SOURCE="FP-2">G = M × (U ÷ (J + U))</FP>
                    <EXTRACT>
                        <FP SOURCE="FP-2">Where:</FP>
                        <FP SOURCE="FP-2">G = The portion of the ultimate member's modified basis that is allocable to the upper-tier partnership's interest in the contributing partnership.</FP>
                        <FP SOURCE="FP-2">M = Modified basis as determined under § 1.170A-14(l).</FP>
                        <FP SOURCE="FP-2">J = Ultimate member's portion of the adjusted basis in all the upper-tier partnership's properties (other than the upper-tier partnership's interest in the contributing partnership), determined by apportioning among the partners of the upper-tier partnership in accordance with their interests in the partnership under section 704(b) its adjusted basis in each of its properties (other than the upper-tier partnership's interest in the contributing partnership), using the adjusted bases immediately before the qualified conservation contribution, without duplication or omission of any property, and by treating the adjusted basis in each property as not less than zero.</FP>
                        <FP SOURCE="FP-2">U = Ultimate member's share of the upper-tier partnership's adjusted basis in its interest in the contributing partnership, determined according to the following formula: H × (B ÷ K).</FP>
                        <FP SOURCE="FP-2">H = Upper-tier partnership's adjusted basis in its interest in the contributing partnership.</FP>
                        <FP SOURCE="FP-2">
                            B = Ultimate member's distributive share of the qualified conservation contribution.
                            <PRTPAGE P="54293"/>
                        </FP>
                        <FP SOURCE="FP-2">K = Upper-tier partnership's allocated portion of the qualified conservation contribution.</FP>
                    </EXTRACT>
                    <P>Proposed § 1.170A-14(m)(4)(iii) provided that, after completion of these computations, the contributing partnership must determine the portion of the amount determined under item G with respect to each ultimate member that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made. This determination must be done in accordance with the principles of § 1.170A-14(m)(2), and the following formula:</P>
                    <FP SOURCE="FP-2">R = G × (V ÷ (L + V))</FP>
                    <EXTRACT>
                        <FP SOURCE="FP-2">Where:</FP>
                        <FP SOURCE="FP-2">R = Relevant basis.</FP>
                        <FP SOURCE="FP-2">G = Amount determined with respect to item G as described under § 1.170A-14(m)(4)(ii)(B).</FP>
                        <FP SOURCE="FP-2">L = Upper-tier partnership's portion of adjusted basis in all the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made), determined by apportioning among the partners of the contributing partnership in accordance with their interests in the partnership under section 704(b) its adjusted basis in each of its properties (except the interest in the contributing partnership), using the adjusted bases immediately before the qualified conservation contribution, without duplication or omission of any property, and by treating the adjusted basis in each property as not less than zero.</FP>
                        <FP SOURCE="FP-2">V = Upper-tier partnership's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made, determined according to the following formula: A × (K ÷ C).</FP>
                        <FP SOURCE="FP-2">A = Contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                        <FP SOURCE="FP-2">K = Upper-tier partnership's allocated portion of the qualified conservation contribution.</FP>
                        <FP SOURCE="FP-2">C = Total amount of the contributing partnership's qualified conservation contribution.</FP>
                    </EXTRACT>
                    <HD SOURCE="HD3">a. Complexity of the Determination of Relevant Basis for Ultimate Members That are Partners in an Upper-Tier Partnership</HD>
                    <P>Several commenters criticized the complexity of the proposed regulations' method for determining relevant basis in tiered entity arrangements. For example, one commenter stated that the proposed regulations use “difficult multivariable mathematical formulae” like G = M × (U ÷ (J + U)) and R = G × (V ÷ (L + V)). The commenter stated that these calculations “are appropriate for launching rockets or building bridges, but not for claiming Congressionally-encouraged tax incentives for land conservation.” Another commenter stated that the complexity of the proposed regulations places a significant burden on the IRS and the Independent Office of Appeals to determine compliance at the level of an “indeterminable number” of upper-tier partnerships. The commenter stated that the proposed regulations provide an “unclear legal standard with respect to the application of the Disallowance Rule to tiered partnership structures and thus do not promote simplification and taxpayer burden reduction.”</P>
                    <P>Another commenter stated that, of the conservation easement contributions made by partnerships, very few are made by tiered partnerships. The commenter stated that, after enactment of the Disallowance Rule, there will be even fewer, noting that many of those structures were created to facilitate transactions that are now banned.</P>
                    <P>The Treasury Department and the IRS have determined that the proposed computations are not more complex than necessary to effectuate the Disallowance Rule. In the context of tiered entities, section 170(h)(7)(A) requires the Disallowance Rule to be tested at each tier and requires relevant basis to be determined by looking through all tiers of pass-through entities to determine the portion of modified basis that is attributable to the portion of the real property with respect to which the qualified conservation contribution is made. For example, if an individual is a partner in an upper-tier partnership, and a lower-tier partnership makes a qualified conservation contribution, section 170(h)(7)(A) requires each partnership to determine if the amount of the contribution exceeds 2.5 times the sum of the relevant bases. Section 170(h)(7)(B)(i) provides that the individual's relevant basis is the portion of the individual's modified basis in the upper-tier partnership that is allocable (under rules similar to the rules of section 755) to the portion of the real property held by the lower-tier partnership with respect to which the qualified conservation contribution is made.</P>
                    <P>Applying the rules of section 755 to tiered entities involves computations at each tier, which can be complex. Revenue Ruling 87-115, 1987-2 C.B. 163, Situation 1, describes the sale of an interest in an upper-tier partnership that holds an interest in a lower-tier partnership. The upper-tier partnership and the lower-tier partnership both have elections in effect under section 754 of the Code. Rev. Rul. 87-115 concludes that, in addition to the upper-tier partnership computing section 743(b) adjustments and allocating them among its properties under section 755, an interest in the lower-tier partnership will be deemed to have been transferred for purposes of the lower-tier partnership computing section 743(b) adjustments and allocating them among the lower-tier partnership's properties under section 755. Thus, the rules of section 755 will have to be applied at each tier. Similarly, Revenue Ruling 92-15, 1992-1 C.B. 215, Situation 1, provides that if an upper-tier partnership makes an adjustment under section 734(b) that is allocated under the rules of section 755 to the basis of an interest it holds in a lower-tier partnership that has an election under section 754 in effect, the lower-tier partnership must make section 734(b) adjustments to the upper-tier partnership's share of the lower-tier partnership's assets and allocate those adjustments among the lower-tier partnership's property under the rules of section 755. Thus, the rules of section 755 will have to be applied at each tier to determine the allocation of the section 734(b) adjustments.</P>
                    <P>As explained earlier, the proposed regulations are similar to, and not more complex than, the rules of section 755. In addition, the proposed regulations are more consistent with the purposes of the Disallowance Rule than a rule that simply cross-references section 755. Both of these statements are also true with respect to tiered partnership arrangements. The computational step-by-step approach in the proposed regulations provides a clear, administrable standard, and protects the purposes of the Disallowance Rule in situations involving tiered partnerships.</P>
                    <P>
                        The Treasury Department and the IRS disagree with the commenter who stated that the proposed regulations apply to an “indeterminate” number of tiers. The number of tiers is determinable, and within the control of the taxpayers creating those tiers. The proposed regulations provide a flexible approach to accommodate any number of tiers created by taxpayers. This flexibility is necessary to prevent the avoidance of the purposes of the Disallowance Rule. If the regulations stopped at two tiers, taxpayers could create structures with additional tiers and assert that they are not required to properly trace relevant basis through all the tiers. In addition, one commenter reported that many tiered partnership arrangements were created to engage in the very types of abusive transactions which led Congress to enact the Disallowance Rule. 
                        <PRTPAGE P="54294"/>
                        Accordingly, these final regulations do not make changes in response to the comments regarding the complexity of the relevant basis computations in tiered partnership situations.
                    </P>
                    <HD SOURCE="HD3">b. Effect of Section 704(c) on the Allocation of Modified Basis</HD>
                    <P>
                        As discussed in Part II.B.1.b of this Summary of Comments and Explanation of Revisions, these final regulations amend § 1.170A-14(m)(2)(iii)(B) and item D in the formula in § 1.170A-14(m)(2)(iv), which address the apportionment of a contributing partnership's adjusted bases in its properties. To provide a parallel rule for an upper-tier partnership's apportionment of its adjusted bases in its properties, § 1.170A-14(m)(4)(ii)(A)(
                        <E T="03">2</E>
                        ) in these final regulations provides that to determine a partner's portion of the adjusted basis in all of an upper-tier partnership's properties, the upper-tier partnership must apportion among its partners its adjusted basis in each of its properties (except its interest in the lower-tier partnership), using the adjusted basis immediately before the qualified conservation contribution, without duplication or omission of any property, and by treating the adjusted basis in each property as not less than zero. This apportionment must be done under principles similar to the determination of the partners' interests in the partnership under section 704(b), including the factors in § 1.704-1(b)(3)(ii). In addition, the apportionment must reflect section 704(c) principles. For example, if a partnership property has built-in loss (the adjusted basis of the property exceeds its fair market value), and section 704(c) would require all of that built-in loss to be allocated to a certain partner if that property was sold, all of the basis in the property that exceeds the property's fair market value must be apportioned to the partner to whom the loss would be allocated if the property was sold.
                    </P>
                    <P>To effectuate this change, these final regulations modify the definition of item J in § 1.170A-14(m)(4)(ii)(B) to be:</P>
                    <EXTRACT>
                        <P>
                            J = Ultimate member's portion of the adjusted basis in all the upper-tier partnership's properties (other than the upper-tier partnership's interest in the contributing partnership) as determined under § 1.170A-14(m)(4)(ii)(A)(
                            <E T="03">2</E>
                            ).
                        </P>
                        <P>To be consistent with the changes to § 1.170A-14(m)(2)(iii)(B), these final regulations modify the definition of item L in § 1.170A-14(m)(4)(ii)(B) to be:</P>
                        <P>L = Upper-tier partnership's portion of adjusted basis in all the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made) as determined under § 1.170A-14(m)(2)(iii)(B).</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">4. Determination of Relevant Basis for Shareholders in Upper-Tier S Corporations</HD>
                    <P>Proposed § 1.170A-14(m)(5) provided rules for determining relevant basis for an ultimate member holding a direct interest in an upper-tier S corporation. Proposed § 1.170A-14(m)(5)(i) provided that the ultimate member's modified basis must be traced through the upper-tier S corporation and any upper-tier partnerships to the contributing partnership, and the contributing partnership must determine the relevant basis. This involves a multi-step process under which, beginning with the upper-tier S corporation, the upper-tier S corporation and any upper-tier partnerships would be required to perform calculations, and then finally the contributing partnership would be required to use those calculations to compute the ultimate member's relevant basis.</P>
                    <P>Proposed § 1.170A-14(m)(5)(ii)(A) provided a narrative rule for the upper-tier S corporation. Under proposed § 1.170A-14(m)(5)(ii)(A), the upper-tier S corporation must determine the portion of each ultimate member's modified basis that is allocable to the upper-tier S corporation's interest in the partnership in which it holds a direct interest (in a situation involving only two tiers, that will be the contributing partnership). This determination must be done in accordance with the principles of § 1.170A-14(m)(3) and the formula provided in § 1.170A-14(m)(5)(ii)(B). In other words, the formula provided in § 1.170A-14(m)(5)(ii)(B) is similar to the formula provided in § 1.170A-14(m)(3), except that, instead of determining the portion of modified basis that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made, the formula in § 1.170A-14(m)(5)(ii)(B) determines the portion of modified basis that is allocable to the upper-tier S corporation's interest in the next lower-tier partnership. As explained in § 1.170A-14(m)(5)(iii), the contributing partnership will then use the amount determined under the formula in § 1.170A-14(m)(5)(ii)(B) to compute the portion of modified basis that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made.</P>
                    <P>Proposed § 1.170A-14(m)(5)(ii)(B) provided the following formula:</P>
                    <FP SOURCE="FP-2">N = M × (P ÷ Q)</FP>
                    <EXTRACT>
                        <FP SOURCE="FP-2">Where:</FP>
                        <FP SOURCE="FP-2">N = Portion of the ultimate member's modified basis that is allocable to the upper-tier S corporation's interest in the contributing partnership.</FP>
                        <FP SOURCE="FP-2">M = Modified basis as determined under § 1.170A-14(l).</FP>
                        <FP SOURCE="FP-2">P = Ultimate member's pro rata portion of the upper-tier S corporation's adjusted basis in its interest in the contributing partnership.</FP>
                        <FP SOURCE="FP-2">Q = Ultimate member's pro rata portion of the adjusted basis in all the upper-tier S corporation's properties (including the upper-tier S corporation's adjusted basis in its interest in the contributing partnership).</FP>
                    </EXTRACT>
                    <P>Proposed § 1.170A-14(m)(5)(iii) provided that, after completion of these computations, the contributing partnership must determine the portion of the amount determined under item N with respect to each ultimate member that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made. This determination must be done in accordance with the principles of § 1.170A-14(m)(2), and the following formula:</P>
                    <FP SOURCE="FP-2">R = N × (W ÷ (S + W))</FP>
                    <EXTRACT>
                        <FP SOURCE="FP-2">Where:</FP>
                        <FP SOURCE="FP-2">R = Relevant basis.</FP>
                        <FP SOURCE="FP-2">N = Amount determined with respect to item N as described under § 1.170A-14(m)(5)(ii)(B).</FP>
                        <FP SOURCE="FP-2">S = Upper-tier S corporation's portion of the adjusted basis in all the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made), determined by apportioning among the partners of the contributing partnership in accordance with their interests in the partnership under section 704(b) its adjusted basis in each of its properties (other than the portion of the real property with respect to which the qualified conservation contribution is made), using the adjusted bases immediately before the qualified conservation contribution, without duplication or omission of any property, and by treating the adjusted basis in each property as not less than zero.</FP>
                        <FP SOURCE="FP-2">W = Upper-tier S corporation's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made, determined according to the following formula: A × (Y ÷ C).</FP>
                        <FP SOURCE="FP-2">A = Contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                        <FP SOURCE="FP-2">Y = Upper-tier S corporation's allocated portion of the qualified conservation contribution.</FP>
                        <FP SOURCE="FP-2">C = Total amount of the contributing partnership's qualified conservation contribution.</FP>
                    </EXTRACT>
                    <PRTPAGE P="54295"/>
                    <HD SOURCE="HD3">a. Complexity of the Determination of Relevant Basis for Ultimate Members That are Shareholders in an Upper-Tier S Corporation</HD>
                    <P>Commenters did not provide comments specific to S corporations, but an upper-tier S corporation would necessarily hold an interest in a partnership, so the rules applicable to partnerships would apply to any partnership owned by the S corporation. For the reasons described in Part II.B.3.a of this Summary of Comments and Explanation of Revisions (relating to the complexity of the determination of relevant basis for ultimate members that are partners in an upper-tier partnership), the Treasury Department and the IRS have determined that these computations should be retained. Accordingly, these final regulations do not make changes in response to the comments regarding the complexity of the relevant basis computations in situations involving an S corporation owning an interest in a lower-tier partnership.</P>
                    <HD SOURCE="HD3">b. Effect of Section 704(c) on the Allocation of Modified Basis</HD>
                    <P>As discussed in Part II.B.1.b of this Summary of Comments and Explanation of Revisions, these final regulations amend § 1.170A-14(m)(2)(iii)(B) and item D in the formula in § 1.170A-14(m)(2)(iv). To be consistent with those revisions, these final regulations modify the definition of item S in § 1.170A-14(m)(5)(iii)(B) to be:</P>
                    <P>S = Upper-tier S corporation's portion of the adjusted basis in all the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made) as determined under § 1.170A-14(m)(2)(iii)(B).</P>
                    <HD SOURCE="HD2">III. Requests for Guidance on Partnership Allocations</HD>
                    <P>Subchapter K and the regulations thereunder provide rules on how a partnership may allocate its items among its partners. Several commenters requested that the final regulations provide guidance on partnership allocations of qualified conservation contributions. These comments are grouped into the following categories: (A) requests for guidance under section 704(b), (B) requests for guidance under section 704(c), and (C) requests for additional guidance on the application of the proposed regulations under § 1.706-3.</P>
                    <HD SOURCE="HD3">
                        A. 
                        <E T="03">Requests for Guidance Under Section 704(b)</E>
                    </HD>
                    <P>Section 704(b) provides that a partner's distributive share of income, gain, loss, deduction, or credit is determined in accordance with the partner's interest in the partnership if the partnership agreement does not provide as to the partner's distributive share of these items or the allocation to a partner of these items under the agreement does not have substantial economic effect. The existing regulations under section 704(b) provide guidance, including definitions of substantial economic effect, capital account provisions, and guidance on the determination of a partner's interest in the partnership.</P>
                    <P>The proposed regulations did not address section 704(b) allocation issues. The examples in the proposed regulations tell the reader to assume that the partnership allocations comply with the rules of subchapter K. Commenters requested guidance on the following issues involving section 704(b): (1) allocations of qualified conservation contributions under section 704(b), and (2) section 704(b) capital accounting for qualified conservation contributions.</P>
                    <HD SOURCE="HD3">1. Allocations of Qualified Conservation Contributions Under Section 704(b)</HD>
                    <P>One commenter stated that the proposed regulations suggest that a partnership can allocate qualified conservation contributions in any manner it chooses irrespective of the rules under subchapter K. The commenter stated that a partnership's allocation of a qualified conservation contribution must reflect either the partners' interests in the partnership or qualify as a special allocation that satisfies the substantial economic effect rules. The commenter recommended that the final regulations qualify any suggestion that special allocations may be used in allocating qualified conservation contributions. Without that, the commenter stated that the examples in the proposed regulations may be taken as permission from the IRS to create a new situation in which an investor receives more than 2.5 times its basis in tax deductions.</P>
                    <P>The proposed regulations do not suggest that a partnership's allocation of a qualified conservation contribution is not subject to the rules of subchapter K. As noted, the examples in the proposed regulations tell the reader to assume that the partnership allocations comply with the rules of subchapter K. The focus of these regulations is the implementation of section 170(f)(19) and (h)(7), which generally do not change the rules for how a partnership may allocate a qualified conservation contribution among its partners under section 704(b). Accordingly, guidance on the application of section 704(b) to a partnership's allocations of qualified conservation contributions is outside the scope of these regulations.</P>
                    <P>
                        The Treasury Department and the IRS note that the Disallowance Rule does not prevent all situations in which an investor receives more than 2.5 times its basis in tax-deductible qualified conservation contributions. 
                        <E T="03">See</E>
                         § 1.170A-14(j)(6)(ii) (
                        <E T="03">Example 2</E>
                        ) for a situation in which the amount of a partnership's qualified conservation contribution does not exceed 2.5 times the sum of the partners' relevant bases, even though one partner's share of the contribution exceeds 2.5 times that partner's relevant basis. Such transactions may, however, constitute a listed transaction.
                    </P>
                    <HD SOURCE="HD3">2. Section 704(b) Capital Accounting for Qualified Conservation Contributions</HD>
                    <P>
                        Regulations under section 704(b) provide rules for maintenance of a partner's capital account. In general terms, a partner's capital account is increased by the amount of money the partner contributes to the partnership, the fair market value of property the partner contributes to the partnership, and allocations to the partner of partnership income and gain. In general terms, a partner's capital account is decreased by the amount of money distributed to the partner by the partnership, the fair market value of any property distributed to the partner, allocations of section 705(a)(2)(B) expenditures of the partnership, and allocations of partnership loss and deduction. 
                        <E T="03">See</E>
                         § 1.704-1(b)(2)(iv). Section 705(a)(2)(B) expenditures are expenditures of a partnership that are not deductible in computing its taxable income and not properly chargeable to its capital accounts. Revenue Ruling 96-11, 1996-1 C.B. 140, provides that a noncash charitable contribution by a partnership is a section 705(a)(2)(B) expenditure.
                    </P>
                    <P>
                        Two commenters requested guidance on how a disallowed qualified conservation contribution would affect capital accounts. They stated that the proposed regulations provide rules for determining whether a qualified conservation contribution runs afoul of section 170(h)(7) but fail to provide capital accounting guidance under section 704(b) to the extent that a contribution is disallowed. One commenter stated that, under the current section 704(b) regulations, it is unclear what impact a disallowed 
                        <PRTPAGE P="54296"/>
                        qualified conservation contribution would have on book capital accounts. Another commenter stated that, in the event that a contributing partnership continues to conduct business following a disallowed qualified conservation contribution, the lack of section 704(b) guidance will create confusion among tax practitioners, increase the reporting burden on taxpayers, and require further guidance from the Treasury Department and the IRS. These two commenters recommend that the final regulations include book capital account guidance under section 704(b) with respect to the Disallowance Rule.
                    </P>
                    <P>The Treasury Department and the IRS have concluded that guidance on capital account maintenance under section 704(b) is outside the scope of these regulations. There are several situations in which the Code limits or disallows a deduction for a partnership's charitable contribution, including other provisions of section 170. As a result of these long-standing rules, a partnership's allowed charitable contribution may be less than the fair market value of the donated property. The Disallowance Rule simply adds another situation in which a deduction for a partnership's charitable contribution will be disallowed. Thus, this issue is broader than contributions subject to the Disallowance Rule. Accordingly, these final regulations do not address partnership capital accounting.</P>
                    <HD SOURCE="HD3">B. Requests for Guidance Under Section 704(c)</HD>
                    <P>In part, section 704(c) provides rules for partnership allocations with respect to property that had built-in gain or built-in loss at the time the property was contributed by a partner to the partnership. Two commenters sought guidance on whether: (1) section 704(c)(1)(A) applies to qualified conservation contributions, and (2) section 704(c)(1)(B) applies to qualified conservation contributions.</P>
                    <HD SOURCE="HD3">1. Application of Section 704(c)(1)(A) to Charitable Contributions</HD>
                    <P>Two commenters requested guidance on whether section 704(c)(1)(A) applies to the definition of distributive share in the context of proposed § 1.170A-14. The commenters stated that the proposed regulations do not define the term “distributive share.” The commenters stated that, as a result, it is unclear whether section 704(c) may apply to determine each partner's distributive share of a qualified conservation contribution. One commenter stated that, to promote transparency, the final regulations should define the term “distributive share” and further discuss what impact, if any, section 704(c) may have with respect to conservation easement transactions in the context of section 170(h).</P>
                    <P>Another commenter stated that none of the examples in the proposed regulations involve a qualified conservation contribution with respect to property that had been contributed to the partnership by a partner, and that the application of section 704(c) to allocations of charitable contributions should be addressed. The commenter hypothesized that the proposed regulations will create an inference that the rules of section 704(c) do not apply in the context of a contributed property that is later the subject of a charitable contribution because it is unclear under the existing section 704(c) regulations whether charitable contributions of contributed property are subject to section 704(c). The commenter also attached or referenced several articles addressing whether Congress intended for section 704(c) to apply to charitable contributions.</P>
                    <P>The focus of these regulations is implementation of section 170(f)(19) and (h)(7). Thus, the application of section 704(c)(1)(A) to charitable contributions by a partnership is outside the scope of these regulations. However, the Treasury Department and the IRS will continue to study the issue.</P>
                    <HD SOURCE="HD3">2. Application of Section 704(c)(1)(B) to Charitable Contributions</HD>
                    <P>Section 704(c)(1)(B) provides in part that, if a partner contributes property with built-in gain or built-in loss to a partnership, and the partnership distributes the property (directly or indirectly) to someone other than the contributing partner within seven years of the partner's contribution, the contributing partner is treated as recognizing gain or loss (as the case may be) from the sale of such property in an amount equal to the gain or loss which would have been allocated to such partner under section 704(c)(1)(A) if the property had been sold at its fair market value at the time of the distribution.</P>
                    <P>One commenter requested guidance on whether section 704(c)(1)(B) would apply if a partner contributes real property to a partnership and within seven years the partnership makes a qualified conservation contribution with respect to that property. The commenter stated that a partnership's charitable contribution is substantively equivalent to a partnership distribution followed by a charitable contribution by the partners.</P>
                    <P>The focus of these regulations is implementation of section 170(f)(19) and (h)(7). Thus, the application of section 704(c)(1)(B) to charitable contributions by a partnership is outside the scope of these regulations. However, the Treasury Department and the IRS will continue to study the issue.</P>
                    <HD SOURCE="HD3">C. Proposed Regulations Under § 1.706-3</HD>
                    <P>Section 706(d)(3) of the Code provides rules for an upper-tier partnership's allocation of items to its partners attributable to an interest in a lower-tier partnership. It provides that if, during any taxable year of the upper-tier partnership, there is a change in any partner's interest in the upper-tier partnership, then (except to the extent provided in regulations) each partner's distributive share of any item of the upper-tier partnership attributable to the lower-tier partnership must be determined by assigning the appropriate portion (determined by applying principles similar to the principles of section 706(d)(2)(C) and (D)) of each such item to the appropriate days during which the upper-tier partnership is a partner in the lower-tier partnership and by allocating the portion assigned to any such day among the partners in proportion to their interests in the upper-tier partnership at the close of such day.</P>
                    <P>To facilitate the computation of a partner's relevant basis immediately before the contribution, proposed § 1.706-3(a) provided that, for purposes of section 706(d)(3), in the case of a qualified conservation contribution (without regard to whether such contribution is a disallowed qualified conservation contribution within the meaning of proposed § 1.170A-14(j)(3)(vii)) by a partnership that is allocated to an upper-tier partnership, the upper-tier partnership must allocate the contribution among its partners in proportion to their interests in the upper-tier partnership at the time of day at which the contribution was made, regardless of the method (interim closing or proration) and convention (daily, semi-monthly, or monthly) otherwise used by the upper-tier partnership under § 1.706-4.</P>
                    <P>The following sections of this Summary of Comments and Explanation of Revisions address two issues under proposed § 1.706-3(a): (1) whether proposed § 1.706-3(a) requires pro rata allocations, and (2) whether proposed § 1.706-3(a) withdraws the 2015 proposed regulations under § 1.706-3.</P>
                    <HD SOURCE="HD3">1. Whether Proposed § 1.706-3(a) Requires Pro Rata Allocations</HD>
                    <P>
                        The Treasury Department and the IRS understand that there are questions 
                        <PRTPAGE P="54297"/>
                        whether the language in proposed § 1.706-3(a) stating that the upper-tier partnership must allocate the qualified conservation contribution among its partners “in proportion to their interests in the upper-tier partnership” requires the upper-tier partnership to allocate the contribution among its partners pro rata, with no special allocations.
                    </P>
                    <P>The Treasury Department and the IRS did not intend for proposed § 1.706-3(a) to require an upper-tier partnership to allocate a qualified conservation contribution pro rata among its partners. Accordingly, the final regulations modify § 1.706-3(a) to provide that the upper-tier partnership must allocate the contribution among its partners in accordance with their interests in the qualified conservation contribution at the time of day at which the qualified conservation contribution was made, rather than providing that the upper-tier partnership must allocate the contribution among its partners “in proportion to their interests in the upper-tier partnership” at the time of day at which the contribution was made.</P>
                    <HD SOURCE="HD3">2. Whether Proposed § 1.706-3(a) and (b) Withdraw the 2015 Proposed Regulations Under § 1.706-3</HD>
                    <P>One commenter asked about the effect of the proposed regulations on proposed regulations under § 1.706-3 published August 3, 2015, REG-109370-10 (80 FR 45905) (the 2015 proposed regulations). The 2015 proposed regulations proposed guidance under the general rule of section 706(d)(3).</P>
                    <P>The proposed regulations did not withdraw, nor did they intend to withdraw, the 2015 proposed regulations. Instead, the proposed regulations under § 1.706-3 are a regulatory exception to the general rule in section 706(d)(3), to which the 2015 proposed regulations relate. To avoid confusion, these regulations renumber the guidance under § 1.706-3 to follow the numbering in the 2015 proposed regulations. Thus, proposed § 1.706-3(a) and (b) are finalized as § 1.706-3(d) and (e), incorporating the changes described in this section of the preamble. Section 1.706-3(a) through (c) are reserved for the 2015 proposed regulations.</P>
                    <P>In addition, the Treasury Department and the IRS have determined that the language in proposed § 1.706-3 might cause confusion because it states that the upper-tier partnership must allocate the qualified conservation contribution as described in § 1.706-3 regardless of the method (interim closing or proration) and convention (daily, semi-monthly, or monthly) otherwise used by the upper-tier partnership under § 1.706-4. This reference to § 1.706-4 might cause confusion because § 1.706-4(a)(2) provides in part that items subject to allocation under section 706(d)(3) are not subject to the rules of § 1.706-4. Thus, although proposed § 1.706-3 is correct to state that the upper-tier partnership's allocation of the qualified conservation contribution must be done without regard to the rules of § 1.706-4, the reference to § 1.706-4 may be read to imply that the rules of § 1.706-4 would otherwise apply to an upper-tier partnership's allocation of items attributable to a lower-tier partnership.</P>
                    <P>To avoid confusion, these final regulations modify proposed § 1.706-3(a) to provide that, for purposes of section 706(d)(3), in the case of a qualified conservation contribution (as defined in section 170(h)(1) and § 1.170A-14(a) without regard to whether such contribution is a disallowed qualified conservation contribution within the meaning of § 1.170A-14(j)(3)(vii)) by a partnership that is allocated to an upper-tier partnership, the upper-tier partnership must allocate the contribution among its partners in accordance with their interests in the qualified conservation contribution at the time of day at which the qualified conservation contribution was made, regardless of the general rule of section 706(d)(3). The final regulations provide that, pursuant to § 1.706-4(a)(2), the rules of § 1.706-4 do not apply to allocations subject to § 1.706-3.</P>
                    <HD SOURCE="HD2">IV. Exceptions to the Disallowance Rule</HD>
                    <P>
                        Section 170(h)(7) contains three exceptions to the Disallowance Rule: the three-year holding period exception, the family pass-through entity exception, and the certified historic structure exception. The proposed regulations included each exception and provided additional guidance. Commenters addressed each of these exceptions, requested an exception for 
                        <E T="03">de minimis</E>
                         overages, and requested a more explicit statement of the taxpayers to whom the Disallowance Rule does not apply. Each category of comments is discussed in turn in the following sections of this preamble.
                    </P>
                    <HD SOURCE="HD3">A. Exception for Contributions Outside Three-Year Holding Period</HD>
                    <P>
                        Section 170(h)(7)(C) provides that the Disallowance Rule does not apply to any contribution made at least three years after the latest of: (1) the last date on which the pass-through entity that made such contribution acquired any portion of the real property with respect to which such contribution is made, (2) the last date on which any owner of the pass-through entity that made such contribution acquired any interest in such pass-through entity, and (3) if the interest in the pass-through entity that made such contribution is held through one or more pass-through entities, the last date on which any such pass-through entity acquired any interest in any other such pass-through entity, and the last date on which any owner in any such pass-through entity acquired any interest in such pass-through entity.
                        <SU>4</SU>
                        <FTREF/>
                         Neither section 605 of the SECURE 2.0 Act nor section 170 defines the phrase “acquired any interest.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             The Treasury Department and the IRS note that section 170(h)(7)(C) and § 1.170A-14(n)(2) are based upon dates of acquisition, not “holding periods,” and therefore, although this exception is colloquially referred to as the “three-year holding period exception,” the tacked holding period rules of section 1223 of the Code do not apply in determining the application of section 170(h)(7)(C) and § 1.170A-14(n)(2).
                        </P>
                    </FTNT>
                    <P>Proposed § 1.170A-14(n)(2)(ii) and (iii) defined the phrase “acquired any interest” for partnerships and S corporations, respectively. Proposed § 1.170A-14(n)(2)(iv) also clarified that, if the contributing partnership or contributing S corporation does not satisfy the requirements of proposed § 1.170A-14(n)(2), then proposed § 1.170A-14(n)(2) would not apply to any person who receives a distributive share or pro rata share of the qualified conservation contribution (including an upper-tier partnership or upper-tier S corporation), regardless of whether the person receiving such distributive share or pro rata share would have satisfied the requirements of proposed § 1.170A-14(n)(2) if the person had been the one to make the qualified conservation contribution. The proposed regulations contained two examples illustrating these rules. The preamble to the proposed regulations requested comments on whether any additional rules or examples should be provided for the three-year holding period exception.</P>
                    <P>The only comment received on proposed § 1.170A-14(n)(2) supported the three-year holding period exception and stated that no further guidance is needed on the topic. Accordingly, these regulations finalize the proposed regulations under § 1.170A-14(n)(2) without change.</P>
                    <HD SOURCE="HD3">B. Exception for Family Pass-Through Entities</HD>
                    <P>
                        Section 170(h)(7)(D)(i) provides that the Disallowance Rule does not apply to any contribution made by any pass-through entity if substantially all of the interests in such pass-through entity are 
                        <PRTPAGE P="54298"/>
                        held, directly or indirectly, by an individual and members of the family of such individual. Section 170(h)(7)(D)(ii) provides that, for purposes of section 170(h)(7)(D), the term “members of the family” means, with respect to any individual: (1) the spouse of such individual, and (2) any individual who bears a relationship to such individual that is described in section 152(d)(2)(A) through (G) of the Code for purposes of determining whether an individual is a qualifying relative.
                    </P>
                    <P>Proposed § 1.170A-14(n)(3) provided guidance under the family pass-through entity exception for partnerships and S corporations, including: (1) defining “substantially all of the interests,” (2) providing that “members of the family” are limited to individuals, and (3) imposing two anti-abuse rules for the family pass-through entity exception.</P>
                    <P>In addition, proposed § 1.170A-14(n)(3)(v) provided that, if the contributing partnership or contributing S corporation does not satisfy the requirements of proposed § 1.170A-14(n)(3), then the exception in proposed § 1.170A-14(n)(3) would not apply to any person who receives a distributive share or pro rata share of the qualified conservation contribution (including an upper-tier partnership or upper-tier S corporation), regardless of whether the person receiving such distributive share or pro rata share would have satisfied the requirements of proposed § 1.170A-14(n)(3) if the person had been the one to make the contribution. No comments were received on the rule in proposed § 1.170A-14(n)(3)(v). Accordingly, the rule in proposed § 1.170A-14(n)(3)(v) is finalized without change.</P>
                    <P>One commenter expressed support for the family pass-through entity exception and stated that further guidance was not needed. Other commenters requested modifications on: (1) the definition of “substantially all of the interests,” (2) the limitation of “members of the family” to individuals, and (3) the two anti-abuse rules for the family pass-through entity exception.</P>
                    <HD SOURCE="HD3">1. Defining “Substantially All of the Interests”</HD>
                    <P>
                        Section 170(h)(7) does not contain a definition of “substantially all.” The preamble to the proposed regulations mentioned that, for purposes of applying different provisions of the Code that also use that term, various Income Tax Regulations define the term “substantially all” as comprising different percentages, including: 70 percent (§ 1.1400Z2(d)-2(d)(4)); 80 percent (§§ 1.41-2(d)(2), 1.41-4(a)(6)); 85 percent (§§ 1.45D-1(c)(5), 1.72(e)-1T, Q&amp;A 3, 1.528-4(b) and (c)); 90 percent (§§ 1.103-8(a)(1)(i), 1.103-16(c), 1.731-2(c)(3)(i), 1.1400Z2(d)-2(d)(3)); and 95 percent (§§ 1.448-1T(e)(4)(i) and (e)(5)(i), 1.460-6(d)(4)(i)(D)(
                        <E T="03">1</E>
                        )).
                    </P>
                    <P>The preamble to the proposed regulations stated that it is appropriate to select a percentage at the higher end of this range to carry out the purpose of the Disallowance Rule, which is to prevent abusive syndications of qualified conservation contributions. Thus, proposed § 1.170A-14(n)(3)(i) provided that the family pass-through entity exception applied if at least ninety percent of the interests in the contributing partnership or contributing S corporation are held by an individual and members of the family of such individual and the contributing partnership or contributing S corporation meets the requirements of proposed § 1.170A-14(n)(3).</P>
                    <P>Proposed § 1.170A-14(n)(3)(ii)(A) provided that, in the case of a contributing partnership, at least ninety percent of the interests in the contributing partnership are held by an individual and members of the family of such individual if, at the time of the qualified conservation contribution, at least ninety percent of the interests in capital and profits in such partnership are held, directly or indirectly, by an individual and members of the family of such individual. Proposed § 1.170A-14(n)(3)(ii)(B) provided that, in the case of a contributing S corporation, at least ninety percent of the interests in the contributing S corporation are held by an individual and members of the family of such individual if, at the time of the qualified conservation contribution, at least ninety percent of the total value and at least ninety percent of the total voting power of the outstanding stock in such S corporation are held by an individual and members of the family of such individual.</P>
                    <P>One commenter agreed that ninety percent was a reasonable number to define substantially all, noting that interests held by persons who are not members of the family should be “extremely limited.” Another commenter stated that ninety percent was too high and would unnecessarily restrict the application of the family pass-through entity exception; however, that commenter did not provide any examples of unnecessary restrictions or recommend a different percentage. A third commenter recommended lowering the percentage to eighty-five percent, citing the eighty-five percent standard in Rev. Rul. 73-248, 1973-1 C.B. 295, and the fact that this Revenue Ruling relates to the percentage of ownership in a legal entity, as opposed to the percentage of cash, percentage of assets, or percentage of time. This commenter also noted that eighty-five percent was closest to the average of the various percentages used to define “substantially all” discussed in the preamble to the proposed regulations.</P>
                    <P>The Treasury Department and the IRS agree with the commenter stating that interests held by persons who are not members of the family should be extremely limited and that that ninety percent is a reasonable number to define “substantially all.” In the view of the Treasury Department and the IRS, the intent of not requiring one-hundred percent of a contributing entity to be owned by family members was to allow non-family members to make small, non-material investments in contributing entities, such as when a family partnership issues profits interests to service providers. The two commenters who stated that ninety percent is too high did not elaborate or give examples in which a family partnership or family S corporation needed to provide more than ten percent of its interests to persons who are not members of the family but still should meet the family pass-through entity exception to the Disallowance Rule. Further, the average of percentages used to define “substantially all” in guidance is not relevant to the definition that makes sense in the context of section 170(h)(7). Thus, these final regulations adopt the definition of “substantially all” as proposed.</P>
                    <HD SOURCE="HD3">2. Defining “Members of the Family”</HD>
                    <P>Consistent with section 170(h)(7)(D)(ii), proposed § 1.170A-14(n)(3)(iii) provided that, for purposes of § 1.170A-14(n)(3), the term “members of the family” means, with respect to any individual: (1) the spouse of such individual, and (2) any individual who bears a relationship to such individual that is described in section 152(d)(2)(A) through (G). The preamble to the proposed regulations stated that, under this rule, members of the family would be limited to individuals and requested comments on whether certain estates or trusts should be treated as members of the family for purposes of the family pass-through entity exception. The preamble also noted that, under existing § 1.1361-1(e)(3)(ii), certain estates and trusts of deceased members of the family are treated as members of the family for purposes of the limitation on the number of shareholders in an S corporation.</P>
                    <P>
                        One commenter requested that estates and trusts of deceased individuals be included in the definition of “members of the family” to address the fact that 
                        <PRTPAGE P="54299"/>
                        the interests of deceased individuals may be included in conservation contributions.
                    </P>
                    <P>In the view of the Treasury Department and the IRS, if a family member dies and the member's interest in the pass-through entity has been transferred to the decedent's estate, the interest still should be considered to be held by a member of the family. Otherwise, the pass-through entity might have to wait until final disposition of the estate (which may take years) to make a deductible qualified conservation contribution, even if the beneficiaries of the estate are all themselves individual members of the family. In addition, allowing a decedent's estate to be treated as a member of the family if the decedent was a member of the family at the time of death is administrable because determining whether the estate qualified as a member of the family involves the same determination as whether the decedent qualified as a member of the family before death. Accordingly, these final regulations modify § 1.170A-14(n)(3)(iii) to provide that a decedent's estate is treated as a member of the family for purposes of § 1.170A-14(n)(3) if the decedent was a member of the family at the time of death.</P>
                    <P>In addition, as noted by the commenter, certain trusts may raise similar issues. Trusts may be partners or S corporation shareholders, or may become partners or shareholders as a result of the death of an individual member of the family. For example, if a family member holds a partnership interest through a grantor trust, that individual would meet the requirements under these regulations of holding a direct interest in the partnership under § 1.170A-14(j)(3)(v). If that family member dies and the trust is no longer a grantor trust, the trust should not automatically cause the partnership to no longer be a family partnership. If only family members are potential beneficiaries of a trust, then the trust should be treated as being a member of the family. Including such a trust would serve the purpose of the statute to maintain an exception for partnerships and S corporations owned and controlled by a family. A contributing partnership or contributing S corporation that would otherwise satisfy the requirements of the family pass-through entity exception should not be excluded from the exception merely because interests are held through a family trust. Accordingly, these final regulations modify § 1.170A-14(n)(3)(iii) to provide that a trust, all of the beneficiaries of which are individuals described in § 1.170A-14(n)(3)(iii)(A) or (B), is treated as a member of the family. For this purpose, the term “beneficiaries” refers to those persons who currently must or may receive income or principal from the trust and those persons who would succeed to the property of the trust if the trust were to terminate immediately before the qualified conservation contribution.</P>
                    <HD SOURCE="HD3">3. Anti-Abuse Rules for the Family Pass-Through Entity Exception</HD>
                    <P>The Disallowance Rule and its exceptions in section 170(h)(7) are generally mechanical. However, Congress recognized that additional guidance may be needed to prevent situations in which those mechanical rules are used to avoid the purposes of the Disallowance Rule. Section 170(h)(7)(G)(ii) provides the Secretary with authority to issue regulations or other guidance to prevent the avoidance of the purposes of section 170(h)(7). Accordingly, to ensure that the family pass-through entity exception in proposed § 1.170A-14(n)(3) would not be used inappropriately to circumvent the Disallowance Rule, the proposed regulations contained two anti-abuse rules: (1) a one-year holding period, and (2) a ninety-percent allocation rule.</P>
                    <HD SOURCE="HD3">a. One-Year Holding Period</HD>
                    <P>Proposed § 1.170A-14(n)(3)(iv)(A) provided that the family pass-through entity exception does not apply unless at least ninety percent of the interests in the property with respect to which the qualified conservation contribution was made were owned, directly or indirectly, by one individual and members of the family of that individual for at least one year prior to the date of the contribution.</P>
                    <P>The preamble to the proposed regulations explained that the need for such a rule is the concern that, in the absence of a requirement that the members of the family hold the contributed property for a certain period before the contribution, promoters could structure transactions to inappropriately take advantage of certain tacked-holding-period transactions together with the family pass-through entity exception. The proposed regulations provided an example of such a situation, in which a lower-tier partnership that is not a family pass-through entity distributes its real property to an S corporation and an upper-tier partnership. The S corporation and the upper-tier partnership each separately qualify as a family pass-through entity, but the shareholders of the S corporation are not related to the partners of the upper-tier partnership. Within one year of the distribution, the S corporation makes a qualified conservation contribution. The example concludes that, even though at the time of the qualified conservation contribution the S corporation is completely owned by an individual and members of the family, the family pass-through entity exception does not apply because the one-year holding period requirement was not met.</P>
                    <P>Two commenters disagreed with the one-year holding period. These commenters claimed that the inclusion of a three-year holding period under section 170(h)(7)(C) and the absence of a one-year holding period under the family pass-through entity exception evidenced a congressional intent not to include a one-year holding period for the family pass-through entity exception under section 170(h)(7)(D). One of these commenters opined that the proposed one-year holding period requirement violated due process by retroactively binding taxpayers who had already made contributions that did not satisfy the one-year holding period. The other commenter stated that the Treasury Department and the IRS had offered no evidence in support of the statement in the preamble to the proposed regulations that reliance on a tacked holding period raises serious concerns that the family pass-through entity exception is being used inappropriately to circumvent the Disallowance Rule.</P>
                    <P>
                        The Treasury Department and the IRS disagree that the Treasury Department and the IRS lack authority to promulgate an anti-abuse rule. Section 170(h)(7)(G) is a specific grant of authority to the Secretary to prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of section 170(h)(7), including regulations or other guidance to prevent the avoidance of the purposes of section 170(h)(7). In addition, section 7805(a) authorizes the Secretary to prescribe all needful rules and regulations for the enforcement of title 26, including all rules and regulations as may be necessary by reason of any alteration of law in relation to internal revenue. As noted above, section 7805(b)(2) permits regulations issued within 18 months of December 29, 2022 (the date SECURE 2.0 Act was enacted), to apply to contributions after December 29, 2022. Section 7805(b)(3) provides that the Secretary may provide that any regulation may take effect or apply retroactively to prevent abuse. Section 170(h)(7)(G) and section 7805(a), (b)(2), and (b)(3) provide ample authority for an anti-abuse rule applicable to contributions after December 29, 2022.
                        <PRTPAGE P="54300"/>
                    </P>
                    <P>The holding period anti-abuse rule is necessary to address the potential for taxpayers to inappropriately take advantage of certain tacked-holding-period transactions to utilize the family pass-through entity exception. In particular, the example in the proposed regulations illustrates inappropriate avoidance of the purposes of the Disallowance Rule. As described, the example shows a distribution from a partnership that is not a family pass-through entity to two separate upper-tier entities, each of which is a family pass-through entity, followed by a qualified conservation contribution within one year of the distribution. This situation should not qualify for the family pass-through entity exception because the distributing partnership was not a family pass-through entity. If such a situation qualified for the family pass-through entity exception, then partnerships that fail to qualify as family pass-through entities could simply distribute land to upper-tier entities, each of which would be a family pass-through entity (such as single-member S corporations or partnerships wholly-owned by spouses) and thus each upper-tier entity could inappropriately avail itself of the family pass-through entity exception. Without an anti-abuse rule, similar inappropriate results could be obtained through other tacked-holding-period transactions, including contributions to family pass-through entities by persons who are not members of the family.</P>
                    <P>
                        However, after consideration of the comments, the Treasury Department and the IRS have decided to finalize the one-year holding period rule with two changes. First, the final regulations clarify that, solely for purposes of § 1.170A-14(n)(3)(iv)(A), section 1223(1) and (2) of the Code do not apply in determining whether at least ninety percent of the interests in the property with respect to which the qualified conservation contribution was made were owned, directly or indirectly, by one individual and members of the family of that individual for at least one year prior to the date of the contribution. This clarification is only for purposes of the anti-abuse rule in § 1.170A-14(n)(3)(iv)(A) and does not affect the holding period of the property for any other purpose, including section 170(e). The Treasury Department and the IRS note that this rule was already implicit in the proposed regulations; in fact, proposed § 1.170A-14(n)(3)(vi)(B) (
                        <E T="03">Example 2)</E>
                         described a situation in which an S corporation failed the one-year holding period requirement even though it would have had a tacked holding period under section 1223 that exceeded one year.
                    </P>
                    <P>Second, the final regulations provide that the one-year holding period rule does not apply if the entire amount of the qualified conservation contribution is limited by section 170(e) to the contributing partnership's or contributing S corporation's adjusted basis in the qualified conservation contribution. For example, if section 170(e) limits a qualified conservation contribution to the contributing partnership's adjusted basis because the property with respect to which the qualified conservation contribution is made was purchased within one year of the qualified conservation contribution, the anti-abuse rule in § 1.170A-14(n)(3)(iv)(A) does not apply. This change limits the one-year holding requirement to transactions that inappropriately take advantage of tacked holding periods to utilize the family pass-through entity exception.</P>
                    <HD SOURCE="HD3">b. Ninety Percent Allocation Rule</HD>
                    <P>Proposed § 1.170A-14(n)(3)(iv)(B) provided that the exception in proposed § 1.170A-14(n)(3) does not apply unless at least ninety percent of the qualified conservation contribution is allocated to the individual and all members of the individual's family who own at least ninety percent of all the interests in the contributing partnership or contributing S corporation. Commenters did not comment on this anti-abuse rule. Therefore, these regulations maintain the ninety percent allocation rule.</P>
                    <HD SOURCE="HD3">
                        C. 
                        <E T="03">Certified Historic Structure Exception</E>
                    </HD>
                    <P>Section 170(h)(7)(E) provides that the Disallowance Rule does not apply to any qualified conservation contribution the conservation purpose of which is the preservation of any building that is a certified historic structure (as defined in section 170(h)(4)(C)). Proposed § 1.170A-14(n)(4) simply repeated this statutory language and did not provide further guidance regarding the cases to which this exception would apply. No comments were received on proposed § 1.170A-14(n)(4), which these regulations finalize without change.</P>
                    <P>Proposed § 1.170A-14(n)(4) also contained a cross-reference to the special reporting requirements in proposed § 1.170A-16(f)(6) for a contribution that meets the certified historic structure exception. Several commenters addressed these special reporting requirements. Those comments are discussed in Part V.D of this Summary of Comments and Explanation of Revisions,</P>
                    <HD SOURCE="HD3">D. The Request for a De Minimis Overage Exception</HD>
                    <P>
                        Section 170(h)(7)(A) states that a contribution by a partnership (whether directly or as a distributive share of a contribution of another partnership) “shall not be treated as” a qualified conservation contribution for purposes of section 170 if the amount of such contribution exceeds 2.5 times the sum of each partner's relevant basis in such partnership. One commenter stated that there is a “cliff effect” to the statute and the proposed regulations in that a contribution of one dollar more than 2.5 times the sum of the relevant bases results in disallowance of any deduction for any of the contribution. The commenter stated that there should be some regulatory leniency if the taxpayer was acting in good faith and there is 
                        <E T="03">de minimis</E>
                         overage.
                    </P>
                    <P>
                        The Treasury Department and the IRS agree with the commenter that the statutory language imposes a “cliff effect,” but do not agree that a 
                        <E T="03">de minimis</E>
                         exception is necessary or desirable. As explained in Part I of this Summary of Comments and Explanation of Revisions, the first sentence of proposed § 1.170A-14(j)(3)(ii), which these regulations finalize without change, provides that the amount of a contributing partnership's or contributing S corporation's qualified conservation contribution is the amount claimed as a qualified conservation contribution on the return of the contributing partnership or contributing S corporation for the taxable year in which the contribution is made. By focusing on the amount claimed by the contributing partnership or contributing S corporation, rather than the fair market value of the contribution, this rule provides greater certainty to both taxpayers and the IRS. The regulations do not require the contributing partnership or contributing S corporation to claim the full amount of the contribution that it might otherwise claim in the absence of the Disallowance Rule. Therefore, a contributing partnership or contributing S corporation making a contribution that would otherwise be disallowed by the Disallowance Rule could avoid the Disallowance Rule by claiming an amount of qualified conservation contribution that is less than or equal to 2.5 times the sum of the relevant bases, assuming that the claimed amount is not more than the fair market value of the contribution. Thus, taxpayers may be able to mitigate the “cliff effect” noted by the commenter.
                    </P>
                    <P>
                        In accordance with section 170(h)(7)(G), which provides authority 
                        <PRTPAGE P="54301"/>
                        for the Secretary to prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of section 170(h)(7), including to prevent the avoidance of the purposes of section 170(h)(7), these final regulations also provide that, if a partner or S corporation shareholder claims an amount of qualified conservation contribution that is inconsistent with and greater than the amount of the partner's distributive share or S corporation shareholder's pro rata share of qualified conservation contribution reported to the partner or S corporation shareholder by the partnership or S corporation, predicated on a position that the partnership's or S corporation's qualified conservation contribution was a greater amount than the amount claimed by the partnership or S corporation, and the qualified conservation contribution would have been a disallowed qualified conservation contribution if the partnership or S corporation had actually claimed that greater amount, then the partner's or S corporation shareholder's claimed qualified conservation contribution is a disallowed qualified conservation contribution. This rule is necessary to avoid situations in which a partner or an S corporation shareholder seeks to avoid the application of section 170(h)(7) by claiming an amount with respect to a qualified conservation contribution that is more than the amount allocated to the partner or shareholder and reported by the partnership or S corporation.
                    </P>
                    <HD SOURCE="HD3">E. Statement Regarding Taxpayers to Whom the Disallowance Rule Does Not Apply</HD>
                    <P>One commenter stated that the proposed regulations lacked clarity as to which provisions apply to every contributing partnership or contributing S corporation and requested that the final regulations include a preliminary explanation of scope. The commenter recommended that, if different provisions have different scopes, then that should be made clear. The commenter recommended that the final regulations explicitly state that § 1.170A-14(j) through (n) does not apply to qualified conservation contributions made by individuals, joint tenancies, tenancies in common, or C corporations. The commenter also recommended that the final regulations explicitly state that § 1.170A-14(j) through (n) does not apply to partnerships and entities taxed as partnerships: (1) which have held the real property subject to the qualified conservation contribution for more than one year immediately before the date and hour of the qualified conservation contribution, disregarding any tacked holding period; and (2) all of whose members, on the date and time of the qualified conservation contribution, have held the same percentage interest in the partnership, directly or indirectly, disregarding any tacked holding period, for more than one year immediately before the date and hour of the qualified conservation contribution.</P>
                    <P>
                        With respect to the request to clarify that § 1.170A-14(j) through (n) does not apply to qualified conservation contributions made by individuals, joint tenancies, tenancies in common, or by C corporations, the Treasury Department and the IRS agree in part. Section 170(h)(7)(A) and (F) provide that the Disallowance Rule applies only to certain qualified conservation contributions made by partnerships, S corporations, and other pass-through entities; thus, it does not apply to qualified conservation contributions made by individuals or C corporations. However, in certain cases an arrangement that is a joint tenancy or tenancy in common under State law may be considered a partnership for Federal tax purposes. 
                        <E T="03">See</E>
                         § 301.7701-1(a)(2). If so, a qualified conservation contribution by such an arrangement would be subject to the Disallowance Rule. Accordingly, § 1.170A-14(j)(1) of these final regulations includes a statement that the Disallowance Rule does not apply to qualified conservation contributions made directly by landowners that are not pass-through entities, such as individuals or C corporations.
                    </P>
                    <P>With respect to the request to clarify that § 1.170A-14(j) through (n) does not apply to partnerships and entities taxed as partnerships: (1) which have held the real property subject to the qualified conservation contribution for more than one year immediately before the date and hour of the qualified conservation contribution, disregarding any tacked-on holding period and (2) all of whose members, on the date and time of the qualified conservation contribution, have held the same percentage interest in the partnership, directly or indirectly, disregarding any tacked holding period, for more than one year immediately before the date and hour of the qualified conservation contribution, the Treasury Department and the IRS have concluded that such a rule would be inconsistent with section 170(h)(7). As explained in Part IV.A of this Summary of Comments and Explanation of Revisions, section 170(h)(7)(C) provides an exception to the Disallowance Rule for pass-through entities that satisfy a three-year holding period. Accordingly, the final regulations do not adopt this recommendation.</P>
                    <HD SOURCE="HD2">V. Reporting Requirements</HD>
                    <P>Section 170(f)(11)(H) grants the Treasury Department and the IRS authority to promulgate regulations to provide for substantiation of a charitable contribution. Section 170(h)(7)(G) grants the Treasury Department and the IRS authority to promulgate regulations to carry out the purposes of section 170(h)(7), including to require reporting (including reporting related to tiered partnerships and the modified basis of partners and S corporation shareholders).</P>
                    <P>As noted in the preamble to the proposed regulations, existing § 1.170A-16 imposes substantiation and reporting requirements for noncash charitable contributions, including but not limited to qualified conservation contributions by pass-through entities. Subject to certain exceptions, § 1.170A-16 requires the donor to file Form 8283 in the case of a noncash charitable contribution exceeding $500. Specifically, existing § 1.170A-16(c) generally requires the donor to complete Form 8283 (Section A) in the case of a noncash charitable contribution of more than $500 but not more than $5,000. Existing § 1.170A-16(d) generally requires the donor to complete Form 8283 (Section A or Section B, as applicable) in the case of a noncash charitable contribution of more than $5,000. Existing § 1.170A-16(e) applies to noncash charitable contributions of more than $500,000 and generally requires the donor to complete Form 8283 (Section A or Section B, as applicable). Section 170(f)(11)(D) and existing § 1.170A-16(e) require a donor of a noncash contribution of more than $500,000 to attach a qualified appraisal to the return on which the deduction is claimed. Existing § 1.170A-16(f) provides additional substantiation rules, including rules for donors that are partnerships or S corporations.</P>
                    <P>
                        The proposed regulations provided guidance in the following four categories: (1) requirements for all noncash charitable contributions of more than $500, (2) requirements for noncash charitable contributions by partnerships and S corporations, (3) requirements for qualified conservation contributions made by partnerships and S corporations, and (4) requirements for qualified conservation contributions made by partnerships and S corporations the conservation purpose of which is the preservation of a certified historic structure.
                        <PRTPAGE P="54302"/>
                    </P>
                    <HD SOURCE="HD3">A. Requirements for All Noncash Charitable Contributions of More Than $500</HD>
                    <P>The proposed regulations made one clarifying change applicable to all noncash charitable contributions of more than $500—a requirement that taxpayers input numerical entries into Form 8283.</P>
                    <P>
                        Section 1.170A-16(c)(3) provides the elements of a completed Form 8283 (Section A), and § 1.170A-16(d)(3) provides the elements of a completed Form 8283 (Section B). To further clarify reporting requirements for donated property, proposed § 1.170A-16(c)(3)(v) and (d)(3)(ix) each added a requirement, respectively, that, if a number can be inserted into any box on Form 8283, the number must be inserted in the box on Form 8283; alternatively, taxpayers may attach a statement to the Form 8283 explaining why a number cannot be inserted. The proposed regulations also clarified that, while nothing precludes a taxpayer from both inserting the number in the appropriate box on Form 8283 and including an attached statement explaining any additional information regarding the number, taxpayers may not respond to a request for information on Form 8283 with nonresponsive responses, for example, by indicating that the requested information is 
                        <E T="03">available upon request</E>
                         or will be 
                        <E T="03">provided upon request.</E>
                         The proposed regulations provided that inclusion of such nonresponsive language in response to a request for information on Form 8283 may be treated by the IRS as being an incomplete filing of Form 8283.
                    </P>
                    <P>The preamble to the proposed regulations explained the IRS had observed a pronounced increase in taxpayers filing a Form 8283 that did not contain any numbers and instead referred the IRS to an attachment. Often, the attachment included nonresponsive information, such as “available upon request,” was entirely blank, or otherwise did not provide the information required by Form 8283. Other times, the attachment included multiple numbers for different boxes, leaving the IRS to figure out which of the included numbers was appropriate for a particular box. The proposed regulations stated that these actions are to the detriment of fair and effective tax administration, and stated,</P>
                    <EXTRACT>
                        <P>While many taxpayers understandably want to attach a statement to the Form 8283 to verify their calculations and provide appropriate supplemental information, having the numerical information in the appropriate box on Sections A and B of Form 8283 is critical to the IRS's ability to ensure the integrity of each filing, as IRS systems are programmed to match a partner's or shareholder's information to the appropriate contributing partnership's or contributing S corporation's information. Moreover, information requested on Sections A and B of Form 8283 is information that the partnership or S corporation should already have and is already required to provide to the partner or shareholder, as appropriate.</P>
                    </EXTRACT>
                    <P>A commenter suggested that confusion could be avoided if the regulation stated that an attached statement will only be acceptable if it clearly explains why the taxpayer cannot provide the basis of their donation or is simply explanatory of the basis the taxpayer provided. The commenter also suggested that the box requiring the taxpayer to report its basis in the donated property could be left blank if the taxpayer provided an explanatory statement attached to the Form 8283. The same commenter suggested that the regulations add a box for the taxpayer to check if the entire explanation and number are contained in an attached statement. These comments are largely already addressed by the proposed regulations, which provided that taxpayers may attach a statement to the Form 8283 explaining why a number cannot be inserted and also clarified that nothing precludes a taxpayer from both inserting the number in the appropriate box on Form 8283 and including an attached statement explaining any additional information regarding the number. The request to add a box to check if the entire explanation and number are contained in the attached statement is outside the scope of these final regulations but will be considered in connection with updates to the Form 8283.</P>
                    <P>One commenter agreed with the Treasury Department and the IRS's “general attitude toward Form 8283 and taxpayers who leave information blank,” but requested that the Form 8283 include a box to disclose tacked holding periods. This commenter noted that the Form 8283 currently only contains a box for “date acquired by donor” and stated that accountants had expressed confusion over whether acquisition date or holding period date ought to be inserted into that box, because the holding period date is the relevant date for all other accounting and tax purposes. The commenter suggested that adding a box for the holding period would account for potential disparities between the date entered in the “date acquired by donor” box and the actual date when a donor's holding period began to run.</P>
                    <P>The request to add a box for the holding period is outside the scope of these final regulations but will be considered in connection with updates to the Form 8283. The Treasury Department and IRS emphasize that current instructions to Form 8283 direct taxpayers to enter the date the property is acquired by the donor and that taxpayers may submit an attachment disclosing the tacked holding period to explain potential disparities between the date acquired by the donor and the date the donor's holding period began to run.</P>
                    <P>This commenter also suggested that any increase in the number of taxpayers filing Forms 8283 that do not contain numbers and instead refer the IRS to an attachment is evidence of taxpayer confusion on how to fill out the Form 8283, “particularly when the IRS has taken a litigating position that attempts to disqualify deductions in numerous easement cases based on alleged failures in the taxpayers' Forms 8283.” The commenter suggested that the final regulations should not discourage taxpayers from providing additional information on an attachment, particularly if the taxpayer is doing so to supplement information on the Form 8283. This comment is consistent with the proposed regulations, which provided that taxpayers may attach a statement to the Form 8283 explaining why a number cannot be inserted and also clarified that nothing precludes a taxpayer from both inserting the number in the appropriate box on Form 8283 and including an attached statement explaining any additional information regarding the number.</P>
                    <P>This commenter also proposed that the regulations include a “substantial compliance” standard for Form 8283 for taxpayers who make a good faith effort to complete the form. The commenter stated that substantial compliance relief should not apply if a taxpayer omits information from Form 8283 altogether or otherwise manipulates the form, but that if a taxpayer makes a good-faith mistake, such as miscalculating basis in a way that does not affect the calculation of whether a qualified conservation contribution exceeds 2.5 times the sum of the relevant bases, the taxpayer should not be punished by having its deduction denied altogether.</P>
                    <P>
                        While the IRS may work with a taxpayer to fix a good-faith mistake, the Treasury Department and the IRS decline to adopt a “substantial compliance” standard for Form 8283. First, there are certain reporting requirements that are statutorily imposed and cannot be satisfied through substantial compliance, including the requirement to obtain a qualified appraisal and attach an appraisal summary to the return. 
                        <E T="03">See Hewitt</E>
                         v. 
                        <PRTPAGE P="54303"/>
                        <E T="03">Commissioner,</E>
                         109 T.C. 258, 
                        <E T="03">aff'd without published opinion,</E>
                         166 F.3d 332 (4th Cir. 1998); Deficit Reduction Act of 1984 (DEFRA), Public Law 98-369, section 155(a)(3), 98 Stat. 494 (1984). Second, even for those reporting requirements that may implicate the substantial compliance doctrine, the determination of whether substantial compliance should apply is made under common law and should be applied only in cases in which the taxpayer acted in good faith and exercised due diligence but nevertheless failed to meet regulatory requirements. 
                        <E T="03">See Prussner</E>
                         v. 
                        <E T="03">U.S.,</E>
                         896 F.2d 218, 224 (7th Cir. 1990). 
                        <E T="03">See also McAlpine</E>
                         v. 
                        <E T="03">Commissioner,</E>
                         968 F.2d 459, 462 (5th Cir. 1992). Substantial compliance is not applicable if the requirement is essential but may be applied if the requirements are procedural or directory. 
                        <E T="03">See Estate of Strickland</E>
                         v. 
                        <E T="03">Commissioner,</E>
                         92 T.C. 16, 27 (1989). The determination of whether substantial compliance is satisfied is a facts-and-circumstances analysis that is ordinarily resolved through the examination, Appeals, or judicial process.
                    </P>
                    <P>One commenter noted that the requirement to report cost basis has been in existence since 1988 and stated that some practitioners have failed to scrupulously report either the cost basis, fair market value, or both, maintaining that an earlier iteration of the Form 8283 instructions were vague as to this requirement. The commenter asked that the final regulations “remove all doubt and reaffirm that the reporting requirement was never vague or ambiguous.”</P>
                    <P>
                        The Treasury Department and the IRS agree that the requirements for an accurate Form 8283 have always required the reporting of cost or other basis in the donated property. Section 155(a)(1) of DEFRA specifically instructs the Secretary to promulgate regulations that require a taxpayer claiming a deduction for a noncash charitable contribution to: (1) obtain a qualified appraisal for the property, (2) attach an appraisal summary to the return on which such deduction is first claimed for such contribution, and (3) 
                        <E T="03">include on such return such additional information (including the cost basis and acquisition date of the contributed property)</E>
                         as the Secretary may prescribe in such regulations. (Emphasis added). In fulfillment of this mandate, the Secretary promulgated § 1.170A-13, Recordkeeping and Return Requirements for Deductions for Charitable Contributions. TD 8002, 49 FR 50663, December 31, 1984. Section 1.170A-13(b)(3)(i)(B) requires reporting cost or other basis for charitable contribution deductions in excess of $500 if required by the return form or its instructions. Section 1.170A-13(b)(3)(ii) provides that, if a taxpayer has reasonable cause for being unable to provide such information, the taxpayer must attach an explanatory statement to the return. Existing § 1.170A-16(c)(3)(iv)(F) and (d)(3)(vi) require the reporting of cost or other basis on Form 8283. Additionally, section 170(f)(11)(B) and (C) provide the Secretary the authority to require information other than property descriptions for contributions of more than $500 and requires qualified appraisals for contributions of more than $5,000. These final regulations clarify requirements for completing certain fields on Form 8283, but the requirement to include cost basis is clear under existing regulations and does not require reiterating in other parts of the regulations, including in these final regulations.
                    </P>
                    <P>Accordingly, proposed § 1.170A-16(c)(3)(v) and (d)(3)(ix) are finalized with only minor, non-substantive changes (such as using the term “non-responsive language” instead of the term “non-responsive responses”).</P>
                    <HD SOURCE="HD3">B. Requirements for Noncash Charitable Contributions Over $500 by Partnerships and S Corporations</HD>
                    <P>Existing § 1.170A-16(f)(4)(i) provides that, if a partnership or S corporation makes a noncash charitable contribution, the partnership or S corporation is required to provide a copy of its completed Form 8283 (Section A or Section B) to every partner or shareholder who receives an allocation of a charitable contribution deduction under section 170. Similarly, a recipient partner or shareholder that is a partnership or S corporation must provide a copy of the completed Form 8283 to each of its partners or shareholders who receives an allocation of a charitable contribution deduction under section 170 for the property described in Form 8283. Proposed § 1.170A-16(f)(4)(i) retained these rules and clarified that any additional tiers of pass-through entities must also provide a copy of the donor's Form 8283 to its partners or shareholders who receive an allocation of the charitable contribution.</P>
                    <P>Existing § 1.170A-16(f)(4)(ii) requires a partner or S corporation shareholder that receives an allocation of a charitable contribution to which § 1.170A-16(c), (d), or (e) applies to attach a copy of the partnership's or S corporation's completed Form 8283 (Section A or Section B) to the return on which the deduction is claimed. Proposed § 1.170A-16(f)(4)(ii) retained these rules and clarified that the partner or shareholder must also attach a copy of any additional Forms 8283 that must be provided to them under proposed § 1.170A-16(f)(4)(iii)(A).</P>
                    <P>Proposed § 1.170A-16(f)(4)(iii)(A) provided that a partner of a partnership or shareholder of an S corporation that receives an allocation of a charitable contribution to which § 1.170A-16(c), (d), or (e) applies must complete its own Form 8283 with any information required by Form 8283 and the instructions to Form 8283. In addition, proposed § 1.170A-16(f)(4)(iii)(A) provided that a partner that is itself a partnership or S corporation must complete its own Form 8283 and provide a copy of that Form 8283 to every partner or shareholder who receives an allocation of the charitable contribution, and so on through any additional tiers. Proposed § 1.170A-16(f)(4)(iii)(A) required each partner or shareholder to attach its separate Form 8283 to the return on which the contribution is claimed, in addition to the copy of the donor's Form 8283 as well as other Forms 8283 that the partner or shareholder received. This proposed requirement applied to all noncash charitable contributions over $500 made by a partnership or S corporation, not just those for conservation easements.</P>
                    <P>The comments received on these provisions addressed: (1) the requirement that partners and S corporation shareholders complete and file separate Forms 8283, and (2) donee responsibilities pertaining to the partners' and shareholders' Forms 8283.</P>
                    <HD SOURCE="HD3">1. The Form 8283 Filing Requirement for Partners and Shareholders</HD>
                    <P>One commenter addressed proposed § 1.170A-16(f)(4)(iii)(A). This commenter suggested that, rather than requiring partners and S corporation shareholders to complete and file separate Forms 8283, the donating partnership or S corporation should be required to include on its Form 8283 information about the partners' and shareholders' bases and holding periods. The commenter suggested retaining the “current approach” of having one Form 8283 for the contributing partnership (that is distributed to the partners) and then requiring the specific information the IRS is seeking on the attachment (which is required for all qualified conservation contributions) submitted by the partners.</P>
                    <P>
                        Section 170(f)(11) disallows a charitable contribution deduction unless certain substantiation requirements are met. Providing a Form 
                        <PRTPAGE P="54304"/>
                        8283 is a reasonable, basic step for substantiating charitable contributions for taxpayers who ultimately claim the deduction. Congress provided, as part of DEFRA, the authority to require taxpayers to submit Forms 8283. The legislative history shows that Congress was concerned that “opportunities to offset income through inflated valuations of donated property have been increasingly exploited by tax shelter promoters.” Staff of Senate Comm. on Finance, 98th Cong., 2d Sess., Explanation of Provisions of the Deficit Reduction Act of 1984, at 503 (Comm. Print 1984). This has long been an area of abuse for which taxpayers have creatively sought to avoid transparent reporting and instead have attempted to disguise overvalued charitable contributions.
                    </P>
                    <P>Proposed § 1.170A-16(f)(4)(iii)(A) provides the IRS with important information and the burden imposed on taxpayers is reasonable in light of the potential for abuse. As the preamble to the proposed regulations stated, in pass-through and tiered-entity structures, the IRS regularly observes partners and shareholders providing incomplete information to substantiate their charitable contribution deductions. A partner's or S corporation shareholder's Form 8283 that contains the necessary information from the Form K-1 received from the donating partnership, donating S corporation, or an upper-tier partnership or upper-tier S corporation streamlines processing and efficiency. Thus, these final regulations finalize § 1.170A-16(f)(4)(iii)(A) as proposed.</P>
                    <HD SOURCE="HD3">2. Donee Responsibilities Pertaining to Partners' and Shareholders' Forms 8283</HD>
                    <P>A commenter stated that the requirement that partners and S corporation shareholders provide their own Form 8283 represents substantial additional work for donees that likely would make them less willing (and able) to assess the accuracy and completeness of Form 8283. This commenter stated that, if there is an expectation that the donee would sign an individual's Form 8283, then it would require more due diligence for the donee, creating on-the-ground problems and complexities. The commenter also stated that retaining so many copies of Forms 8283 as part of their permanent record would significantly increase their record-keeping burden (although this commenter also stated that the great majority of conservation easement donations are not made by partnerships and, of those, very few are made by tiered partnerships).</P>
                    <P>
                        The proposed regulations did not impose a requirement for the donee to sign and/or retain a copy of each partner's and shareholder's Forms 8283. The requirement in § 1.170A-16(d)(3)(ii) that a completed Form 8283 (Section B) include the donee's signature only applies to the Form 8283 filed by the donor, in these instances the contributing pass-through entity. To clarify this issue, the Instructions to Form 8283 have been updated to provide: “A member's Form 8283 is not required to have signatures.” 
                        <E T="03">See</E>
                         the Form 8283 Instructions released on January 17, 2024, which state “(Rev. December 2023)” after “Instructions for Form 8283” at the top of the first page.
                    </P>
                    <HD SOURCE="HD3">C. Requirements for Qualified Conservation Contributions Made by Partnerships and S Corporations</HD>
                    <P>
                        As explained in the preamble to the proposed regulations, to ensure that taxpayers claiming qualified conservation contributions properly comply with section 170(f)(19) and (h)(7), the IRS must have relevant basis reporting from both the contributing partnership or contributing S corporation and each partner or shareholder receiving an allocation of the contribution (which will be ultimate members, upper-tier partnerships, or upper-tier S corporations). Accordingly, the proposed regulations inserted a new paragraph, proposed § 1.170A-16(d)(3)(viii),
                        <SU>5</SU>
                        <FTREF/>
                         which provided that, for qualified conservation contributions made by a partnership or S corporation, the contributing partnership or contributing S corporation must report the sum of each ultimate member's relevant basis, computed in accordance with § 1.170A-14(j) through (m), on the Form 8283 (Section B). Under proposed § 1.170A-16(d)(3)(viii), this new requirement did not apply to contributions described in section 170(h)(7)(C) and § 1.170A-14(n)(2) (for contributions made outside of the three-year holding period) or section 170(h)(7)(D) and § 1.170A-14(n)(3) (for contributions made by certain family partnerships or S corporations), provided that they are not also described in section 170(h)(7)(E) and § 1.170A-14(n)(4) (for contributions to preserve certified historic structures), in which case the reporting requirement did apply.
                    </P>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             The proposed regulations would redesignate existing § 1.170A-16(d)(3)(viii) as § 1.170A-16(d)(3)(x).
                        </P>
                    </FTNT>
                    <P>Proposed § 1.170A-16(f)(4)(iii)(B) provided an additional substantiation rule for partners and S corporation shareholders receiving an allocation of a qualified conservation contribution. That paragraph required that an ultimate member's separate Form 8283 must include the ultimate member's own relevant basis and that an upper-tier partnership's or upper-tier S corporation's separate Form 8283 must include the sum of each of its ultimate member's relevant bases. Proposed § 1.170A-16(f)(4)(iii)(B) did not apply to contributions described in section 170(h)(7)(C) and § 1.170A-14(n)(2) (for contributions made outside of the three-year holding period) or section 170(h)(7)(D) and § 1.170A-14(n)(3) (for contributions made by certain family partnerships or S corporations), provided that they are not also described in section 170(h)(7)(E) and § 1.170A-14(n)(4) (for contributions to preserve certified historic structures), in which case proposed paragraph § 1.170A-16(f)(4)(iii)(B) did apply.</P>
                    <P>The comments received on these provisions addressed: (1) the requirement that ultimate shareholders report relevant basis, (2) whether the contributing entity should report the basis in the property underlying the qualified conservation contribution or the basis in the qualified conservation contribution itself, and (3) requiring reporting of relevant basis with respect to a qualified conservation contribution that satisfies one of the exceptions to the Disallowance Rule.</P>
                    <HD SOURCE="HD3">1. The Requirement That Ultimate Members Report Relevant Basis</HD>
                    <P>One commenter interpreted the requirement in the proposed regulations that ultimate members report their relevant basis on their separate Forms 8283 to mean that the proposed regulations “require individual members and shareholders to determine their relevant basis and holding period.” The commenter stated that a particular problem with this new requirement is the complexity of the calculations needed for an ultimate member to determine their relevant basis.</P>
                    <P>The Treasury Department and the IRS disagree that the proposed regulations require each ultimate member to determine its relevant basis. As explained in the proposed regulations, relevant basis must be determined by the partnership or S corporation. The ultimate member may need to share information, such as its basis in its interest in the partnership or S corporation, with the partnership or S corporation to facilitate this computation. The partnership or S corporation must also determine its holding period in the property with respect to which the qualified conservation contribution is made.</P>
                    <P>
                        Another commenter stated that the requirement that partners and 
                        <PRTPAGE P="54305"/>
                        shareholders file a separate Form 8283 with respect to certified historic structure contributions was a trap for the unwary that was confusing, duplicative, and contrary to the statute. In support of this premise, the commenter stated that: (1) the requirement that each partner and shareholder file a separate Form 8283 reporting its own relevant basis does nothing to further the purposes of section 170(f)(19) and (h)(7); (2) section 170(f)(19) and (h)(7) apply at the entity level based on the sum of all the relevant bases, and the partners' and shareholders' separate Forms 8283 do not convey the sum of all the relevant bases; (3) the Treasury Department and the IRS could require the contributing partnership to add an attachment to the Form 8283 explaining the partnership's allocations of the qualified conservation contribution, such as any contractual limitations affecting the partnership's allocations; (4) requiring partners and shareholders to report their relevant bases may cause confusion by leading the partners and shareholders to believe that application of the Disallowance Rule depends on whether the amount of a partner's or shareholder's deduction exceeds 2.5 times the partner's or shareholder's personal relevant basis; (5) because section 170(f)(19) and (h)(7) applies only to pass-through entities and “almost all” pass-through entities are subject to audit at the entity level pursuant to the Bipartisan Budget Act of 2015 (BBA), the IRS does not need separate Forms 8283 at any intermediary partner levels; and (6) the separate Forms 8283 from partners and shareholders would not achieve the intended result of reporting requirements enacted in DEFRA—triggering an audit of overvalued property. The Treasury Department and IRS have considered these comments but conclude that they are not persuasive. First, in a structure involving tiered partnerships or S corporations, the Disallowance Rule must be tested at each tier. 
                        <E T="03">See</E>
                         § 1.170A-14(j)(2)(ii). Therefore, each upper-tier partnership and upper-tier S corporation must compute 2.5 times the sum of its ultimate members' relevant bases. It may be the case that the amount of the contributing partnership's contribution does not exceed 2.5 times the sum of its ultimate members' relevant bases, but an upper-tier partnership's allocated portion does exceed 2.5 times the sum of the upper-tier partnership's ultimate members' relevant bases and would be subject to the Disallowance Rule. Therefore, it is essential that each upper-tier partnership and upper-tier S corporation provide a separate Form 8283 so that the IRS can apply the Disallowance Rule to upper-tier partnerships and upper-tier S corporations. Second, section 170(h)(7)(G)(i) provides an explicit grant of authority for the promulgation of regulations and other guidance requiring reporting related to tiered partnerships and S corporations. Requiring upper-tier partnerships and upper-tier S corporations to report the sum of their ultimate members' relevant bases is necessary to administer the Disallowance Rule and is consistent with the authority granted in section 170(h)(7)(G).
                    </P>
                    <P>Similarly, the requirement that an ultimate member must report their own relevant basis on their separate Form 8283 ensures that the relevant basis reported at the ultimate member level is consistent with the sum of relevant bases reported by the partnership or S corporation. The commenter's suggestion that the partnership's or S corporation's Form 8283 could separately list each ultimate member's relevant basis would not be as administrable. It is impractical for Form 8283 itself to contain sufficient space for each ultimate member's relevant basis to be separately listed. Accordingly, the partnership or S corporation would need to provide such information on an attachment or additional statement. The way in which such an attachment is formatted, how easily the information can be found, and whether or not the information is actually provided may vary. The Treasury Department and the IRS have determined that requiring ultimate members to report their personal relevant bases in the appropriate box on the Form 8283 (rather than on an attachment to the form) ensures that the information can be easily found by the IRS and is in a uniform format for processing by the IRS. Thus, even if a contributing partnership or upper-tier partnership is subject to entity-level audit under the BBA, the partners' separate Forms 8283 provide valuable information in ascertaining the partnership's compliance with section 170(f)(19) and (h)(7).</P>
                    <P>In addition, the Treasury Department and the IRS note that no S corporations and not all partnerships are subject to the BBA audit procedures. Accordingly, the Treasury Department and the IRS decline to remove the requirement that partners and S corporation shareholders report their relevant bases on their separate Forms 8283.</P>
                    <HD SOURCE="HD3">2. Whether the Contributing Entity Should Report the Basis in the Property Underlying the Qualified Conservation Contribution or the Basis in the Qualified Conservation Contribution Itself</HD>
                    <P>As noted earlier, the regulations and Form 8283 have long required a donor to report its basis in the contributed property. At the time of the publication of the proposed regulations in November 2023, the then-current version of the Form 8283 instructions allowed a donor of a qualified conservation contribution to either report its basis in the underlying property or its basis in the qualified conservation contribution itself. For example, assume a partnership owned 600 acres of real property. The partnership donates a conservation easement on 400 of those acres. Assume the partnership's adjusted basis in those 400 acres was $2,000,000, and that the partnership's adjusted basis in the conservation easement itself was $500,000. Under the then-current version of the Form 8283 instructions, the partnership could list either $2,000,000 or $500,000 as its basis on the Form 8283; the partnership would also be required to indicate whether it was reporting its basis in the property underlying the qualified conservation contribution or its basis in the qualified conservation contribution itself.</P>
                    <P>A commenter noted this option in the (then-current) Form 8283 instructions. The commenter stated that the proposed regulations require a contributing partnership or contributing S corporation to provide its basis in the property underlying the qualified conservation contribution rather than its basis in the qualified conservation contribution itself. This commenter believed it would simplify the process for the donor, donee, and the IRS if Form 8283 required all taxpayers making a qualified conservation contribution to report their basis in the property underlying the qualified conservation contribution, rather than giving taxpayers a choice.</P>
                    <P>
                        The Treasury Department and the IRS note that the proposed regulations do not amend the requirement in § 1.170A-16(d)(3)(vi) that taxpayers report their basis in contributed property on their Forms 8283. Section 170(h)(7)(B)(i) provides that, for purposes of the Disallowance Rule, relevant basis is determined with reference to “the portion of the real property with respect to which” the qualified conservation contribution is made. Accordingly, the computations in the proposed regulations are generally based on the 
                        <PRTPAGE P="54306"/>
                        contributing partnership's or contributing S corporation's basis in the property underlying the qualified conservation contribution, rather than its basis in the qualified conservation contribution itself.
                    </P>
                    <P>Although the proposed regulations do not modify the requirement that a donor must report its basis in contributed property, the Treasury Department and the IRS note that the current version of the Form 8283 instructions, released January 17, 2024, which states “(Rev. December 2023)” after “Instructions for Form 8283” at the top of the first page, requires a donor of a qualified conservation contribution to both report its basis in the underlying real property on Form 8283 and include information about the cost or adjusted basis of the qualified conservation contribution itself in a statement attached to Form 8283.</P>
                    <HD SOURCE="HD3">3. Requiring Reporting of Relevant Basis With Respect to a Qualified Conservation Contribution That Satisfies One of the Exceptions to the Disallowance Rule</HD>
                    <P>One commenter requested clarification on whether the rule requiring Forms 8283 with relevant basis applied to every qualified conservation contribution made by a partnership or S corporation, regardless of whether the contribution satisfies one of the exceptions to the Disallowance Rule. As noted above, proposed § 1.170A-16(d)(3)(viii) and (f)(4)(iii)(B) required contributing partnerships, contributing S corporations, upper-tier partnerships, upper-tier S corporations, and ultimate members to report relevant basis (or the sum of the relevant bases) on Form 8283 with respect to a qualified conservation contribution. However, these reporting requirements did not apply to contributions made outside of the three-year holding period or to contributions made by certain family partnerships or S corporations, unless the contribution is to preserve a certified historic structure (in which case the reporting requirements did apply).</P>
                    <P>Because the regulations are already clear on this point, the commenter's suggestion is not adopted. Accordingly, these final regulations adopt § 1.170A-16(d)(3)(viii) and (f)(4)(iii)(B) with only minor non-substantive changes.</P>
                    <HD SOURCE="HD3">D. Requirements for Certified Historic Structure Contributions Made by Partnerships and S Corporations</HD>
                    <P>Although contributions by partnerships or S corporations to preserve certified historic structures that exceed 2.5 times the sum of the relevant bases are excepted from the Disallowance Rule, they are subject to section 170(f)(19). Section 170(f)(19) provides that no deduction is allowed under section 170(a) for such a contribution unless the pass-through entity making such contribution includes on its return for the taxable year in which the contribution is made a statement that the pass-through entity made such a contribution and provides such information about the contribution as the Secretary may require. Section 170(f)(19)(B) provides that section 170(f)(19) applies to qualified conservation contributions by pass-through entities (whether directly or as a distributive share of a contribution of another pass-through entity) the conservation purpose of which is the preservation of any building which is a certified historic structure, and the amount of which exceeds 2.5 times the sum of each partner's relevant basis (as defined in section 170(h)(7)).</P>
                    <P>Proposed § 1.170A-16(f)(6)(i) provided that, for any qualified conservation contribution described in proposed § 1.170A-16(f)(6)(ii), no deduction is allowed under section 170 or any other provision of the Code under which deductions are allowable to pass-through entities with respect to such contribution unless each partnership or S corporation: (1) includes on its return for the taxable year in which the contribution is made a statement that it made such a contribution or received such allocated portion and (2) provides such information about the contribution as the Secretary may require in guidance, forms, or instructions.</P>
                    <P>Proposed § 1.170A-16(f)(6)(ii) provided that proposed § 1.170A-16(f)(6) applies to any qualified conservation contribution, the conservation purpose of which is preservation of a building that is a certified historic structure, that is either made by a contributing partnership or contributing S corporation or that is an allocated portion of an upper-tier partnership or upper-tier S corporation, and the amount of such contribution or such allocated portion exceeds 2.5 times the sum of each ultimate member's relevant basis.</P>
                    <P>Proposed § 1.170A-16(f)(6)(iii) provided that a partnership or S corporation satisfies the requirements of section 170(f)(19)(A) and § 1.170A-16(f)(6)(i) by filing a completed Form 8283, including information about relevant basis, in accordance with section 170, the regulations under section 170, and the instructions to Form 8283.</P>
                    <P>As noted above, proposed § 1.170A-16(d)(3)(viii) and (f)(4)(iii)(B) required contributing partnerships, contributing S corporations, upper-tier partnerships, upper-tier S corporations, and ultimate members to report relevant basis (or the sum of the relevant bases) on Form 8283 with respect to any qualified conservation contribution for the preservation of a certified historic structure, regardless of whether the contribution also satisfied the three-year holding period exception or the certain family pass-through entity exception.</P>
                    <P>Two commenters addressed these rules, discussing whether: (1) relevant basis accounts for fundamental differences between certified historic structure contributions and other types of qualified conservation contributions, (2) relevant basis accurately reflects abusive certified historic structure contributions, and (3) these reporting requirements should apply to certified historic structure contributions that also satisfy either the three-year holding period exception or the family-pass through entity exception.</P>
                    <HD SOURCE="HD3">1. Differences Between Certified Historic Structure Contributions and Other Types of Qualified Conservation Contributions</HD>
                    <P>
                        Two commenters expressed concern that qualified conservation contributions that satisfy the certified historic structure exception are fundamentally different than other types of qualified conservation contributions (such as a conservation easement to protect greenspace) and, as such, the data used for computation of relevant basis should be different. One of these commenters stated that protection of certified historic structures under section 170(h)(4)(A)(iv) differs fundamentally from other conservation purposes in section 170(h)(4)(A)(i) through (iii) because “[u]nlike natural lands, which typically do not need upkeep, historic properties require a continuous influx of capital for rehabilitation and ongoing maintenance expenditures to preserve the historic character of the building protected by the easement.” This commenter added that “open space” qualified conservation contributions allow nature to thrive undisturbed while certified historic structure contributions need additional human intervention to further the conservation purpose and to preserve the historic structure in perpetuity. The commenter stated that money flowing into the property-owning partnership that is “put toward the preservation, rehabilitation, or upkeep of the certified historic structure” should be allocated to the 
                        <PRTPAGE P="54307"/>
                        ultimate member's modified basis, but that the proposed regulations “ignore these funds entirely.”
                    </P>
                    <P>The commenter offered an example of a taxpayer that acquires a building and then invests $2,000,000 into the building after acquisition. The commenter stated that the proposed regulations ignore both debt financing and capital contributions made after the date of contribution, which the commenter stated “produces odd and unworkable results for investors in historic structures,” and recommended that the regulations be amended to “include these other sources of financing in historic properties.” The commenter also stated that, “at the time an easement is donated, cash from investors may be earmarked for preservation and rehabilitation of a dilapidated structure.” The commenter remarked that cash raised and debt secured is essential for furthering the historic preservation purpose. Thus, the commenter asserted that, with respect to certified historic structure contributions, the definition of relevant or modified basis should include debt and cash necessary for maintaining the conservation purpose.</P>
                    <P>The Treasury Department and the IRS have concluded that certified historic structure contributions should have the same relevant basis computation as any other qualified conservation contribution. Although the Treasury Department and the IRS recognize that there are differences between the conservation purposes for different types of qualified conservation contributions, section 170(h)(7) does not contemplate different calculations of relevant basis depending on the particular conservation purpose. Moreover, section 170(f)(19)(B)(iii) specifically refers to relevant basis “as defined in [section 170(h)(7)].”</P>
                    <P>
                        It is appropriate that the rules for the determination of modified basis and relevant basis maintain their focus on the amounts invested in the property generating the deduction as of the time of the qualified conservation contribution. Including debt and cash earmarked for the ongoing maintenance of the conservation purpose would contradict the statutory definition of relevant basis and modified basis. Section 170(h)(7)(B)(i) provides that relevant basis means the portion of a partner's modified basis in the partnership which is 
                        <E T="03">allocable to the portion of the real property</E>
                         with respect to which a qualified charitable contribution is made. This narrow definition of relevant basis does not include amounts allocable to other assets. Also, section 170(h)(7)(B)(ii)(I) provides that modified basis is calculated 
                        <E T="03">immediately before</E>
                         the qualified conservation contribution. Including future events and costs incurred or paid after the donation would defeat the purpose of including a timeline in the definition of modified basis.
                    </P>
                    <P>
                        Therefore, the final regulations do not provide for different calculations for relevant basis depending on different conservation purposes. In addition, the computations for relevant basis would not treat “earmarked” amounts as part of the property with respect to which the qualified conservation contribution is made. Thus, for example, such amounts would not be included in items A 
                        <SU>6</SU>
                        <FTREF/>
                         or E 
                        <SU>7</SU>
                        <FTREF/>
                         in the relevant basis computations.
                    </P>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             Item A is a contributing partnership's adjusted basis in the portion of the real property with respect to which a qualified conservation contribution is made.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             Item E is an ultimate member's pro rata portion of a contributing S corporation's adjusted basis in the portion of the real property with respect to which a qualified conservation contribution is made.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">2. The Use of Relevant Basis in Identifying Abusive Certified Historic Structure Contributions</HD>
                    <P>One of the commenters stated that relevant basis is not an accurate measure to determine whether a certified historic structure contribution is abusive, giving the example of three buildings. The first building is dilapidated, was purchased for $100,000, and requires $900,000 of improvements to reach a $1,000,000 investment value. The second building is fully operational with a $1,000,000 acquisition cost. It is possible for the owner to enlarge either building under the applicable zoning laws. The third building is acquired for $5,000,000, but it is fully developed and cannot be enlarged under the applicable zoning laws. The owner of each building makes a certified historic structure contribution and claims a $1,000,000 contribution.</P>
                    <P>The commenter stated that the $100,000 dilapidated building would be most in danger of demolition, yet the ratio of the amount of the contribution to the building's basis would be 10:1, suggesting an abusive transaction. The commenter stated that, with respect to the second building, the ratio of the amount of the contribution to the building's basis would be 1:1, and the ratio for the third building would be 0.2:1. The commenter concluded that, because the third building cannot be enlarged under applicable zoning laws, the claimed contribution of $1,000,000 would be the most abusive of the three donations, yet would appear, under the reporting requirements, as the least abusive (because it would have the lowest ratio). The commenter concluded that this example illustrates that computing whether a certified historic structure contribution exceeds 2.5 times the sum of the relevant bases does not appropriately provide relevant information for the IRS to determine whether the claimed amount of the contribution is abusive. The commenter stated that requiring reporting of the sum of the relevant bases could actually lead the IRS away from identifying abusive transactions.</P>
                    <P>The Treasury Department and the IRS conclude that this comment is not persuasive and decline to make the changes that it advocates. The purpose of these regulations is to implement section 170(f)(19) and (h)(7). Section 170(f)(19) explicitly requires reporting for certified historic structure contributions by partnerships and S corporations that exceed 2.5 times the sum of the relevant bases (as defined in section 170(h)(7)). The fact that the commenter believes that a different reporting regime would have been more helpful to the IRS does not change the statutory framework with which taxpayers must comply. Moreover, the fact pattern described by the commenter raises concerns about overvaluation and compliance with section 170. In addition, the buildings most in need of preservation are those with the greatest significance to American history, not those in the poorest condition with an ability to be enlarged. See 36 CFR 60.4 (criteria for National Register listing) and 36 CFR 67.4 (criteria for certification of historic significance).</P>
                    <P>This commenter also stated that relevant basis for certified historic structure contributions is particularly difficult to compute. The commenter noted the “sheer number and subjectivity of variables that can affect the basis of a commercial building” and cited as examples the segregation of furniture and fixtures from real property and the determination of whether particular acquisition expenses should be capitalized or expensed. This commenter posited a scenario in which the IRS disallowed a deduction because of a disagreement over whether carpeting should be capitalized as part of furniture and fixtures or as part of the basis in the building, because the determination about how to capitalize that item impacts the relevant basis calculation.</P>
                    <P>
                        The Treasury Department and the IRS note that the certified historic structure exception in section 170(h)(7)(E) and 
                        <PRTPAGE P="54308"/>
                        § 1.170A-14(n)(4) provides that those qualified conservation contributions are not subject to the Disallowance Rule. Under section 170(f)(19) and proposed § 1.170A-16(f)(6), however, any deduction will be disallowed if the amount of the contribution exceeds 2.5 times the sum of the relevant bases and the reporting requirements are not followed. The commenter's hypothetical is unrealistic because the only way the capitalization dispute would result in disallowance under section 170(h)(7) or section 170(f)(19) would be if the capitalization disagreement resulted in the contribution exceeding 2.5 times the sum of the relevant bases and the taxpayer failed to comply with the section 170(f)(19) reporting requirements.
                    </P>
                    <P>The commenter stated that, rather than using relevant basis, the IRS should implement an alternative reporting regime that would include “Valuation Assumptions” and “Qualified Appraisal Information.” To address valuation assumptions, the commenter suggested a “Critical Information Summary for Historic Preservation Easement Appraisals.” The commenter hoped that this proposal would make it much more efficient to determine compliance with the existing requirements and to find the aspects of the appraisal that need additional review.</P>
                    <P>
                        The second part of the commenter's reporting regime included a Qualified Appraisal Checklist, which the commenter suggested would serve as a central checklist for taxpayers to report adherence to section 170(f)(11)(E)(ii)(II) 
                        <SU>8</SU>
                        <FTREF/>
                         and several requirements in the section 170 regulations. The commenter stated that adopting such a checklist would be permissible because the commenter interprets section 170(f)(19)(A)(ii) as “giving the Secretary wide discretion in what information to require.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Section 170(f)(11)(E)(ii)(ll) requires the appraiser to regularly perform appraisals for which the individual receives compensation. The commenter seems to imply that the Qualified Appraisal Checklist more broadly satisfies the requirements of section 170(f)(11)(E) and corresponding regulations.
                        </P>
                    </FTNT>
                    <P>
                        The Treasury Department and the IRS note that section 170(f)(19)(B) requires that the taxpayer compute relevant basis, 
                        <E T="03">as defined in section 170(h)(7),</E>
                         to determine if the taxpayer is required to report under section 170(f)(19)(A). In other words, although the statute grants authority for the Treasury Department and the IRS to require reporting of additional information, the disallowance rule in section 170(f)(19) for failure to report required information depends on whether the amount of the certified historic structure contribution exceeds 2.5 times the sum of the relevant bases, as defined in section 170(h)(7). Accordingly, the Treasury Department and the IRS decline to adopt the commenter's suggestion to replace the relevant basis calculation required under section 170(f)(19)(B)(iii) with this checklist. As noted in the preamble to the proposed regulations, the Treasury Department and the IRS intend to issue future guidance addressing section 170(f)(19)(A)(ii).
                    </P>
                    <HD SOURCE="HD3">3. Reporting Requirements for Certified Historic Structure Contributions That Also Satisfy Another Exception to the Disallowance Rule</HD>
                    <P>As described above, the proposed regulations required the computing and reporting of relevant basis with respect to all contributions that satisfy the certified historic structure exception. The proposed regulations generally did not require the computation or reporting of relevant basis with respect to contributions that satisfied either the three-year holding period exception or the family pass-through entity exception. However, in a situation in which a contribution satisfies both the certified historic structure exception and one of the other exceptions, the proposed regulations did require the computing and reporting of relevant basis. In addition, under proposed § 1.170A-16(f), if the amount of the certified historic structure contribution or allocated portion exceeded 2.5 times the sum of the relevant bases, then section 170(f)(19) would disallow any deduction unless the reporting requirements of proposed § 1.170A-16(f) were satisfied.</P>
                    <P>One commenter stated that computation and reporting of relevant basis should not be required with respect to a contribution that satisfies both the certified historic structure exception and one of the other exceptions. The commenter opined that the rationale for the certified historic structure exception relates to the capital needs of operating buildings and not its form of ownership. The commenter opined that a qualified conservation contribution does not present opportunities for abusive arrangements if the form of ownership qualifies for the three-year holding period exception or the family pass-through entity exception. The commenter further argued that, had Congress been concerned about reporting for the three-year holding period exception or the family pass-through entity exception, Congress would have imposed a standalone reporting requirement for those exceptions. The commenter suggested that requiring participants in the other two exceptions to follow the reporting requirements for certified historic structures may serve as a deterrent to investment in certified historic structures or as a deterrent to protecting certified historic structures through a qualified conservation contribution.</P>
                    <P>The Treasury Department and the IRS do not adopt this comment. Congress drafted section 170(h)(7) so that a contribution meeting any of the three statutory exceptions in section 170(h)(7)(C), (D), or (E) is not subject to the Disallowance Rule. In contrast, Congress drafted the reporting requirements in section 170(f)(19) to apply to all certified historic structure contributions in excess of 2.5 times the sum of the relevant bases, without regard to whether the contribution satisfies the three-year holding period exception or the family pass-through exception. Similarly, although section 170(h)(7)(C) and (D) provide exceptions to the Disallowance Rule, they do not provide an exception to the reporting requirements of section 170(f)(19). Accordingly, it would not be consistent with the language or purposes of section 170(f)(19) and (h)(7) to exempt any certified historic structure contributions from section 170(f)(19). In addition, to ensure compliance with section 170(f)(19), it is necessary that relevant basis be reported for all certified historic structure contributions. Thus, these final regulations adopt § 1.170A-16(d)(3)(viii), (f)(4)(iii)(B), and (f)(6) as proposed with minor non-substantive changes.</P>
                    <P>
                        For clarity, these final regulations modify the recordkeeping requirements for allocation of modified basis found in proposed § 1.170A-14(m)(6). As proposed, contributing partnerships, contributing S corporations, upper-tier partnerships, and upper-tier S corporations must maintain dated, written statements in their books and records by the due date, including extensions, of their Federal income tax returns, substantiating the computation of each ultimate member's adjusted basis, modified basis, and relevant basis, but these statements need not be maintained (nor does modified basis or relevant basis need to be computed) with respect to contributions that meet an exception in § 1.170A-14(n)(2) or (3). These final regulations clarify that these statements must be maintained (and modified basis and relevant basis must be computed) with respect to all contributions that meet the certified historic structure exception in § 1.170A-14(n)(4), regardless of whether such contributions also meet an 
                        <PRTPAGE P="54309"/>
                        exception in § 1.170A-14(n)(2) or (3). Accordingly, these regulations finalize § 1.170A-14(m)(6) with a clarification to the second sentence, which now provides that these statements need not be maintained (nor does modified basis or relevant basis need to be computed) with respect to contributions that meet an exception in § 1.170A-14(n)(2) or (3), unless the contribution also meets the exception in § 1.170A-14(n) (in which case these statements need to be maintained and modified basis and relevant basis need to be computed).
                    </P>
                    <HD SOURCE="HD2">VI. Other Comments</HD>
                    <P>Commenters also addressed: (1) the proposed regulations' consistency with the Federal government's position on climate action, (2) the “no inference” paragraph in the proposed regulations, (3) valuation of qualified conservation contributions, and (4) interaction of the Disallowance Rule with the rules of section 1011(b) of the Code.</P>
                    <HD SOURCE="HD3">A. Consistency With the Federal Government's Position on Climate Action</HD>
                    <P>One commenter stated that the proposed regulations evidenced an approach to land conservation that is inconsistent with the Federal government's position regarding climate action as outlined at the 2023 United Nations Climate Change Conference (COP28).</P>
                    <P>
                        The Treasury Department and the IRS acknowledge the important role of climate action, land conservation, and qualified conservation contributions. Nevertheless, Congress enacted section 170(f)(19) and (h)(7) because of concerns regarding abusive transactions and inflated claims. 
                        <E T="03">See, e.g.,</E>
                         S. Committee on Finance, Comm. Print 116-44, 
                        <E T="03">Syndicated Conservation-Easement Transactions,</E>
                         116th Cong., 2nd Sess. (2020). The regulations under § 1.170A-14 implement the Disallowance Rule.
                    </P>
                    <HD SOURCE="HD3">B. No Inference</HD>
                    <P>Section 605(c)(2) of the SECURE 2.0 Act states that no inference is intended as to the appropriate treatment of any contribution for which a deduction is not disallowed by reason of section 170(h)(7). As explained in the preamble to the proposed regulations, some practitioners have taken the position that section 170(h)(7) operates as a “safe harbor.” According to these practitioners, a qualified conservation contribution that is not disallowed by the Disallowance Rule is somehow immune to a challenge on other grounds, including failure to comply with other rules under section 170 and overvaluation of the contribution. The preamble to the proposed regulations stated that such a position is baseless and contradicted by the statutory language. To clarify this issue, proposed § 1.170A-14(j)(5) provided that there is no presumption that a qualified conservation contribution that is not a disallowed qualified conservation contribution is compliant with section 170, any other section of the Code, the regulations, or any other guidance thereunder. It also provided that compliance with section 170(h)(7) and proposed § 1.170A-14(j) through (n) is not a safe harbor for purposes of any other provision of law, including the other requirements of section 170 and the value of the contribution. Such transactions are subject to adjustment or disallowance for any other reason, including failure to satisfy the requirements of section 170 or the overvaluation of the contribution; for example, failure to properly execute Form 8283, violation of the partnership anti-abuse rule of § 1.701-2, lack of economic substance, or other rules or judicial doctrines. In addition, compliance with proposed § 1.170A-14(j) through (n) would not preclude the application of any penalty, including penalties for valuation misstatement, negligence, and fraud. Proposed § 1.170A-14(j)(5) also provided that taxpayers who engage in such transactions may be required to disclose, under § 1.6011-4, the transactions as listed transactions.</P>
                    <P>One commenter requested that the IRS delete proposed § 1.170A-14(j)(5). The commenter stated that paragraph does not add any value to the substance of the proposed regulations and is “inappropriately hostile toward donors of qualified conservation contributions.”</P>
                    <P>The Treasury Department and the IRS do not agree with this comment. Proposed § 1.170A-14(j)(5) implements section 605(c)(2) of the SECURE 2.0 Act and provides further detail and clarification about the interaction between section 605(c)(2) of the SECURE 2.0 Act and the other rules governing qualified conservation contributions. Moreover, as explained in the preamble to the proposed regulations, the rule in proposed § 1.170A-14(j)(5) addresses positions that some practitioners have actually taken. Accordingly, these final regulations retain § 1.170A-14(j)(5) with minor non-substantive changes.</P>
                    <HD SOURCE="HD3">C. Valuation of Qualified Conservation Contributions</HD>
                    <P>One commenter expressed concern that the proposed regulations do not address the valuation of donated property, especially real property, nor do they address fraudulent appraisal practices.</P>
                    <P>The Treasury Department and the IRS agree that overvaluation is an important facet of abusive charitable contributions of interests in real property. However, any guidance on valuation would be outside the scope of these final regulations, which are focused on the Disallowance Rule, section 170(f)(19), and reporting requirements for noncash charitable contributions. The Treasury Department and the IRS have challenged and will continue to challenge fraudulent appraisal practices and overvaluation.</P>
                    <HD SOURCE="HD3">D. Interaction With the Rules of Section 1011(b)</HD>
                    <P>Section 1011(b) provides that, if a deduction is allowable under section 170 by reason of a sale, then the adjusted basis for determining the gain from such sale is that portion of the adjusted basis which bears the same ratio to the adjusted basis as the amount realized bears to the fair market value of the property. The proposed regulations do not address section 1011(b). One commenter asked about the interaction of section 1011(b) with the Disallowance Rule. Specifically, the commenter asked whether the actual fair market value of the qualified conservation contribution or the “capped amount” under section 170(h)(7) should be used in applying section 1011(b).</P>
                    <P>First, the Treasury Department and the IRS disagree that section 170(h)(7) is a “capped amount;” it is a Disallowance Rule for certain qualified conservation contributions by pass-through entities.</P>
                    <P>Second, by its terms, section 1011(b) applies only if a deduction is allowable under section 170 by reason of a sale. Therefore, if a contribution is disallowed, section 1011(b) would not apply.</P>
                    <P>Third, even in situations in which section 1011(b) could apply, the application of section 1011(b) is outside the scope of these final regulations, and these final regulations do not address section 1011(b). The Treasury Department and the IRS note, however, that the computation of adjusted basis for determining gain from a sale described in section 1011(b) refers to the fair market value of the property, not the amount of the allowable deduction under section 170.</P>
                    <HD SOURCE="HD1">Special Analyses</HD>
                    <HD SOURCE="HD2">I. Regulatory Planning and Review</HD>
                    <P>
                        Pursuant to the Memorandum of Agreement, Review of Treasury 
                        <PRTPAGE P="54310"/>
                        Regulations under Executive Order 12866 (June 9, 2023), tax regulatory actions issued by the IRS are not subject to the requirements of section 6 of Executive Order 12866, as amended. Therefore, a regulatory impact assessment is not required.
                    </P>
                    <HD SOURCE="HD2">II. Paperwork Reduction Act</HD>
                    <P>The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) generally requires that a Federal agency obtain the approval of the Office of Management and Budget (OMB) before collecting information from the public, whether such collection of information is mandatory, voluntary, or required to obtain or retain a benefit. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.</P>
                    <P>
                        The collection of information contained in these final regulations is reflected in the collection of information for Form 8283, 
                        <E T="03">Noncash Charitable Contributions,</E>
                         and Schedule K-1 for Forms 1065, 
                        <E T="03">U.S. Return of Partnership Income,</E>
                         and 1120-S, 
                        <E T="03">U.S. Income Tax Return for an S corporation,</E>
                         that have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507(c)) under control numbers 1545-0074 and 1545-0123. The preamble to the proposed regulations stated that the estimated burden for taxpayers filing Form 8283 under OMB control number 1545-0074 is nineteen minutes for recordkeeping, twenty-nine minutes for learning about the law or the form, one hour and four minutes for preparing the form, and thirty-four minutes for copying, assembling, and sending the form to the IRS.
                    </P>
                    <P>Two commenters raised concerns with the taxpayer burden. One commenter stated that the burden to learn these rules was unreasonable. Another commenter stated that the proposed estimated time burdens for Form 8283 drastically underestimated the time necessary for a taxpayer to understand and apply the regulations. As explained in this preamble, these regulations are promulgated under the authority of section 170(h)(7) and other provisions in the Code, are consistent with the language and purposes of section 170(f)(19) and (h)(7), and the Treasury Department and the IRS have determined that they are not more burdensome than necessary. Accordingly, the burden imposed by these final regulations is reasonable. However, the Treasury Department and the IRS will evaluate the estimated time for a taxpayer to understand and apply the regulations and will reflect any revisions in the Form 8283 burden estimates. To the extent there is a change in burden as a result of these regulations, the change in burden will be reflected in the updated burden estimates for the Form 8283 and Schedule K-1 for Forms 1065 and 1120-S. The requirement to maintain records to substantiate information on Form 8283 and Schedule K-1 for Forms 1065 and 1120-S is already contained in the burden estimates associated with the control number for the forms and remains unchanged.</P>
                    <HD SOURCE="HD2">III. Regulatory Flexibility Act</HD>
                    <P>The Secretary of the Treasury hereby certifies that these final regulations will not have a significant economic impact on a substantial number of small entities pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6). These final regulations affect partnerships and S corporations that claim qualified conservation contributions as well as partners and S corporation shareholders that receive a distributive share or pro rata share of a noncash charitable contribution. Although data is not readily available about the number of small entities that are potentially affected by this rule, it is possible that a substantial number of small entities may be affected.</P>
                    <P>The impact of these final regulations can be described in the following five categories.</P>
                    <P>First, § 1.170A-14(j) through (n) provides guidance in applying section 170(h)(7), including providing definitions, formulas for the required calculations, and examples to help ensure the effective application of section 170(h)(7), and §§ 1.706-3 and 1.706-4(e)(2)(xiii) provide special rules for allocating qualified conservation contributions. Even assuming that these provisions affect a substantial number of small entities, they will not have a significant economic impact. Section 170(h)(7) is self-executing and the statute imposes the burden of calculating relevant basis and applying the Disallowance Rule. Because these final regulations are focused on providing definitional and computational guidance related to section 170(h)(7), their economic impact is expected to be minimal.</P>
                    <P>Second, § 1.170A-14(m)(6) generally requires contributing partnerships, contributing S corporations, upper-tier partnerships, and upper-tier S corporations to maintain dated, written statements in their books and records, by the due date, including extensions, of their Federal income tax returns, substantiating the computation of each ultimate member's adjusted basis, modified basis, and relevant basis. Even assuming that this provision affects a substantial number of small entities, it will not have a significant economic impact because partnerships and S corporations generally need to create these statements by the due date of their Federal income tax returns to ensure that they have complied with the requirements of section 170(h)(7) and (f)(19), which are self-executing. Therefore, this provision simply requires partnerships and S corporations to maintain something that they generally have already created.</P>
                    <P>Third, § 1.170A-16(d)(3)(viii) requires the Form 8283 filed by contributing partnerships and contributing S corporations to include the sum of each ultimate member's relevant basis. The existing regulations under § 1.170A-16 already require these entities to file Form 8283. Even assuming that this provision affects a substantial number of small entities, it will not have a significant economic impact because it simply requires contributing partnerships and contributing S corporations to put a small amount of additional information, which section 170(h)(7) and (f)(19) requires them to determine, on a form they are already required to file.</P>
                    <P>Fourth, § 1.170A-16(f)(6) requires a partnership or S corporation to file a completed Form 8283 to be considered to satisfy the requirements of section 170(f)(19)(A). Even assuming that this provision affects a substantial number of small entities, it will not have a significant economic impact because it simply requires contributing partnerships and contributing S corporations to complete a form they are already required to file.</P>
                    <P>
                        Fifth, § 1.170A-16(f)(4)(iii) requires all partners and shareholders of S corporations who receive an allocation of a noncash charitable contribution to file a separate Form 8283. Many of these partners and shareholders will be individuals, not small entities. However, even assuming that this provision affects a substantial number of small entities, it will not have a significant economic impact. The partnership or S corporation will provide the partner or shareholder with all, or substantially all, of the information to be reported on the separate Form 8283; this information will be contained either on the partnership's or S corporation's Form 8283 or the Schedule K-1 issued to the partner or shareholder. Accordingly, in most cases, partners and shareholders will simply be transcribing information 
                        <PRTPAGE P="54311"/>
                        provided to them onto the separate Form 8283.
                    </P>
                    <P>For the reasons stated, a regulatory flexibility analysis under the Regulatory Flexibility Act is not required. Pursuant to section 7805(f) of the Code, the proposed rule preceding these final regulations was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business. No comments were received from the Chief Counsel for Advocacy of the Small Business Administration.</P>
                    <HD SOURCE="HD2">IV. Unfunded Mandates Reform Act</HD>
                    <P>Section 202 of the Unfunded Mandate Reform Act of 1995 (UMRA) requires that agencies assess anticipated costs and benefits and take certain other actions before issuing a final rule that includes any Federal mandate that may result in expenditures in any one year by a State, local, or Tribal government, in the aggregate, or by the private sector, of $100 million (updated annually for inflation). These final regulations do not include any Federal mandate that may result in expenditures by State, local, or Tribal governments or by the private sector in excess of that threshold.</P>
                    <HD SOURCE="HD2">V. Executive Order 13132: Federalism</HD>
                    <P>Executive Order 13132 (Federalism) prohibits an agency from publishing any rule that has federalism implications if the rule either imposes substantial, direct compliance costs on State and local governments, and is not required by statute, or preempts State law, unless the agency meets the consultation and funding requirements of section 6 of the Executive order. These final regulations do not have federalism implications and do not impose substantial, direct compliance costs on State and local governments or preempt State law within the meaning of the Executive order.</P>
                    <HD SOURCE="HD2">VI. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments</HD>
                    <P>Executive Order 13175 (Consultation and Coordination With Indian Tribal Governments) prohibits an agency from publishing any rule that has Tribal implications if the rule either imposes substantial, direct compliance costs on Indian Tribal governments, and is not required by statute, or preempts Tribal law, unless the agency meets the consultation and funding requirements of section 5 of the Executive order. These final regulations do not have substantial direct effects on one or more federally recognized Indian tribes and does not impose substantial direct compliance costs on Indian Tribal governments within the meaning of the Executive order.</P>
                    <HD SOURCE="HD2">VII. Congressional Review Act</HD>
                    <P>
                        Pursuant to the Congressional Review Act (5 U.S.C. 801 
                        <E T="03">et seq.</E>
                        ), the Office of Information and Regulatory Affairs designated this rule as not a “major rule,” as defined by 5 U.S.C. 804(2).
                    </P>
                    <HD SOURCE="HD1">Statement of Availability of IRS Documents</HD>
                    <P>
                        IRS notices and other guidance cited in this preamble are published in the Internal Revenue Bulletin (or Cumulative Bulletin) and are available from the Superintendent of Documents, U.S. Government Publishing Office, Washington, DC 20402, or by visiting the IRS website at 
                        <E T="03">https://www.irs.gov.</E>
                    </P>
                    <HD SOURCE="HD1">Drafting Information</HD>
                    <P>The principal authors of these final regulations are Elizabeth Boone and Hannah Kim, Office of the Associate Chief Counsel (Income Tax &amp; Accounting), IRS, and John Hanebuth and Benjamin Weaver, Office of the Associate Chief Counsel (Passthroughs &amp; Special Industries), IRS. However, other personnel from the Treasury Department and the IRS participated in their development.</P>
                    <LSTSUB>
                        <HD SOURCE="HED">List of Subjects in 26 CFR Part 1</HD>
                        <P>Income taxes, Reporting and recordkeeping requirements.</P>
                    </LSTSUB>
                    <HD SOURCE="HD1">Amendments to the Regulations</HD>
                    <REGTEXT TITLE="26" PART="1">
                        <P>Accordingly, 26 CFR part 1 is amended as follows:</P>
                        <PART>
                            <HD SOURCE="HED">PART 1—INCOME TAXES</HD>
                        </PART>
                        <AMDPAR>
                            <E T="04">Paragraph 1.</E>
                             The authority citation for part 1 is amended by adding an entry for § 1.170A-14 in numerical order, revising the entry for § 1.170A-16, adding an entry for § 1.706-3 in numerical order, and revising the entry for § 1.706-4 to read as follows:
                        </AMDPAR>
                        <AUTH>
                            <HD SOURCE="HED">Authority:</HD>
                            <P>26 U.S.C. 7805 * * *</P>
                        </AUTH>
                        <EXTRACT>
                            <STARS/>
                            <P>Section 1.170A-14 also issued under 26 U.S.C. 170(f)(11) and 170(h)(7).</P>
                            <STARS/>
                            <P>Section 1.170A-16 also issued under 26 U.S.C. 170(f)(11), 170(f)(19), 170(h)(7)(G), 6001, and 6011.</P>
                            <STARS/>
                            <P>Section 1.706-3 also issued under 26 U.S.C. 170(h)(7)(G).</P>
                            <STARS/>
                            <P>Section 1.706-4 also issued under 26 U.S.C. 170(h)(7)(G).</P>
                            <STARS/>
                        </EXTRACT>
                    </REGTEXT>
                    <REGTEXT TITLE="26" PART="1">
                        <AMDPAR>
                            <E T="04">Par. 2.</E>
                             Section 1.170A-14 is amended by revising paragraphs (a) and (j) and adding paragraphs (k) through (o) to read as follows:
                        </AMDPAR>
                        <SECTION>
                            <SECTNO>§ 1.170A-14</SECTNO>
                            <SUBJECT> Qualified conservation contributions.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">Qualified conservation contributions.</E>
                                 A deduction under section 170 of the Internal Revenue Code (Code) is generally not allowed for a charitable contribution of any interest in property that consists of less than the donor's entire interest in the property other than certain transfers in trust (
                                <E T="03">see</E>
                                 § 1.170A-6 relating to charitable contributions in trust and § 1.170A-7 relating to contributions not in trust of partial interests in property). However, a deduction may be allowed under section 170(f)(3)(B)(iii) for the value of a qualified conservation contribution if the requirements of this section are met and the contribution is not a disallowed qualified conservation contribution within the meaning of paragraph (j) of this section. A 
                                <E T="03">qualified conservation contribution</E>
                                 is the contribution of a qualified real property interest to a qualified organization exclusively for conservation purposes. To be eligible for a deduction under section 170(h) and this section, the conservation purpose must be protected in perpetuity.
                            </P>
                            <STARS/>
                            <P>
                                (j) 
                                <E T="03">Disallowance of certain deductions for contributions by partnerships and S corporations that exceed 2.5 times the sum of the relevant bases</E>
                                —(1) 
                                <E T="03">In general.</E>
                                 This paragraph (j) applies the rules of section 170(h)(7), which disallow a deduction for certain qualified conservation contributions, as defined in section 170(h)(1) and this section, made by, or allocated to, partnerships or S corporations (as defined in section 1361(a)(1) of the Code) if the amount of the qualified conservation contribution exceeds 2.5 times the sum of the relevant bases as determined by this paragraph (j) and paragraphs (k) through (m) of this section (Disallowance Rule). The Disallowance Rule does not apply to qualified conservation contributions made directly by landowners that are not pass-through entities, such as individuals or C corporations. 
                                <E T="03">See</E>
                                 paragraph (n) of this section for certain exceptions. 
                                <E T="03">See</E>
                                 paragraph (j)(3) of this section for definitions of terms used in this paragraph (j) and paragraphs (k) through (n) of this section.
                            </P>
                            <P>
                                (2) 
                                <E T="03">Application</E>
                                —(i) 
                                <E T="03">Contributing partnerships and contributing S corporations.</E>
                                 Except as provided in paragraph (n) of this section, a qualified conservation contribution by a contributing partnership or a contributing S corporation is a disallowed qualified conservation 
                                <PRTPAGE P="54312"/>
                                contribution if the amount of the qualified conservation contribution exceeds 2.5 times the sum of each of the contributing partnership's or contributing S corporation's ultimate member's relevant basis as determined under this paragraph (j) and paragraphs (k) through (m) of this section.
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Upper-tier partnerships and upper-tier S corporations.</E>
                                 Except as provided in paragraph (n) of this section, an allocated portion received by an upper-tier partnership or upper-tier S corporation is a disallowed qualified conservation contribution if either the contribution is a disallowed qualified conservation contribution with respect to the partnership that allocated the allocated portion to the upper-tier partnership or upper-tier S corporation, or such allocated portion exceeds 2.5 times the sum of each of that upper-tier partnership's or upper-tier S corporation's ultimate member's relevant basis as determined under this paragraph (j) and paragraphs (k) through (m) of this section.
                            </P>
                            <P>
                                (iii) 
                                <E T="03">Partner or S corporation shareholder claiming an inconsistent amount.</E>
                                 If a partner or S corporation shareholder claims an amount of qualified conservation contribution that is inconsistent with and greater than the partner's distributive share or S corporation shareholder's pro rata share of qualified conservation contribution reported to the partner or S corporation shareholder by the partnership or S corporation, predicated on a position that the partnership's or S corporation's qualified conservation contribution was a greater amount than the amount claimed by the partnership or S corporation, and the qualified conservation contribution would have been a disallowed qualified conservation contribution if the partnership or S corporation had actually claimed that greater amount, then the partner's or S corporation shareholder's claimed qualified conservation contribution is a disallowed qualified conservation contribution.
                            </P>
                            <P>
                                (3) 
                                <E T="03">Definitions.</E>
                                 The following definitions apply for purposes of this paragraph (j) and paragraphs (k) through (n) of this section:
                            </P>
                            <P>
                                (i) 
                                <E T="03">Allocated portion.</E>
                                 In the case of an upper-tier partnership or upper-tier S corporation that receives, directly or indirectly, a distributive share of a qualified conservation contribution, the phrase 
                                <E T="03">allocated portion</E>
                                 means the amount of such distributive share.
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Amount of qualified conservation contribution.</E>
                                 The amount of a contributing partnership's or contributing S corporation's qualified conservation contribution is the amount claimed as a qualified conservation contribution on the return of the contributing partnership or contributing S corporation for the taxable year in which the contribution is made. If the contributing partnership or contributing S corporation files an amended return or administrative adjustment request under section 6227 of the Code claiming a higher amount with respect to the qualified conservation contribution, the rules of this section must be re-applied with respect to such higher amount to determine the application of section 170(h)(7) and this section; for example, if a contributing S corporation's original return claims a qualified conservation contribution that does not exceed 2.5 times the sum of the relevant bases, and the S corporation subsequently files an amended return claiming a higher amount with respect to the qualified conservation contribution that does exceed 2.5 times the sum of the relevant bases, then the entire amount of the qualified conservation contribution is a disallowed qualified conservation contribution (unless one of the exceptions in paragraph (n) of this section applies). If the contributing partnership or contributing S corporation files an amended return or timely administrative adjustment request under section 6227 claiming a lower amount with respect to the qualified conservation contribution, the rules of this section will be re-applied with respect to such lower amount to determine the application of section 170(h)(7) and this section if and only if the amended return or timely administrative adjustment request is filed before the contributing partnership or contributing S corporation is put on notice of an IRS examination with respect to the qualified conservation contribution. A contributing partnership or contributing S corporation is considered to be on notice after the earlier of—
                            </P>
                            <P>(A) The date the contributing partnership or contributing S corporation is first contacted by the Internal Revenue Service in connection with any examination of a return that relates to the qualified conservation contribution; or</P>
                            <P>(B) The date any person is first contacted by the Internal Revenue Service concerning an examination of that person under section 6700 (relating to the penalty for promoting abusive tax shelters) for an activity that relates to the qualified conservation contribution.</P>
                            <P>
                                (iii) 
                                <E T="03">Contributing partnership.</E>
                                 The term 
                                <E T="03">contributing partnership</E>
                                 means a partnership that makes a qualified conservation contribution.
                            </P>
                            <P>
                                (iv) 
                                <E T="03">Contributing S corporation.</E>
                                 The term 
                                <E T="03">contributing S corporation</E>
                                 means an S corporation that makes a qualified conservation contribution.
                            </P>
                            <P>
                                (v) 
                                <E T="03">Direct interest.</E>
                                 The term 
                                <E T="03">direct interest</E>
                                 refers to an ownership interest in a contributing partnership, upper-tier partnership, contributing S corporation, or upper-tier S corporation that is held directly, or through an entity disregarded as separate from its owner for Federal income tax purposes, a qualified subchapter S subsidiary as defined in section 1361(b)(3), or through a grantor trust (under subpart E of part 1 of subchapter J of chapter 1 of the Code). In the case of a partner that is a C corporation (as defined in section 1361(a)(2)), non-grantor trust, or an estate, or an S corporation shareholder that is a non-grantor trust or an estate, the 
                                <E T="03">direct interest</E>
                                 in the partnership or S corporation, as applicable, is held by the C corporation, non-grantor trust, or estate; the C corporation's shareholders, trust beneficiaries, and estate beneficiaries are not considered to hold any interest in the partnership or S corporation, as applicable, for purposes of this paragraph (j) and paragraphs (k) through (n) of this section.
                            </P>
                            <P>
                                (vi) 
                                <E T="03">Directly.</E>
                                 An ownership interest is held 
                                <E T="03">directly</E>
                                 if it is not held through one or more upper-tier partnerships or upper-tier S corporations. A distributive share or pro rata share of a qualified conservation contribution is received 
                                <E T="03">directly</E>
                                 if it does not pass through one or more upper-tier partnerships or upper-tier S corporations.
                            </P>
                            <P>
                                (vii) 
                                <E T="03">Disallowed qualified conservation contribution.</E>
                                 The term 
                                <E T="03">disallowed qualified conservation contribution</E>
                                 means a qualified conservation contribution or allocated portion for which no deduction is allowed pursuant to section 170(h)(7) and this paragraph (j).
                            </P>
                            <P>
                                (viii) 
                                <E T="03">Indirect interest.</E>
                                 The term 
                                <E T="03">indirect interest</E>
                                 refers to an ownership interest in a contributing partnership, contributing S corporation, upper-tier partnership, or upper-tier S corporation held through an upper-tier S corporation or one or more upper-tier partnerships.
                            </P>
                            <P>
                                (ix) 
                                <E T="03">Indirectly.</E>
                                 An ownership interest is held 
                                <E T="03">indirectly</E>
                                 if it is held through one or more upper-tier partnerships or upper-tier S corporations. A distributive share or pro rata share of a qualified conservation contribution is received 
                                <E T="03">indirectly</E>
                                 if it passes through one or more upper-tier partnerships or upper-tier S corporations.
                            </P>
                            <P>
                                (x) 
                                <E T="03">Ultimate member.</E>
                                 The term 
                                <E T="03">ultimate member</E>
                                 means, with respect to any partnership or S corporation, any partner (that is not itself a partnership 
                                <PRTPAGE P="54313"/>
                                or S corporation) or S corporation shareholder that receives a distributive share or pro rata share, directly or indirectly, of a qualified conservation contribution. Thus, ultimate members will either be partners holding a direct interest in a partnership, which may be the contributing partnership or an upper-tier partnership, or shareholders holding a direct interest in an S corporation, which may be the contributing S corporation or an upper-tier S corporation. Upper-tier S corporations and upper-tier partnerships themselves are not considered ultimate members.
                            </P>
                            <P>
                                (xi) 
                                <E T="03">Upper-tier partnership.</E>
                                 The term 
                                <E T="03">upper-tier partnership</E>
                                 means a partnership that receives an allocated portion.
                            </P>
                            <P>
                                (xii) 
                                <E T="03">Upper-tier S corporation.</E>
                                 The term 
                                <E T="03">upper-tier S corporation</E>
                                 means an S corporation that receives an allocated portion.
                            </P>
                            <P>
                                (4) 
                                <E T="03">Effect of Disallowance Rule</E>
                                —(i) 
                                <E T="03">If the Disallowance Rule applies to a contributing partnership or contributing S corporation.</E>
                                 If a contributing partnership's or contributing S corporation's qualified conservation contribution is a disallowed qualified conservation contribution under this paragraph (j), then:
                            </P>
                            <P>(A) Any upper-tier partnership's or upper-tier S corporation's allocated portion of such contribution is a disallowed qualified conservation contribution, regardless of whether such allocated portion exceeds 2.5 times the sum of each of the upper-tier partnership's or upper-tier S corporation's ultimate member's relevant basis; and</P>
                            <P>(B) No person (whether holding a direct or indirect interest in such contributing partnership or contributing S corporation) may claim a deduction under any provision of the Code with respect to any amount of such disallowed qualified conservation contribution, regardless of whether that person's distributive share or pro rata share of the disallowed qualified conservation contribution exceeds 2.5 times its relevant basis.</P>
                            <P>
                                (ii) 
                                <E T="03">If the Disallowance Rule does not apply to a contributing partnership or contributing S corporation.</E>
                                 If a contributing partnership's or contributing S corporation's qualified conservation contribution is not a disallowed qualified conservation contribution under this paragraph (j), then:
                            </P>
                            <P>(A) The distributive share or pro rata share of any ultimate member holding a direct interest in the contributing partnership or contributing S corporation is not a disallowed qualified conservation contribution; and</P>
                            <P>(B) Any upper-tier partnership or upper-tier S corporation that receives an allocated portion of such qualified conservation contribution must separately apply the rules of section 170(h)(7) and this paragraph (j) and paragraphs (k) through (m) of this section to determine whether that upper-tier partnership's or upper-tier S corporation's allocated portion is a disallowed qualified conservation contribution.</P>
                            <P>
                                (iii) 
                                <E T="03">If the Disallowance Rule applies to an upper-tier partnership or an upper-tier S corporation.</E>
                                 If an upper-tier partnership's or upper-tier S corporation's allocated portion is a disallowed qualified conservation contribution under this paragraph (j), then:
                            </P>
                            <P>(A) Any subsequent upper-tier partnership's or upper-tier S corporation's allocated portion of such allocated portion is a disallowed qualified conservation contribution, regardless of whether the subsequent upper-tier partnership's or upper-tier S corporation's allocated portion exceeds 2.5 times the sum of each of the subsequent upper-tier partnership's or upper-tier S corporation's ultimate member's relevant basis; and</P>
                            <P>(B) No person holding a direct or indirect interest in that upper-tier partnership or upper-tier S corporation may claim a deduction under any provision of the Code with respect to any amount of that upper-tier partnership's or upper-tier S corporation's allocated portion, regardless of whether that person's distributive share or pro rata share of the allocated portion exceeds 2.5 times its relevant basis. However, this does not affect the application of this paragraph (j) and paragraphs (k) through (m) of this section to another partner of the contributing partnership; for example, if the qualified conservation contribution is not a disallowed qualified conservation contribution with respect to the contributing partnership, then the distributive share of such contribution of an ultimate member holding a direct interest in the contributing partnership is not a disallowed qualified conservation contribution, notwithstanding that the qualified conservation contribution is a disallowed qualified conservation contribution with respect to one or more upper-tier partnerships or upper-tier S corporations.</P>
                            <P>
                                (iv) 
                                <E T="03">If the Disallowance Rule does not apply to an upper-tier partnership or upper-tier S corporation.</E>
                                 If an upper-tier partnership's or upper-tier S corporation's allocated portion is not a disallowed qualified conservation contribution under this paragraph (j), then:
                            </P>
                            <P>(A) The distributive share or pro rata share of such allocated portion of any ultimate member holding a direct interest in the upper-tier partnership or upper-tier S corporation is not a disallowed qualified conservation contribution; and</P>
                            <P>(B) Any subsequent upper-tier partnership or upper-tier S corporation that receives an allocated portion of such allocated portion must separately apply the rules of section 170(h)(7) and this paragraph (j) and paragraphs (k) through (m) of this section to determine whether that subsequent upper-tier partnership's or upper-tier S corporation's allocated portion is treated as a disallowed qualified conservation contribution.</P>
                            <P>
                                (5) 
                                <E T="03">No inference.</E>
                                 There is no presumption that a qualified conservation contribution that is not a disallowed qualified conservation contribution as defined in paragraph (j)(3)(vii) of this section is compliant with section 170, any other section of the Code, the regulations, or any other guidance. Compliance with section 170(h)(7) and this paragraph (j) and paragraphs (k) through (n) of this section is not a safe harbor for purposes of any other provision of law or with respect to the value of the contribution. Such transactions are subject to adjustment or disallowance for any other reason, including failure to satisfy the other requirements of section 170 or overvaluation of the contribution. In addition, taxpayers who engage in such transactions may be required to disclose under § 1.6011-4 the transactions as listed transactions.
                            </P>
                            <P>
                                (6) 
                                <E T="03">Examples.</E>
                                 The following examples illustrate the rules of this paragraph (j). For these three examples in this paragraph (j)(6), assume that the partnership allocations comply with the rules of subchapter K of chapter 1 of the Code, and that the exceptions in paragraph (n) of this section do not apply.
                            </P>
                            <P>
                                (i) 
                                <E T="03">Example 1: Disallowed qualified conservation contribution</E>
                                —(A) 
                                <E T="03">Facts.</E>
                                 A, an individual, and B, a C corporation, form AB Partnership, a partnership for Federal income tax purposes. AB Partnership acquires real property. Two years later, AB Partnership makes a qualified conservation contribution with respect to the property and claims a contribution of $100X on its return. AB Partnership allocates the contribution equally to A and B. A's relevant basis is $30X, and B's relevant basis is $8X.
                                <PRTPAGE P="54314"/>
                            </P>
                            <P>
                                (B) 
                                <E T="03">Analysis.</E>
                                 A and B are the ultimate members of AB Partnership because they each receive a distributive share of the qualified conservation contribution and are not partnerships or S corporations. The claimed amount of AB Partnership's qualified conservation contribution is $100X, which exceeds 2.5 times the sum of A's and B's relevant bases, which is $95X ($95X = 2.5 × (A's $30X relevant basis + B's $8X relevant basis)). Therefore, AB Partnership's contribution is a disallowed qualified conservation contribution. No person may claim any deduction with respect to this contribution, even though A's $50X distributive share of the contribution does not exceed 2.5 times A's $30X relevant basis.
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Example 2: Not a disallowed qualified conservation contribution</E>
                                —(A) 
                                <E T="03">Facts.</E>
                                 Individuals C and D form CD Partnership, a partnership for Federal income tax purposes. CD Partnership acquires real property. Two years later, CD Partnership makes a qualified conservation contribution with respect to the property and claims a contribution of $100X on its return. CD Partnership allocates the contribution $5X to C and $95X to D. C's relevant basis is $6X, and D's relevant basis is $34X.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Analysis.</E>
                                 C and D are the ultimate members of CD Partnership because they each receive a distributive share of the qualified conservation contribution and are not partnerships or S corporations. The claimed amount of CD Partnership's qualified conservation contribution is $100X, which does not exceed 2.5 times the sum of C's and D's relevant bases, which is also $100X ($100X = 2.5 × (C's $6X relevant basis + D's $34X relevant basis)). Therefore, CD Partnership's contribution is not a disallowed qualified conservation contribution (that is, not disallowed by section 170(h)(7) and this paragraph (j)) with respect to CD Partnership, C, or D, even though D's $95X distributive share of the contribution exceeds 2.5 times D's $34X relevant basis.
                            </P>
                            <P>
                                (iii) 
                                <E T="03">Example 3: Tiered partnerships</E>
                                —(A) 
                                <E T="03">Facts.</E>
                                 Individuals E and F form UTP Partnership, a partnership for Federal income tax purposes. UTP Partnership and G, a C corporation, form LTP Partnership, a partnership for Federal income tax purposes. LTP Partnership acquires real property. Two years later, LTP Partnership makes a qualified conservation contribution with respect to the property and claims a contribution of $100X on its return. LTP Partnership allocates the contribution $5X to G and $95X to UTP Partnership. UTP Partnership allocates its $95X portion of the contribution $45X to E and $50X to F. G's relevant basis is $10X, E's relevant basis is $11X, and F's relevant basis is $21X.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Analysis for LTP Partnership.</E>
                                 The ultimate members of LTP Partnership are G, E, and F because they each receive a distributive share of the qualified conservation contribution and are not a partnership or S corporation. Because UTP Partnership is a partnership, it is not an ultimate member of LTP Partnership, even though it receives a distributive share of the qualified conservation contribution. The amount of LTP Partnership's qualified conservation contribution is $100X, which does not exceed 2.5 times the sum of each of the ultimate member's relevant basis, which is $105X ($105X = 2.5 × (G's $10X relevant basis + E's $11X relevant basis + F's $21X relevant basis)). Therefore, LTP Partnership's contribution is not a disallowed qualified conservation contribution (that is, is not disallowed by section 170(h)(7) and this paragraph (j)) with respect to LTP Partnership and G.
                            </P>
                            <P>
                                (C) 
                                <E T="03">Analysis for UTP Partnership.</E>
                                 Because UTP Partnership receives an allocated portion, UTP Partnership must apply this paragraph (j) and paragraphs (k) through (m) of this section to determine whether its allocated portion is a disallowed qualified conservation contribution. The ultimate members of UTP Partnership are E and F because they each receive a distributive share of UTP Partnership's allocated portion and are not partnerships or S corporations. The amount of UTP Partnership's allocated portion of LTP Partnership's qualified conservation contribution is $95X, which exceeds 2.5 times the sum of E's and F's relevant bases, which is $80X ($80X = 2.5 × (E's $11X relevant basis + F's $21X relevant basis)). Therefore, UTP Partnership's allocated portion of LTP Partnership's contribution is a disallowed qualified conservation contribution with respect to UTP Partnership, E, and F. No partner of UTP Partnership may claim any deduction with respect to this contribution, even though F's $50X distributive share of the contribution does not exceed 2.5 times F's $21X relevant basis. This does not affect the determination that G's distributive share of the contribution is not a disallowed qualified conservation contribution.
                            </P>
                            <P>
                                (k) 
                                <E T="03">Determination of relevant basis.</E>
                                 For purposes of this section, the term 
                                <E T="03">relevant basis</E>
                                 means, with respect to any ultimate member, the portion of such ultimate member's modified basis (as determined under paragraph (l) of this section) that is allocable (under the rules of paragraph (m) of this section) to the portion of the real property with respect to which the qualified conservation contribution is made.
                            </P>
                            <P>
                                (l) 
                                <E T="03">Determination of modified basis</E>
                                —(1) 
                                <E T="03">In general.</E>
                                 In the case of an ultimate member holding a direct interest in a partnership, the ultimate member's modified basis is determined by such partnership immediately before the qualified conservation contribution is made in the manner described in paragraph (l)(2) of this section. In the case of an ultimate member holding a direct interest in an S corporation, the ultimate member's modified basis is determined by such S corporation in the manner described in paragraph (l)(3) of this section.
                            </P>
                            <P>
                                (2) 
                                <E T="03">Partners in partnerships</E>
                                —(i) 
                                <E T="03">Computation.</E>
                                 For purposes of this section, the term 
                                <E T="03">modified basis</E>
                                 means, with respect to any ultimate member that is a direct partner in either a contributing partnership or an upper-tier partnership, such ultimate member's adjusted basis in its interest in the partnership in which the ultimate member holds a direct interest as of the beginning of the first day of the partnership's taxable year in which the qualified conservation contribution is made, with adjustments as determined under paragraphs (l)(2)(ii) through (vi) of this section. However, if the ultimate member was not a partner as of the beginning of the first day of the partnership's taxable year in which the qualified conservation contribution is made, then the term 
                                <E T="03">modified basis</E>
                                 means such ultimate member's adjusted basis in its interest in the partnership immediately after the transaction that resulted in the ultimate member becoming a partner, with adjustments as determined under paragraphs (l)(2)(ii) through (vi) of this section. The adjustments under paragraphs (l)(2)(ii) through (vi) must be made in the order in which they are listed.
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Step 1.</E>
                                 First, the computation of modified basis must start with the ultimate member's adjusted basis under paragraph (l)(2)(i) of this section and then reflect an increase for any contributions made by the ultimate member to the partnership during the portion of the year commencing with the beginning of the taxable year of the partnership and ending immediately prior to the time of day at which the qualified conservation contribution is made as provided in section 722 of the Code.
                            </P>
                            <P>
                                (iii) 
                                <E T="03">Step 2.</E>
                                 Second, if between the beginning of the partnership's taxable year and the time of day at which the qualified conservation contribution is made, the ultimate member acquired 
                                <PRTPAGE P="54315"/>
                                additional interests in the partnership, the amount determined under paragraph (l)(2)(ii) of this section must be increased by the ultimate member's initial basis in those additional interests. If, between the beginning of the partnership's taxable year and the time of day at which the qualified conservation contribution is made, the ultimate member partially disposed of its interest in the partnership, the amount determined under paragraph (l)(2)(ii) of this section must be decreased by the ultimate member's basis in the interests disposed of.
                            </P>
                            <P>
                                (iv) 
                                <E T="03">Step 3.</E>
                                 Third, the amount determined under paragraph (l)(2)(iii) of this section must be adjusted, as provided in section 705 of the Code, by the ultimate member's hypothetical distributive share of partnership items attributable to the portion of the year commencing with the beginning of the taxable year of the partnership and ending immediately prior to the time of day at which the qualified conservation contribution is made. In making this determination, the partnership must apply the rules of § 1.706-4 and apply a hypothetical interim closing method to allocate the partnership's items attributable to the portion of the year commencing with the beginning of the taxable year of the partnership and ending immediately prior to the time of day at which the qualified conservation contribution is made. The partnership cannot apply any convention in § 1.706-4(c) to the hypothetical determination of the partners' distributive shares, but rather must perform the calculation as though the determination occurred immediately prior to the time of day at which the qualified conservation contribution is made. This hypothetical determination of the partners' distributive shares is only for purposes of calculating modified basis. This paragraph (l) does not require the partnership to use the interim closing method with respect to the determination of its partners' actual distributive shares of partnership items of income, gain, loss, deduction, and credit for the taxable year in which the qualified conservation contribution is made or otherwise. 
                                <E T="03">See</E>
                                 § 1.706-4 for applicable rules for the determination of a partner's distributive share when a partner's interest varies during a partnership taxable year.
                            </P>
                            <P>
                                (v) 
                                <E T="03">Step 4.</E>
                                 Fourth, the amount determined under paragraph (l)(2)(iv) of this section must be reduced (but not below zero) by any distributions made by the partnership to the ultimate member during the portion of the year commencing with the beginning of the taxable year of the partnership and ending immediately prior to the time of day at which the qualified conservation contribution is made as provided in section 733 of the Code.
                            </P>
                            <P>
                                (vi) 
                                <E T="03">Step 5.</E>
                                 Fifth, the amount determined under paragraph (l)(2)(v) of this section must be reduced by the full amount of the ultimate member's share of § 1.752-1 liabilities of any partnership (including a lower-tier partnership). The remaining amount is such ultimate member's modified basis. Thus, an ultimate member's modified basis may be less than zero.
                            </P>
                            <P>
                                (3) 
                                <E T="03">S corporation shareholder</E>
                                —(i) 
                                <E T="03">Computation.</E>
                                 For purposes of this section, the term 
                                <E T="03">modified basis</E>
                                 means, with respect to any ultimate member that is a shareholder of either a contributing S corporation or an upper-tier S corporation, such ultimate member's adjusted basis in its shares in the S corporation as of the end of the S corporation's taxable year in which the qualified conservation contribution is made, with adjustments as determined under paragraphs (l)(3)(ii) and (iii) of this section. However, if the ultimate member was not a shareholder at the end of the S corporation's taxable year in which the qualified conservation contribution is made, then the term 
                                <E T="03">modified basis</E>
                                 means such ultimate member's adjusted basis in its shares in the S corporation immediately prior to the transaction that terminated its interest in the S corporation, with adjustments as determined under paragraphs (l)(3)(ii) and (iii) of this section. Modified basis does not include the ultimate member's adjusted basis in any indebtedness of the S corporation to the ultimate member. The adjustments under paragraphs (l)(3)(ii) and (iii) of this section must be made in the order in which they are listed.
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Step 1.</E>
                                 First, the computation of modified basis must start with the ultimate member's adjusted basis under paragraph (l)(3)(i) of this section, and then reflect an increase for the extent to which the ultimate member's adjusted basis reflects a reduction as a result of the qualified conservation contribution. Thus, the ultimate member's modified basis with respect to a qualified conservation contribution does not reflect any reduction for the ultimate member's pro rata share of the S corporation's basis in the conservation easement or other property contributed in the qualified conservation contribution.
                            </P>
                            <P>
                                (iii) 
                                <E T="03">Step 2.</E>
                                 Second, the amount determined under paragraph (l)(3)(ii) of this section must be multiplied by the number of days during the S corporation's taxable year in which the ultimate member was a shareholder and divided by the total number of days during the S corporation's taxable year. The resulting amount is such ultimate member's modified basis.
                            </P>
                            <P>
                                (4) 
                                <E T="03">Examples.</E>
                                 The following examples illustrate the provisions of this paragraph (l). For the four examples in this paragraph (l)(4), assume that the partnership allocations comply with the rules of subchapter K of chapter 1 of the Code and the exceptions in paragraph (n) of this section do not apply.
                            </P>
                            <P>
                                (i) 
                                <E T="03">Example 1</E>
                                —(A) 
                                <E T="03">Facts.</E>
                                 AB Partnership is a calendar-year partnership for Federal income tax purposes whose partners are A and B, each of whom is an individual and has a 50 percent interest in income, gain, loss, and deduction. Several years ago, B contributed property to AB Partnership subject to a § 1.752-1 liability. At the beginning of AB Partnership's 2024 taxable year (the beginning of the day on January 1, 2024), A's adjusted basis in its interest in AB Partnership is $19X, and B's adjusted basis in its interest in AB Partnership is $17X. At 10:01 a.m. on August 29, 2024, AB Partnership makes a qualified conservation contribution. On August 29, 2024, the amount of the § 1.752-1 liability is $10X and is allocated under the rules of section 752 to A. During 2024, there were no variations in any partner's interests in AB Partnership within the meaning of section 706. During 2024, AB Partnership earned $8X of ordinary income and sustained ($4X) of capital loss in the ordinary course of its business, both of which are allocated equally to A and B. Within 2024, AB Partnership earned $6X of ordinary income, and sustained ($4X) of capital loss between the beginning of the day on January 1, 2024, and 10:00 a.m. on August 29, 2024, and AB Partnership earned $2X of ordinary income, and sustained $0X of capital loss between 10:01 a.m. on August 29, 2024, and the end of the day on December 31, 2024. Other than the qualified conservation contribution, none of AB Partnership's items are extraordinary items within the meaning of § 1.706-4(e)(2). In April 2024, AB Partnership distributed $1X cash to A. In November 2024, B contributed $2X cash to AB Partnership.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Analysis.</E>
                                 The ultimate members of AB Partnership are A and B because they each receive a distributive share of the qualified conservation contribution and are not partnerships or S corporations. To determine A's and B's modified bases, AB Partnership must start with A's and B's adjusted bases in AB Partnership as of the beginning of the first day of the taxable year of AB Partnership and then make the 
                                <PRTPAGE P="54316"/>
                                adjustments required under paragraphs (l)(2)(ii) through (vi) of this section. Accordingly, the computation of A's beginning modified basis begins with $19X, and the computation of B's modified basis begins with $17X. First, those amounts must be increased by any contributions between the beginning of the day on January 1, 2024, and 10 a.m. on August 29, 2024. Because there were none, after this step, the computation of A's modified basis remains at $19X and the computation of B's modified basis remains at $17X. Next, these amounts must be adjusted for any additional acquisitions of partnership interests by an existing partner or partial dispositions of partnership interests by a continuing partner between the beginning of the partnership's taxable year and the time of day at which the qualified conservation contribution is made. Because there were none, after this step, the computation of A's modified basis remains at $19X and the computation of B's modified basis remains at $17X. Then these amounts must be adjusted as provided in section 705 by A's and B's hypothetical distributive shares of AB Partnership's items attributable to the portion of the year between the beginning of the day on January 1, 2024, and 10:00 a.m. on August 29, 2024. Thus, the computations of A's and B's modified bases will each reflect an increase for their hypothetical $3X distributive share of the $6X ordinary income that AB Partnership earned between the beginning of the day on January 1, 2024, and 10:00 a.m. on August 29, 2024, and a decrease for their hypothetical ($2X) distributive share of the ($4X) capital loss that AB Partnership incurred between the beginning of the day on January 1, 2024, and 10:00 a.m. on August 29, 2024. Therefore, after this step, the computation of A's modified basis reflects an increase from $19X to $20X, and the computation of B's modified basis reflects an increase from $17X to $18X. Next, these amounts must be reduced by any distributions between the beginning of the day on January 1, 2024, and 10:00 a.m. on August 29, 2024. Thus, the computation of A's modified basis reflects a reduction from $20X to $19X. B did not receive any distribution, so the computation of B's modified basis remains at $18X. Finally, the full amount of A's and B's shares of § 1.752-1 liabilities must be subtracted. Thus, the computation of A's modified basis reflects a reduction from $19X to $9X, which is A's modified basis. B's modified basis is $18X.
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Example 2</E>
                                —(A) 
                                <E T="03">Facts.</E>
                                 CD Partnership, a partnership for Federal income tax purposes, is a calendar-year partnership using the calendar day convention under § 1.706-4 whose partners on January 1, 2024, are C and D, each of whom is an individual and has a 50 percent interest in income, gain, loss, and deduction. On March 15, 2024, C sells its interest to E, a C corporation. At 1:15 p.m. on September 15, 2024, CD Partnership makes a qualified conservation contribution. On September 21, 2024, D sells its interest to F, an individual. During 2024, CD Partnership earned $8X of ordinary income and sustained ($14X) of ordinary loss. Within 2024, CD Partnership earned all $8X of ordinary income in November and December, and sustained all ($14X) of ordinary loss in April through August. In May 2024, D contributed $6X cash to CD Partnership, and E contributed property with a fair market value of $6X and basis of $3X. D and E are equal partners during the period in which they are both partners. CD Partnership made no distributions during 2024. CD Partnership had no § 1.752-1 liabilities during 2024. In accordance with § 1.706-4(e)(2)(xiii), CD Partnership treats its qualified conservation contribution as an extraordinary item allocable only to D and E, its partners at 1:15 p.m. on September 15, 2024. Other than the qualified conservation contribution, none of AB Partnership's items are extraordinary items within the meaning of § 1.706-4(e)(2). CD Partnership uses the proration method under § 1.706-4 to allocate its items among C, D, E, and F. Under the proration method, CD Partnership allocates each C, D, E, and F a distributive share of a portion of both the $8X ordinary income and the ($14X) ordinary loss. D's adjusted basis in its interest in CD Partnership at the beginning of CD Partnership's 2024 taxable year (the beginning of the day on January 1, 2024) is $8X. E's adjusted basis in its interest in CD Partnership immediately after E acquires C's interest in CD Partnership is $6X.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Analysis.</E>
                                 The ultimate members of CD Partnership are D and E because they each receive a distributive share of the qualified conservation contribution and are not partnerships or S corporations. To determine D's and E's modified bases, CD Partnership must start with D's and E's adjusted bases in CD Partnership as of the beginning of the day on January 1, 2024, and then make the adjustments required under paragraphs (l)(2)(ii) through (vi) of this section. However, because E was not a partner as of the beginning of the day on January 1, 2024, CD Partnership must start with E's adjusted basis immediately after E's purchase of C's interest in CD Partnership. Accordingly, the computation of D's modified basis begins with $8X, and the computation of E's modified basis begins with $6X. Then, these amounts must be increased by any contributions made by D or E, respectively, to CD Partnership between the beginning of the day on January 1, 2024, and 1:14 p.m. on September 15, 2024. Therefore, the computation of D's modified basis reflects an increase from $8X to $14X (for D's $6X contribution of cash to CD Partnership in May 2024), and the computation of E's modified basis reflects an increase from $6X to $9X (for E's contribution of property to CD Partnership with a basis of $3X in May 2024). Next, these amounts must be adjusted for any additional acquisitions of partnership interests by an existing partner or partial dispositions of partnership interests by a continuing partner between the beginning of the partnership's taxable year and the time of day at which the qualified conservation contribution is made. Because there were none, after this step, the computation of D's modified basis remains at $14X and the computation of E's modified basis remains at $9X. Next, these amounts must be adjusted as provided in section 705 by D's and E's hypothetical distributive shares of CD Partnership's items attributable to the portion of the year between the beginning of the day on January 1, 2024, and 1:14 p.m. on September 15, 2024. CD Partnership must perform the analysis using an interim closing method to a hypothetical variation at 1:14 p.m. on September 15, 2024, immediately prior to the qualified conservation contribution. The computation of D's modified basis will reflect an adjustment for its hypothetical distributive share of all CD Partnership's items incurred from the beginning of the day on January 1, 2024, through 1:14 p.m. on September 15, 2024. The computation of E's modified basis will reflect an adjustment for its hypothetical distributive share of all CD Partnership's items incurred from the end of the day on March 15, 2024, through 1:14 p.m. on September 15, 2024. For purposes of this paragraph (l)(4)(ii)(B) (
                                <E T="03">Example 2</E>
                                ), it does not matter that CD Partnership actually used the proration method to allocate its 2024 income. Instead, under this hypothetical calculation of the distributive shares, the computation of D's and E's modified bases will each reflect a reduction for their 50 percent share of the ($14X) ordinary loss. Because none of CD Partnership's $8X of ordinary income was earned between 
                                <PRTPAGE P="54317"/>
                                the beginning of the day on January 1, 2024, and 1:14 p.m. on September 15, 2024, neither D's nor E's modified basis will reflect an increase for any amount of that income. Thus, after this step, the computation of D's modified basis reflects a reduction from $14X to $7X, and the computation of E's modified basis reflects a reduction from $9X to $2X. Then, these amounts must be reduced by any distributions between the beginning of the day on January 1, 2024, and 1:14 p.m. on September 15, 2024. Because there were none, after this step, the computation of D's modified basis remains at $7X, and the computation of E's modified basis remains at $2X. Finally, the full amount of D's and E's shares of § 1.752-1 liabilities must be subtracted. Because there were none, D's modified basis is $7X, and E's modified basis is $2X.
                            </P>
                            <P>
                                (iii) 
                                <E T="03">Example 3</E>
                                —(A) 
                                <E T="03">Facts.</E>
                                 HI Inc. is a calendar-year S corporation whose shareholders on January 1, 2024, are H and I, each of whom owns 50 percent of the shares. On May 1, 2024, H sells all of its stock to J. In June 2024, HI Inc. contributes a conservation easement that is a qualified conservation contribution on 400 acres of real property. HI Inc.'s adjusted basis in the conservation easement is $12X (which is different from HI Inc.'s adjusted basis in the 400 acres and also may be different from the value of the conservation easement). On July 1, 2024, I sells all of its stock to K. Under § 1.1377-1, HI Inc. allocates its qualified conservation contribution 
                                <FR>1/6</FR>
                                 to H, 
                                <FR>1/4</FR>
                                 to I, 
                                <FR>1/3</FR>
                                 to J, and 
                                <FR>1/4</FR>
                                 to K. Pursuant to the second sentence of section 1367(a)(2)(B), as a result of the qualified conservation contribution, H's adjusted basis in its shares is reduced by $2X, I's adjusted basis in its shares is reduced by $3X, J's adjusted basis in its shares is reduced by $4X, and K's adjusted basis in its shares is reduced by $3X. At the end of HI Inc.'s 2024 taxable year (the end of the day on December 31, 2024), J's adjusted basis in its shares is $15X and K's adjusted basis in its shares is $11X. Immediately prior to H's sale to J, H's adjusted basis in its shares was $8X. Immediately prior to I's sale to K, I's adjusted basis in its shares was $7X. Whether H, I, J, or K have adjusted basis in indebtedness of HI Inc., has no effect on the computation of their modified bases. H is an estate of a deceased shareholder, and I, J, and K are individuals that are not nonresident aliens.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Analysis.</E>
                                 The ultimate members of HI Inc. are H, I, J, and K, because they each receive a pro rata share of the qualified conservation contribution and are not partnerships or S corporations. To determine H's, I's, J's, and K's modified bases, HI Inc. must begin with each shareholder's adjusted basis in its shares as of the end of the day on December 31, 2024 (the end of the S corporation's taxable year in which it made the qualified conservation contribution). However, because H and I were not shareholders as of the end of the day on December 31, 2024, HI Inc. must begin with H's adjusted basis immediately before H's sale to J, and I's adjusted basis immediately before I's sale to K. Accordingly, the computation of H's modified basis begins with $8X, the computation of I's modified basis begins with $7X, the computation of J's modified basis begins with $15X, and the computation of K's modified basis begins with $11X. Next, HI Inc. must increase these amounts by the extent the adjusted bases were reduced as a result of the qualified conservation contribution. Accordingly, the computation of H's modified basis reflects an increase from $8X to $10X, the computation of I's modified basis reflects an increase from $7X to $10X, the computation of J's modified basis reflects an increase from $15X to $19X, and the computation of K's modified basis reflects an increase from $11X to $14X. Finally, HI Inc. must multiply each of these amounts by the number of days during 2024 in which each ultimate member was a shareholder, and divide by 366 (the total number of days in HI Inc.'s 2024 taxable year). H was a shareholder for 122 days. Thus, H's modified basis is $3.33X ($10X × 122/366). I was a shareholder for 183 days. Thus, I's modified basis is $5X ($10X × 183/366). J was a shareholder for 244 days. Thus, J's modified basis is $12.67X ($19X × 244/366). K was a shareholder for 183 days. Thus, K's modified basis is $7X ($14X × 183/366).
                            </P>
                            <P>
                                (iv) 
                                <E T="03">Example 4</E>
                                —(A) 
                                <E T="03">Facts.</E>
                                 PQ Partnership is a calendar-year partnership for Federal income tax purposes whose partners are individuals P and Q. At the beginning of PQ Partnership's 2024 taxable year (the beginning of the day on January 1, 2024), P has a sixty percent interest in all of PQ Partnership's items, including items of income, gain, loss, deduction, credit, and charitable contributions, and P's adjusted basis in its interest in PQ Partnership is $60X. At the beginning of PQ Partnership's 2024 taxable year, Q has a forty percent interest in all of PQ Partnership's items, including items of income, gain, loss, deduction, credit, and charitable contributions, and Q's adjusted basis in its interest in PQ Partnership is $30X. On March 15, 2024, P sells two-thirds of P's interest in PQ Partnership to individual Z, who was not previously a partner in PQ Partnership, for $55X. At the time of the sale, P's adjusted basis in the partnership interests P sold to Z was $40X. At noon on August 29, 2024, PQ Partnership makes a qualified conservation contribution. PQ Partnership allocates twenty percent of the qualified conservation contribution to P, forty percent to Q, and forty percent to Z. Between January 1 and August 29, 2024, PQ Partnership had no items of income, gain, loss, or deduction, and did not make any distributions. No partner made any contributions during 2024. PQ Partnership did not have any § 1.752-1 liabilities during 2024.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Analysis.</E>
                                 P, Q, and Z are the ultimate members of PQ Partnership because they each receive a distributive share of the qualified conservation contribution and are not partnerships or S corporations. To determine P's, Q's, and Z's modified bases, PQ Partnership must start with P's, Q's, and Z's adjusted bases in PQ Partnership as of the beginning of the first day of the taxable year of PQ Partnership and then make the adjustments required under paragraphs (l)(2)(ii) through (vi) of this section. However, because Z was not a partner as of the beginning of the day on January 1, 2024, PQ Partnership must start with Z's adjusted basis immediately after Z's purchase of two-thirds of P's interest in PQ Partnership. Accordingly, the computation of P's modified basis begins with $60X, the computation of Q's modified basis begins with $30X, and the computation of Z's modified basis begins with $55X. First, those amounts must be increased by any contributions between the beginning of the day on January 1, 2024, and noon on August 29, 2024. Because there were none, after this step, the computation of P's modified basis remains at $60X, the computation of Q's modified basis remains at $30X, and the computation of Z's modified basis remains at $55X. Next, these amounts must be adjusted for any additional acquisitions of partnership interests by an existing partner or partial dispositions of partnership interests by a continuing partner between the beginning of the partnership's taxable year and the time of day at which the qualified conservation contribution is made. P sold two-thirds of its interest to Z prior to PQ Partnership's qualified conservation contribution; P's basis in the interests it sold was $40X. As a result, the computation of P's modified basis reflects a reduction from $60X to $20X. Then these amounts must be 
                                <PRTPAGE P="54318"/>
                                adjusted as provided in section 705 by P's, Q's, and Z's hypothetical distributive shares of PQ Partnership's items attributable to the portion of the year between the beginning of the day on January 1, 2024, and noon on August 29, 2024. Because there were none, after this step, the computation of P's modified basis remains at $20X, the computation of Q's modified basis remains at $30X, and the computation of Z's modified basis remains at $55X. Next, these amounts must be reduced by any distributions between the beginning of the day on January 1, 2024, and noon on August 29, 2024. Because there were none, after this step, the computation of P's modified basis remains at $20X, the computation of Q's modified basis remains at $30X, and the computation of Z's modified basis remains at $55X. Finally, the full amount of P's, Q's, and Z's shares of § 1.752-1 liabilities must be subtracted. Because there were none, P's modified basis is $20X, Q's modified basis is $30X, and Z's modified basis is $55X.
                            </P>
                            <P>
                                (m) 
                                <E T="03">Allocation of modified basis</E>
                                —(1) 
                                <E T="03">In general.</E>
                                 An allocation of an ultimate member's modified basis to the portion of the real property with respect to which the qualified conservation contribution is made must be made in accordance with this paragraph (m). Rules for allocating an ultimate member's modified basis in a contributing partnership are provided in paragraph (m)(2) of this section. Rules for allocating an ultimate member's modified basis in a contributing S corporation are provided in paragraph (m)(3) of this section. Rules for allocating an ultimate member's modified basis in an upper-tier partnership are provided in paragraph (m)(4) of this section. Rules for allocating an ultimate member's modified basis in an upper-tier S corporation are provided in paragraph (m)(5) of this section. Records must be kept in accordance with paragraph (m)(6) of this section.
                            </P>
                            <P>
                                (2) 
                                <E T="03">Determination of relevant basis for an ultimate member holding a direct interest in a contributing partnership</E>
                                —(i) 
                                <E T="03">Narrative rule.</E>
                                 This paragraph (m)(2) applies in the case of an ultimate member holding a direct interest in a contributing partnership and provides that a contributing partnership must determine each such ultimate member's relevant basis as provided in this paragraph (m)(2). Relevant basis equals each ultimate member's modified basis as determined under paragraph (l)(2) of this section multiplied by a fraction—
                            </P>
                            <P>(A) The numerator of which is the ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made as determined under paragraph (m)(2)(ii) of this section; and</P>
                            <P>(B) The denominator of which is the ultimate member's portion of the adjusted basis in all the contributing partnership's properties as determined under paragraph (m)(2)(iii) of this section.</P>
                            <P>
                                (ii) 
                                <E T="03">Ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</E>
                                 For purposes of this paragraph (m)(2), an ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made equals the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made (determined as of the time of day of the contribution) multiplied by a fraction—
                            </P>
                            <P>(A) The numerator of which is the ultimate member's distributive share of the qualified conservation contribution; and</P>
                            <P>(B) The denominator of which is the total amount of the contributing partnership's qualified conservation contribution.</P>
                            <P>
                                (iii) 
                                <E T="03">Ultimate member's portion of the adjusted basis in all the contributing partnership's properties</E>
                                —(A) For purposes of this paragraph (m)(2), an ultimate member's portion of the adjusted basis in all the contributing partnership's properties is equal to the sum of:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) The ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made as determined under paragraph (m)(2)(ii) of this section; plus
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) The ultimate member's portion of the adjusted basis in all the contributing partnership's properties other than the portion of the real property with respect to which the qualified conservation contribution is made as determined under paragraph (m)(2)(iii)(B) of this section.
                            </P>
                            <P>(B) To determine a partner's portion of the adjusted basis in all of a contributing partnership's properties, the contributing partnership must apportion among its partners its adjusted basis in each of its properties (except the portion of the real property with respect to which the qualified conservation contribution is made), using the adjusted basis immediately before the qualified conservation contribution, without duplication or omission of any property, and by treating the adjusted basis in each property as not less than zero. This apportionment must be done under principles similar to the determination of the partners' interests in the partnership under section 704(b), including the factors in § 1.704-1(b)(3)(ii). In addition, the apportionment must reflect section 704(c) principles. For example, if a partnership property has built-in loss (the adjusted basis of the property exceeds its fair market value), and section 704(c) would require all of that built-in loss to be allocated to a certain partner if that property was sold, all of the basis in the property that exceeds the property's fair market value must be apportioned to the partner to whom the loss would be allocated if the property was sold.</P>
                            <P>
                                (iv) 
                                <E T="03">Formulaic rule.</E>
                                 The rule of this paragraph (m)(2) is also expressed in the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 1 to Paragraph (m)(2)(iv)</E>
                            </FP>
                            <FP SOURCE="FP-2">R = M × (T ÷ (D + T))</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">R = Relevant basis.</FP>
                                <FP SOURCE="FP-2">M = Modified basis as determined under paragraph (l) of this section.</FP>
                                <FP SOURCE="FP-2">D = Ultimate member's portion of the adjusted basis in all the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made) as determined under paragraph (m)(2)(iii)(B) of this section.</FP>
                                <FP SOURCE="FP-2">T = Ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made, determined according to the following formula: A × (B ÷ C).</FP>
                                <FP SOURCE="FP-2">A = Contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                                <FP SOURCE="FP-2">B = Ultimate member's distributive share of the qualified conservation contribution.</FP>
                                <FP SOURCE="FP-2">C = Total amount of the contributing partnership's qualified conservation contribution.</FP>
                            </EXTRACT>
                            <P>
                                (3) 
                                <E T="03">Determination of relevant basis for an ultimate member holding a direct interest in a contributing S corporation</E>
                                —(i) 
                                <E T="03">Narrative rule.</E>
                                 This paragraph (m)(3) applies in the case of an ultimate member holding a direct interest in a contributing S corporation and provides that a contributing S corporation must determine each such ultimate member's relevant basis as provided in this paragraph (m)(3). Relevant basis equals each ultimate 
                                <PRTPAGE P="54319"/>
                                member's modified basis as determined under paragraph (l)(3) of this section multiplied by a fraction—
                            </P>
                            <P>(A) The numerator of which is the ultimate member's pro rata portion of the contributing S corporation's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made; and</P>
                            <P>(B) The denominator of which is the ultimate member's pro rata portion of the adjusted basis in all the contributing S corporation's properties (including the portion of the real property with respect to which the qualified conservation contribution is made).</P>
                            <P>
                                (ii) 
                                <E T="03">Formulaic rule.</E>
                                 The rule of this paragraph (m)(3) is also expressed in the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 2 to Paragraph (m)(3)(ii)</E>
                            </FP>
                            <FP SOURCE="FP-2">R = M × (E ÷ F)</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">R = Relevant basis.</FP>
                                <FP SOURCE="FP-2">M = Modified basis as determined under paragraph (l) of this section.</FP>
                                <FP SOURCE="FP-2">E = Ultimate member's pro rata portion of the contributing S corporation's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                                <FP SOURCE="FP-2">F = Ultimate member's pro rata portion of the adjusted basis in all the contributing S corporation's properties (including the portion of the real property with respect to which the qualified conservation contribution is made).</FP>
                            </EXTRACT>
                            <P>
                                (4) 
                                <E T="03">Determination of relevant basis for an ultimate member holding a direct interest in an upper-tier partnership</E>
                                —(i) 
                                <E T="03">In general.</E>
                                 This paragraph (m)(4) applies in the case of an ultimate member holding a direct interest in an upper-tier partnership. Each such ultimate member's modified basis must be traced through all upper-tier partnerships to the contributing partnership, and the contributing partnership must determine the relevant basis. This involves a multi-step process under which, beginning with the upper-tier partnership in which the ultimate member holds a direct interest, each upper-tier partnership must perform calculations, and then finally the contributing partnership must use those calculations to compute the ultimate member's relevant basis. For simplicity, this paragraph (m)(4) describes a situation in which there are two tiers of partnerships—a contributing partnership and an upper-tier partnership. In a situation involving more tiers, each partnership must apply the rules and principles of this paragraph (m)(4) iteratively to determine relevant basis.
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Upper-tier partnership—</E>
                                (A) 
                                <E T="03">Narrative rule</E>
                                —(
                                <E T="03">1</E>
                                ) 
                                <E T="03">In general.</E>
                                 The upper-tier partnership must determine the portion of each ultimate member's modified basis that is allocable to the upper-tier partnership's interest in the partnership in which it holds a direct interest (in a situation involving only two tiers of partnerships, that will be the contributing partnership). This determination must be done in accordance with the principles of paragraph (m)(2) of this section, the rule in paragraph (m)(4)(ii)(A)(
                                <E T="03">2</E>
                                ) of this section, and the formula provided in paragraph (m)(4)(ii)(B) of this section. In other words, the formula provided in paragraph (m)(4)(ii)(B) of this section is similar to the formula provided in paragraph (m)(2)(iv) of this section, except that, instead of determining the portion of modified basis that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made, the formula in paragraph (m)(4)(ii)(B) of this section determines the portion of modified basis that is allocable to the upper-tier partnership's interest in the next lower-tier partnership. As explained in paragraph (m)(4)(iii) of this section, the contributing partnership will then use the amount determined under the formula in paragraph (m)(4)(ii)(B) of this section to compute the portion of modified basis that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made.
                            </P>
                            <P>
                                (
                                <E T="03">2) Apportionment of upper-tier partnership's adjusted bases in its properties.</E>
                                 To determine a partner's portion of the adjusted basis in all of an upper-tier partnership's properties, the upper-tier partnership must apportion among its partners its adjusted basis in each of its properties (except its interest in the lower-tier partnership), using the adjusted basis immediately before the qualified conservation contribution, without duplication or omission of any property, and by treating the adjusted basis in each property as not less than zero. This apportionment must be done under principles similar to the determination of the partners' interests in the partnership under section 704(b), including the factors in § 1.704-1(b)(3)(ii). In addition, the apportionment must reflect section 704(c) principles. For example, if a partnership property has built-in loss (the adjusted basis of the property exceeds its fair market value), and section 704(c) would require all of that built-in loss to be allocated to a certain partner if that property was sold, all of the basis in the property that exceeds the property's fair market value must be apportioned to the partner to whom the loss would be allocated if the property was sold.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Formulaic rule.</E>
                                 The rule of this paragraph (m)(4)(ii) is also expressed in the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 3 to Paragraph (m)(4)(ii)(B)</E>
                            </FP>
                            <FP SOURCE="FP-2">G = M × (U ÷ (J + U))</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">G = The portion of the ultimate member's modified basis that is allocable to the upper-tier partnership's interest in the contributing partnership.</FP>
                                <FP SOURCE="FP-2">M = Modified basis as determined under paragraph (l) of this section.</FP>
                                <FP SOURCE="FP-2">
                                    J = Ultimate member's portion of the adjusted basis in all the upper-tier partnership's properties (other than the upper-tier partnership's interest in the contributing partnership) as determined under paragraph (m)(4)(ii)(A)(
                                    <E T="03">2</E>
                                    ) of this section.
                                </FP>
                                <FP SOURCE="FP-2">U = Ultimate member's share of the upper-tier partnership's adjusted basis in its interest in the contributing partnership, determined according to the following formula: H × (B ÷ K).</FP>
                                <FP SOURCE="FP-2">H = Upper-tier partnership's adjusted basis in its interest in the contributing partnership.</FP>
                                <FP SOURCE="FP-2">B = Ultimate member's distributive share of the qualified conservation contribution.</FP>
                                <FP SOURCE="FP-2">K = Upper-tier partnership's allocated portion of the qualified conservation contribution.</FP>
                            </EXTRACT>
                            <P>
                                (iii) 
                                <E T="03">Contributing partnership</E>
                                —(A) 
                                <E T="03">Narrative rule.</E>
                                 After completion of the computations under paragraph (m)(4)(ii) of this section, the contributing partnership must determine the portion of the amount determined under item G (
                                <E T="03">see</E>
                                 paragraph (m)(4)(ii)(B) of this section) with respect to each ultimate member that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made. This determination must be done in accordance with the principles of paragraph (m)(2) of this section and the formula provided in paragraph (m)(4)(iii)(B) of this section.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Formulaic rule.</E>
                                 The rule of this paragraph (m)(4)(iii) is also expressed in the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 4 to Paragraph (m)(4)(iii)(B)</E>
                            </FP>
                            <FP SOURCE="FP-2">R = G × (V ÷ (L + V))</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">R = Relevant basis.</FP>
                                <FP SOURCE="FP-2">G = Amount determined with respect to item G as described under paragraph (m)(4)(ii)(B) of this section.</FP>
                                <FP SOURCE="FP-2">L = Upper-tier partnership's portion of adjusted basis in all the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made) as determined under paragraph (m)(2)(iii)(B) of this section.</FP>
                                <FP SOURCE="FP-2">
                                    V = Upper-tier partnership's share of the contributing partnership's adjusted basis 
                                    <PRTPAGE P="54320"/>
                                    in the portion of the real property with respect to which the qualified conservation contribution is made, determined according to the following formula: A × (K ÷ C).
                                </FP>
                                <FP SOURCE="FP-2">A = Contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                                <FP SOURCE="FP-2">K = Upper-tier partnership's allocated portion of the qualified conservation contribution.</FP>
                                <FP SOURCE="FP-2">C = Total amount of the contributing partnership's qualified conservation contribution.</FP>
                            </EXTRACT>
                            <P>
                                (5) 
                                <E T="03">Determination of relevant basis for an ultimate member holding a direct interest in an upper-tier S corporation</E>
                                —(i) 
                                <E T="03">In general.</E>
                                 This paragraph (m)(5) applies in the case of an ultimate member holding a direct interest in an upper-tier S corporation. Each such ultimate member's modified basis must be traced through the upper-tier S corporation and any upper-tier partnerships to the contributing partnership, and the contributing partnership must determine the relevant basis. This involves a multi-step process under which, beginning with the upper-tier S corporation, the upper-tier S corporation and any upper-tier partnerships must perform calculations, and then finally the contributing partnership must use those calculations to compute the ultimate member's relevant basis. For simplicity, this paragraph (m)(5) describes a situation in which there are two tiers—a contributing partnership and an upper-tier S corporation. In a situation involving more tiers, each partnership and the upper-tier S corporation must apply the rules and principles of this paragraph (m) iteratively to determine relevant basis.
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Upper-tier S corporation</E>
                                —(A) 
                                <E T="03">Narrative rule.</E>
                                 The upper-tier S corporation must determine the portion of each ultimate member's modified basis that is allocable to the upper-tier S corporation's interest in the partnership in which it holds a direct interest (in a situation involving only two tiers, that will be the contributing partnership). This determination must be done in accordance with the principles of paragraph (m)(3) of this section and the formula provided in paragraph (m)(5)(ii)(B) of this section. In other words, the formula provided in paragraph (m)(5)(ii)(B) of this section is similar to the formula provided in paragraph (m)(3)(ii) of this section, except that, instead of determining the portion of modified basis that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made, the formula in paragraph (m)(5)(ii)(B) of this section determines the portion of modified basis that is allocable to the upper-tier S corporation's interest in the next lower-tier partnership. As explained in paragraph (m)(5)(iii) of this section, the contributing partnership will then use the amount determined under the formula in paragraph (m)(5)(ii)(B) of this section to compute the portion of modified basis that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Formulaic rule.</E>
                                 The rule of this paragraph (m)(5)(ii) is also expressed in the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 5 to Paragraph (m)(5)(ii)(B)</E>
                            </FP>
                            <FP SOURCE="FP-2">N = M × (P ÷ Q)</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">N = Portion of the ultimate member's modified basis that is allocable to the upper-tier S corporation's interest in the contributing partnership.</FP>
                                <FP SOURCE="FP-2">M = Modified basis as determined under paragraph (l) of this section.</FP>
                                <FP SOURCE="FP-2">P = Ultimate member's pro rata portion of the upper-tier S corporation's adjusted basis in its interest in the contributing partnership.</FP>
                                <FP SOURCE="FP-2">Q = Ultimate member's pro rata portion of the adjusted basis in all the upper-tier S corporation's properties (including the upper-tier S corporation's interest in the contributing partnership).</FP>
                            </EXTRACT>
                            <P>
                                (iii) 
                                <E T="03">Contributing partnership</E>
                                —(A) 
                                <E T="03">Narrative rule.</E>
                                 After completion of the computations under paragraph (m)(5)(ii) of this section, the contributing partnership must determine the portion of the amount determined under item N (
                                <E T="03">see</E>
                                 paragraph (m)(5)(ii)(B) of this section) with respect to each ultimate member that is allocable to the portion of the real property with respect to which the qualified conservation contribution is made. This determination must be done in accordance with the principles of paragraph (m)(2) of this section and the formula provided in paragraph (m)(5)(iii)(B) of this section.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Formulaic rule.</E>
                                 The rule of this paragraph (m)(5)(iii) is also expressed in the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 6 to Paragraph (m)(5)(iii)(B)</E>
                            </FP>
                            <FP SOURCE="FP-2">R = N × (W ÷ (S + W))</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">R = Relevant basis.</FP>
                                <FP SOURCE="FP-2">N = Amount determined with respect to item N as described under paragraph (m)(5)(ii)(B) of this section.</FP>
                                <FP SOURCE="FP-2">S = Upper-tier S corporation's portion of the adjusted basis in all the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made) as determined under paragraph (m)(2)(iii)(B) of this section.</FP>
                                <FP SOURCE="FP-2">W = Upper-tier S corporation's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made, determined according to the following formula: A × (Y ÷ C).</FP>
                                <FP SOURCE="FP-2">A = Contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                                <FP SOURCE="FP-2">Y = Upper-tier S corporation's allocated portion of the qualified conservation contribution.</FP>
                                <FP SOURCE="FP-2">C = Total amount of the contributing partnership's qualified conservation contribution.</FP>
                            </EXTRACT>
                            <P>
                                (6) 
                                <E T="03">Recordkeeping requirements.</E>
                                 Contributing partnerships, contributing S corporations, upper-tier partnerships, and upper-tier S corporations must maintain dated, written statements in their books and records, by the due date, including extensions, of their Federal income tax returns, substantiating the computation of each ultimate member's adjusted basis, modified basis, and relevant basis. 
                                <E T="03">See</E>
                                 § 1.6001-1. These statements need not be maintained (nor does modified basis or relevant basis need to be computed) with respect to contributions that meet an exception in paragraph (n)(2) or (3) of this section, unless the contribution also meets the exception in paragraph (n)(4) of this section (in which case these statements need to be maintained and modified basis and relevant basis need to be computed).
                            </P>
                            <P>
                                (7) 
                                <E T="03">Examples.</E>
                                 The following examples illustrate the provisions of this paragraph (m). For the examples in this paragraph (m)(7), assume that the partnership allocations comply with the rules of subchapter K of chapter 1 of the Code and the exceptions in paragraph (n) of this section do not apply.
                            </P>
                            <P>
                                (i) 
                                <E T="03">Example 1</E>
                                —(A) 
                                <E T="03">Facts.</E>
                                 YZ Partnership is a partnership for Federal income tax purposes whose partners are individuals Y and Z. YZ Partnership owns 100 acres of real property with an adjusted basis of $10X. YZ Partnership makes a qualified conservation contribution on 60 acres of the property. YZ Partnership claims a contribution of $18X, which it allocates $12X to Y and $6X to Z. YZ Partnership's adjusted basis in the 60 acres is $6X, and its adjusted basis in all of its other properties (including its $4X basis in the 40 acres on which a qualified conservation contribution was not made) is $18X. Y's modified basis is $8X. Y's portion of YZ Partnership's adjusted basis in all partnership property (other than the 60 acres) as determined under paragraph (m)(2)(iii)(B) of this section is $4X. Z's modified basis is $12X. Z's portion of 
                                <PRTPAGE P="54321"/>
                                YZ Partnership's adjusted basis in all partnership property (other than the 60 acres) as determined under paragraph (m)(2)(iii)(B) of this section is $14X.
                            </P>
                            <P>
                                (B) 
                                <E T="03">General analysis.</E>
                                 Y and Z are the ultimate members of YZ Partnership because they each receive a distributive share of the qualified conservation contribution and are not partnerships or S corporations. Their relevant bases must be determined according to the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 7 to Paragraph (m)(7)(i)(B)</E>
                            </FP>
                            <FP SOURCE="FP-2">R = M × (T ÷ (D + T))</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">R = Relevant basis.</FP>
                                <FP SOURCE="FP-2">M = Modified basis as determined under paragraph (l) of this section.</FP>
                                <FP SOURCE="FP-2">D = Ultimate member's portion of the adjusted basis in all of the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made) as determined under paragraph (m)(2)(iii)(B) of this section.</FP>
                                <FP SOURCE="FP-2">T = Ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made, determined according to the following formula: A × (B ÷ C).</FP>
                                <FP SOURCE="FP-2">A = Contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                                <FP SOURCE="FP-2">B = Ultimate member's distributive share of the qualified conservation contribution.</FP>
                                <FP SOURCE="FP-2">C = Total amount of the contributing partnership's qualified conservation contribution.</FP>
                            </EXTRACT>
                            <P>
                                (C) 
                                <E T="03">Y's relevant basis.</E>
                                 With respect to Y:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) M = $8X.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) D = $4X.
                            </P>
                            <P>
                                (
                                <E T="03">3</E>
                                ) A = $6X.
                            </P>
                            <P>
                                (
                                <E T="03">4</E>
                                ) B = $12X.
                            </P>
                            <P>
                                (
                                <E T="03">5</E>
                                ) C = $18X.
                            </P>
                            <P>
                                (
                                <E T="03">6</E>
                                ) Thus, T is $4X = $6X × ($12X ÷ $18X).
                            </P>
                            <P>
                                (
                                <E T="03">7</E>
                                ) Accordingly, Y's relevant basis is $4X = $8X × ($4X ÷ ($4X + $4X)).
                            </P>
                            <P>
                                (D) 
                                <E T="03">Z's relevant basis.</E>
                                 With respect to Z:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) M = $12X.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) D = $14X.
                            </P>
                            <P>
                                (
                                <E T="03">3</E>
                                ) A = $6X.
                            </P>
                            <P>
                                (
                                <E T="03">4</E>
                                ) B = $6X.
                            </P>
                            <P>
                                (
                                <E T="03">5</E>
                                ) C = $18X.
                            </P>
                            <P>
                                (
                                <E T="03">6</E>
                                ) Thus, T is $2X = $6X × ($6X ÷ $18X).
                            </P>
                            <P>
                                (
                                <E T="03">7</E>
                                ) Accordingly, Z's relevant basis is $1.5X = $12X × ($2X ÷ ($14X + $2X)).
                            </P>
                            <P>
                                (E) 
                                <E T="03">Sum of the relevant bases.</E>
                                 The amount of YZ Partnership's claimed contribution is $18X, which exceeds 2.5 times the sum of Y's and Z's relevant bases, which is $13.75X ($13.75X = 2.5 × (Y's relevant basis of $4X + Z's relevant basis of $1.5X)). Accordingly, YZ Partnership's contribution is a disallowed qualified conservation contribution. No person may claim any deduction with respect to this contribution.
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Example 2</E>
                                —(A) 
                                <E T="03">Facts.</E>
                                 CD Inc. is an S corporation with shareholders C and D, each of whom is an individual that is not a nonresident alien. C owns one third of the outstanding stock in CD Inc., and D owns the remaining two thirds. CD Inc. owns 100 acres of real property with an adjusted basis of $10X. CD Inc. makes a qualified conservation contribution on 60 acres of the property. CD Inc. claims a contribution of $9X, which it allocates $3X to C and $6X to D. CD Inc.'s adjusted basis in the 60 acres is $6X, and its adjusted basis in all its properties (including its $6X basis in the 60 acres) is $24X. C's modified basis in CD Inc. is $8X. D's modified basis in CD Inc. is $12X.
                            </P>
                            <P>
                                (B) 
                                <E T="03">General analysis.</E>
                                 C and D are the ultimate members of CD Inc. because they each receive a pro rata share of the qualified conservation contribution and are not partnerships or S corporations. Their relevant bases must be determined according to the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 8 to Paragraph (m)(7)(ii)(B)</E>
                            </FP>
                            <FP SOURCE="FP-2">R = M × (E ÷ F)</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">R = Relevant basis.</FP>
                                <FP SOURCE="FP-2">M = Modified basis as determined under paragraph (l) of this section.</FP>
                                <FP SOURCE="FP-2">E = Ultimate member's pro rata portion of the contributing S corporation's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                                <FP SOURCE="FP-2">F = Ultimate member's pro rata portion of the adjusted basis in all the contributing S corporation's properties (including the portion of the real property with respect to which the qualified conservation contribution is made).</FP>
                            </EXTRACT>
                            <P>
                                (C) 
                                <E T="03">C's relevant basis.</E>
                                 With respect to C:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) M = $8X.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) E = $2X (
                                <FR>1/3</FR>
                                 of $6X).
                            </P>
                            <P>
                                (
                                <E T="03">3</E>
                                ) F = $8X (
                                <FR>1/3</FR>
                                 of $24X).
                            </P>
                            <P>
                                (
                                <E T="03">4</E>
                                ) Thus, C's relevant basis is $2X = $8X × ($2X ÷ $8X).
                            </P>
                            <P>
                                (D) 
                                <E T="03">D's relevant basis.</E>
                                 With respect to D:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) M = $12X.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) E = $4X (
                                <FR>2/3</FR>
                                 of $6X).
                            </P>
                            <P>
                                (
                                <E T="03">3</E>
                                ) F = $16X (
                                <FR>2/3</FR>
                                 of $24X).
                            </P>
                            <P>
                                (
                                <E T="03">4</E>
                                ) Thus, D's relevant basis is $3X = $12X × ($4X ÷ $16X).
                            </P>
                            <P>
                                (E) 
                                <E T="03">Sum of the relevant bases.</E>
                                 The amount of CD Inc.'s claimed qualified conservation contribution is $9X, which does not exceed 2.5 times the sum of C's and D's relevant bases, which is $12.50 ($12.50X = 2.5 × (C's relevant basis of $2X + D's relevant basis of $3X)). Accordingly, CD Inc.'s contribution is not a disallowed qualified conservation contribution (that is, is not disallowed by section 170(h)(7) and paragraph (j) of this section).
                            </P>
                            <P>
                                (iii) 
                                <E T="03">Example 3</E>
                                —(A) 
                                <E T="03">Facts.</E>
                                 LTP Partnership is a partnership for Federal income tax purposes whose partners are individual E and UTP Partnership, a partnership for Federal income tax purposes. UTP Partnership's partners are C corporations P and Q. LTP Partnership owns 300 acres of real property. LTP Partnership makes a qualified conservation contribution on all 300 acres. LTP Partnership claims a qualified conservation contribution of $22X, which it allocates $2X to E and $20X to UTP Partnership. UTP Partnership allocates its $20X share of the qualified conservation contribution $6X to P and $14X to Q. LTP Partnership's basis in the 300 acres is $18X, and its adjusted basis in all of its other properties is $12X. E's modified basis in LTP Partnership is $4X. E's portion of LTP Partnership's adjusted basis in all partnership property (other than the 300 acres) as determined under paragraph (m)(2)(iii)(B) of this section is $4.36X. UTP Partnership's portion of LTP Partnership's adjusted basis in all partnership property (other than the 300 acres) as determined under paragraph (m)(2)(iii)(B) of this section is $7.64X. UTP Partnership's adjusted basis in its interest in LTP Partnership is $19, and its adjusted basis in all other properties is $6X. P's modified basis in UTP Partnership is $12X. P's portion of UTP Partnership's adjusted basis in all partnership property (other than the interest in LTP Partnership) as determined under paragraph (m)(4)(ii)(A)(
                                <E T="03">2</E>
                                ) of this section is $3.6X. Q's modified basis in UTP Partnership is $8X. Q's portion of UTP Partnership's adjusted basis of all partnership property (other than the interest in LTP Partnership) as determined under paragraph (m)(4)(ii)(A)(
                                <E T="03">2</E>
                                ) of this section is $2.4X.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Analysis: partner E.</E>
                                 (
                                <E T="03">1</E>
                                ) The ultimate members of LTP Partnership are E, P, and Q because they each receive a distributive share of the qualified conservation contribution and are not partnerships or S corporations. Because E holds a direct interest in LTP Partnership, E's relevant basis must be determined in accordance with the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 9 to Paragraph (m)(7)(iii)(B)(1)</E>
                            </FP>
                            <FP SOURCE="FP-2">R = M × (T ÷ (D + T))</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">R = Relevant basis.</FP>
                                <FP SOURCE="FP-2">
                                    M = Modified basis as determined under paragraph (l) of this section.
                                    <PRTPAGE P="54322"/>
                                </FP>
                                <FP SOURCE="FP-2">D = Ultimate member's portion of the adjusted basis in all the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made) as determined under paragraph (m)(2)(iii)(B) of this section.</FP>
                                <FP SOURCE="FP-2">T = Ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made, determined according to the following formula: A × (B ÷ C).</FP>
                                <FP SOURCE="FP-2">A = Contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                                <FP SOURCE="FP-2">B = Ultimate member's distributive share of the qualified conservation contribution.</FP>
                                <FP SOURCE="FP-2">C = Total amount of the contributing partnership's qualified conservation contribution.</FP>
                            </EXTRACT>
                            <P>
                                (
                                <E T="03">2</E>
                                ) With respect to E:
                            </P>
                            <P>
                                (
                                <E T="03">i</E>
                                ) M = $4X.
                            </P>
                            <P>
                                (
                                <E T="03">ii</E>
                                ) D = $4.36X.
                            </P>
                            <P>
                                (
                                <E T="03">iii</E>
                                ) A = $18X.
                            </P>
                            <P>
                                (
                                <E T="03">iv</E>
                                ) B = $2X.
                            </P>
                            <P>
                                (
                                <E T="03">v</E>
                                ) C = $22X.
                            </P>
                            <P>
                                (
                                <E T="03">vi</E>
                                ) Thus, T is $1.64X = $18X × ($2X ÷ $22X).
                            </P>
                            <P>
                                (
                                <E T="03">vii</E>
                                ) Accordingly, E's relevant basis is $1.09X = $4X × ($1.64X ÷ ($4.36X + $1.64X)).
                            </P>
                            <P>
                                (C) 
                                <E T="03">Analysis: General rule for UTP Partnership.</E>
                                 Because P and Q hold interests in an upper-tier partnership, UTP Partnership must first determine the portions of P's and Q's modified bases that are allocable to UTP Partnership's interest in LTP Partnership. This is to be done according to the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 10 to Paragraph (m)(7)(iii)(C)</E>
                            </FP>
                            <FP SOURCE="FP-2">G = M × (U ÷ (J + U))</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">G = The portion of the ultimate member's modified basis that is allocable to the upper-tier partnership's interest in the contributing partnership.</FP>
                                <FP SOURCE="FP-2">M = Modified basis as determined under paragraph (l) of this section.</FP>
                                <FP SOURCE="FP-2">
                                    J = Ultimate member's portion of adjusted basis in all the upper-tier partnership's properties (other than the upper-tier partnership's interest in the contributing partnership) as determined under paragraph (m)(4)(ii)(A)(
                                    <E T="03">2</E>
                                    ) of this section.
                                </FP>
                                <FP SOURCE="FP-2">U = Ultimate member's share of the upper-tier partnership's adjusted basis in its interest in the contributing partnership, determined according to the following formula: H × (B ÷ K).</FP>
                                <FP SOURCE="FP-2">H = Upper-tier partnership's adjusted basis in its interest in the contributing partnership.</FP>
                                <FP SOURCE="FP-2">B = Ultimate member's distributive share of the qualified conservation contribution.</FP>
                                <FP SOURCE="FP-2">K = Upper-tier partnership's allocated portion of the qualified conservation contribution.</FP>
                            </EXTRACT>
                            <P>
                                (D) 
                                <E T="03">Analysis: Step 1 for P.</E>
                                 With respect to P:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) M = $12X.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) J = $3.6X.
                            </P>
                            <P>
                                (
                                <E T="03">3</E>
                                ) H = $19X.
                            </P>
                            <P>
                                (
                                <E T="03">4</E>
                                ) B = $6X.
                            </P>
                            <P>
                                (
                                <E T="03">5</E>
                                ) K = $20X.
                            </P>
                            <P>
                                (
                                <E T="03">6</E>
                                ) Thus, U is $5.70X = $19X × ($6X ÷ $20X).
                            </P>
                            <P>
                                (
                                <E T="03">7</E>
                                ) Accordingly, the portion of P's modified basis that is allocable to UTP Partnership's interest in LTP Partnership is $7.35X = $12X × ($5.70X ÷ ($3.60X + $5.70X)).
                            </P>
                            <P>
                                (E) 
                                <E T="03">Analysis: Step 1 for Q.</E>
                                 With respect to Q:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) M = $8X.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) J = $2.4X.
                            </P>
                            <P>
                                (
                                <E T="03">3</E>
                                ) H = $19X.
                            </P>
                            <P>
                                (
                                <E T="03">4</E>
                                ) B = $14X.
                            </P>
                            <P>
                                (
                                <E T="03">5</E>
                                ) K = $20X.
                            </P>
                            <P>
                                (
                                <E T="03">6</E>
                                ) Thus, U is $13.30X = $19X × ($14X ÷ $20X).
                            </P>
                            <P>
                                (
                                <E T="03">7</E>
                                ) Accordingly, the portion of Q's modified basis that is allocable to UTP Partnership's interest in LTP Partnership is $6.78X = $8X × ($13.30X ÷ ($2.40X + $13.30X)).
                            </P>
                            <P>
                                (F) 
                                <E T="03">Analysis: General rule for LTP Partnership.</E>
                                 Next, LTP Partnership must determine P's and Q's relevant bases, which equal the portions of the amounts determined under paragraphs (m)(7)(iii)(D) and (E) of this section (
                                <E T="03">Example 3</E>
                                ) that are allocable to the portion of the real property with respect to which the qualified conservation contribution was made. This must be done according to the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 11 to Paragraph (m)(7)(iii)(F)</E>
                            </FP>
                            <FP SOURCE="FP-2">R = G × (V ÷ (L + V))</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">R = Relevant basis.</FP>
                                <FP SOURCE="FP-2">G = Amount determined with respect to item G under paragraph (m)(4)(ii)(B) of this section.</FP>
                                <FP SOURCE="FP-2">L = Upper-tier partnership's portion of adjusted basis in all the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made) as determined under paragraph (m)(2)(iii)(B) of this section.</FP>
                                <FP SOURCE="FP-2">V = Upper-tier partnership's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made, determined according to the following formula: A × (K ÷ C).</FP>
                                <FP SOURCE="FP-2">A = Contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                                <FP SOURCE="FP-2">K = Upper-tier partnership's allocated portion of the qualified conservation contribution.</FP>
                                <FP SOURCE="FP-2">C = Total amount of the contributing partnership's qualified conservation contribution.</FP>
                            </EXTRACT>
                            <P>
                                (G) 
                                <E T="03">Analysis: Step 2 for P.</E>
                                 With respect to P:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) G = $7.35X.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) L = $7.64X.
                            </P>
                            <P>
                                (
                                <E T="03">3</E>
                                ) A = $18X.
                            </P>
                            <P>
                                (
                                <E T="03">4</E>
                                ) K = $20X.
                            </P>
                            <P>
                                (
                                <E T="03">5</E>
                                ) C = $22X.
                            </P>
                            <P>
                                (
                                <E T="03">6</E>
                                ) Thus, V is $16.36X = $18X × ($20X ÷ $22X).
                            </P>
                            <P>
                                (
                                <E T="03">7</E>
                                ) Accordingly, P's relevant basis is $5.01X = $7.35X × ($16.36X ÷ ($7.64X + $16.36X)).
                            </P>
                            <P>
                                (H) 
                                <E T="03">Analysis: Step 2 for Q.</E>
                                 With respect to Q:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) G = $6.78X.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) L = $7.64X.
                            </P>
                            <P>
                                (
                                <E T="03">3</E>
                                ) A = $18X.
                            </P>
                            <P>
                                (
                                <E T="03">4</E>
                                ) K = $20X.
                            </P>
                            <P>
                                (
                                <E T="03">5</E>
                                ) C = $22X.
                            </P>
                            <P>
                                (
                                <E T="03">6</E>
                                ) Thus, V is $16.36X = $18X × ($20X ÷ $22X).
                            </P>
                            <P>
                                (
                                <E T="03">7</E>
                                ) Accordingly, Q's relevant basis is $4.62X = $6.78X × ($16.36X ÷ ($7.64X + $16.36X)).
                            </P>
                            <P>
                                (I) 
                                <E T="03">Analysis: Computation of 2.5 times sum of the relevant bases.</E>
                                 The ultimate members of LTP Partnership are E, P, and Q. The amount of LTP Partnership's qualified conservation contribution is $22X. This does not exceed 2.5 times the sum of each of the ultimate member's relevant basis, which totals $26.80 ($26.80 = 2.5 x (E's relevant basis of 1.09X + P's relevant basis of $5.01X + Q's relevant basis of $4.62X)). Therefore, LTP Partnership's contribution is not a disallowed qualified conservation contribution (that is, is not disallowed by section 170(h)(7) and paragraph (j) of this section). Because UTP Partnership receives an allocated portion, it must apply paragraphs (j) through (l) of this section and this paragraph (m) to determine whether its allocated portion is a disallowed qualified conservation contribution. The ultimate members of UTP Partnership are P and Q. The amount of UTP Partnership's allocated portion of LTP Partnership's qualified conservation contribution is $20X. This does not exceed 2.5 times the sum of P's and Q's relevant bases, which is $24.08X ($24.08X = 2.5 × (P's relevant basis of $5.01X + Q's relevant basis of $4.62X)). Therefore, UTP Partnership's allocated portion of LTP Partnership's contribution is not a disallowed qualified conservation contribution (that is, is not disallowed by section 170(h)(7) and paragraph (j) of this section).
                            </P>
                            <P>
                                (iv) 
                                <E T="03">Example 4</E>
                                —(A) 
                                <E T="03">Facts.</E>
                                 Individuals V and W form VW Partnership, a partnership for Federal income tax purposes. V and W each hold a fifty percent interest in all of VW Partnership's items of income, gain, loss, deduction, credits, and charitable contributions. On formation of VW 
                                <PRTPAGE P="54323"/>
                                Partnership, V contributes $1,000X cash to VW Partnership and W contributes GainProp, which is non-depreciable property with a value of $1,000X and basis of $500X. VW Partnership buys real property (RealProp), with its $1,000X cash. Later, at a time when VW Partnership's basis in RealProp is still $1,000X, and its basis in GainProp is still $500X, VW Partnership makes a qualified conservation contribution with respect to all of RealProp, which it allocates equally to V and W. VW Partnership continues to hold GainProp. V's modified basis is $1,000X and W's modified basis is $500X.
                            </P>
                            <P>
                                (B) 
                                <E T="03">General analysis.</E>
                                 V and W are the ultimate members of VW Partnership because they each receive a distributive share of the qualified conservation contribution and are not partnerships or S corporations. Their relevant bases must be determined according to the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 12 to Paragraph (m)(7)(iv)(B)</E>
                            </FP>
                            <FP SOURCE="FP-2">R = M × (T ÷ (D + T))</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">R = Relevant basis.</FP>
                                <FP SOURCE="FP-2">M = Modified basis as determined under paragraph (l) of this section.</FP>
                                <FP SOURCE="FP-2">D = Ultimate member's portion of the adjusted basis in all of the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made) as determined under paragraph (m)(2)(iii)(B) of this section.</FP>
                                <FP SOURCE="FP-2">T = Ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made, determined according to the following formula: A × (B ÷ C).</FP>
                                <FP SOURCE="FP-2">A = Contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                                <FP SOURCE="FP-2">B = Ultimate member's distributive share of the qualified conservation contribution.</FP>
                                <FP SOURCE="FP-2">C = Total amount of the contributing partnership's qualified conservation contribution.</FP>
                            </EXTRACT>
                            <P>
                                (C) 
                                <E T="03">V's relevant basis.</E>
                                 With respect to V:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) M = $1,000X.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) D = $250X (half of VW Partnership's adjusted basis in GainProp).
                            </P>
                            <P>
                                (
                                <E T="03">3</E>
                                ) T = $500X (half of VW Partnership's adjusted basis in RealProp).
                            </P>
                            <P>
                                (
                                <E T="03">4</E>
                                ) Accordingly, V's relevant basis is $666.67X = $1,000X × ($500X ÷ ($250X + $500X)).
                            </P>
                            <P>
                                (D) 
                                <E T="03">W's relevant basis.</E>
                                 With respect to W:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) M = $500X.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) D = $250X (half of VW Partnership's basis in GainProp).
                            </P>
                            <P>
                                (
                                <E T="03">3</E>
                                ) T = $500X (half of VW Partnership's adjusted basis in RealProp).
                            </P>
                            <P>
                                (
                                <E T="03">4</E>
                                ) Accordingly, W's relevant basis is $333.33X = $500X × ($500X ÷ ($250X + $500X)).
                            </P>
                            <P>
                                (v) 
                                <E T="03">Example 5</E>
                                —(A) 
                                <E T="03">Facts.</E>
                                 Assume the same facts as in paragraph (m)(7)(iv) of this section (
                                <E T="03">Example 4</E>
                                ), except that W does not contribute GainProp; instead, W contributes LossProp, which is non-depreciable property with a value of $1,000X and basis of $2,000X. At the time that VW Partnership makes the qualified conservation contribution on RealProp, the value of LossProp is still $1,000 and the basis of LossProp is still $2,000X. V's modified basis is $1,000X and W's modified basis is $2,000X.
                            </P>
                            <P>
                                (B) 
                                <E T="03">General analysis.</E>
                                 V and W are the ultimate members of VW Partnership because they each receive a distributive share of the qualified conservation contribution and are not partnerships or S corporations. Their relevant bases must be determined according to the following formula:
                            </P>
                            <FP SOURCE="FP-2">
                                <E T="03">Equation 13 to Paragraph (m)(7)(v)(B)</E>
                            </FP>
                            <FP SOURCE="FP-2">R = M × (T ÷ (D + T))</FP>
                            <EXTRACT>
                                <FP SOURCE="FP-2">Where:</FP>
                                <FP SOURCE="FP-2">R = Relevant basis.</FP>
                                <FP SOURCE="FP-2">M = Modified basis as determined under paragraph (l) of this section.</FP>
                                <FP SOURCE="FP-2">D = Ultimate member's portion of the adjusted basis in all of the contributing partnership's properties (other than the portion of the real property with respect to which the qualified conservation contribution is made) as determined under paragraph (m)(2)(iii)(B) of this section.</FP>
                                <FP SOURCE="FP-2">T = Ultimate member's share of the contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made, determined according to the following formula: A × (B ÷ C).</FP>
                                <FP SOURCE="FP-2">A = Contributing partnership's adjusted basis in the portion of the real property with respect to which the qualified conservation contribution is made.</FP>
                                <FP SOURCE="FP-2">B = Ultimate member's distributive share of the qualified conservation contribution.</FP>
                                <FP SOURCE="FP-2">C = Total amount of the contributing partnership's qualified conservation contribution.</FP>
                            </EXTRACT>
                            <P>
                                (C) 
                                <E T="03">V's relevant basis.</E>
                                 With respect to V:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) M = $1,000X.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) D = $500X (half of the $1,000 portion of LossProp's adjusted basis that does not exceed LossProp's $1,000X value)
                            </P>
                            <P>
                                (
                                <E T="03">3</E>
                                ) T = $500X (half of VW Partnership's adjusted basis in RealProp)
                            </P>
                            <P>
                                (
                                <E T="03">4</E>
                                ) Accordingly, V's relevant basis is $500X = $1,000X × ($500X ÷ ($500X + $500X)).
                            </P>
                            <P>
                                (D) 
                                <E T="03">W's relevant basis.</E>
                                 With respect to W:
                            </P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) M = $2,000X.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) D = $1,500X (half of the $1,000 portion LossProp's adjusted basis that does not exceed LossProp's $1,000X value, plus all of the $1,000 portion of LossProp's adjusted basis in excess of LossProp's $1,000X value).
                            </P>
                            <P>
                                (
                                <E T="03">3</E>
                                ) T = $500X (half of VW Partnership's adjusted basis in RealProp).
                            </P>
                            <P>
                                (
                                <E T="03">4</E>
                                ) Accordingly, W's relevant basis is $500X = $2,000X × ($500X ÷ ($1,500X + $500X)).
                            </P>
                            <P>
                                (n) 
                                <E T="03">Exceptions</E>
                                —(1) 
                                <E T="03">In general.</E>
                                 Paragraph (j) of this section does not apply to any qualified conservation contribution that satisfies one or more of the three exceptions in this paragraph (n). However, as provided in paragraph (j)(5) of this section, there is no presumption that a contribution that satisfies one or more of the three exceptions in this paragraph (n) is compliant with section 170, any other section of the Code, the regulations in this part, or any other guidance. Being described in this paragraph (n) is not a safe harbor for purposes of any other provision of law or with respect to the value of the contribution. Such transactions are subject to adjustment or disallowance for any other reason, including failure to satisfy other requirements of section 170 or overvaluation of the contribution. In addition, taxpayers who engage in transactions that satisfy one or more of the three exceptions in this paragraph (n) may nonetheless be required to disclose, under § 1.6011-4, the transactions as listed transactions.
                            </P>
                            <P>
                                (2) 
                                <E T="03">Exception for contributions outside three-year holding period</E>
                                —(i) 
                                <E T="03">In general.</E>
                                 Paragraph (j) of this section does not apply to any qualified conservation contribution by a contributing partnership or contributing S corporation made at least three years after the latest of—
                            </P>
                            <P>(A) The last date on which the contributing partnership or contributing S corporation acquired any portion of the real property with respect to which such qualified conservation contribution is made;</P>
                            <P>(B) The last date on which any partner in the contributing partnership or shareholder in the contributing S corporation acquired any interest in such partnership or S corporation; and</P>
                            <P>(C) If the interest in the contributing partnership is held through one or more upper-tier partnerships or upper-tier S corporations—</P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) The last date on which any such upper-tier partnership or upper-tier S corporation acquired any interest in the 
                                <PRTPAGE P="54324"/>
                                contributing partnership or any other upper-tier partnership; and
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) The last date on which any partner or shareholder in any such upper-tier partnership or upper-tier S corporation acquired any interest in such upper-tier partnership or upper-tier S corporation.
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Acquisition of partnership interest.</E>
                                 For purposes of this paragraph (n)(2), an acquisition of any interest in a partnership is any 
                                <E T="03">variation</E>
                                 within the meaning of that term in § 1.706-4(a)(1); however, a variation does not include a change in allocations that satisfies the requirements of § 1.706-4(b)(1).
                            </P>
                            <P>
                                (iii) 
                                <E T="03">Acquisition of interest in an S corporation.</E>
                                 For purposes of this paragraph (n)(2), an acquisition of any interest in an S corporation is any transfer, issuance, redemption, or other disposition of stock in the S corporation; however, an acquisition does not include any issuance or redemption involving all shareholders that does not affect the proportionate ownership of any shareholder.
                            </P>
                            <P>
                                (iv) 
                                <E T="03">Exception is determined at the level of the contributing partnership or contributing S corporation.</E>
                                 If the contributing partnership or contributing S corporation does not satisfy the requirements of this paragraph (n)(2), then this paragraph (n)(2) will not apply to any person who receives a distributive share or pro rata share of the qualified conservation contribution (including an upper-tier partnership or upper-tier S corporation), regardless of whether the person receiving such distributive share or pro rata share would have satisfied the requirements of this paragraph (n)(2) if the person had been the one to make the qualified conservation contribution.
                            </P>
                            <P>
                                (v) 
                                <E T="03">Examples.</E>
                                 The following examples illustrate the provisions of this paragraph (n)(2). For the two examples in this paragraph (n)(2)(v), assume that the exceptions in paragraphs (n)(3) and (4) of this section do not apply.
                            </P>
                            <P>
                                (A) 
                                <E T="03">Example 1</E>
                                —(
                                <E T="03">1</E>
                                ) 
                                <E T="03">Facts.</E>
                                 ABC Partnership is a partnership for Federal income tax purposes. Since 2015, ABC Partnership's partners have been A, an individual, and BC Inc., an S corporation. Since 2015, BC Inc.'s shareholders have been B and C, each of whom is an individual that is not a nonresident alien. On December 27, 2024, ABC Partnership acquires real property. On August 29, 2025, BC Inc. redeems half of B's shares in BC Inc. On December 28, 2027, ABC Partnership makes a qualified conservation contribution.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) 
                                <E T="03">Analysis.</E>
                                 Pursuant to paragraph (n)(2)(iii) of this section, BC Inc.'s redemption of some of B's shares is treated as an acquisition of an interest in BC Inc. for purposes of this paragraph (n)(2). Accordingly, ABC Partnership's contribution occurred less than three years after the latest acquisition of an interest in a partnership or S corporation that held an interest in ABC Partnership, the contributing partnership. Therefore, ABC Partnership's contribution fails to satisfy the requirements of this paragraph (n)(2) and ABC Partnership must apply the provisions of paragraphs (j) through (m) of this section to determine whether the contribution is a disallowed qualified conservation contribution.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Example 2</E>
                                —(
                                <E T="03">1</E>
                                ) 
                                <E T="03">Facts.</E>
                                 LTP Partnership is a partnership for Federal income tax purposes. Since 2017, LTP Partnership's partners have been UTP Partnership, a partnership for Federal income tax purposes, and FG Inc., an S corporation. Since 2018, UTP Partnership's partners have been individuals D and E, and there has been no variation in their ownership. Since 2019, FG Inc.'s shareholders have been F and G, each of whom is an individual that is not a nonresident alien. On March 15, 2024, LTP Partnership acquires real property. On September 15, 2026, D dies and D's interest in UTP Partnership passes to D's estate. On March 18, 2027, LTP Partnership makes a qualified conservation contribution. LTP Partnership allocates all of the qualified conservation contribution to FG Inc.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) 
                                <E T="03">Analysis.</E>
                                 Pursuant to paragraph (n)(2)(ii) of this section, the transfer of D's interest in UTP Partnership to D's estate is treated as an acquisition of an interest in UTP Partnership for purposes of this paragraph (n)(2). Accordingly, LTP Partnership's contribution occurred less than three years after the latest acquisition of an interest in a partnership or S corporation that held an interest in LTP Partnership, the contributing partnership. Therefore, LTP Partnership's contribution fails to satisfy the requirement of this paragraph (n)(2). Pursuant to paragraph (n)(2)(iv) of this section, FG Inc. cannot avail itself of this paragraph (n)(2) with respect to its allocated portion of LTP Partnership's contribution. Accordingly, FG Inc. must apply the provisions of paragraphs (j) through (m) of this section to determine whether its allocated portion is a disallowed qualified conservation contribution.
                            </P>
                            <P>
                                (3) 
                                <E T="03">Exception for family partnerships and S corporations</E>
                                —(i) 
                                <E T="03">General rule.</E>
                                 Paragraph (j) of this section does not apply with respect to any qualified conservation contribution made by a contributing partnership or contributing S corporation if at least 90 percent of the interests in the contributing partnership or contributing S corporation are held by an individual and members of the family of such individual and the contributing partnership or contributing S corporation meets the requirements of this paragraph (n)(3).
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Ninety percent of the interests—</E>
                                (A) 
                                <E T="03">Family partnerships.</E>
                                 In the case of a contributing partnership, at least 90 percent of the interests in the contributing partnership are held by an individual and members of the family of such individual if, at the time of the qualified conservation contribution, at least 90 percent of the interests in capital and profits in such partnership are held, directly or indirectly, by an individual and members of the family of such individual.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Family S corporations.</E>
                                 In the case of a contributing S corporation, at least 90 percent of the interests in the contributing S corporation are held by an individual and members of the family of such individual if, at the time of the qualified conservation contribution, at least 90 percent of the total value and at least 90 percent of the total voting power of the outstanding stock in such S corporation are held by an individual and members of the family of such individual.
                            </P>
                            <P>
                                (iii) 
                                <E T="03">Members of the family.</E>
                                 For purposes of this paragraph (n)(3), the term 
                                <E T="03">members of the family</E>
                                 means, with respect to any individual—
                            </P>
                            <P>(A) The spouse of such individual;</P>
                            <P>(B) Any individual who bears a relationship to such individual that is described in section 152(d)(2)(A) through (G) of the Code;</P>
                            <P>(C) The estate of a deceased individual who was described in paragraph (n)(3)(iii)(A) or (B) of this section at the time of death; and</P>
                            <P>
                                (D) A trust all of the beneficiaries of which are individuals described in paragraph (n)(3)(iii)(A) or (B) of this section, treating as 
                                <E T="03">beneficiaries</E>
                                 for this purpose those persons who currently must or may receive income or principal from the trust and those persons who would succeed to the property of the trust if the trust were to terminate immediately before the qualified conservation contribution.
                            </P>
                            <P>
                                (iv) 
                                <E T="03">Anti-abuse rules—</E>
                                (A) 
                                <E T="03">Holding period.</E>
                                 This paragraph (n)(3) does not apply unless at least 90 percent of the interests in the property with respect to which the qualified conservation contribution was made were owned, directly or indirectly, by an individual and members of the family of that individual for at least one year prior to the date of the contribution. The members of the family during that year need not be the same members of the family that own an interest at the time 
                                <PRTPAGE P="54325"/>
                                of the qualified conservation contribution; however, at least one individual must own an interest for the entire year, and at least 90 percent of the interests in the property must be owned, directly or indirectly, during that year by that individual and members of that individual's family. Solely for purposes of this paragraph (n)(3)(iv)(A), section 1223(1) and (2) of the Code do not apply in determining whether at least ninety percent of the interests in the property with respect to which the qualified conservation contribution was made were owned, directly or indirectly, by one individual and members of the family of that individual for at least one year prior to the date of the contribution. This paragraph (n)(3)(iv)(A) does not apply if the entire amount of the qualified conservation contribution is limited by section 170(e) to the contributing partnership's or contributing S corporation's adjusted basis in the qualified conservation contribution.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Allocations.</E>
                                 This paragraph (n)(3) does not apply unless at least 90 percent of the qualified conservation contribution is allocated to the individual and all members of the family who own at least 90 percent of the interests in the contributing partnership or contributing S corporation under paragraph (n)(3)(ii) of this section.
                            </P>
                            <P>
                                (v) 
                                <E T="03">Exception is determined at the level of the contributing partnership or contributing S corporation.</E>
                                 If the contributing partnership or contributing S corporation satisfies the requirements of this paragraph (n)(3), then any upper-tier partnership or upper-tier S corporation need not apply paragraphs (j) through (m) of this section and this paragraph (n) to its allocated portions of such contribution. If the contributing partnership or contributing S corporation does not satisfy the requirements of this paragraph (n)(3), then the exception in this paragraph (n)(3) will not apply to any person who receives a distributive share or pro rata share of the qualified conservation contribution (including an upper-tier partnership or upper-tier S corporation), regardless of whether the person receiving such distributive share or pro rata share would have satisfied the requirements of this paragraph (n)(3) if the person had been the one to make the contribution.
                            </P>
                            <P>
                                (vi) 
                                <E T="03">Examples.</E>
                                 The following examples illustrate the provisions of this paragraph (n)(3). For the two examples in this paragraph (n)(3)(vi), assume that the exceptions in paragraphs (n)(2) and (4) of this section do not apply.
                            </P>
                            <P>
                                (A) 
                                <E T="03">Example 1—</E>
                                (
                                <E T="03">1</E>
                                ) 
                                <E T="03">Facts.</E>
                                 Individual A and A's sibling B acquire real property by purchase on July 5, 2024. On September 14, 2024, B transfers its interest in the real property to B's child C. On February 21, 2025, A and C transfer their interests in the real property to AC Partnership, a partnership for Federal income tax purposes whose only partners are A and C. On March 18, 2025, A's stepfather D becomes a partner in AC Partnership in exchange for a capital contribution. On September 15, 2025, AC Partnership makes a qualified conservation contribution on the real property. AC Partnership never had any partners other than A, C, and D.
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) 
                                <E T="03">Analysis.</E>
                                 B, C, and D qualify as members of the family with respect to A. Accordingly, as of the time of the qualified conservation contribution, at least 90 percent of the interests in capital and profits of AC Partnership were owned by an individual and members of that individual's family. In addition, at least 90 percent of the interests in the property with respect to which the qualified conservation contribution was made were owned, directly and indirectly, by A and members of A's family for at least one year prior to the date of the contribution. Moreover, at least 90 percent of the contribution is allocated to A and members of A's family. Accordingly, the requirements of this paragraph (n)(3) are satisfied, and the Disallowance Rule in section 170(h)(7)(A) and paragraph (j) of this section does not apply.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Example 2</E>
                                —(
                                <E T="03">1</E>
                                ) 
                                <E T="03">Facts.</E>
                                 LTP Partnership is a partnership for Federal income tax purposes whose partners are EF Inc., an S corporation, and UTP Partnership, a partnership for Federal income tax purposes. EF Inc. and UTP Partnership each hold a 50 percent interest in the profits and capital of LTP Partnership. The shareholders of EF Inc. are E and E's sibling F. The partners of UTP Partnership are G and G's child H. E and F are not related to G and H. LTP Partnership has held real property since 2019. On July 5, 2024, LTP Partnership distributes half of the acres of its real property to EF Inc., and the remaining acres to UTP Partnership. On October 21, 2024, EF Inc., makes a qualified conservation contribution on the real property it received from LTP Partnership. The amount of EF Inc.'s qualified conservation contribution is not limited by section 170(e).
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) 
                                <E T="03">Analysis.</E>
                                 F qualifies as a member of the family with respect to E. Accordingly, as of the time of EF Inc.'s qualified conservation contribution, EF Inc. was owned at least 90 percent by an individual and members of that individual's family. In addition, at least 90 percent of EF Inc's qualified conservation contribution is allocated to E and members of E's family. However, E and members of E's family failed to own at least 90 percent of the property with respect to which the qualified conservation contribution was made for at least one year prior to the date of the contribution. In particular, G and H (who are not members of the family with respect to E or F) indirectly owned a 50 percent interest in the property until July 5, 2024. Accordingly, the requirements of this paragraph (n)(3) are not satisfied. EF Inc. must apply the provisions of paragraphs (j) through (m) of this section to determine whether the contribution is a disallowed qualified conservation contribution. If the entire amount of EF Inc.'s qualified conservation contribution had been limited by section 170(e) to EF Inc.'s adjusted basis in the qualified conservation contribution, then paragraph (n)(3)(iv)(A) of this section would not have applied; accordingly, the requirements of this paragraph (n)(3) would have been satisfied, and the Disallowance Rule in section 170(h)(7)(A) and paragraph (j) of this section would not have applied.
                            </P>
                            <P>
                                (4) 
                                <E T="03">Exception for contributions to preserve certified historic structures.</E>
                                 Paragraph (j) of this section does not apply to any qualified conservation contribution the conservation purpose of which is the preservation of any building that is a certified historic structure (as defined in section 170(h)(4)(C)). 
                                <E T="03">See</E>
                                 § 1.170A-16(f)(6) for special reporting requirements for a contribution that meets the exception in this paragraph (n)(4).
                            </P>
                            <P>
                                (o) 
                                <E T="03">Applicability dates</E>
                                —(1) 
                                <E T="03">In general.</E>
                                 Except as provided in paragraphs (g)(4)(ii), (i), and (o)(2) of this section, paragraphs (a) through (i) of this section apply only to contributions made on or after December 18, 1980. Paragraphs (j) through (n) of this section apply to contributions made after December 29, 2022.
                            </P>
                            <P>
                                (2) 
                                <E T="03">Exception.</E>
                                 Paragraph (h)(4)(ii) of this section applies on and after June 1, 2023. 
                            </P>
                        </SECTION>
                    </REGTEXT>
                    <REGTEXT TITLE="26" PART="1">
                        <AMDPAR>
                            <E T="04">Par. 3.</E>
                             Section 1.170A-16 is amended by:
                        </AMDPAR>
                        <AMDPAR>1. In paragraph (c)(3)(iv)(F), adding the word “and” at the end of the paragraph, and in paragraph (c)(3)(iv)(G), removing the word “and” at the end of the paragraph;</AMDPAR>
                        <AMDPAR>
                            2. Redesignating paragraph (c)(3)(v) as paragraph (c)(3)(vi) and adding new paragraph (c)(3)(v);
                            <PRTPAGE P="54326"/>
                        </AMDPAR>
                        <AMDPAR>3. In paragraph (d)(3)(vii), removing the word “and” at the end of the paragraph;</AMDPAR>
                        <AMDPAR>4. Redesignating paragraph (d)(3)(viii) as paragraph (d)(3)(x) and adding new paragraph (d)(3)(viii);</AMDPAR>
                        <AMDPAR>5. Adding paragraph (d)(3)(ix);</AMDPAR>
                        <AMDPAR>6. Revising paragraph (f)(4);</AMDPAR>
                        <AMDPAR>7. Adding paragraph (f)(6); and</AMDPAR>
                        <AMDPAR>8. Revising paragraph (g).</AMDPAR>
                        <P>The additions and revisions read as follows:</P>
                        <SECTION>
                            <SECTNO>§ 1.170A-16 </SECTNO>
                            <SUBJECT>Substantiation and reporting requirements for noncash charitable contributions.</SUBJECT>
                            <STARS/>
                            <P>(c) * * *</P>
                            <P>(3) * * *</P>
                            <P>
                                (v) If a number can be inserted into any box on Form 8283 (Section A), the number inserted in the box on Form 8283 (Section A). Alternatively, taxpayers may attach a statement to the Form 8283 explaining why a number cannot be inserted. Nothing in this paragraph (c)(3)(v) precludes a taxpayer from both inserting the number in the appropriate box on Form 8283 (Section A) and including an attached statement explaining any additional information regarding the number. Taxpayers may not respond to a request for information on Form 8283 (Section A) with nonresponsive language; for example, by indicating that the requested information is 
                                <E T="03">available upon request</E>
                                 or will be 
                                <E T="03">provided upon request.</E>
                                 The inclusion of such nonresponsive language in response to a request for information on Form 8283 (Section A) may be treated by the IRS as being an incomplete filing of Form 8283; and
                            </P>
                            <STARS/>
                            <P>(d) * * *</P>
                            <P>(3) * * *</P>
                            <P>(viii) In the case of a partnership or S corporation that makes a qualified conservation contribution, the sum of each ultimate member's relevant basis, computed in accordance with § 1.170A-14(j) through (m), but only:</P>
                            <P>(A) For contributions described in section 170(h)(7)(E) and § 1.170A-14(n)(4) (for contributions to preserve certified historic structures), regardless of whether they are also described in section 170(h)(7)(C) and § 1.170A-14(n)(2) (for contributions made outside of the three-year holding period) and/or section 170(h)(7)(D) and § 1.170A-14(n)(3) (for contributions made by certain family partnerships or S corporations); and</P>
                            <P>(B) For all contributions not described in section 170(h)(7)(E) and § 1.170A-14(n)(4), provided they are not described in section 170(h)(7)(C) and § 1.170A-14(n)(2) (for contributions made outside of the three-year holding period) and/or section 170(h)(7)(D) and § 1.170A-14(n)(3) (for contributions made by certain family partnerships or S corporations);</P>
                            <P>
                                (ix) If a number can be inserted into any box on Form 8283 (Section B), the number inserted in the box on Form 8283 (Section B). Alternatively, taxpayers may attach a statement to the Form 8283 explaining why a number cannot be inserted. Nothing in this paragraph (d)(3)(ix) precludes a taxpayer from both inserting the number in the appropriate box on Form 8283 (Section B) and including an attached statement explaining any additional information regarding the number. Taxpayers may not respond to a request for information on Form 8283 (Section B) with nonresponsive language; for example, by indicating that the requested information is 
                                <E T="03">available upon request</E>
                                 or will be 
                                <E T="03">provided upon request.</E>
                                 The inclusion of such nonresponsive language in response to a request for information on Form 8283 (Section B) may be treated by the IRS as being an incomplete filing of Form 8283; and
                            </P>
                            <STARS/>
                            <P>(f) * * *</P>
                            <P>
                                (4) 
                                <E T="03">Partners and S corporation shareholders</E>
                                —(i) 
                                <E T="03">Form 8283 (Section A or Section B) must be provided to partners and S corporation shareholders.</E>
                                 If the donor is a partnership or an S corporation, the donor must provide a copy of its completed Form 8283 (Section A or Section B) to every partner or shareholder who receives an allocation of a charitable contribution under section 170 for the property described in Form 8283 (Section A or Section B). Similarly, a recipient partner that is a partnership or S corporation must provide a copy of the donor's completed Form 8283 (Section A or Section B) to each of its partners or shareholders who receives an allocation of the charitable contribution, and so on through any additional tiers.
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Partners and S corporation shareholders must attach Forms 8283 (Section A or Section B) to return.</E>
                                 A partner of a partnership or shareholder of an S corporation who receives an allocation of a charitable contribution under section 170 for property to which paragraph (c), (d), or (e) of this section applies must attach to the return on which the contribution is claimed a copy of each Form 8283 that must be provided to them under paragraph (f)(4)(i) or (iii) of this section.
                            </P>
                            <P>
                                (iii) 
                                <E T="03">Partners and S corporation shareholders must file separate Forms 8283 and provide copies to any partners</E>
                                —(A) 
                                <E T="03">In general.</E>
                                 Subject to paragraph (f)(4)(iii)(B) of this section, every partner of a partnership (including a partner that is itself a partnership or S corporation) or shareholder of an S corporation that receives an allocation of a charitable contribution under section 170 for which paragraph (c), (d), or (e) of this section applies must complete a separate Form 8283 with any information required by Form 8283 and the instructions to Form 8283. In the case of a partner that is itself a partnership or S corporation, that partnership or S corporation must provide a copy of its completed separate Form 8283 to every partner or shareholder who receives an allocation of the charitable contribution, and so on through any additional tiers. The partner or shareholder must attach its separate Form 8283 to the return on which the contribution is claimed, in addition to the copy of each Form 8283 that the partner or shareholder is required to attach pursuant to paragraph (f)(4)(ii) of this section.
                            </P>
                            <P>
                                (B) 
                                <E T="03">Conservation contributions.</E>
                                 The terms defined in § 1.170A-14(j)(3) apply for purposes of this paragraph (f)(4)(iii)(B). In the case of a qualified conservation contribution that is made by a partnership or S corporation, an ultimate member's separate Form 8283 must include their own relevant basis. An upper-tier partnership's or upper-tier S corporation's separate Form 8283 must include the sum of each of its ultimate member's relevant basis (as computed in accordance with § 1.170A-14(j) through (m)). This paragraph (f)(4)(iii)(B) does not apply to contributions described in section 170(h)(7)(C) and § 1.170A-14(n)(2) (for contributions made outside of the three-year holding period) or section 170(h)(7)(D) and § 1.170A-14(n)(3) (for contributions made by certain family partnerships or S corporations), provided that they are not also described in section 170(h)(7)(E) and § 1.170A-14(n)(4) (for contributions to preserve certified historic structures), in which case this paragraph (f)(4)(iii)(B) does apply.
                            </P>
                            <STARS/>
                            <P>
                                (6) 
                                <E T="03">Conservation contributions by pass-through entities preserving certified historic structures</E>
                                —(i) 
                                <E T="03">In general.</E>
                                 The terms defined in § 1.170A-14(j)(3) apply for purposes of this paragraph (f)(6). For any contribution described in paragraph (f)(6)(ii) of this section, pursuant to section 170(f)(19), no deduction is allowed under section 170 or any other provision of the Code 
                                <PRTPAGE P="54327"/>
                                under which deductions are allowable to pass-through entities with respect to such contribution unless the contributing partnership, the contributing S corporation, the upper-tier partnership, or the upper-tier S corporation, respectively—
                            </P>
                            <P>(A) Includes on its return for the taxable year in which the contribution is made a statement that it made such a contribution or received such allocated portion, as described in paragraph (f)(6)(iii) of this section; and</P>
                            <P>(B) Provides such information about the contribution as the Secretary of the Treasury or her delegate may require in guidance, forms, or instructions.</P>
                            <P>
                                (ii) 
                                <E T="03">Contributions to which this paragraph (f)(6) applies.</E>
                                 This paragraph (f)(6) applies to any qualified conservation contribution (as defined in section 170(h)(1) and § 1.170A-14):
                            </P>
                            <P>(A) The conservation purpose of which is preservation of a building that is a certified historic structure (as defined in section 170(h)(4)(C));</P>
                            <P>(B) That is either:</P>
                            <P>
                                (
                                <E T="03">1</E>
                                ) Made by a contributing partnership or contributing S corporation (as defined in § 1.170A-14(j)(3)(iv)); or
                            </P>
                            <P>
                                (
                                <E T="03">2</E>
                                ) Is an allocated portion (as defined in § 1.170A-14(j)(3)(i)) of an upper-tier partnership (as defined in § 1.170A-14(j)(3)(xi)) or upper-tier S corporation (as defined in § 1.170A-14(j)(3)(xii)); and
                            </P>
                            <P>(C) The amount of such contribution (as defined in § 1.170A-14(j)(3)(ii)) or such allocated portion (as defined in § 1.170A-14(j)(3)(i)) exceeds 2.5 times the sum of each ultimate member's relevant basis (as defined in § 1.170A-14(j) through (m)).</P>
                            <P>
                                (iii) 
                                <E T="03">Required information.</E>
                                 A partnership or S corporation satisfies the requirements of section 170(f)(19)(A) and paragraph (f)(6)(i) of this section by filing a completed Form 8283, including information about relevant basis, in accordance with section 170, the regulations under section 170, and the instructions to Form 8283.
                            </P>
                            <P>
                                (g) 
                                <E T="03">Applicability dates</E>
                                —(1) 
                                <E T="03">In general.</E>
                                 Except as provided in paragraph (g)(2) of this section, this section applies to contributions made after July 30, 2018.
                            </P>
                            <P>
                                (2) 
                                <E T="03">Certain paragraphs.</E>
                                 Paragraphs (c)(3)(v), (d)(3)(viii) and (ix), and (f)(4) and (6) of this section apply to taxable years ending on or after November 20, 2023. 
                            </P>
                        </SECTION>
                    </REGTEXT>
                    <REGTEXT TITLE="26" PART="1">
                        <AMDPAR>
                            <E T="04">Par. 4.</E>
                             Section 1.706-0 is amended by revising the entry for § 1.706-3 to read as follows:
                        </AMDPAR>
                        <SECTION>
                            <SECTNO>§ 1.706-0</SECTNO>
                            <SUBJECT> Table of contents.</SUBJECT>
                            <STARS/>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 1.706-3 </SECTNO>
                            <SUBJECT>Items attributable to interest in lower-tier partnership.</SUBJECT>
                            <P>(a) through (c) [Reserved]</P>
                            <P>(d) Conservation contributions.</P>
                            <P>(e) Applicability date.</P>
                            <STARS/>
                        </SECTION>
                    </REGTEXT>
                    <REGTEXT TITLE="26" PART="1">
                        <AMDPAR>
                            <E T="04">Par. 5.</E>
                             Section 1.706-3 is revised to read as follows:
                        </AMDPAR>
                        <SECTION>
                            <SECTNO>§ 1.706-3</SECTNO>
                            <SUBJECT> Items attributable to interest in lower-tier partnrship.</SUBJECT>
                            <P>(a) through (c) [Reserved]</P>
                            <P>
                                (d) 
                                <E T="03">Conservation contributions.</E>
                                 For purposes of section 706(d)(3), in the case of a qualified conservation contribution (as defined in section 170(h)(1) and § 1.170A-14(a) without regard to whether such contribution is a disallowed qualified conservation contribution within the meaning of § 1.170A-14(j)(3)(vii)) by a partnership that is allocated to an upper-tier partnership, the upper-tier partnership must allocate the contribution among its partners in accordance with their interests in the qualified conservation contribution at the time of day at which the qualified conservation contribution was made, regardless of the general rule of section 706(d)(3). Pursuant to § 1.706-4(a)(2), the rules of § 1.706-4 do not apply to allocations subject to this section.
                            </P>
                            <P>
                                (e) 
                                <E T="03">Applicability date.</E>
                                 Paragraph (d) of this section applies to qualified conservation contributions made after December 29, 2022, and in partnership taxable years ending after December 29, 2022.
                            </P>
                        </SECTION>
                    </REGTEXT>
                    <REGTEXT TITLE="26" PART="1">
                        <AMDPAR>
                            <E T="04">Par. 6.</E>
                             Section 1.706-4 is amended by:
                        </AMDPAR>
                        <AMDPAR>1. Adding a reserved paragraph (e)(2)(xii);</AMDPAR>
                        <AMDPAR>2. Adding paragraph (e)(2)(xiii); and</AMDPAR>
                        <AMDPAR>3. Revising paragraph (e)(3).</AMDPAR>
                        <P>The additions and revision read as follows:</P>
                        <SECTION>
                            <SECTNO>§ 1.706-4 </SECTNO>
                            <SUBJECT>Determination of distributive share when a partner's interest varies.</SUBJECT>
                            <STARS/>
                            <P>(e) * * *</P>
                            <P>(2) * * *</P>
                            <P>(xii) [Reserved]</P>
                            <P>(xiii) Applicable for partnership taxable years ending after December 29, 2022, any qualified conservation contribution (as defined in section 170(h)(1) and § 1.170A-14(a) without regard to whether such contribution is a disallowed qualified conservation contribution within the meaning of § 1.170A-14(j)(3)(vii)) made after December 29, 2022.</P>
                            <P>
                                (3) 
                                <E T="03">Small item exception</E>
                                —(i) 
                                <E T="03">In general.</E>
                                 A partnership may treat an item described in paragraph (e)(2) of this section (except for an item described in paragraph (e)(2)(xiii) of this section) as other than an extraordinary item for purposes of this paragraph (e) if, for the partnership's taxable year the total of all items in the particular class of extraordinary items (as enumerated in paragraphs (e)(2)(i) through (xii) of this section, for example, all tort or similar liabilities, but in no event counting an extraordinary item more than once) is less than five percent of the partnership's gross income, including tax-exempt income described in section 705(a)(1)(B), in the case of income or gain items, or gross expenses and losses, including section 705(a)(2)(B) expenditures, in the case of losses and expense items; and the total amount of the extraordinary items from all classes of extraordinary items amounting to less than five percent of the partnership's gross income, including tax-exempt income described in section 705(a)(1)(B), in the case of income or gain items, or gross expenses and losses, including section 705(a)(2)(B) expenditures, in the case of losses and expense items, does not exceed $10 million in the taxable year, determined by treating all such extraordinary items as positive amounts.
                            </P>
                            <P>
                                (ii) 
                                <E T="03">Applicability date.</E>
                                 This paragraph (e)(3) applies to partnership taxable years ending after December 29, 2022. For partnership taxable years ending before December 30, 2022, see paragraph (e)(3) of this section contained in 26 CFR part 1, as revised April 1, 2024.
                            </P>
                            <STARS/>
                        </SECTION>
                    </REGTEXT>
                    <SIG>
                        <NAME>Douglas W. O'Donnell,</NAME>
                        <TITLE>Deputy Commissioner.</TITLE>
                        <DATED>Approved: June 15, 2024.</DATED>
                        <NAME>Aviva R. Aron-Dine,</NAME>
                        <TITLE>Acting Assistant Secretary of the Treasury (Tax Policy).</TITLE>
                    </SIG>
                </SUPLINF>
                <FRDOC>[FR Doc. 2024-13844 Filed 6-24-24; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 4830-01-P</BILCOD>
            </RULE>
        </RULES>
    </NEWPART>
</FEDREG>
